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ITAT - Expenditure on repairs of the building is merely incurred to refurnish and renovate the existing structure and is not in the nature of creation of a capital asset. No structural changes is shown to have been made by the assessee while incurring such expenditure. A repair ordinarily involves renewal and restoration of the existing wear and tear. Such expenditure is in the nature of current repair in spite of major expenses.
The DCIT Circle-1, Ahmedabad Versus M/s. Ahmedabad Packaging Industries Ltd.
(2017) TaxCorp(LJ) 12808 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=55936&Category=ITAT&CategoryType=Zip
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ITAT - Transfer pricing adjustment - Reimbursements have to be included in the cost base and the operating margins have to be computed accordingly.
Pernod Ricard India Pvt. Ltd., Gurgaon Versus Dy. CIT, Circle 8 (1), New Delhi, ACIT, Circle 14 (1)
(2017) TaxCorp(LJ) 12807 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=55937&Category=ITAT&CategoryType=Zip
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ITAT - Section 69C could not be applied to the facts of the case as the payments were through banking channels which were duly reflected in the books of accounts. No penalty u/s 271(1)(c).
Earthmoving Equipment Service Corporation Versus Deputy Commissioner Of Income Tax, 22 (2), Mumbai
(2017) TaxCorp(LJ) 12806 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=55938&Category=ITAT&CategoryType=Zip
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ITAT - Where the assessee is unable to furnish any explanation, duly supported, it cannot be said to be saved by clause (A) or clause (B) of Explanation 1 to s. 271(1)(c). Penalty u/s 271(1)(c) on false depreciation claim made by assessee company is valid.
Sundaram Fasteners Ltd. vs. ADIT
(2017) TaxCorp(LJ) 12799 (ITAT-CHENNAI)
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HC - No TDS u/s 195 on payment by assessee to foreign JV partner towards reimbursement of salary for seconded employees as the same is not FTS under India-UK DTAA.
DIT (International Taxation) vs. Marks & Spencer Reliance India Pvt. Ltd.
(2017) TaxCorp(LJ) 12798 (HC-BOMBAY)
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Transfer Pricing AMP Adjustment: Entire law on whether the advertisement expenditure incurred by the Indian AE towards brand of a foreign company can be treated as an “international transaction” and whether a notional adjustment can be made in the hands of the Indian AE towards compensation receivable from the foreign AE for “deemed brand development” explained
Hyundai Motor India Limited vs. DCIT
(2017) TaxCorp(LJ) 12797 (ITAT-CHENNAI)
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S. 271(1)(c): Bogus purchases cannot be assessed as 'unexplained expenditure' u/s 69C if the transactions are duly disclosed and payments are through banks. The fact that the sellers are not traceable and the assessee surrendered the bogus purchases does not justify levy of penalty. Mere non-striking of the options in the s. 274 notice does not render the penalty proceedings void if the assessment order shows due application of mind.
Earthmoving Equipment Service Corporation vs. DCIT
(2017) TaxCorp(LJ) 12796 (ITAT-MUMBAI) · Section 271(1)(c)
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SC - Section 14A of the Act would apply to dividend income on which tax is payable under Section 115-O.
GODREJ & BOYCE MANUFACTURING COMPANY LIMITED Versus DY. COMMISSIONER OF INCOME-TAX & ANR.
(2017) TaxCorp(LJ) 12795 (SC) · http://taxcorp.in/FileOpenDT.aspx?ID=69079&Category=Judgment&CategoryType=Zip
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ITAT - No exemption u/s 11 on subscription and delegates fees collected from members, based on the principle of mutuality.
Employers’ Federation of Southern India Versus Assistant Director of Income-Tax (Exemption) -III
(2017) TaxCorp(LJ) 12794 (ITAT-CHENNAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54947&Category=ITAT&CategoryType=Zip
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ITAT - Interest income from Kisan Vikas Patra is taxable on cash basis.
Rashmi Dhariwal, New Delhi Versus ACIT, Circle-23 (1), New Delhi
(2017) TaxCorp(LJ) 12793 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=55911&Category=ITAT&CategoryType=Zip
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SC - Disallowance u/s 14A is applicable to dividend income on which tax is payable u/s. 115-O.
GODREJ & BOYCE MANUFACTURINGCOMPANY LIMITED Vs DY. COMMISSIONER OF INCOME-TAX& ANR.
(2017) TaxCorp(LJ) 12787 (SC) · Section 14A
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ITAT - Notice under section 143(2) not issued by the jurisdictional Income-tax Officer but issued by the Assistant Commissioner of Income-tax. Therefore the notice is invalid and consequently the assessment framed by the Income-tax Officer becomes void.
Krishnendu Chowdhury Versus Income-Tax Officer
(2017) TaxCorp(LJ) 12777 (ITAT-KOLKATA) · http://taxcorp.in/FileOpenDT.aspx?ID=54620&Category=ITAT&CategoryType=Zip
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ITAT - The assessee being entitled to exemption under sections 11 and 12 of the Act, no disallowance on account of contribution to unapproved pension and gratuity funds can be made and the addition made on account of the same is, therefore, directed to be deleted.
Haryana State Agricultural Marketing Board Versus Assistant Commissioner of Income-Tax
(2017) TaxCorp(LJ) 12776 (ITAT-CHANDIGARH) · http://taxcorp.in/FileOpenDT.aspx?ID=54793&Category=ITAT&CategoryType=Zip
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HC - Writ Allowed - AO not justified in rejecting assessee’s stay application on the ground assessee was required to make a pre-deposit of 15% of the disputed demand for considering his stay application on merits in view of CBDT instruction dated February 29, 2016.
Jagdish Gandabhai Shah vs. Pr. CIT
(2017) TaxCorp(LJ) 12774 (HC-GUJARAT)
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HC - AO is required to take appropriate decision on the stay application as per the modified Office Memorandum F. No. 404/72/93- ITCC issued by CBDT.
Jagdish Gandabhai Shah Versus Principal Commissioner of Income Tax, Valsad
(2017) TaxCorp(LJ) 12772 (HC-GUJARAT) · http://taxcorp.in/FileOpenDT.aspx?ID=69041&Category=Judgment&CategoryType=Zip
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S. 40(a)(ia): S. 194C read with s. 200 are mandatory provisions. The disallowance stipulated in s. 40(a)(ia) for failure to deduct TDS u/s 194C is one of the consequences for the default. Accordingly, though there is a difference between “paid” and “payable”, s. 40(a)(ia) covers not only those cases where the amount is payable but also when it is paid. The contrary interpretation that s. 40(a)(ia) applies only to cases where amounts are “payable” will result in defaulters going scot free
Palam Gas Service vs. CIT
(2017) TaxCorp(LJ) 12765 (SC) · Sections 40(a)(ia), 194C
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NOC from Advocate to appoint new advocate: A litigant has the absolute right to appoint an advocate of his choice and to terminate his services any time and for whatever reason. There is no concept of an "irrevocable vakalatnama". A party has the absolute freedom to change his advocate. Fairness demands that the party should inform his advocate already on record though this is not a condition precedent to appoint a new advocate. The Registry cannot insist on a NOC from the old advocate and refuse to take the new vakalatnama on record
Karnataka Power Transmission Corp Ltd vs. M. Rajashekar
(2017) TaxCorp(LJ) 12764 (HC-KARNATAKA)
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SC - Provisions of Section 40 (a) (ia) of the Act were applicable not only to the amount which were shown as outstanding on the closing of the relevant previous year, but to the entire expenditure which became liable for payment at any point of time during the year under consideration and which was also paid before the closing of the year as rightly held by the authorities below.
Palam Gas Service Vs. CIT
(2017) TaxCorp(LJ) 12757 (SC) · Section 40(a) (ia)
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HC - Once an arbitral award was made by the Court, mere stay of the decree by higher authorities would not relieve assessee of its obligation to pay interest in terms thereof. Liability to pay interest under arbitral award commenced in the year in which such decree was passed.
National Agricultural Cooperative Marketing Federation of India Ltd.
(2017) TaxCorp(LJ) 12756 (HC-DELHI)
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SC - The issue on allowability of preliminary expenses as revenue expenditure was debatable in view of divergent HC views but issue decided by jurisdictional HC is non-debatable to make 143(1)(a) adjustment.
DCIT. Vs. Raghuvir Synthetics Ltd.
(2017) TaxCorp(LJ) 12740 (SC) · Section. 143(1)(a)
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