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S. 92B(1): If assessee contends that it has not entered into an "international transaction" with an AE, the TPO has to counter that by furnishing relevant information. Failure to do so can be challenged by a Writ Petition
Price Waterhouse vs. CIT
(2015) TaxCorp(LJ) 8435 (HC-CALCUTTA) · Section 92B(1)
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S. 40(a)(ia)/ 194A/ 197A(1A): If payer obtains declarations in Form 15G/ 15H, tax is not deductible at source. Failure to furnish such declarations to CIT may attract penalty u/s 272A(2)(f). However, disallowance u/s 40(a)(ia) cannot be made
Malineni Babulu (HUF) vs. ITO
(2015) TaxCorp(LJ) 8434 (ITAT-HYDERABAD) · Sections 40(a)(ia)/ 194A/ 197A(1A)
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HC - Unutilised subsidy from AE is not required to be recognised as income of assessee in the year of receipt. Where assessee follows Accrual/Mercantile system of Accounting, income can be recognised only when the matching expenditure is also accounted for, irrespective of the cash outflows/inflows during the year.
CIT Vs Canon India Pvt Limited
(2015) TaxCorp(LJ) 8433 (HC-DELHI)
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HC - Any SC judgment interpreting a particular provision would have a prospective effect unless expressly made retrospective in the judgment. 'Additional tax' arising due to subsequent SC ruling to be deleted.
DCIT vs. Surat Electricity Company Limited
(2015) TaxCorp(LJ) 8432 (HC-GUJARAT)
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(i) DR can only support the AO's order and cannot set up an altogether new case before the ITAT, (ii) Loss on sale of shares, even if a speculation loss, can be set-off against the gains on sale of shares
DCIT vs. Envision Investment & Finance Pvt. Ltd
(2015) TaxCorp(LJ) 8423 (ITAT-MUMBAI)
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ITAT - Consideration received on sale of carbon credits is capital receipt and not taxable.
Dy CIT vs. Indur Green Power Private Limited
(2015) TaxCorp(LJ) 8414 (ITAT-HYDERABAD)
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ITAT - In an appeal against AO’s order giving effect to Tribunal’s order, the CIT(A) cannot saddle assessee with taxability of new source of income, which has not been considered by AO.
Cheil India Pvt. Ltd vs ITO
(2015) TaxCorp(LJ) 8413 (ITAT-DELHI)
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HC - AO is not empowered to consider all other items while making reassessment and should confine assessment to the item on which reassessment notice has been given.
J.K. Cotton Spinning & Weaning vs. CIT
(2015) TaxCorp(LJ) 8411 (HC-ALLAHABAD)
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HC - Section 234E is constitutionally valid.
M/S LAKSHMINIRMAN BANGALORE PVT LTD. Vs THE DEPUTY COMMISSIONER OF INCOME-TAX
(2015) TaxCorp(LJ) 8405 (HC-KARNATAKA) · Section 234E
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HC - Disallowance u/s 40(a)(ia) justified in case of short-deduction of TDS applying wrong section (deducted tax u/s 194C @ 2% as against 5% as prescribed u/s 194J).
CIT vs. P V S Memorial Hospital Ltd
(2015) TaxCorp(LJ) 8404 (HC-KERALA) · Section 40(a)(ia)
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SC - AY 1998-99 - TDS u/s 194C @ 2% and not u/s 194I @ 20% applicable while making payment for landing and parking charges to Airport Authority of India.
Japan Airlines Co Ltd vs CIT
(2015) TaxCorp(LJ) 8401 (SC) · Section 194I
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S. 194-I: In deciding whether a payment is for "use of land", the substance of the transaction has to be seen. If the payment is for a variety of services and the use of land is minor, the payment cannot be treated as "rent"
Japan Airlines Co. Ltd vs. CIT
(2015) TaxCorp(LJ) 8385 (SC) · Section 194-I
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S. 40(a)(ia)/ 194C/ 194J: Deduction u/s 194C instead of u/s 194J renders the shortfall liable for disallowance u/s 40(a)(ia)
CIT vs. PVS Memorial Hospital Ltd
(2015) TaxCorp(LJ) 8384 (HC-KERALA) · Sections 40(a)(ia), 194C, 194J
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Bogus sales and purchases: Reliance on statement of supplier who confesses to providing accommodation entries without giving assessee right of cross-examination violates principles of natural justice and the addition has to be deleted in toto
ACIT vs. Tristar Jewellery Exports Pvt. Ltd
(2015) TaxCorp(LJ) 8383 (ITAT-MUMBAI)
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HC - No subsequent event could put life into the Assessing Officer's reason to believe that income chargeable to tax has escaped assessment when the reasons as originally recorded are still born. Retrospective amendment allowing addition of provision made for diminution of value of assets cannot impact reopening of notice, which was not on account of diminution in the value of the assets but on the ground that they were ascertained liabilities.
Godrej Industries Ltd. vs. Dy. CIT
(2015) TaxCorp(LJ) 8364 (HC-BOMBAY)
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AAR - Amount received by applicant-UK company for providing 'management services' and 'procurement services' to its Indian affiliate not fees for technical services under Article 13 of India-UK DTAA, in the absence of ‘make-available’ of services.
Measurement Technology Limited
(2015) TaxCorp(LJ) 8363 (AAR)
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S. 271(1)(c): The rigors of penalty provisions cannot be diluted only because a small number of cases are picked up for scrutiny. No penalty can be levied unless if assessee's conduct is "dishonest, malafide and amounting concealment of facts". The AO must render the "conclusive finding" that there was "active concealment" or "deliberate furnishing of inaccurate particulars"
CIT vs. Dalmia Dyechem Industries
(2015) TaxCorp(LJ) 8352 (HC-BOMBAY) · Section 271(1)(c)
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S. 244A: Interest on income-tax refund received by a non-resident is not effectively connected with the PE (Permanent Establishment) either on asset test or activity test. Accordingly such interest cannot be assessed as business profits but has to be assessed as "interest" under Article 11/ 12
DIT vs. Credit Agricole Indosuez
(2015) TaxCorp(LJ) 8351 (HC-BOMBAY) · Section 244A
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Strictures passed regarding the "casual and callous" and "frivolous" manner in which senior officers of the dept authorize filing of appeals. Strictures also passed against counsel for acting as a "mouthpiece" of the Dept in persisting with unmeritorious appeals. CBDT directed to take appropriate action
DIT vs. Credit Agricole Indosuez
(2015) TaxCorp(LJ) 8350 (HC-BOMBAY)
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S. 28(va)/ 115JA: non-compete consideration received prior to insertion of s. 28(va) is not taxable. Amount credited to reserves without a corresponding debit to the P&L A/c cannot be added to the "book profits"
CIT vs. Bisleri Sales Ltd
(2015) TaxCorp(LJ) 8349 (HC-BOMBAY) · Sections 28(va), 115JA
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