Income Tax Judgment of SC, HC and ITAT

  • Aug
  • 15
  • 2014

Interest Expense incurred to earn Interest Income is allowable – Section 57(iii)

As long as the expense is incurred wholly and exclusively for the purpose of earning an income, even if it is not necessarily for earning that income, it will still be deductible in computation of income. What thus logically follows is that even in a situation in which proximate or immediate cause of an expenditure was an event unconnected to earning of the income

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  • Aug
  • 15
  • 2014

Power to reassess cannot be exercised on the basis of mere change of opinion

Mr.Chhotaroy learned counsel for the revenue mentioned that the profit and loss account of the assessee as furnished by the petitioners would clearly indicate that the Assessing Officer had not applied his mind to the same. This non-application of mind by the Assessing Officer at the stage of passing the assessment order is the view […]

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  • Aug
  • 15
  • 2014

No Disallowance U/s. 14A r.w. Rule 8d for Investments in subsidiaries

The first issue in the appeal of the assessee relates to dis-allowance made u/s. 14A r.w.r. 8D. The Assessing Officer has made dis-allowance to the tune of Rs. 4,32,66,500/-. The contention of the assessee is that the assessee has earned dividend income of Rs. 4.6 Lakhs which is fully exempt u/s. 10(34) of the Act. […]

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  • Aug
  • 15
  • 2014

Transfer pricing Assessment does not mean that the PE of payee cannot be assessed

Once the Assessing Officer is satisfied that a permanent establishment of the petitioner exists in India and business is being conducted from this permanent establishment, the attribution of profits is a necessary consequence. The order of TPO will not come in the way for the reason that the TPO’s order is in relation to the […]

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  • Aug
  • 15
  • 2014

M.P. High Court Grants Stays recovery of Demand U/s. 234E

In the Case of Shree Builders Vs. UOI, M.P.High Court issued notice to Union of India against validity of section 234E of Income Tax Act,1961  and granted stay of demand. Case was argued by A.P.Shrivastava Advocate accompanied by Advocate Sapan Usrethe.  Court has also noted Stay Granted by Other High Courts (High Court of Kerala, […]

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  • Aug
  • 15
  • 2014

Transfer Pricing: Share application money cannot be treated as loan for taxing notional interest despite non-allotment of shares for long time

Assessee has challenged the addition made by the A.O. and sustained by the ld. CIT(A) by way of TP adjustment on account of interest chargeable on the amount of share application money paid to its AE and lying unutilized for a period beyond 60 days treating the same as loan. As agreed by the ld. […]

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  • Aug
  • 14
  • 2014

Claim u/s 54/54F may be allowable in case of purchase of more than one new flats when such flats constitutes one residential house

During the assessment year, the assessee has sold its factory premises from which it has been showing rental income. In the computation of total income the assessee has claimed deduction u/s 54F of Rs. 1 ,34,95,220/- on the investment in three flats. The AO asked the assessee to explain as to how it can claim deduction u/s 54F on three different units on the same floor and in the name of three different persons, as it is contrary to the provisions of section 54F

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  • Aug
  • 14
  • 2014

TDS credit cannot be denied for non matching with 26AS if Assessee produces TDS Certificate

The grievance which is voiced in the present petition by the assessee is that though deductor ­employer ­ Amar Remedies Limited had deducted TDS for total Rs.5,86,606/­ and for which Form 16 A has been issued by it, department has not given credit of the said TDS to the petitioner­ assessee ­deductee and when the […]

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  • Aug
  • 10
  • 2014

No penalty U/s. 271(1)(c) for mere for failure to compute capital gains as per Section 50C

According to decision of Hon’ble Calcutta High Court in the case where addition is made on account of application of section 50C and Revenue failed to produce any evidence to the effect that assessee has actually received more amount than that shown by it on the sale of property then penalty under section 271(1)(c) cannot be levied.

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