Income Tax Judgment of SC, HC and ITAT

  • Jan
  • 27
  • 2015

Section 14A & Rule 8D disallowance cannot be made if there is no exempt income

CIT Vs. Holcim India P. Ltd. (Delhi High Court) ITA No. 486/2014 & ITA No. 299/2014, Date of Decision: September 05, 2014 On the issue whether the respondent-assessee could have earned dividend income and even if no dividend income was earned, yet Section 14A can be invoked and disallowance of expenditure can be made, there […]

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  • Jan
  • 27
  • 2015

In absence of exempt income, Section 14A disallowance cannot be added to Section 115JB book profits

Minda Sai Limited Vs. Income Tax Officer (ITAT Delhi), I.T.A. No.: 2974/Del/13, Date- 09.01.2015 Disallowance of Rs 2,00,225 under section 115JB on the ground that this amount pertains to disallowance under section 14A – Learned counsel for the assessee has invited our attention to Hon’ble Delhi High Court’s decision in the case of CIT Vs […]

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  • Jan
  • 27
  • 2015

Disallowance u/s 14A in cannot be made in respect of Audit Fees

ITO v. Pioneer Radio Training Services Pvt. Ltd. (Delhi ITAT), ITA No. 4448/Del/2013, Order Dated 19-1-2015 The auditor’s remuneration and legal & professional charges incurred for maintenance of statutory books and its audit etc. were required to be incurred irrespective of whether the Company had any income or not and hence, there was absolutely no […]

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  • Jan
  • 27
  • 2015

S. 14A No disallowance towards exempt income earned on strategic investments

Interglobe Enterprises Ltd.Vs. DCIT (ITAT Delhi), I.T.A. No.1580/Del/2013, I.T.A. No.1362 & 1032/Del/2013, Date- 04.04.2014 The assessee had made significant investments in the shares of subsidiary companies which are definitely not for the purpose of earning exempt income. The Hon’ble Tribunal in I.T.A. No.3349/Del/2011 in the case of Promain Ltd., after relying upon a Kolkatta judgment […]

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  • Jan
  • 23
  • 2015

Extended credit period to AE attracts TP adjustment

In this case, the ITAT ruled that extended credit period allowed to the Associated Enterprises (‘AE’) amounted to short term funding without interest and thus attracted TP adjustment on account of notional interest from such short term funding. TPO made adjustment considering interest rate @18.816% but DRP reduced it to 7%.

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  • Jan
  • 21
  • 2015

Penalty based on order passed in cursory & summary manner not sustainable

Hon’ble Delhi ITAT has in the case of M/s. Fortune Ploymers Industries Pvt.Ltd. vs. DCIT, has held that Penalty u/s 271(1)(c) cannot be imposed on an un-detailed assessment order passed in a cursory and summary manner .

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  • Jan
  • 20
  • 2015

Reimbursement of medical expense is not perquisite u/s 17(2)

Brief facts of the case are that The assessee received a sum of Rs.90,090/- towards reimbursement of medical expenses from the company M/s Bajaj Consultants Pvt. Ltd., wherein, he is a Director and claimed the same as exempt u/s 17(2) of the Act.

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  • Jan
  • 17
  • 2015

Disallowance u/s 40(a)(ia) for mere deduction of TDS under wrong section

The provisions of section 40(a)(ia) of the Act has two limbs one is where, inter alia, assessee has to deduct tax and the second where after deducting tax, inter alia, the assessee has to pay into Government Account. There is nothing in the said section to treat, inter alia, the assessee as defaulter where there is a short fall in deduction.

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  • Jan
  • 17
  • 2015

Indexed cost of acquisition of gifted assets

Hon’ble Delhi ITAT has in the case of DCIT V/s Soni Sonu Mirchandani has held that indexed cost of acquisition to be computed with reference to the year in which the previous owner first held the gifted assets.

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  • Jan
  • 16
  • 2015

Rent from Mobile antennae installed at terrace taxable as House Property Income

Rent is for space to host the antennas and not for the antennas. As long as the rent is for the space, terrace and roof space in this case and which space is certainly a part of the building, the rent can only be taxed as ‘income from house property’.

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