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S. 220(6): CBDT's OMs dated 29.02.2016 & 31.07.2017 by which AO's have been directed to grant stay of disputed demand on payment of 20%/ 15% does not fetter the power of the AO & CIT to grant stay on payment of amounts lesser than 15%/ 20%. The AO/ CIT have to deal with the prima facie merits and give reasons for rejection of the stay application
PCIT vs. LG Electronics India Pvt. Ltd.
(2018) TaxCorp(LJ) 15424 (SC) · Section. 220(6)
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SC - Administrative Circular of the CBDT will not operate as a 'fetter' on the Commissioner, since it is a quasi judicial authority to grant lesser deposit relief.
LG Electronics India Pvt. Ltd. Pr. CIT
(2018) TaxCorp(LJ) 15413 (SC)
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S. 32: Goodwill is an intangible asset. It falls under the expression "any other business or commercial rights of similar nature" and is eligible for depreciation u/s 32(1)(ii) of the Act. The question whether when a firm has been succeeded by a company and net assets of the firm have vested in the company, there is any transfer of goodwill in the real sense and whether the valuation of goodwill done by the assessee is erroneous has to be decided by the Division Bench
CLC & Sons Pvt. Ltd. vs. ACIT
(2018) TaxCorp(LJ) 15407 (ITAT-DELHI) · Section. 32
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S. 2(1A) Agricultural income: Mushroom is not a ‘vegetable’, ‘plant’, 'fruit' or ‘animal’ but is a ‘fungus’. Anything which is produced by performing basic operations on the soil is an "agricultural product" and the income therefrom is "agricultural income". The nature of the product and the fact that it is not a ‘plant’, ‘flower’, ‘vegetable’ or ‘fruit’ is irrelevant. The only relevant aspect is whether the production is by performing some basic operations on the soil (All judgements considered)
DCIT vs. Inventaa Industries Private Limited
(2018) TaxCorp(LJ) 15406 (ITAT-HYDERABAD) · Section. 2(1A)
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S. 269SS/ 271D Penalty: It is not enough for the assessee to show that the transaction of taking loan/ deposit by cash is genuine or bona fide. It has also to be shown that there was reasonable cause u/s 273B for the assessee being unable to take the loan/deposit by account payee cheque or account payee bank draft
Deepak Sales & Properties Pvt. Ltd vs. ACIT
(2018) TaxCorp(LJ) 15400 (ITAT-MUMBAI) · Sections 269SS, 271D
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S. 147/148: If the recorded reasons do not specify, prima-facie, the quantum of tax which has escaped assessment but merely state that it would be at least Rs.1,00,000, and if the reopening is to "verify" suspicious transactions, prima-facie, the reasons do not indicate reasonable belief of the AO and the notice is without jurisdiction
Dulraj U. Jain vs. ACIT
(2018) TaxCorp(LJ) 15399 (HC-BOMBAY) · Sections 147, 148
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S. 158BC: The fact that the second proviso to s. 158BC(a) prohibits an assessee who is subjected to search from filing a revised return of income does not mean that the assessee is prohibited from raising an additional claim before the appellate authorities
Alok Textile Industries Ltd vs. DCIT
(2018) TaxCorp(LJ) 15398 (HC-BOMBAY) · Section 158BC
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S. 147/ 143(2): If the notice u/s 143(2) is issued prior to the furnishing of return by the assessee in response to notice u/s 148, the notice issued u/s 143(2) is not valid and the reassessment framed on the basis of said notice has to be quashed. S. 292BB does not save the assessment (All judgements considered)
Halcrow Group Ltd vs. ADIT
(2018) TaxCorp(LJ) 15390 (ITAT-DELHI) · Sections 147, 143(2)
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ITAT Appointment Rules: Persons selected as Member of the ITAT will continue till the age of 62 years and the person holding the post of President, shall continue till the age of 65 years
Kudrat Sandhu vs. UOI
(2018) TaxCorp(LJ) 15389 (SC)
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S. 194-I TDS: Amounts paid as part of the lease premium or biannual or annual payments for a limited/specific period towards acquisition of lease hold rights are not subject to TDS, being capital payments. Amounts constituting annual lease rent, expressed in terms of percentage (e.g. 1%) of the total premium for the duration of the lease, are rent and subject to TDS
New Okhla Industrial Development Authority (NOIDA) vs. ACIT
(2018) TaxCorp(LJ) 15368 (SC) · Section. 194-I
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S. 68 HSBC Black Money: The suspicion of the AO that the deposits in the foreign bank account have Indian origin is not unfounded because the assessee used his Indian passport to open the a/c. The intent of the assessee is not above board. Matter requires investigation because the narrations in the bank accounts do not give any clue that these amounts originate from India
DCIT. vs. Rahul Rajnikant Parikh
(2018) TaxCorp(LJ) 15367 (ITAT-MUMBAI) · Section. 68
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S. 194A TDS: Meaning of the expression "corporation" explained. Difference between "established by an Act" and "established under an Act" explained. Important principles of interpretation of fiscal statutes explained. Though NOIDA is not a "local authority", it is a "corporation established by the Act" and so payments to it are not liable to TDS u/s 194A
CIT (TDS) vs. Canara Bank
(2018) TaxCorp(LJ) 15366 (SC) · Section. 194A
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S. 147/148: If there is nothing in the recorded reasons to suggest that the income chargeable to tax which has escaped assessment is Rs. one lakh or more, the notice issued u/s 148 of the Act beyond four years of the end of the relevant assessment year is invalid
Usha Agarwal vs. ITO
(2018) TaxCorp(LJ) 15365 (ITAT-AGRA) · Sections. 147, 148
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HC - No deduction to employer for belated payment of employees' contribution to PF/ESI beyond the respective Act due-date.
Popular Vehicles & Services Pvt. Ltd. Vs. CIT
(2018) TaxCorp(LJ) 15364 (HC-KERALA)
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ITAT - Sec. 79 restriction on loss set-off and carry forward would apply in case of stake sale in closely-held company to widely-held company.
Edelweiss Commodities Services Ltd. Vs. ITO
(2018) TaxCorp(LJ) 15363 (ITAT-MUMBAI) · Section. 79
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S. 68 HSBC Black Money: The assessee being non-resident is not liable to tax in respect of money lying in the foreign country unless the AO bring something on record to show that assessee has not fulfilled the test of taxability of non-resident under the provisions of the Act
DCIT. vs. Dipendu Bapalal Shah
(2018) TaxCorp(LJ) 15356 (ITAT-MUMBAI) · Section 68
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S. 23 ALV: Unsold flats which are held by a builder as stock in trade cannot be brought to tax under the head 'income from house property'. They are only assessable as business profits when sold (All judgements considered)
ITO vs. Arihant Estates Pvt. Ltd., (ITAT Mumbai)
(2018) TaxCorp(LJ) 15355 (ITAT-MUMBAI) · Section 23
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HC - Guidelines that were in existence at the time of filing of the compounding application were applicable and not revised CBDT guidelines.
Sagar Asia Pvt. Ltd. Vs. Pr. Chief Commissioner of Income Tax
(2018) TaxCorp(LJ) 15349 (HC-AP)
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ITAT - Payer not absolved from interest u/s. 201(1A) though payee's losses extinguish primary TDS liabilitypayee's losses will absolve the person making payment from being treated as 'an assessee in default' for not deducting TDS but cannot absolve the payee from paying interest u/s 201(1A).
Power and Control Systems Vs. Dy. CIT
(2018) TaxCorp(LJ) 15348 (ITAT-BANGALORE) · Section. 201(1A)
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S. 147/ 151: If the CIT merely states "Yes, I am satisfied" while granting sanction to the reopening, it means that the sanction is merely mechanical and he has not applied independent mind. There is not an iota of material on record as to what documents he had perused and what were the reasons for his being satisfied to accord the sanction to initiate the reopening of assessment (All judgements referred)
Ghanshyam vs. ITO
(2018) TaxCorp(LJ) 15337 (ITAT-AGRA) · Sections. 147, 151
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