Direct Tax landmark rulings

1. ITAT Cochin · 07 Mar 2014
   S. 54F - Exemption - Unutilized capital gain amount to be deposited in capital gain account scheme within the due date for filing the return of income u/s 139(1) and not under 139(4)

   ITO vs Smt Rosamma Korah

   (2014) TaxCorp(LJ) 3372 (ITAT-COCHIN)

2. ITAT Agra · 29 May 2014
   Second proviso to sec. 40(a)(ia) is effective retrospectively even if it was inserted by Finance Act, 2012 prospectively from April 1, 2013. No s. 40(a)(ia) disallowance for failure to deduct TDS on payment if payee has offered amount to tax. Second Proviso to s. 40(a)(ia) inserted by Finance Act 2013 w.e.f. 1.4.2013 should be treated as curative and to have retrospective effect from 1.4.2005

   Rajeev Kumar Agarwal vs. ACIT

   (2014) TaxCorp(LJ) 3371 (ITAT-AGRA)

3. AP High Court · 06 Jun 2014
   S. 2(47)(v): Transfer under a development agreement takes place on handing over possession. Capital gains are chargeable to tax even if no consideration is received by assessee

   Potla Nageswara Rao vs. DCIT

   (2014) TaxCorp(LJ) 3370 (HC-AP) · Section 2(47)(v)

4. Karnataka High Court · 04 Apr 2014
   No concealment penalty if sec. 54F relief was denied since deal of acquiring house property couldn’t completed

   Shri Venkatesh Murthy vs ITO

   (2014) TaxCorp(LJ) 3369 (HC-KARNATAKA)

5. ITAT Chennai · 12 Mar 2014
   Exemption u/s 54F cannot be denied on account of unapproved building plan

   B Sivasubramanian vs ITO

   (2014) TaxCorp(LJ) 3368 (ITAT-CHENNAI)

6. ITAT Pune · 30 Apr 2014
   POSSESSION DATE VIS-À-VIS AGREEMENT-SALE - 'Physical possession date' as 'transfer date' of land, not date of agreement. S. 53A of the TPA would be triggered only if the transferee “has performed” or is unconditionally willing and ready to perform his part of the contract.

   Dr. Arvind S. Phadke vs. ACIT

   (2014) TaxCorp(LJ) 3367 (ITAT-PUNE)

7. ITAT Hyderabad · 07 May 2014
   Amended to S. 94(7) w.e.f. 1-4-2005 would apply prospectively w.e.f A.Y 2005-06, not be applicable to A.Y 2004-05

   Era Software Systems P. Ltd vs DCIT

   (2014) TaxCorp(LJ) 3366 (ITAT-HYDERABAD)

8. Calcutta High Court · 06 Jun 2014
   Expl to s. 73: Speculation loss on transactions in derivatives can be set off against the gains of delivery shares

   CIT vs. Baljeet Securities Pvt. Ltd.

   (2014) TaxCorp(LJ) 3364 (HC-CALCUTTA) · Section. 73

9. ITAT Ahmedabad · 05 Jun 2014
   A transfer of shares under a family arrangement is for a determinable “consideration” & is not “voluntary”. Consequently, the shares are not received under a “gift” & the transferee cannot claim benefit of cost, and holding period, of the transferor

   ACIT vs. Bilakhia Holdings P. Ltd.

   (2014) TaxCorp(LJ) 3363 (ITAT-AHMEDABAD)

10. ITAT Bangalore · 30 May 2014
    S. 194A - Co-operative bank need not deduct tax at source on interest paid to its members even if the amount exceeded Rs\- 10,000 p.a. It was held that 194A(3)(v) applies to a co-op bank and in view of the exemption, interest cannot be disallowed u\s 40(a)(ia).

    Bagalkot District Central Co-op. Bank vs Joint Commissioner of Income-tax

    (2014) TaxCorp(LJ) 3362 (ITAT-BANGALORE) · Section 194A(3), 40(a)9ia)

11. P&H High Court · 05 Jun 2014
    S. 14A disallowance cannot be made if the assessee has no tax-free income in the year

    CIT vs. Lakhani Marketing

    (2014) TaxCorp(LJ) 3361 (HC-P&H) · Section. 14A

12. Allahabad High Court · 05 Jun 2014
    S. 271(1)(c)/ 271(1B): If, in the assessment order, AO directs initiation of penalty on specific issues but not on others, he is not entitled to levy penalty on the other issues

    CIT vs. Triveni Engineering & Industries Ltd.

    (2014) TaxCorp(LJ) 3360 (HC-ALLAHABAD) · Sections. 271(1)(c), 271(1B)

13. Bombay High Court · 05 Jun 2014
    S. 254: If a legal issue is raised (even for the first time) ITAT has the duty to deal with it and cannot remand it to lower authorities

    Kansai Nerolac Paints Ltd vs. DCIT

    (2014) TaxCorp(LJ) 3359 (HC-BOMBAY) · Section. 254

14. ITAT Cochin · 07 Mar 2014
    Due date’ U/s. 54F is due date for filing return U/s. 139(1) and not U/s. 139(4)

    ITO vs Smt. Rosamma Korah

    (2014) TaxCorp(LJ) 3358 (ITAT-COCHIN) · Section. 54F

15. Allahabad High Court · 27 May 2014
    Exemption U/s. 10(23-C) (iiiad) even when the assessee had not claimed any exemption under the Section in assessment proceedings

    Commissioner Of Income Tax Vs. Om Sarla Babu Educational Trust

    (2014) TaxCorp(LJ) 3357 (HC-ALLAHABAD) · Section. 10(23-C) (iiiad)

16. Allahabad High Court · 02 Jun 2014
    Assessee cannot be denied credit for TDS on the ground of Form 26AS mismatch because he is not at fault. Non-grant of TDS credit causes harassment, inconvenience & makes the assessee feel cheated. Dept to pay interest + costs of Rs. 25,000

    Rakesh Kumar Gupta vs. UOI

    (2014) TaxCorp(LJ) 3356 (HC-ALLAHABAD)

17. ITAT Mumbai · 11 Apr 2014
    Foreign company deemed to have PE in India, If few places in India were at disposal of its employees

    Renoir Consulting Ltd. Vs. DCIT -International Taxation

    (2014) TaxCorp(LJ) 3355 (ITAT-MUMBAI)

18. Delhi High Court · 23 May 2014
    Exemption u/s 10(23C) cannot be denied for generation of incidental surplus by educational institution

    Council For The Indian School, Certificate Examinations Vs. DGIT

    (2014) TaxCorp(LJ) 3354 (HC-DELHI) · Section 10(23C)

19. Gujarat High Court · 24 Mar 2014
    No disallowance u/s 14A & Rule 8D can be made if the assessee does not have tax-free income & no claim for exemption is made

    CIT vs. Corrtech Energy Pvt. Ltd

    (2014) TaxCorp(LJ) 3353 (HC-GUJARAT)

20. ITAT Jodhpur · 13 May 2014
    Law laid down on when an isolated transaction can be regarded as an “adventure in the nature of trade” and the taxability of agricultural land situate beyond municipal limits

    Smt. Supriya Kanwar vs. ITO

    (2014) TaxCorp(LJ) 3352 (ITAT-JODHPUR)

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