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S. 147: If the subject matter of the reopening is also the subject matter of appeal, the principle of merger would apply. There cannot be two separate considerations to the same subject matter relatable to the income, one by the appellate authority and another by the AO in fresh assessment. Scope of third proviso to s. 147 explained
Radhaswami Salt Works vs. ACIT
(2017) TaxCorp(LJ) 13131 (HC-GUJARAT) · Section. 147
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Transfer Pricing ALP of foreign advances: If the advances are made to a AE situated abroad, the LIBOR rate has to considered to determine the Arms Length interest and not the interest rate in India (SBI PLR). This would be reasonable and proper in applying commercial principles
CIT. vs. Aurionpro Solutions Ltd.
(2017) TaxCorp(LJ) 13103 (HC-BOMBAY)
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Certified copy of Order Sheet: It is the right of every assessee to seek certified copies of entire order sheet of any assessment proceeding on payment of charges. The certified copies have to be handed over forthwith on payment
Shankarlal Khaitan vs. ACIT
(2017) TaxCorp(LJ) 13102 (HC-ORISSA)
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S. 69C/ 153C: An admission of the assessee which is retracted cannot be the basis of addition. The allegations made by the authorities have to be supported by actual cash passing hands. The addition cannot be sustained in the absence of material which would conclusively show that huge amounts revealed from the seized documents are transferred from one side to another and if the Revenue did not bring on record a single statement of the vendors of the land in different villages and if none of the sellers has been examined to substantiate the claim of the Revenue that extra cash has actually changed hands
CIT vs. Lavanya Land Pvt. Ltd
(2017) TaxCorp(LJ) 13095 (HC-BOMBAY) · Sections 69C, 153C
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S. 147/148: Law on validity of reopening of assessment when the AO is acting on the dictates of the audit party and is not applying his own mind explained
Mehsana District Central Co-op Bank Ltd. vs. ACIT
(2017) TaxCorp(LJ) 13089 (HC-GUJARAT) · Sections. 147, 148
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S. 143(2) notice: If the Department fails to produce evidence relating to the issue and service of the s. 143(2) notice, an adverse inference has to be drawn as per s. 114 of the Evidence Act. The s. 143(3) assessment order has to be held invalid and void ab initio
ITO. vs. Gravity Systems Pvt. Ltd.
(2017) TaxCorp(LJ) 13088 (ITAT-DELHI) · Section. 143(2)
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S. 14A/ Rule 8D: (i) The computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A read with Rule 8D of the Income tax Rules 1962, (ii) Only those investments are to be considered for computing the average value of investment which yielded exempt income during the year
ACIT. Vs. Vireet Investment Pvt. Ltd.
(2017) TaxCorp(LJ) 13060 (ITAT-DELHI) · Section. 14A
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Capital Gains: While a family arrangement/settlement does not amount to a "transfer" u/s 2(47) as it only recognizes "pre-existing rights" between the parties, the same applies only to members of the families and not to transfers made by corporate entities. The corporate veil can never be lifted at the instance of the company itself because that would amount to its denying its own corporate existence. The fact that the Company is wholly owned by the members of the family is irrelevant
B.A.Mohota Textiles Traders Pvt. Ltd. vs. DCIT
(2017) TaxCorp(LJ) 13054 (HC-BOMBAY) · Section 2(47)
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S. 92C +/- 5%: The contention that there is an error because mere mathematical calculation shows that the arm's length purchase price as worked out by the TPO falls beyond (+)/(-) 5% range and consequently falls outside the scope of the second proviso to s. 92C(2) cannot be considered if it was not raised before the CIT(A) & ITAT
CIT. vs. Mettler Toledo India Pvt. Ltd.
(2017) TaxCorp(LJ) 13053 (HC-BOMBAY) · Section. 92C
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RTI Act: Even if the information has no public interest, it has to be disclosed. Nothing is personal with regard to a public servant discharging his duties. Citizens have right know about his working, honesty, integrity and devotion to duty. Information as to leave availed of, or trips undertaken, cannot be denied on grounds of being personal information. The Income-tax Dept is directed to conduct periodic seminars to familiarize officials about the RTI Act. CPIO warned to be extremely careful & vigilant when answering RTI applications failing which penal action would be imposed
Radha Raman Tripathy vs. CPIO/ JCIT
(2017) TaxCorp(LJ) 13052 (CIC)
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(i) S. 153A/ 153C: When the Addl CIT records that he is granting “mechanical approval” u/s 153D to the draft assessment order for want of time to have meaningful discussion, the assessment order is bad in law and has to be annulled (ii) The Respondent is entitled to raise an objection under Rule 27 even in respect of fresh issues. It is not necessary that the ground should have been decided against the Respondent by the CIT(A)
AAA Paper Marketing Ltd vs. ACIT
(2017) TaxCorp(LJ) 13025 (ITAT-LUCKNOW) · Sections 153A, 153C
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S. 147/ 148: Entire law on reopening of assessments in the context of "change of opinion" vs. "failure to apply mind", with reference to s. 114 of the Indian Evidence Act, 1872 and all judgements on the point discussed
Crescent Construction Co vs. ACIT
(2017) TaxCorp(LJ) 13024 (ITAT-MUMBAI) · Sections 147, 148
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ITAT - Salary accrued to non-resident seafarers for services rendered outside India on foreign ships shall not be included in the total income merely because such salary was credited in NRE account in India.
Shyamak Gopal Chattopadhyay. vs. DDIT (I.T.)
(2017) TaxCorp(LJ) 13007 (ITAT-KOLKATA)
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ITAT - As per Rule 8D, AO is duty bound to record satisfaction for rejecting assessee’s explanation of not incurring any expenditure for earning exempt income, but no specific format is provided under the Act for recording the satisfaction.
G. E. India Exports Pvt. Ltd. vs. DCIT
(2017) TaxCorp(LJ) 13006 (ITAT-BANGALORE) · Section. 14A
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ITAT - Assumption of jurisdiction u/s 147 to 151 - Since no proceedings were pending before AO when he issued the letter of enquiry, therefore enquiry letter was not valid in eyes of law - Assessee not required to respond to this invalid and non est letter of inquiry issued by the AO.
Tajendra Kumar Ghai C/o M/s. RRA Taxindia Versus ITO – 1 (5) Rudrapur
(2017) TaxCorp(LJ) 13005 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=56550&Category=ITAT&CategoryType=Zip
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ITAT - Cash payments made to West Bengal State Electricity Distribution Company Limited (WBSEDCL) is covered by the exception Rule 6DD(b) - No disallowance u/s. 40A(3).
Narayan Rice Mill Versus Commissioner of Income-tax
(2017) TaxCorp(LJ) 13004 (ITAT-KOLKATA) · http://taxcorp.in/FileOpenDT.aspx?ID=56547&Category=ITAT&CategoryType=Zip
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ITAT - Cancellation of recovery of the interest - If the income does not result at all, there cannot be a tax, even though in accounts, an entry is made about the "hypothetical income" which does not materialise.
Dy. Commissioner of Income Tax, Circle 11 (1), CR Building, New Delhi Versus M/s Ferrous Infrastructure Pvt. Ltd.
(2017) TaxCorp(LJ) 13003 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=56546&Category=ITAT&CategoryType=Zip
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ITAT - Assessee is a Public Ltd. Company and having taken loan from a subsidiary which is also a public Ltd., provisions of section 2(22)(e) will not attract to the present case of the assessee.
Balkrishna Industries Ltd. Versus Addl. Commissioner of Income Tax, CIT Cir Rg 6 (1), Mumbai
(2017) TaxCorp(LJ) 13002 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=56538&Category=ITAT&CategoryType=Zip
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SC - As per Technical Collaboration Agreement, technical fees for plant set-up as capital expenditure.
Honda Siel Cars India Ltd. Vs. CIT
(2017) TaxCorp(LJ) 13001 (SC)
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Technical know-how: Entire law explained on whether expenditure incurred under a Technical Collaboration Agreement for setting up of new plant for the first time to manufacture cars constitutes capital or revenue expenditure
Honda Siel Cars India Ltd. vs. CIT
(2017) TaxCorp(LJ) 13000 (SC)
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