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Landmark Rulings

Direct Tax landmark rulings

16,089 rulings

  1. Karnataka High Court · 10 Feb 2014
    Set off - MAT credit - Interest under Sections 234B and 234C - once this benefit is confirmed from 01.04.2007, when Section 115JAA was introduced, the legal position is the same and the Explanation introduced by Finance Act, 2006, which came into effect from 01.04.2007, is only clarificatory. Therefore, the condition is not applicable for the assessee for the period prior to 01.04.2007 and it is rightly rejected by both the appellate authorities.

    CIT vs BPL LTD

    (2014) TaxCorp(LJ) 2686 (HC-KARNATAKA) · Income Tax - Sections 115JAA, 115JB, 143(1), 143(3), 234B

  2. ITAT Bangalore · 28 Feb 2014
    Merely because the assessee did not have any business income cannot be a reason to conclude that there is a cessation of business activities.

    ITO vs Nandaki Business Solutions Pvt.Ltd

    (2014) TaxCorp(LJ) 2685 (ITAT-BANGALORE) · Deductions under sections 29 to 43D of the Act

  3. ITAT Amritsar · 06 Mar 2014
    Addition has been made by mere disallowance on cane cess not paid u/s 43B, Bonus not paid u/s 43B and FBT debited to P&L A/C. Disallowance does not mean furnishing inaccurate particulars or concealing particulars of income. Similarly, addition on account of suspense a/c does not pertain to year under consideration, so issue a levy of penalty u/s 271(1)(c) does not arise on this issue well. Therefore, the penalty in dispute is not sustainable in the eye, as discussed by the learned first appellate authority in the impugned order.

    DCIT vs Ajnala Co. Op. Sugar Mills Ltd

    (2014) TaxCorp(LJ) 2684 (ITAT-AMRITSAR) · Income Tax Section 271(1)(c)

  4. ITAT Cochin · 31 Jan 2014
    Section 10(23C) – “any income” - Whether all receipts of the assessee would fall within the term “ any income”.

    ACIT vs Quilon Medical Trust Medicity

    (2014) TaxCorp(LJ) 2683 (ITAT-COCHIN) · Income Tax Section 10(23C)

  5. ITAT Cochin · 31 Jan 2014
    Delay of 784 days in filing the appeal - Delay is due to failure of the Chartered Accountant to file the appeals before the CIT(A), the assessee cannot be penalized.

    Premier Marine Exports vs ITO

    (2014) TaxCorp(LJ) 2682 (ITAT-COCHIN)

  6. Madras High Court · 13 Feb 2014
    Chit dividend received taxable u/s 28(iii) - Mere participating in a scheme offered by the third party, wherein others also joined, does not, in any manner put forth a principle of mutuality.

    V Rajkumar vs The Commissioner of Income Tax

    (2014) TaxCorp(LJ) 2681 (HC-MADRAS) · Income Tax Section 28(iii)

  7. ITAT Chennai · 29 Apr 2013
    Revised return can be filed at any time before expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier.

    ACIT vs Precot Meridian Ltd

    (2014) TaxCorp(LJ) 2680 (ITAT-CHENNAI) · Income Tax Section 139(1), 139(5), 80IA, 80AC

  8. Karnataka High Court · 18 Mar 2014
    Assessee entitled to claim exemption under Section 54(1) of the Act in respect of two separate residential houses acquired out of the capital gains.

    Commissioner of Income-tax vs Khoobchand M. Makhija

    (2014) TaxCorp(LJ) 2679 (HC-KARNATAKA) · Income Tax Section 54

  9. Madras High Court · 27 Jan 2014
    Section 12AA can be granted to the trust with both charitable and religious objects. No distinction between the Trusts created with the object of charitable and religious purposes and, even if the Trust is not created with both the objects, law does not make any disqualification for the trust to make an application for registration. Trust registration cannot be rejected on the ground that its activity are not commenced.

    Director of Income Tax Exemptions vs Seervi Samaj Tambaram Trust

    (2014) TaxCorp(LJ) 2678 (HC-MADRAS) · Income Tax Section 12AA, 11(1)(a)

  10. Karnataka High Court · 05 Feb 2014
    S. 80IA(5) - Deduction is to be calculated when the claim for deduction is made.

    CIT vs Shri Anil H Lad

    (2014) TaxCorp(LJ) 2677 (HC-KARNATAKA) · Income Tax Section 80IA(5)

  11. ITAT Kolkata · 19 Nov 2013
    Expiry of limitation period – Beyond 47 days - There is no requirement that service must be effected before the expiry date but there must be evidences to show that assessment order was indeed passed before the limitation

    Shri Subrata Roy vs ITO

    (2014) TaxCorp(LJ) 2676 (ITAT-KOLKATA)

  12. ITAT Chennai · 06 Dec 2013
    Amount paid from the company bank account on behalf of Director Mrs. Ayashath Habeeba, (assessee wife) out of credit balance lying with the company cannot be treated as deemed dividend u/s 2(22)(e).

    ACIT vs Shri PSM Ahmed Abdul Kadir

    (2014) TaxCorp(LJ) 2675 (ITAT-CHENNAI) · Income Tax Section 2(22)(e)

  13. ITAT Mumbai · 05 Mar 2014
    Section 68 - The assessee has established the correlation between the entries of withdrawals and that of deposits. Merely because the number of transactions was more, that itself is not sufficient to hold that the same has arisen out of the undisclosed income of the assessee especially when the assessee has explained the reasons and requirements of making such transactions further corroborated with books of accounts, bank statements and other relevant documents. The ld. CIT(A) has thoroughly examined and discussed the facts and circumstances of the case and has passed a well reasoned order deleting the additions made by the AO u/s 68 of the Act.

    ITO vs Shri Gaurawdeep S. Batra

    (2014) TaxCorp(LJ) 2674 (ITAT-MUMBAI) · Income Tax Section 68

  14. ITAT Hyderabad · 27 Feb 2014
    JDA - No possession handed over to the developer and also kept the possession with the assessee himself and only for the limited purpose of carrying on construction in the scheduled property by the developer, permission was given to the developer to enter the property. It cannot be said that absolute possession of the property was given to the developer, in other words, only symbolic possession has been given to the developer. Further, the assessee has not received any consideration whatsoever vide the Joint Development Agreement. Being so, it cannot be said that there is a transfer in terms of section 2(47)(v) of the Act.

    Sri ABVS Prakash vs The Asst. CIT

    (2014) TaxCorp(LJ) 2673 (ITAT-HYDERABAD) · Income Tax Section 2(47)(v)

  15. Delhi High Court · 25 Feb 2014
    Expenditure on foreign education of employee (son of director) is deductible if there is business nexus

    KOSTUB INVESTMENT LTD vs COMMISSIONER OF INCOME TAX

    (2014) TaxCorp(LJ) 2672 (HC-DELHI) · Income Tax Section 37

  16. Delhi High Court · 28 Jan 2014
    S. 147: Even s. 143(1) Intimation cannot be reopened in the absence of new information

    MOHAN GUPTA (HUF) vs COMMISSIONER OF INCOME TAX-XI AND ANR

    (2014) TaxCorp(LJ) 2671 (HC-DELHI) · Income Tax Section 147, 143(1)

  17. ITAT Ahmedabad · 22 Nov 2013
    Whether exemption u/s 54EC can be availed by a Trust even if investments are made in the name of trustees or beneficiaries

    Popatlal N Vora Inheritance Trust vs ITO

    (2014) TaxCorp(LJ) 2670 (ITAT-AHMEDABAD) · Income TAx Section 54EC

  18. ITAT Mumbai · 19 Feb 2014
    The assessee has consumed the base land FSI in the projects already completed by it and the balance portion of the project shall be completed on the basis of TDR purchased by it. However this explanation, defies the logic and also accounting principles. When the assessee is computing income on the completed projects, it is not known as to how it could claim land cost pertaining to unfinished projects against those completed projects. When it was pointed out to the assessee that its claim is not correct, the assessee has accepted for the addition of a part of land cost proportionate to uncompleted project. Thus, it is seen that the assessee has made an inaccurate or erroneous claim of land cost in its return of income, which has resulted in furnishing of inaccurate particulars of income. Further, the assessee has offered an explanation with regard to this claim, but has failed to substantiate it by bringing any material on record. Further the assessee has failed to prove that the said explanation was bona find one. It is also not the case of the assessee that the said claim was in accordance with the accounting practice regularly followed by it or in the trade circles. Hence, the assessee has failed to discharge the burden placed upon him under Explanation 1 to sec. 271 of the Act, in which case, the assessee shall be deemed to have concealed particulars of income in respect of this addition. Since this claim is an incorrect claim on facts, the decision rendered by Hon’ble Supreme Court in the case of Reliance Petroproducts Pvt Ltd (supra) shall not apply. It noticed that the Ld CIT(A) has deleted the penalty by placing reliance on the said decision. Appeal allowed.

    ACIT vs Shree Swastik Developers

    (2014) TaxCorp(LJ) 2669 (ITAT-MUMBAI) · Explanation 1 to sec. 271

  19. ITAT Hyderabad · 11 Jun 2013
    The unsubstantiated loose sheets cannot be considered as a conclusive evidence to make any addition towards undisclosed income. Guess work is not possible in case of search assessment framed u/s. 143(3) or u/s. 153A of the Act.

    The Deputy CIT vs Sri K Babu Rao

    (2014) TaxCorp(LJ) 2668 (ITAT-HYDERABAD) · Income Tax Section 143(3) or u/s. 153A

  20. Allahabad High Court · 03 Jan 2014
    Share trading business on own behalf is "jobbing" - Jobbing is not speculative in view of proviso (c) to section 43(5).

    Commissioner Income Tax vs Sri Ram Kishan Gupta

    (2014) TaxCorp(LJ) 2667 (HC-ALLAHABAD) · Proviso (c) to section 43(5).

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