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ITAT - Assessee had enough interest free funds in the form of reserves and surplus and there was no relation between the interest expenditure and the dividend income. Therefore, disallowance of interest expenditure, by invoking the provision of section 14A, was uncalled for. Licenses to use softwares which facilitated smooth carrying on of business operation, fee paid for said licenses was revenue expenditure
Deputy Commissioner of Income-tax, Circle 11 (1), New Delhi v. Eicher Motors Ltd.
(2015) TaxCorp(LJ) 5185 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=39181&Category=ITAT&CategoryType=Zip
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HC - The issue whether the assessee had held the mutual funds as investment or sold them for earning profits to be taxed as business income is a complex and vexed one. Matter remanded for fresh consideration by Tribunal
Commissioner of Income-tax v. Central News Agency (P.) Ltd.
(2015) TaxCorp(LJ) 5184 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=58088&Category=Judgment&CategoryType=Zip
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HC - For the purpose of section 278B, once the offence is shown to have been committed by the company, then the liability of the directors in charge of its affairs is attracted. The burden then shifts to such directors to show that the offence occurred without their knowledge or that they had exercised all due diligence to prevent the commission of such offence.
Income-tax Officer v. Anil Batra
(2015) TaxCorp(LJ) 5183 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=58238&Category=Judgment&CategoryType=Zip
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ITAT - Incurring of AMP expenses towards promotion of brand, legally owned by the foreign AE, constitutes a 'transaction' and would attract TP provisions.
Yum Restaurants (India) (P.) Ltd. v. Income-tax Officer, Ward-18 (4), New Delhi
(2015) TaxCorp(LJ) 5182 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=39040&Category=ITAT&CategoryType=Zip
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ITAT - Assessee has entered into a derivative contract of option, whereas the business of the assessee is trading in steel tubes, pipes, PVC, etc. The option transactions were not in respect of specified imports or exports. The provision for loss shown by the assessee pertained to those foreign currency transactions, against which no actual delivery of foreign exchange was made. Provision for losses on forex option contract is not deductible
Shankara Infrastructure Materials Ltd. v. Assistant Commissioner of Income-tax, Circle-12 (3), Bangalore
(2015) TaxCorp(LJ) 5181 (ITAT-BANGALORE) · http://taxcorp.in/FileOpenDT.aspx?ID=39554&Category=ITAT&CategoryType=Zip
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ITAT - Since the company had not been shown to be a persistent loss making company, merely because this company had incurred loss during impugned financial year, it could still be included in the list of comparable. Where data pertaining to a comparable did not relate to financial year in which International Transaction had been carried out by assessee, said concern was to be excluded from list of comparables
John Deere India (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle- 11 (1), Pune
(2015) TaxCorp(LJ) 5180 (ITAT-PUNE) · http://taxcorp.in/FileOpenDT.aspx?ID=39553&Category=ITAT&CategoryType=Zip
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ITAT - An amount which has not been debited in the P&L account and therefore not claimed as expenditure cannot be disallowed even though the invoice may be in the nature of accommodation entry.
Dy. Commissioner of Income Tax, Central Circle-09 New Delhi Versus M/s Pasupati Fabrics Ltd
(2015) TaxCorp(LJ) 5179 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=39513&Category=ITAT&CategoryType=Zip
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ITAT - The purpose of the payment of loyalty commission was clearly for business of the assessee, and it is not for the department to sit over the judgment of the assessee that how the business has to be conducted and the expenditure incurred could not be disallowed, till it shows that the payment itself was not genuine or was made for some purpose other than the business purpose of the assessee.
ACIT, Vapi Circle Vapi. Versus Jotun Powder Coating (India) P. Ltd.
(2015) TaxCorp(LJ) 5178 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=39514&Category=ITAT&CategoryType=Zip
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ITAT - The intermediary Bitumen mix is not article or thing manufactured or produced by the assessee. Additional depreciation not allowed
M/s BSC C&C JV. Versus ACIT, Circle-38(1), New Delhi
(2015) TaxCorp(LJ) 5177 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=39516&Category=ITAT&CategoryType=Zip
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ITAT - Though extra period allowed for realization of sale proceeds from the AE is an international transaction, however, for the purpose of determining the ALP, the same has to be clubbed or aggregated with the sale transactions with the AE. When the assessee is not making any difference for not charging the interest from AE as well as non-AE then the only difference between the two can be considered is the average period allowed along with outstanding amount
M/s Goldstar Jewellery Limited. Versus Joint Commissioner of Income Tax (OSD) 8(1), Mumbai.
(2015) TaxCorp(LJ) 5176 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenINTL.aspx?ID=7825&Category=INTLDecisions&CategoryType=Zip
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ITAT - The only forum where order of the Director of Income-tax can be challenged is the ITAT which is higher in rank to the Director of Income tax.
Raibareilly District Co-operative Bank Ltd. Versus Director of Income Tax (I&CI)
(2015) TaxCorp(LJ) 5175 (ITAT-LUCKNOW) · http://taxcorp.in/FileOpenDT.aspx?ID=39518&Category=ITAT&CategoryType=Zip
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ITAT - Non-est return of income - Assessee had never applied for PAN, the return of income was not verified and the return being not filed by the Assessee stand established and the return of income filed has to be treated as a scrap of paper filed by anonymous person reflecting fictitious income, assets and liabilities.
Income Tax Officer Ward- 6(1), Ahmedabad Versus Shri Pravin B. Kachadia HUF and Shri Pravin B. Kachadia HUF Versus Income Tax Officer Ward-6(1), Ahmedabad
(2015) TaxCorp(LJ) 5174 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=39520&Category=ITAT&CategoryType=Zip
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ITAT - The legal fiction of section 2(22)(e) does not extend to “shareholder”. The fiction is not to be extended further for broadening the concept of shareholders.
Asstt. Commissioner of Income Tax, CC-23, Jhandewalan Extension, New Delhi Versus M/s ISG Overseas (P) Limited
(2015) TaxCorp(LJ) 5173 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=39522&Category=ITAT&CategoryType=Zip
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HC - The sale proceeds from the business of nursery carried on by the assessee constitute income from agriculture
Commissioner of Income Tax Versus Dhirajlal B. Vadalia
(2015) TaxCorp(LJ) 5172 (HC-GUJARAT) · http://taxcorp.in/FileOpenDT.aspx?ID=59264&Category=Judgment&CategoryType=Zip
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HC - The Tribunal was correct in treating the amount received on redemption of Stock Appreciation Rights as capital gain as against treated as perquisite under Sec.17(2)(iii) of the I.T. Act and in treating the amount received on exercising the opinion of Employee's Stock Option Plan (EOSP) as long term capital gains instead of treating the same as short term capital gains.
CIT. –I Versus Bharat V. Patel
(2015) TaxCorp(LJ) 5171 (HC-GUJARAT) · http://taxcorp.in/FileOpenDT.aspx?ID=59283&Category=Judgment&CategoryType=Zip
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ITAT - Interest is paid whenever money is borrowed or some debt is incurred. Both elements are missing in these transactions. Therefore, the finance charges claimed by the assessee is rightly denied
Dhanraj Mills Pvt. Limited, C/o Ramgopal Ganpatrai & Sons P. Ltd., Versus Asstt. CIT., Central -3, IT. Office, Mumbai
(2015) TaxCorp(LJ) 5170 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=39285&Category=ITAT&CategoryType=Zip
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HC - Assessee was under the bona fide impression that the money received was only towards allotment of shares and it is not a loan or deposit. Rigors of Section 269SS cannot be applied, penalty could not be levied under Section 271D
The Commissioner of Income Tax Chennai Versus M/s. Object Frontier Software Pvt. Ltd.
(2015) TaxCorp(LJ) 5166 (HC-MADRAS) · http://taxcorp.in/FileOpenDT.aspx?ID=59290&Category=Judgment&CategoryType=Zip
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HC - For the purpose of tax under the Act, the Assessing Officer may be in a position to find out the status of the beneficiaries of the First Level Trust and while finding out the status of the beneficiaries of the First Level Trust, he may look upon the taxable liability of the beneficiaries of Second Level Trust, who are the beneficiaries of First Level Trust and if the tax payable is higher, while making assessment of the First Level Trust, option may be resorted to under Section 164 of the Act to that extent only, but such cannot be permitted again to reach to the Third Level Trust and to find out the taxable liability of the beneficiaries of the Third Level Trust.
NEO TRUST Versus INCOMETAX OFFICER
(2015) TaxCorp(LJ) 5165 (HC-GUJARAT) · http://taxcorp.in/FileOpenDT.aspx?ID=59295&Category=Judgment&CategoryType=Zip
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SC- SC upholds the levy of sales tax on Processing and supplying of Photographs, Photo Prints and Photo negatives retrospectively with effect from 01.07.1989
State of Karnataka etc. vs. M/s. Pro Lab & Others
(2015) TaxCorp(LJ) 5164 (SC)
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HC - Activities of compiling and collating text, designing the layout, scanning and digital image editing, constitute "manufacture" or "production". E-book development eligible for exemption u/s 10B
CIT vs. Kiran Kapoor
(2015) TaxCorp(LJ) 5163 (HC-DELHI)
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