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S. 271(1)(c) penalty cannot be levied in a case where the assessee has relied on legal opinion of a professional and there is no tax impact i.e. the loss disallowed in year one is allowed set-off in a later year
Pr. CIT vs. Atotech India Ltd
(2016) TaxCorp(LJ) 11627 (HC-P&H) · Section 271(1)(c)
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ITAT - A company providing KPO services is not comparable while determining ALP for ITES company.
Actis Global Services (P.) Ltd. v. Income-tax Officer, Ward 1(3), New Delhi
(2016) TaxCorp(LJ) 11626 (ITAT-DELHI) · http://taxcorp.in/FileOpenINTL.aspx?ID=11062&Category=INTLDecisions&CategoryType=Zip
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ITAT - Payment of open access charges for use of transmission lines does not constitute royalty u/s 9(1)(vi), hence no TDS u/s 194J.
Deputy Commissioner of Income-tax, Circle-3(1)(TDS), Vijayawada v. Nava Bharat Ventures Ltd.
(2016) TaxCorp(LJ) 11625 (ITAT-VISAKHAPATNAM) · http://taxcorp.in/FileOpenDT.aspx?ID=51144&Category=ITAT&CategoryType=Zip
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ITAT - There was no provision in AY 2009-10 requiring TDS from payment made for use of computer software as royalty, no addition can be made u/s 40(a)(i).
Shinhan Bank v. Deputy Director of Income-tax (International Taxation)-2 (1), Mumbai
(2016) TaxCorp(LJ) 11624 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenINTL.aspx?ID=11063&Category=INTLDecisions&CategoryType=Zip
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ITAT - Use of multiple year data and adopting weighted average data of comparables is permissible only in respect of international transactions entered into on or after 1-4-2014 as per amendment to rule 10B and rule 10CA of 1962 Rules.
Lee Hours Pomeroy Architects v. Deputy Commissioner of Income-tax, (IT), Cir-1 (2), Kolkata
(2016) TaxCorp(LJ) 11623 (ITAT-KOLKATA) · http://taxcorp.in/FileOpenINTL.aspx?ID=10699&Category=INTLDecisions&CategoryType=Zip
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ITAT -it is mandatory that the assessee has to independently benchmark its international transaction with independent comparables so as to arrive at arm's length price.
Sara Lee TTK Ltd. v. Deputy Commissioner of Income-tax, Range-10(2), Mumbai
(2016) TaxCorp(LJ) 11622 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=51397&Category=ITAT&CategoryType=Zip
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HC - Income received from the cancellation of the contract and the interest thereon received are revenue receipt.
M/s C.K. Ahuja, M/s L.K. Ahuja Versus The Commissioner of Income Tax
(2016) TaxCorp(LJ) 11621 (HC-ALLAHABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=66935&Category=Judgment&CategoryType=Zip
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S. 2(42C)/ 50B: The fact that certain assets of the "undertaking" are left out of the sale transaction because it would cause inconvenience for the purchaser does not mean that the transaction is not a "slump sale". To expect a purchaser to buy and pay value for defunct or superfluous assets flies in the face of commercial sense
Triune Projects Pvt. Ltd vs. DCIT
(2016) TaxCorp(LJ) 11620 (HC-DELHI) · Sections 2(42C), 50B
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S. 147: If the AO reopens the assessment on information supplied by the audit party without application of mind, the reopening is invalid. Likewise, if the AO disputes the findings of the audit party, he is not entitled to reopen the assessment. The reasons must show independent application of mind of the AO
Elecon Engineering Co Ltd vs. ACIT
(2016) TaxCorp(LJ) 11619 (HC-GUJARAT) · Section 147
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Transfer Pricing: As per CBDT's Instruction No.3/2016 dated 10.03.2016, the AO is required to give an opportunity to the assessee to show cause why the reference should not be made to the TPO and thereafter pass a speaking order while making a reference to the TPO. The failure to do so renders the reference void
Alpha Nipon Innovatives Ltd vs. DCIT
(2016) TaxCorp(LJ) 11618 (HC-GUJARAT)
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HC - No penalty u/s 271(1)(c) in respect of‘ bonafide’ claim of deferred revenue expenditure made by assessee but disallowed by AO.
Taparia Tools Ltd. vs. CIT
(2016) TaxCorp(LJ) 11617 (HC-BOMBAY)
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HC- An amount held on revenue account may lose its character if the same is sterilized or blocked and any return arising out of sterilized/blocked fund would be a capital receipt. Excess sum received owing to exchange rate fluctuation will also be on capital account.
CIT. Vs. SDB Infrastructure Pvt. ltd.
(2016) TaxCorp(LJ) 11616 (HC-CALCUTTA)
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HC - A sick company liability to pay capital gains tax on subsequent positive net-worth.
Laxmi Automatic Loom Works Ltd. Vs. Deputy Commissioner Of Income Tax (Recovery) And Anr.
(2016) TaxCorp(LJ) 11615 (HC-DELHI)
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HC - Writ Allowed - Income may have accrued during another year was not a finding required for disposal of the appeal therefore, it falls beyond the scope of Section 150 read with the Explanation (2) to Section 153 (3). Reassessment invalid.
Kala Niketan & Anr. vs. UOI
(2016) TaxCorp(LJ) 11614 (HC-BOMBAY) · Section. 153
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HC - Once the petitioner gives up the constitutional and the larger challenge and are agreeable that their refund application if processed in accordance with law and expeditiously they would be satisfied and would not press the petition thereafter, refund processing pending scrutiny notice allowed.
Aegis Ltd. Vs. The Union of India
(2016) TaxCorp(LJ) 11613 (HC-BOMBAY) · Section. 143(1D)
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ITAT - An abject lack of application of mind, non consideration of the assessee’s submissions, factually incorrect assumptions, non rendering of any cogent reasons for action and abject failure on the part of the AO to follow the procedure mandated by the provisions of section 14A. Sec.14A disallowance set aside.
Ms. Fereshte Sethna Vs. ACIT
(2016) TaxCorp(LJ) 11612 (ITAT-MUMBAI) · Section.14A
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ITAT - Since assessee had taken the loan less than 20,000/- from his close relatives and family members, no penalty u/s 271D.
Shri Gulab Chand Ramchandani Versus The ITO, Ward- 2, Beawar
(2016) TaxCorp(LJ) 11611 (ITAT-JAIPUR) · http://taxcorp.in/FileOpenDT.aspx?ID=52454&Category=ITAT&CategoryType=Zip
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ITAT - AO having estimated the higher profit rate after rejection of the books of account invoking the provisions of s. 145(3), no separate additions can be made on account of unexplained cash credit under s. 68.
Sh. Collector Ram Sharma Versus The Deputy Commissioner of Income-tax, Circle-6, Jaipur
(2016) TaxCorp(LJ) 11610 (ITAT-JAIPUR) · http://taxcorp.in/FileOpenDT.aspx?ID=52456&Category=ITAT&CategoryType=Zip
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ITAT - If the assessee had paid money to the lorry drivers, vouchers would have been given by the lorry drivers and not by the transport companies. Clause (k) of Rule 6DD not applicable as assessee has to show that the person to whom he had paid payments was his agent and such agent was required to make payment in cash. Addition u/s.40A(3) confirmed.
Marudhamalai Sri Dhandapani Spinning Mills Versus The Assistant Commissioner of Income Tax, Salary Circle, Coimbatore
(2016) TaxCorp(LJ) 11609 (ITAT-CHENNAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52457&Category=ITAT&CategoryType=Zip
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ITAT - It is natural for persons providing loans without security to demand higher rate of interest. We are therefore of the opinion that interest of 18% paid by the assessee could not considered as excessive. Application of Sec. 40A(2) of the Act was not warranted.
M/s. T.M. Abdul Rahman and Sons Versus The Assistant Commissioner of Income Tax, Non Corporate Circle 6, Chennai, The Joint Commissioner of Income Tax, Business Circle –XII, Chennai
(2016) TaxCorp(LJ) 11608 (ITAT-CHENNAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52356&Category=ITAT&CategoryType=Zip
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