Income Tax Judgment of SC, HC and ITAT

  • Apr
  • 20
  • 2014

S. 234E: Recovery of fee is subject to outcome of Petition; Govt to reply on S. 234E notices – Rajasthan HC

Om Prakash Dhoot vs. UOI (Rajashthan High Court) Under Section 234E  wef 1st of July 2012 deductor will be liable to pay by way of fee of Rs 200 per day till the failure to file TDS statement continues, However, the total fee cannot exceed the amount of TDS deductible for which statement was required […]

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  • Apr
  • 17
  • 2014

Mere non residential use subsequently would not render property ineligible for benefit U/s. 54F

Mere non residential use subsequently would not render the property ineligible for benefit u/s.54F, if it is otherwise a residential property, as held by the Delhi Bench of the Tribunal in the case of Mahavir Prasad Gupta Vs JCIT (5 SOT 353).

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  • Apr
  • 16
  • 2014

Mere subsequent Commercial use of Residential Property not take away benefit u/s.54F

Shri M.V.Subramanyeswara Reddy (HUF) Vs DCIT ITAT Hyderabad Mere non residential use subsequently would not render the property ineligible for benefit u/s.54F, if it is otherwise a residential property, as held by the Delhi Bench of the Tribunal in the case of Mahavir Prasad Gupta Vs JCIT (5 SOT 353).

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  • Apr
  • 12
  • 2014

TDS U/s. 194H not deductible on Product Discount Schemes

The assessee contended that the expenditure under the said claims are only for promotion of sales and hence had no relation to payment of any commission on sales. The assessee contended that therefore tax at source is not required to be deducted as the said expenditure did not fell within the ambit of Section 40(a)(ia) of the Income Tax Act.

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  • Apr
  • 12
  • 2014

Provision for retirement benefit based on service weightage not allowable

CA Sandeep Kanoi As far as the expression ‘gratuity’ is concerned, there is no definition of what ‘gratuity’ is, even under the Payment of Gratuity Act; yet, a monetary relief to an employee at the time of his retirement or termination of service is treated as ‘gratuity’. Section 4 of the Payment of Gratuity Act […]

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  • Apr
  • 09
  • 2014

Hasty Recovery action may be treated as Contempt – Delhi HC to AO

The facts of this case are that the petitioner lost its appeal before the Commissioner of Income Tax (Appeal) on 20.11.2013. The revenue issued notice under Section 221 for determined demand amounts due for the AY 2007-08, which was subject matter of the appeal before the CIT (Appeals).

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  • Apr
  • 09
  • 2014

Loss on writing-off of irrecoverable advances under scheme of amalgamation cannot be carried forward for set off in subsequent years

Deposits or advances given to the parties which was written-off latter in the scheme of amalgamation, were neither a capital assets nor there was any transfer, thus no capital loss is allowed to be carried forward to the subsequent year. Thus held that irrecoverable advances written-off are not a transfer and the loss cannot be claimed as capital loss.

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  • Apr
  • 07
  • 2014

Share Trading – Business income or Capital gain – Guiding principles

• Where assessee held shares from seven to eleven months, earned dividend and entered into a few transactions of sale of such shares during relevant year even though he held a huge number of shares, income arising from sale of shares would be taxable as short-term capital gain. [CIT v. Vinay Mittal [2012] 22 taxmann.com […]

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  • Apr
  • 05
  • 2014

Sec. 54 Expression ‘a residential house’ cannot be interpreted as ‘a single residential unit’

CA Sandeep Kanoi Assessee, owner of a residential property, entered into a development agreement for construction of flats with a developer. Under agreement, assessee received 7 flats towards his share. He claimed exemption u/s 54F on the entire amount of capital gain. AO held that assessee is entitled to exemption u/s 54F but only in […]

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