Income Tax Judgment of SC, HC and ITAT

  • Jul
  • 04
  • 2015

Disallowance cannot be made U/s. 40(a)(ia) for Short Deduction of TDS

S. 40(a)(ia) can be invoked only when the two conditions, namely, that tax is deductible at source and such tax has not been deducted is satisfied. Where tax is deducted by the assessee under a wrong provision of TDS and there is a shortfall, s.40 (a) (ia) disallowance cannot be made.

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  • Jul
  • 04
  • 2015

Section 158BD- Satisfaction note and notice to receiver of amount on behalf of others is valid

That once the AO became aware that the property was not owned by the assessee and that he had received the amount on someone else’s behalf, notice could not have been issued under Section 158BD. He urged that this Court should not interfere with the ITAT’s order on this ground alone.

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  • Jul
  • 03
  • 2015

Payment for rights to use know-how and technology without ownership is revenue expenditure

As the only rights to use the know-how and the technology has been granted to the assessee not the ownership of the know-how has been transferred .The ultimate ownership remains with the Honda Motorcycle company Limited .Assessee is using the same for the smooth functioning of the business. So the same should be treated as revenue expense.

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  • Jul
  • 03
  • 2015

TDS on payment to doctors working in hospital under section 192 or 194J?

The hospital had hired the doctors i.e professionals for their expertise, experience, and skill in the profession and requests them to be associated with the hospital, then their engagement cannot be said to be of employer-employee relationship.

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  • Jul
  • 03
  • 2015

Unabsorbed depreciation can be set off against capital gain from sale of depreciable asset

Hon’ble High Court relied on the decision of Cocanada reported in 57 ITR 306 and Sasoon V/s CIT in which it was held that carry forward unabsorbed depreciation can be set off against the capital gain from sale of depreciable asset.

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  • Jul
  • 03
  • 2015

Customization of electronic data amounts to manufacture for claiming exemption u/s 10B

The assessee’s effort of collection, designing, layout, refining the photographs to make the book ready to print out is manufacturing and the same is also exported outside India so exemption u/s 10B cannot be denied.

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  • Jul
  • 03
  • 2015

Section 158B – Initiation of Block Assessment without Valid satisfaction is invalid

Hon’ble High Court is of the opinion that the note written by the AO lacks satisfaction as required u/s 158BD.In other words there is lack of the satisfaction of the AO that there is material that the respondent assessee had undisclosed income. AO has just written the facts that there was book entries between Mr Manoj Aggarwal and the respondent and also Mr Manoj Aggarwal had accepted cash from the respondent but there was not any evidence which supports the allegations of the Assessing officer.

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  • Jul
  • 03
  • 2015

Ground of ill health without any cogent material for condonation of delay not sustainable

Tribunal held that the explanation regarding the illness of husband offered by one of the assessee Mrs P.S Rajeshwari was untenable.The tribunal further pointed out that plea of illness between November,2010 and November 2013 and sudden regaining of health was not supported by evidence. The tribunal further held that the delay in filing of the appeal by 1100 days was not supported by evidence ;the assesses have failed to act with due diligence .

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  • Jul
  • 03
  • 2015

Initiation of penalty u/s 272A(2)(k) starts from the date of issuance of notice by competent authority

Issuing notice is a statutory requirement of initiating of penalty as to intimate the assessee about such initiation and to give him an opportunity of being heard. Under the act power are conferred on income-tax authorities to initiate any proceeding and to initiate notice. Here in this case ITO (TDS) initiated penalty but he was not conferred any power to do so which he rectified by referring the matter to the competent authority.

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  • Jul
  • 03
  • 2015

Assessment framed in the name of non-existing entity due to amalgamation cannot be cured by provision of section 292B

Hon’ble Delhi Court in the matter Spice Entertainment (ITA no. 475/2011) give finding on the proposition that completion of assessment in respect of a non-existent company due to the amalgamation would result assessment in the name and in respect of the original assessee company, a nullity. The Court further held that a jurisdictional defect such as nullity shakes the entire proceedings and does not render the order a mere irregularity. For this purpose the Court has relied upon CIT vs. Norton Motors 275 ITR 595.

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