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SC - SLP Dismissed - HC had quashed reassessment notice as satisfaction of Joint Commissioner was recorded mechanically.
CIT. Vs. Goyanka Lime and Chemicals Ltd.
(2015) TaxCorp(LJ) 8608 (SC)
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HC - Payment through banking channels insufficient u/s 68. ‘’Source’ creditworthiness is important.
CIT. vs. Velocient Technologies Ltd.
(2015) TaxCorp(LJ) 8605 (HC-DELHI) · Section. 68
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ITAT - Transfer Pricing - Transactions of providing support services to “Sogo shosha” entities cannot be characterized as trading transaction for purposes of comparison and determining ALP and the cost of sales cannot be included.
Mitsui & Co. India Pvt. Ltd vs. DCIT
(2015) TaxCorp(LJ) 8589 (ITAT-DELHI)
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ITAT - Transfer Pricing - Circumstances in which the Profit Split Method (PSM) has to be preferred over the TNMM for determining the ALP and method of allocation of profits between the assessee and the AE under the PSM explained.
Infogain India Pvt. Ltd vs. DCIT
(2015) TaxCorp(LJ) 8588 (ITAT-DELHI)
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ITAT - For the purpose of exemption under section 54, giving advance to builder constitutes "purchase" of new house even if construction is not completed and title to the property has not passed to the assessee within the prescribed period.
Hasmukh N. Gala vs. ITO
(2015) TaxCorp(LJ) 8587 (ITAT-MUMBAI) · Section 54
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HC - A charity is not entitled to exemption if it carries out activities not as per the objects. The fact that such ultra vires objects are also charitable is not relevant. Fact that CIT has granted registration u/s 12A does not preclude AO from examining compliance with s. 11. Incidental objects to attain the main object, even if significant in value, are permissible. Under principles of consistency, AO is not permitted to change view in the absence of a change in facts
Mool Chand Khairati Ram Trust vs. DIT(E)
(2015) TaxCorp(LJ) 8586 (HC-DELHI) · Section 11
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HC - Customs duty paid in a later year can be capitalized in the year the obligation to pay the duty arose. Question whether it can be capitalized in year of import of the goods left open.
CIT vs. Noida Medicare Centre Ltd
(2015) TaxCorp(LJ) 8585 (HC-DELHI) · Section 32
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ITAT - Without establishing through positive evidence that assessee and its related party have arranged their business transaction in a manner to produce more than ordinary profit to assessee, AO cannot invoke the provisions of section 10A(7) read with section 80IA(10) on mere presumptions and surmises.
DCIT. Vs. Quick MD
(2015) TaxCorp(LJ) 8583 (ITAT-HYDERABAD) · Section. 10A
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SC - SLP Dismissed - Clearances from statutory authorities and receipt of amount through normal banking channels insufficient, ‘’source’ creditworthiness must under section 68.
Velocient Technologies Ltd. vs. CIT
(2015) TaxCorp(LJ) 8573 (SC)
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HC - Certificate of Residence issued by Mauritius is sufficient evidence for residence under DTAC.
Serco BPO Private Limited vs. AAR
(2015) TaxCorp(LJ) 8572 (HC-P&H)
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HC - Even if the supply contract is an integral part of a composite contract on single sale responsible basis, there is no obligation to deduct TDS u/s 194C/ 194J. Service contracts, not being professional services, are not covered by s. 194J.
CIT vs. Executive Engineer, GESCOM
(2015) TaxCorp(LJ) 8571 (HC-KARNATAKA) · Sections 194C, 194J
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HC - Transfer Pricing - Important law laid down on the principles for identifying comparables for benchmarking an international transaction & determining the ALP in the context of whether KPO services are comparable to BPO services. Law also laid down on whether for TNMM method, broad functionality is sufficient and whether supernormal profits indicate that there is functional dissimilarity
Rampgreen Solutions Pvt. Ltd vs. CIT
(2015) TaxCorp(LJ) 8570 (HC-DELHI)
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HC - Failure by AO to comply with the law in G. K. N. Driveshafts (SC) & pass order on objections renders re-assessment order void; Even a s. 143(1) assessment cannot be reopened in the absence of new/ tangible material.
Pr. CIT vs. Tupperware India Pvt. Ltd
(2015) TaxCorp(LJ) 8569 (HC-DELHI) · Section 147
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ITAT - Entrance fee paid to golf club on behalf of director to develop links with other corporates leaders is an allowable business expenditure. CIT vs United Glass Mfg. Co. Ltd. followed.
DCIT. Vs. Hinduja Global Solutions Ltd.
(2015) TaxCorp(LJ) 8568 (ITAT-MUMBAI)
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ITAT - If no statement has been recorded at the time of search and where there is no occasion for the assessee to state the fact at the time of search, the addition can not be made.
Smt. Rutu S. Jindal Vs. ACIT
(2015) TaxCorp(LJ) 8567 (ITAT-DELHI)
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ITAT - Amount received by UK entity from BCCI for live coverage of IPL cricket matches not taxable as FTS’ / Royalty under India-UK DTAA.
IMG Media Limited vs. DDIT
(2015) TaxCorp(LJ) 8557 (ITAT-MUMBAI)
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ITAT - Harmonious reading of sections 145A and 43B brings out that the 'Business income’ is firstly required to be mandatorily computed by following the 'Inclusive method’” and thereafter, if some part of tax or duty is unpaid/ paid in advance, it should be added/deducted in the computation of income.
Maruti Suzuki India Ltd. vs. ACIT
(2015) TaxCorp(LJ) 8556 (ITAT-DELHI) · Section. 145A
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ITAT - Sec 194C TDS applicable on freight payments to C&F agents, therefore Sec 40(a)(ia) expense disallowance for TDS default confirmed.
ACIT. vs. Zephyr Biomedical
(2015) TaxCorp(LJ) 8555 (ITAT-PANAJI) · Section. 40(a)(ia)
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SC - CBDT Instruction No. 3/2011 specifying minimum monetary tax effect of Rs 10 lacs for Revenue appeals before HC is not retrospective in nature. Instruction applicable only to such cases which are filed after the issuance of the instruction.
CIT. vs. Suman Dhamija
(2015) TaxCorp(LJ) 8551 (SC)
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SC - Income of trust was not taxable in the hands of assessee even though the same was created for the benefit of assessee’s minor children because clubbing provisions are not applicable where minor child is entitled to income on attaining majority.
Kapoor Chand vs. ACIT
(2015) TaxCorp(LJ) 8548 (SC)
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