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ITAT - When an Income-tax Officer adopted one of the courses permissible in law and it has resulted in loss of revenue or where two views are possible and the Income-tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an order which is erroneous or prejudicial to the interest of revenue unless the view taken by the Assessing Officer is unsustainable in law
ICICI Lombard General Insurance Co. Ltd. v. Assistant Commissioner of Income-tax, Range-10 (1), Mumbai
(2015) TaxCorp(LJ) 5005 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenINTL.aspx?ID=7697&Category=INTLDecisions&CategoryType=Zip
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ITAT - In the course of income escaping assessment, if it comes to the notice of the Assessing Officer that any other item or items of income other than the item of escaped income for the assessment of which, assessment originally completed was reopened, also have escaped from original assessment, he is bound to assess such item or items of income also in the course of reassessment under section 147. Where assessee fails to prove that any adjustment made in net profit is in accordance with accounting principles, Assessing Officer can disturb net profit computed as per provisions of Companies Act, 1956, in order to compute correct amount of book profit under section 115JB
Padinjarekara Agencies (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle-1, Kottayam
(2015) TaxCorp(LJ) 5004 (ITAT-COCHIN) · http://taxcorp.in/FileOpenDT.aspx?ID=38362&Category=ITAT&CategoryType=Zip
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HC - Revision u/s 263 on the basis that the figures found in the calculation statement has no basis ignoring that these figures are taken from the books of account is not justified. AO rightly granted sec. 80-IA relief after considering books of account
Commissioner of Income-tax, Bangalore v. Kurlon Ltd.
(2015) TaxCorp(LJ) 5003 (HC-KARNATAKA) · http://taxcorp.in/FileOpenDT.aspx?ID=59064&Category=Judgment&CategoryType=Zip
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ITAT - Unabsorbed depreciation of the eligible unit is to be first set off from the profits of eligible business for computation of eligible deduction under section 80-IA
Assistant Commissioner of Income-tax, Circle-12 (3) v. Subhash Kabini Power Corpn. Ltd.
(2015) TaxCorp(LJ) 5002 (ITAT-BANGALORE) · http://taxcorp.in/FileOpenDT.aspx?ID=39251&Category=ITAT&CategoryType=Zip
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ITAT - CIT(A)'s findings on merits in a set-aside proceedings do not bind anyone. With the unfolding of subsequent developments, the assesse had to resort to an expert opinion which suggested that filing of appeal against the order of the CIT(A) is absolutely essential to safeguard his legitimate interests. Therefore, delay is condoned.
Modipon Limited vs. ITO
(2015) TaxCorp(LJ) 4995 (ITAT-DELHI)
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ITAT - Where assessee did not make payment in cash to payee but made it to the bank account of payee through a challan on the insistence of the payee, Sec 40A(3) disallowance is not attracted.
ITO vs. Y.Subramanya
(2015) TaxCorp(LJ) 4994 (ITAT-BANGALORE) · Section. 40A(3)
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ITAT - 'Tax WDV' of assets taken over from demerged company would be relevant for resulting company's depreciation upon demerger for AY 2000-01 to 2003-04
Godrej & Boyce Mfg. Co. Ltd. vs ACIT
(2015) TaxCorp(LJ) 4993 (ITAT-MUMBAI)
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HC - The word 'such date' used in Sec 94(7)(b) referred to date of purchase of securities or units and not to the record date. That if the sale of securities is beyond 3 months from date of purchase then the sale would not fall u/s 94(7).
CIT(A) vs Sarosh Nowrojee Burjorjee
(2015) TaxCorp(LJ) 4992 (HC-KARNATAKA)
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ITAT - The Commissioner has not brought out any fact or material to suggest or cast any doubt about the genuineness of the transaction, accordingly, the setting aside of the assessment order and restoring back to the file of Assessing Officer for fresh consideration is beyond the jurisdiction u/s 263
Elder IT Solutions Pvt. Ltd. Vs. CIT
(2015) TaxCorp(LJ) 4991 (ITAT-MUMBAI)
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ITAT - Cost of Furniture in Computation of Capital Gain on Property Sale is not deductible. Most of the items are primarily personal effects which are excluded from the definition of capital asset under Section 2(14) if they are meant for personal use.
Shri Sachinder Mohan Mehta Vs. ACIT
(2015) TaxCorp(LJ) 4990 (HC-DELHI)
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ITAT - If the objects and activities of the trust are genuine than registration cannot be cancelled merely because receipts are exceeding threshold limit as provided under second proviso to section 2(15)
SAE India Vs. DIT(E)
(2015) TaxCorp(LJ) 4989 (ITAT-CHENNAI) · Sections. 12AA, 2(15)
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ITAT - Turnover is an important filter which has to be adopted for determination of the ALP. Comparables have to be excluded by the turnover filter without a FAR analysis being required to be conducted. The AO cannot rely on information obtained u/s 133(6)
Yahoo Software Development India P. Ltd. vs. DCIT
(2015) TaxCorp(LJ) 4988 (ITAT-BANGALORE) · Section. 133(6)
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ITAT - Where the assessee had made the borrowings on LIBOR+ rates and advanced the same at LIBOR+ rates, then the said transaction is at arm’s length price and there is no merit in any adjustment to be made on this account. ALP of interest on funds advanced to AEs has to computed on LIBOR and not as per domestic Prime Lending Rate (PLR)
Varroc Engineering Pvt. Ltd. vs. ACIT
(2015) TaxCorp(LJ) 4987 (ITAT-PUNE)
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ITAT - Contribution of 1% of net profit to the Cooperative Education Fund maintained by National Cooperative Union is an application of income and not 'diversion of income by over-riding title'
The A. P. Mahesh Coop. Urban Bank Ltd. vs. DCIT
(2015) TaxCorp(LJ) 4986 (ITAT-HYDERABAD)
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ITAT - When the jurisdictional High Court has admitted substantial question of law on the addition, it becomes apparent that the addition so made has become debatable and penalty u/s 271(1)(c) cannot survive
Schrader Duncan Limited vs. ACIT
(2015) TaxCorp(LJ) 4985 (ITAT-MUMBAI) · Sections. 271(1)(c), 260A
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ITAT - A flat which is newly constructed by a builder on behalf of the assessee is in no way different from a house constructed. Section 54F being a beneficial provision has to be interpreted so as to give the benefit of residential unit viz., flat instead of house. Even if only advance is given the benefit still will be available for exemption u/s. 54F
Pradeep Kumar Chowdhry vs. DCIT
(2015) TaxCorp(LJ) 4984 (ITAT-HYDERABAD) · Section. 54F
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ITAT - S. 40(a)(ia) disallowance cannot be made if the assessee has not claimed a deduction. S. 80-IB(10) deduction cannot be denied on the ground that the completion certificate has not been issued by the Municipality if the assessee has completed construction before the due date
Gera Developments Pvt. Ltd. vs. JCIT
(2015) TaxCorp(LJ) 4983 (ITAT-PUNE) · Sections. 40(a)(ia), 80-IB(10)
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ITAT - Closely linked international transactions of import of spare parts, export of spare parts, IT support services, access to customized parts catalogue and amount received for warranty consideration are inter-related transactions, which were the sourcing activities of the assessee company and have to be aggregated in order to determine the ALP
Cummins India Limited vs. ACIT
(2015) TaxCorp(LJ) 4982 (ITAT-PUNE)
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ITAT - CIT, while granting registration or renewal, can only look at the nature of activities and is not concerned with violation of s. 11(5) or s. 13
Ashoka Education Foundation vs. CIT
(2015) TaxCorp(LJ) 4981 (ITAT-PUNE) · Sections. 12AA, 80G(5)
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HC - Even though there are common partners in two firms since both the firms have separate channels, be it of constitution or maintenance of accounts, the loss earned by one firm cannot be pitted or set off against the profits of the other firm
M/s. Arun Chemical & Pharmaceutical Works, Hyderabad Versus The Commissioner of Income Tax
(2015) TaxCorp(LJ) 4980 (HC-AP) · http://taxcorp.in/FileOpenDT.aspx?ID=59046&Category=Judgment&CategoryType=Zip
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