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Transfer Pricing: After TPO determines the AMP expenditure incurred for benefit of AE, balance is deemed to be incurred for assessee’s business & is automatically allowable u/s 37(1)
Whirlpool of India Ltd vs. DCIT
(2014) TaxCorp(LJ) 3195 (ITAT-DELHI) · S. 37(1)
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A charitable and religious trust which does not benefit any specific religious community is not hit by s. 13(1)(b) & is eligible to claim exemption u/s 11
CIT vs. M/s Dawoodi Bohara Jamat
(2014) TaxCorp(LJ) 3194 (SC) · S. 13(1)(b)
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Transfer Pricing: A transaction (such as a corporate guarantee) which has no bearing on profits, incomes, losses or assets of the enterprise is not an ‘international transaction’ u/s 92B(1) and not subject to transfer pricing
Bharti Airtel Limited vs. ACIT.
(2014) TaxCorp(LJ) 3193 (ITAT-DELHI)
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ITAT hauls up AO & DRP for “blatantly frivolous & unsustainable” additions. Suggests that accountability mechanism be set up to put a check on AO. Rationale for existence of ineffective DRP questioned
Bharti Airtel Limited vs. ACIT.
(2014) TaxCorp(LJ) 3192 (ITAT-DELHI)
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S. 56(2)(vii) does not apply to bonus & rights shares offered on a proportionate basis even if the offer price is less than the FMV of the shares
Sudhir Menon HUF vs. ACIT.
(2014) TaxCorp(LJ) 3191 (ITAT-MUMBAI) · S. 56(2)(vii)
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S. 220: After rejecting stay application AO must give reasonable time before taking steps for coercive recovery
Sony India Pvt. Ltd vs. ACIT.
(2014) TaxCorp(LJ) 3190 (HC-DELHI) · S. 220
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S. 142(2A): AO need not examine books of account before directing special audit. Q whether accounts are “complex” has to decided by AO & Court can interfere sparingly
AT&T Communication Services India (P) Ltd vs. CIT.
(2014) TaxCorp(LJ) 3189 (HC-DELHI) · S. 142(2A)
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S. 147: Court can examine existence but not adequacy of reasons. AO is only required to provide material on which he relies to reopen the assessment
Acorus Unitech Wireless Pvt. Ltd vs. ACIT.
(2014) TaxCorp(LJ) 3188 (HC-DELHI) · S. 147
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Transfer Pricing: Companies in ITES cannot be classified into low-end BPO services and high-end KPO services for comparability analysis but have to be classified based on the functions performed. Comparables with abnormal profit margins cannot be discarded per se but must be examined to determine whether the high margins are due to normal business conditions or not
Maersk Global Centres (India) Pvt. Ltd vs. ACIT.
(2014) TaxCorp(LJ) 3187 (ITAT-MUMBAI)
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High Court lays down zero-tolerance policy over adjournments. Threatens to dismiss appeals, hear them ex-parte or and/or impose costs if counsel are not prepared
Thermax Babcock & Wilcox Ltd vs. CIT.
(2014) TaxCorp(LJ) 3186 (HC-BOMBAY)
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S. 158BC/ 158BD: Law on how & when “satisfaction” has to be recorded by AO to attain jurisdiction over non-searched person explained
CIT vs. Calcutta Knitwears
(2014) TaxCorp(LJ) 3185 (SC) · S. 158BC, 158BD
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S. 194-H TDS does not apply to all sales promotional expenditure. It applies only if relationship between payer & payee is that of principal & agent
CIT vs. Intervet India Pvt. Ltd.
(2014) TaxCorp(LJ) 3184 (HC-BOMBAY) · S. 194-H
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Write-off of irrecoverable advances is not a “transfer” and the loss cannot be claimed as a capital loss u/s 45
Crompton Greaves Limited vs. DCIT
(2014) TaxCorp(LJ) 3183 (HC-BOMBAY) · S. 45
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The term “month” in s. 54E, 54EA, 54EB & 54EC does not mean “30 days” but the “calendar month”. So, the expression “within a month” means “before the end of the calendar month”
Alkaben B. Patel vs. ITO
(2014) TaxCorp(LJ) 3182 (ITAT-AHMEDABAD)
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S. 226: AO warned of contempt action for seeking to overreach ITAT’s stay order
A. T. Kearney India Pvt. Ltd vs. ITO
(2014) TaxCorp(LJ) 3181 (HC-DELHI) · S. 226
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S. 80-IB(10): If developer does not (without just cause) develop to full extent of FSI, a part of the sale proceeds has to treated as being for sale of FSI and denied s. 80-IB(10) deduction
CIT vs. Moon Star Developers
(2014) TaxCorp(LJ) 3180 (HC-GUJARAT)
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Sale of land registered in lesser value by Vendee to reduce of registration charges, balance paid in cash cannot be treated as unexplained cash credit in the hands of vendor, when personal transactions and personal conducts, a plausible explanation is always an evidence, when supported by preponderance of probability.
Shri R Anantha Padmanaban vs The Income Tax Officer
(2014) TaxCorp(LJ) 2763 (ITAT-CHENNAI)
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S. 148 r.w.s 150(1) - Reopening of the assessment beyond six years, in order to give effect to any ‘finding or direction’ of the appellate authority. The observation of the Tribunal that ‘the case of the assessee is to be brought to tax for A.Y 2000-01, does not require compliance by the authorities below so far as the assessment year 2000-01 is concerned, taking recourse to section 150 of the Act by holding the same as ‘finding’ of the Tribunal is not legally tenable.
Shri Anil Suri vs ITO
(2014) TaxCorp(LJ) 2762 (ITAT-MUMBAI) · Section 148 r.w.s 150(1)
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S. 234E: High Court issues notice on challenge to notices for levy of fee for failure to file TDS statement. Recovery of fee is subject to outcome of Petition
OM PRAKASH DHOOT & ORS vs UNION OF INDIA & ORS
(2014) TaxCorp(LJ) 2761 (HC-RAJASTHAN) · Section 234E
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Service tax paid on gross fees receivable, unrecovered from clients is allowable. Service tax already formed part of income and only the unrealized amount has been written–off, which has to be allowed as deduction, while computing the income from profession u/s 28.
S M Kapoor & Co and Mehra Khanna & Co vs ACIT
(2014) TaxCorp(LJ) 2760 (ITAT-MUMBAI)
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