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ITAT - Interest free advance received by assessee from developer-builder (upon entering into development agreement), not sale consideration. Capital-gains addition deleted.
ACIT vs. Upper India Paper Mills
(2015) TaxCorp(LJ) 7145 (ITAT-LUCKNOW)
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ITAT - Development Agreement: Tax implications of entering into a development agreement in respect of land held as stock-in-trade explained
Dheeraj Amin vs. ACIT
(2015) TaxCorp(LJ) 7144 (ITAT-BANGALORE)
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ITAT - Transfer Pricing: Even if the loan to the 100% subsidiary is intended to be a long term investment in the subsidiary and it has a crucial role to play in the assessee's business plans, it cannot be treated as "quasi capital". The ALP of the loan has to be determined on the basis of LIBOR interest
Soma Textile & Industries Limited vs. ACIT
(2015) TaxCorp(LJ) 7143 (ITAT-AHMEDABAD)
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ITAT - For claiming deduction u/s 80IB, one needs to evaluate whether assessee had undertaken “entrepreneurship risk” in project execution. Assumption of such an entrepreneurship risk not dependent on land’s ownership.
Umeya Corporation vs. ITO
(2015) TaxCorp(LJ) 7134 (ITAT-AHMEDABAD) · Section. 80IB(10)
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ITAT - Charitable activities cannot be held as business merely due to charge of fee for rendering services and there is no profit motive in the activities of the assessee.
Institute for Development and Research in Banking Technology (IDRBT) Vs. ACIT
(2015) TaxCorp(LJ) 7126 (ITAT-HYDERABAD)
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ITAT - Section 14A read with rule 8D can be invoked without recording any satisfaction by AO that the claim made by the assessee in respect of the expenditure incurred in relation to income which does not form part of the total income is incorrect.
UP Electronics Corporation Ltd. Vs. DCIT
(2015) TaxCorp(LJ) 7125 (ITAT-LUCKNOW)
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ITAT - To be the "developer" u/s 80-IB(10) of a housing project, the assessee has to undertake the entrepreneurship risk in execution of the project. He need not be the owner of the land.
Shri Umeya Corporation vs. ITO
(2015) TaxCorp(LJ) 7124 (ITAT-AHMEDABAD) · Section 80-IB(10)
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ITAT - In a case where there is inadequate inquiry but not lack of inquiry, the CIT u/s 263 must conduct inquiry and verification and record the finding how the assessment order is erroneous. He cannot simply remand the matter to the AO for verification.
Maya Gupta vs. CIT
(2015) TaxCorp(LJ) 7123 (ITAT-DELHI) · Section 263
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ITAT - Old liabilities, even if treated as genuine in earlier years and even if on capital account, are liable to be assessed as "income" u/s 56(2)/ 68, in year of write-back if assessee is unable to provide confirmations and substantiate genuineness of liabilities.
Panna S. Khatau vs. ITO
(2015) TaxCorp(LJ) 7122 (ITAT-MUMBAI) · Sections 56(2), 68
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ITAT - Land-JDA deal - Once land is held as stock in trade, it ceases to be a 'capital asset' u/s 2(14) and thus, provisions regarding 'transfer' and 'capital gains' are not attracted.
Dheeraj Amin vs. ACIT
(2015) TaxCorp(LJ) 7121 (ITAT-BANGALORE)
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ITAT - Payment by Indian Company to a Finland company for reviewing design/drawings prepared by the contractor to ensure that they are of right quality is not FTS under Article 13 of India-Finland DTAA. No TDS u/s 195.
ITO. Vs. Nokia India Pvt. Ltd.
(2015) TaxCorp(LJ) 7120 (ITAT-DELHI)
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HC - Writ - Initiation of prosecution u/s 276C merely based on the correspondence between CBDT and CIT is to be quashed. CIT, as competent authority to decide whether or not to launch prosecution.
Liz Batra vs. CBDT
(2015) TaxCorp(LJ) 7119 (HC-P&H)
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ITAT - Important principles of what is a "charitable purpose" and the scope of the proviso to section 2(15) of the Act explained.
Institute for Development and Research in Banking Technology (IDRBT) vs. ADIT
(2015) TaxCorp(LJ) 7118 (ITAT-HYDERABAD) · Section 2(15), 11
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ITAT - (i) Investments in subsidiaries & joint ventures are for strategic purposes and not for earning dividend and so the expenditure cannot be disallowed u/s 14A r/w rule 8D, (ii) If the AO does not deal with the assessee's submissions and merely says "not acceptable" it means he has not recorded proper satisfaction.
U. P. Electronics Corporation Ltd vs. DCIT
(2015) TaxCorp(LJ) 7117 (ITAT-LUCKNOW) · Section 14A
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ITAT - JDA - Even if possession is handed over to the developer, there is no "transfer" u/s 2(47) if the developer has only paid an interest-free advance to the assessee to meet expenses.
ACIT vs. Upper India Paper Mills Co Pvt. Ltd
(2015) TaxCorp(LJ) 7116 (ITAT-LUCKNOW) · Section 2(47)(v)
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ITAT - If notice sent by post not received back as ‘unserved’ within a period of 30 days of its issuance, it shall be presumed that notice is duly served upon the assessee. Postal-authorities act as agent of assessee.
ITO. Vs. Shubhashri Panicker
(2015) TaxCorp(LJ) 7102 (ITAT-JAIPUR)
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ITAT - Expenditure in cash was genuine in nature and debited to account as collective sum while payment was made to many labours. Cannot be disallowed u/s 40A(3).
DCIT. vs. Kolli Gopal Krishna
(2015) TaxCorp(LJ) 7101 (ITAT-HYDERABAD) · Section. 40A(3)
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ITAT - The language of section 14A includes that AO must record a satisfaction if he was unsatisfied with any incorrect claim of the assessee. If he failed to record such a finding then it cannot be said that he rightly invoked provision of section 14A.
Multiplex Capital Ltd. Vs. ITO
(2015) TaxCorp(LJ) 7100 (ITAT-DELHI) · Section 14A
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ITAT - An assessment or appeal or any legal proceedings must be proceeded with the authority who assign jurisdiction over such assessee/individual/person.
Aerens Estates P. Ltd., New Delhi Vs. DCIT
(2015) TaxCorp(LJ) 7099 (ITAT-DELHI)
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SC - S. 24-AA Surtax Act - Principles of interpretation of a law conferring an exemption or concession explained
Oil & Natural Gas Corporation Limited vs. CIT
(2015) TaxCorp(LJ) 7098 (SC) · Section 24-AA
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