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ITAT - Where EOU’s were situated at separate location having independent buildings on separate addresses, their Plant & Machinery and fixed assets were also separate, cannot be treated as ‘single unit’ for section 10B deduction, merely on the basis that separate books of accounts were not maintained.
DCIT. vs. NIIT Ltd.
(2015) TaxCorp(LJ) 6677 (ITAT-DELHI)
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HC - Even though dividend income derived from business promotion was assessable under head ‘income from other sources’ u/s 56, still interest expenditure incurred for the purpose of business promotion should be considered for business expenditure deduction u/s 36 (1) (iii) and not u/s 57.
Eicher Goodearth vs. CIT
(2015) TaxCorp(LJ) 6674 (HC-DELHI) · Sections. 36, 57
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HC - Additional excise duty incurred on plastic moulds, given free of cost to contract manufacturers for manufacture of Tupperware products being 'tax-neutral', expense allowable u/s 37.
Tupperware India Pvt. Ltd. vs. CIT
(2015) TaxCorp(LJ) 6672 (HC-DELHI) · Section. 37
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ITAT - When the fact of embezzlement is not accepted by the AO, there cannot be any occasion to make substantive assessment and protective assessment in respect of such an embezzlement income. “Protective addition” permissible only when income certainty established.
ITO. Vs. Ketan B Thakkar
(2015) TaxCorp(LJ) 6671 (ITAT-AHMEDABAD)
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ITAT - Supply of sale of hardware and license of embedded software to end customers in India by a US company through its Indian subsidiaries is not royalty under Article 12 of India-US DTAA.
Aspect Software Inc. vs. ADIT
(2015) TaxCorp(LJ) 6670 (ITAT-DELHI)
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HC - Assembling of instruments and apparatus for measuring and detecting ionizing radiators is a manufacturing activity eligible for deduction u/s 10B
Commissioner of Income-tax, Bangalore v. Saint Gobain Crystals & Detectors India (P.) Ltd.
(2015) TaxCorp(LJ) 6654 (HC-KARNATAKA) · http://taxcorp.in/FileOpenDT.aspx?ID=61160&Category=Judgment&CategoryType=Zip
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HC - Denying extension of stay by ITAT beyond 365 days to 'well-behaved' assessee is violative of Article 14 of Constitution and has no nexus or connection with object sought to be achieved.
Pepsi Foods (P.) Ltd. v. Assistant Commissioner of Income-tax
(2015) TaxCorp(LJ) 6653 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=61159&Category=Judgment&CategoryType=Zip
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HC - Since there was no explanation by assessee for payment of commission to his son, daughter and daughter-in-law, moreover, there was no agreement between said parties, claim for deduction under section 36(1)(ii) was to be rejected. Similarly excessive rent paid to relatives in absence of explanation was to be rejected.
Subhash Chander Malik v. Deputy Commissioner of Income-tax, Circle (I) Chandigarh
(2015) TaxCorp(LJ) 6652 (HC-P&H) · http://taxcorp.in/FileOpenDT.aspx?ID=60804&Category=Judgment&CategoryType=Zip
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ITAT - Since payment made to Tamil Nadu Sports Association was not covered under any of specific sections under Chapter XVIIB of Act, No TDS.
International Merchandising Corporation v. ADIT, Circle 1(2) International Taxation, New Delhi
(2015) TaxCorp(LJ) 6651 (ITAT-DELHI) · http://taxcorp.in/FileOpenINTL.aspx?ID=7984&Category=INTLDecisions&CategoryType=Zip
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HC - Interest received by assessee on R.B.I. securities after sale of same, as R.B.I. did not record change of ownership, such interest belonged to purchaser and not chargeable u/s 4 in assessee's hands
ICICI Securities Ltd. v. Assistant Commissioner of Income-tax-3(2), Mumbai
(2015) TaxCorp(LJ) 6650 (HC-BOMBAY) · http://taxcorp.in/FileOpenDT.aspx?ID=57837&Category=Judgment&CategoryType=Zip
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ITAT - CIT(A) holding that assessee did not have PE in India as per DTAA without giving reasons, matter required readjudication
ADIT (IT)-1 (2), Mumbai v. Co-operative Centrale Raiffeisen
(2015) TaxCorp(LJ) 6647 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=40696&Category=ITAT&CategoryType=Zip
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HC - Expenditure in cash in excess of Rs. 20,000 on costumes, makeup, wig material, travelling expenses etc., at different places of shooting was to be allowed as there was reasonableness in claim of assessee (actor)
Commissioner of Income-tax, Central Circle II, Chennai v. R.S. Suriya
(2015) TaxCorp(LJ) 6646 (HC-MADRAS) · http://taxcorp.in/FileOpenDT.aspx?ID=58513&Category=Judgment&CategoryType=Zip
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HC - Receipts on account of sale of pig iron, vessels, engineering products, materials and coke breeze, having no nexus with exports, hit by clause (baa) of the explanation to Section 80HHC, thus reduction of the same warranted from eligible profits.
Sesa Goa Ltd. vs. CIT
(2015) TaxCorp(LJ) 6645 (HC-BOMBAY) · Section. 80HHC
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ITAT - When overburden removal is carried out in the process of extraction of coal and the extraction of coal is not possible without doing so, such overburden expenses is required to be treated as revenue expenses
Northern Coalfields Limited vs. ACIT
(2015) TaxCorp(LJ) 6644 (ITAT-JABALPUR) · Sections. 35E, 37(1)
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HC - DRP procedure is part of the assessment proceedings and queries raised and answered during the DRP proceedings stands on same footing as in the course of assessment proceedings before AO, therefore quashes reassessment proceedings u/s 148 is not justified.
Lahyemer Holdings Gmbh vs DDIT
(2015) TaxCorp(LJ) 6643 (HC-DELHI) · Section. 148
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HC - The Third Proviso which restricts the power of the ITAT to grant stay beyond 365 days “even if the delay in disposing of the appeal is not attributable to the assessee” is arbitrary, unreasonable and discriminatory. It is struck down as violative of Article 14. The ITAT has the power to extend stay even beyond 365 days
Pepsi Foods Pvt. Ltd vs. ACIT
(2015) TaxCorp(LJ) 6642 (HC-DELHI) · Section 254(2A)
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HC- Loss on sale of shares by assessee to JV partner at price lower than one offered in rights issue was not a 'colourable device' and transaction could not be said to be a cover up for de facto or real transaction
Commissioner of Income-tax v. SIEL Ltd.
(2015) TaxCorp(LJ) 6626 (HC-DELHI) · http://taxcorp.in/FileOpenINTL.aspx?ID=7418&Category=INTLDecisions&CategoryType=Zip
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HC - As amendment made to provisions of section 40A(3) with effect from 1-4-1996 being substantive in nature could not be applied retrospectively
M.G. Pictures (Madras) Ltd. v. Assistant Commissioner of Income-tax, Chennai
(2015) TaxCorp(LJ) 6625 (SC) · http://taxcorp.in/FileOpenDT.aspx?ID=60754&Category=Judgment&CategoryType=Zip
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HC - Since assessee had amalgamated with transferee-company, assessment in name of amalgamating company was invalid (a nullity) as it ceased to exist after amalgamation.
Commissioner of Income-tax (C)-II v. Micra India (P.) Ltd.
(2015) TaxCorp(LJ) 6624 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=61143&Category=Judgment&CategoryType=Zip
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ITAT - It was noted that some of comparables selected by TPO were providing high end KPO services whereas assessee was engaged in rendering low end BPO services and, thus, there existed functional difference, addition to assessee's ALP in respect of rendering ITES services to its ALP made by TPO is to be deleted.
TNS India (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle-2 (3), Hyderabad
(2015) TaxCorp(LJ) 6623 (ITAT-HYDERABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=40499&Category=ITAT&CategoryType=Zip
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