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ITAT - Addition towards bogus purchases cannot be made solely on the basis of statements of seller before sales-tax authorities. The AO has to conduct own enquiries and give assessee opportunity to cross-examine the seller
ITO vs. Deepak Popatlal Gala
(2015) TaxCorp(LJ) 5984 (ITAT-MUMBAI)
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ITAT - Once the particular transaction, which is the subject matter of comparison for transfer pricing adjustment, has not even undertaken or has been cancelled, then such a transaction has to be excluded for the purpose of benchmarking the transfer price.
M/s Livingstones Versus Deputy commissioner of Income Tax, 16(3), Mumbai
(2015) TaxCorp(LJ) 5974 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=35149&Category=ITAT&CategoryType=Zip
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ITAT - The condition precedent for invoking the “make available” clause is that the services should enable the person acquiring the services to apply technology contained therein. Unless there is a transfer of technology involved in technical services the “make available” clause is not satisfied. Article 12 of India U.S.A. treaty were not applicable.
The Income-tax Officer(Intl. Taxn.) Vadodara Versus M/s Denial Measurement
(2015) TaxCorp(LJ) 5973 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=39635&Category=ITAT&CategoryType=Zip
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HC - Reopening of assessment u/s 147 - The reasons to believe must be such, which upon a plain reading, should demonstrate that such a reasonable belief could be formed on some basis/ foundation and had in fact been formed by the Assessing Officer that income has escaped assessment.
Krown Agro Foods Pvt. Limited Versus Assistant Commissioner of Income-Tax Circle 5 (1) New Delhi
(2015) TaxCorp(LJ) 5972 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=60741&Category=Judgment&CategoryType=Zip
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HC - PLR rates are not applicable to loans to be re-paid in foreign currency. The interest rates vary and are thus dependent on the foreign currency in which the repayment is to be made
Commissioner of Income Tax-I Versus M/s Cotton Naturals (i) pvt. Ltd.
(2015) TaxCorp(LJ) 5971 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=60758&Category=Judgment&CategoryType=Zip
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SC - SLP dismissed. HC had held as inadmissible u/s 37(1), a claim for reduction in value of closing stock on account of goods confiscated by Customs. Assessee is not entitled to claim any expenditure which had been incurred on account of any infraction of law
CIT vs Ambassador Industrial
(2015) TaxCorp(LJ) 5970 (SC) · Section 37(1)
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SC - When it is clearly mentioned that amendment in the statute is substantive in nature, assessee has no option to avail benefits even on retrospective basis. Retrospective benefit of amended Sec 40A(3) (amended w.e.f April 1,1996) is not available to assessee for entire block period of ten years, despite the amendment date falling within the block period.
M.G pictures Ltd vs ACIT
(2015) TaxCorp(LJ) 5969 (SC)
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SC - Once the income from leasing gas cylinders is accepted as the “business income”, which is taxed at the hands of the assessee as such, there is no reason how the depreciation on these gas cylinders could be disallowed on the ground that the cylinders were not purchased for “leasing business
K.M. Sugar Mills Limited vs. CIT
(2015) TaxCorp(LJ) 5968 (SC)
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ITAT - Section 206AA (providing for higher 20% TDS rate without PAN cases) does not override Sec 90(2) of the Act. Lower rate of TDS as per favourable DTAA provisions would be applicable and not higher rate u/s 206AA.
DDIT vs. Serum Institute of India Limited.
(2015) TaxCorp(LJ) 5967 (ITAT-PUNE) · Section 206AA
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HC - Since before completion of regular assessment, BCA (Business Corporate Agreement) was available with AO, hence no failure on part of assessee to “fully and truly disclose all material facts”. Re-assessment on the assumption that Sec 10A exemption was wrongly granted to assessee due to non-production of BCA is to be quashed.
IBS Software Services Pvt. Ltd. vs Union of India
(2015) TaxCorp(LJ) 5966 (HC-KERALA)
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HC - The income from the transactions recorded in the seized diary should be determined on the basis of highest peak, as increased by the net profit of 5 per cent on the receipts.
Commissioner of Income-tax- III v. Tirupati Construction Co.
(2015) TaxCorp(LJ) 5965 (HC-GUJARAT) · http://taxcorp.in/FileOpenDT.aspx?ID=58655&Category=Judgment&CategoryType=Zip
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HC - Stay application can not be rejected on ground that issues raised in appeal and stay have already been dealt with in assessment order.
Mumbai Metropolitan Region Development Authority v. Deputy Director of Income-tax (Exemption-1) (1)
(2015) TaxCorp(LJ) 5964 (HC-BOMBAY) · http://taxcorp.in/FileOpenDT.aspx?ID=58682&Category=Judgment&CategoryType=Zip
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HC - Since Assessing Officer held that brand launch expenses were of revenue nature, the same could not be treated as deferred revenue expenditure and spread over 5 years.
Commissioner of Income-tax v. Vodafone Essar South Ltd.
(2015) TaxCorp(LJ) 5963 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=58647&Category=Judgment&CategoryType=Zip
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ITAT - Assessee is not entitled to claim cost against revisional order passed by CIT (order so passed being judicial/quasi judicial in nature), even though such order was unsustainable.
Parkar Medical Foundation v. Deputy Commissioner of Income-tax, Ratnagiri Circle, Ratnagiri
(2015) TaxCorp(LJ) 5962 (ITAT-PUNE) · http://taxcorp.in/FileOpenDT.aspx?ID=37749&Category=ITAT&CategoryType=Zip
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HC - If the recorded reasons show contradiction and inconsistency it means necessary satisfaction in terms of the statutory provision has not been recorded at all. The Court cannot be called upon to indulge in guess work or speculate as to which reason has enabled the AO to act in terms of s. 147
Plus Paper Food Pac Ltd vs. ITO
(2015) TaxCorp(LJ) 5961 (HC-BOMBAY) · Section 147, 148
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ITAT - AO is mandated to decide the objection to the notice u/s 148 and supply or communicate it to the assessee, Failure to comply with the procedure prescribed in G.K.N. Drive Shaft (India) Ltd. vs. ITO 259 ITR 19 (SC) renders the assessment order invalid & void ab initio
Suresh Chandra vs. ITO
(2015) TaxCorp(LJ) 5960 (ITAT-DELHI) · Sections 147, 148
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ITAT - Merilyn Shipping 136 ITD 23 (SB) should be followed in view of approval by Allahabad HC and dismissal of SLP by Supreme Court. In any event as two views are possible, view in favour of assessee should be followed. Amounts already paid without TDS cannot be disallowed
Jitendra Mansukhlal Shah vs. DCIT
(2015) TaxCorp(LJ) 5959 (ITAT-MUMBAI) · Section 40(a)(ia)
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ITAT - Disallowance of expenditure for failure to deduct TDS does not attract penalty because it cannot be said to be a case of concealment of income or furnishing of inaccurate particulars of income
Rushi Builders and Developers vs. ACIT
(2015) TaxCorp(LJ) 5958 (ITAT-MUMBAI) · Section 271(1)(c)
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HC - Since there was no corresponding interest income in the return of income, TDS credit is not available to assessee following cash system of accounting despite TDS certificate receipt.
Y. Rathiesh vs. CIT
(2015) TaxCorp(LJ) 5957 (HC-AP) · Section 198
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SC - SLP Dismissed. Upholds HC's decision to hold Sec 245 HA(1)(iv) provisions 'arbitrary' to the extent it fixes the cut-off date as March 31, 2008. SC held that it is a well-considered judgment of the High Court and does not call for any interference.
UOI vs. Star Television News Limited
(2015) TaxCorp(LJ) 5956 (SC)
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