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SC - Allows additional depreciation claim even where Form 3AA (i.e Accountant’s report for claiming additional depreciation) was not filed along-with the return of income but during assessment proceedings.
CIT. vs. G.M. Knitting Industries(P) Ltd.
(2015) TaxCorp(LJ) 8543 (SC)
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HC - Reassessment order quashed which was passed in violation of principles laid down by co-ordinate bench ruling. Censure AO for not withdrawing erroneous order immediately.
Godrej Agrovet Ltd. vs. ACIT
(2015) TaxCorp(LJ) 8542 (HC-BOMBAY)
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ITAT - AEs are PE only in respect of trading transactions, therefore, any earnings from rendering of services in India cannot be attributed to such PE.
ABB Inc. vs. Deputy Director of Income Tax (International Taxation)
(2015) TaxCorp(LJ) 8534 (ITAT-BANGALORE)
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HC - (i) Provision in partnership deed for payment of salary at percentage share of profits multiplied by “allocable profits” is valid and entitles claim for deduction. S. 37(1) (ii)Contribution by law firm to IFA to create awareness of its activities is business expenditure.
CIT vs. Vaish Associates
(2015) TaxCorp(LJ) 8533 (HC-DELHI) · Section 40(b)(v)
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HC - (a) The second provisio to S. 40(a)(ia) inserted by FA 2012 cannot be treated as retrospective in operation (b) The fact that the payees have already paid tax on the amounts paid does not mean that a disalliowance for failure to deduct TDS cannot be made, (c) S. 40(a)(ia) cannot be interpreted to mean that it applies only to amounts "paid" and not to those "payable"
Thomas George Muthoot vs. CIT
(2015) TaxCorp(LJ) 8532 (HC-KERALA) · Section 40(a)(ia)
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ITAT - (i) Even if an amount is credited to the P&L A/c, the assessee can seek exclusion of that amount for purposes of “book profits” if a note to that effect is inserted in the A/cs (ii) An item of receipt which falls under the definition of “income”, are excluded for the purpose of computing “Book Profit”, since the said receipts are exempted u/s 10 of the Act while computing total income.
Shivalik Venture Pvt. Ltd vs. DCIT
(2015) TaxCorp(LJ) 8531 (ITAT-MUMBAI) · Section 115JB
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ITAT - Amount towards waiver of loan under OTSS, credited to "General Reserves" and not to the P&L Account cannot be added to "book profits". Supreme Court in the case of Apollo Tyres followed.
DCIT vs. Garware Polyester Ltd
(2015) TaxCorp(LJ) 8530 (ITAT-MUMBAI) · Section 115JB
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HC - Dept’s grievance that if amount is not credited to P&L A/c, accounts are not correctly prepared as per Schedule VI to the Companies Act, 1956 and adjustment to book profits can be made is not acceptable if auditors and ROC have not found fault with A/cs
CIT vs. Forever Diamonds Pvt. Ltd
(2015) TaxCorp(LJ) 8529 (HC-BOMBAY) · Section 115JB
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HC - Interest on NPAs and Stick Loans, even if accrued as per the mercantile system of accounting, is not taxable as per prudential norms. Section 45Q of the RBI Act shall have overriding effect over the income recognition principle followed by cooperative banks. Assessing Officer has to follow the Reserve Bank of India directions 1998.
CIT vs. Deogiri Nagari Sahakari Bank Ltd
(2015) TaxCorp(LJ) 8528 (HC-BOMBAY)
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ITAT - Deductor’s liability qua TDS doesn’t get extinguished upon lapse of certain period of time. Limitation Act not applicable.
The Muzaffarpur Central Co-operative Bank Ltd vs. ITO
(2015) TaxCorp(LJ) 8513 (ITAT-PATNA)
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HC - Miscellaneous application filed by Revenue rejected being barred by limitation.
The State Bank of India vs. CIT
(2015) TaxCorp(LJ) 8512 (HC-AP)
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ITAT - Not correct to hold that the income pertaining to the TDS amount should be assessed in the reported PAN only, even when deductor misquoted assessee’s PAN. AO must tax the right person alone.
Vikram Manibhai Mehta vs. ITO
(2015) TaxCorp(LJ) 8511 (ITAT-MUMBAI)
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SC - HC, being Court of Record under Article 215, have the inherent power of review.
CIT. vs. Meghalaya Steels Ltd.
(2015) TaxCorp(LJ) 8510 (SC)
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ITAT - The profit and loss account should be read along with Notes of account should be applied uniformly in all kind of situations and hence due adjustment needs to be done for the effect of items disclosed in the Notes to accounts.
Shivalik Venture Pvt. Ltd. vs. DCIT
(2015) TaxCorp(LJ) 8509 (ITAT-MUMBAI)
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SC - SLP Dismissed - Gujarat High Court had rejected AO’s invocation of Explanation 3 to Sec 43(1). Factum of respondent-assessee not having paid consideration for acquiring individual assets cannot be construed as illusory or colorable.
CIT. vs. Sandvik Chokshi Ltd.
(2015) TaxCorp(LJ) 8508 (SC)
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ITAT - Addition made on basis of witness statements, without giving assessee an opportunity to cross examine the witness and without collaborating other independent evidence is not sustainable in law.
Shri Ashokkumar Bhailal vs. Income Tax Officer
(2015) TaxCorp(LJ) 8507 (ITAT-AHMEDABAD)
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ITAT - Merely because the addition was made as per the deeming provision of section 50C would not ipso facto lead to the conclusion that the assessee has furnished inaccurate particulars of income or concealed its income.
Smt. Tarabai Kotumal vs. ACIT
(2015) TaxCorp(LJ) 8506 (ITAT-MUMBAI) · Section. 50C
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ITAT - Wherever the assessee earned the interest-free income, the corresponding expenditure incurred in earning that income is to be disallowed u/s 14A. In the absence of any interest-free income, there cannot be any disallowance.
ACIT. Vs. M/s Standard Vinimoy Pvt Ltd.
(2015) TaxCorp(LJ) 8505 (ITAT-KOLKATA) · Section 14A
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ITAT - Explanation 4(a) to 271(1)(C) is not applicable as the addition made does not affect the loss declared in the return or converts the loss into income. Therefore, no penalty as taxable income and tax remains the same after adjusting the addition due to concealment.
The W.B.State Co-Opt. Marketing Federation Ltd. vs. DCIT
(2015) TaxCorp(LJ) 8504 (ITAT-KOLKATA) · Section. 271(1)(C)
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ITAT - Provisions of section 35D are applicable only to those expenditure, which cannot be regarded to be the revenue expenditure but since the fees paid to the Registrar of Companies has not been included under section 35D(2)(c)(iv), therefore, the assessee cannot get deduction for the same.
M/s. Rohit Ferro Tech Limited vs. DCIT
(2015) TaxCorp(LJ) 8503 (ITAT-KOLKATA) · Section 35D
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