SC Judgment in Hill Properties case – Substance seems to have prevailed over Form

2 Comments

1. vswami says:

   ADD-on , to UPDATE(:

   Attention may have to be invited to the Order of the ITAT Mumbai, in the case of ITO Vs. Hill Properties Ltd, I.T.A. No.2999/M/2012 (AY: 2009-2010), Date of Pronouncement:20.12.2013

   It is seen that, the ITAT has favorably decided the taxpayers’claim for tax exemption on certain receipts, by applying the principle of mutuality. Similar claim in respect of interest income from bank deposits, however, as conceded by taxpayer’s counsel, has been remanded to the AO, for consideration of the claim in the light of the SC Judgment in re. Bangalore Club, cited and relied upon by the Revenue.
   In that case, however, interest from non-member banks having been volunteered and offered for tax, – no knowing as to what was the rationale or thought behind- the only dispute was on taxability of interest from member-banks. Now, in Hill Properties case, it is unclear, whether or not the disputed interest is received from a shareholder- (member-) bank of the company . If not, then the apex court judgment will, for obvious reason , have provided no useful guidance or clues to fall back, for AO in deciding either way. That means a fresh spate of controversy and prolonged litigation might follow.
   Anyone with independent thoughts or view to spare and share !

     Reply

   November 8, 2018 at 9:41 am
2. vswami says:

   The instant write-up is intended to update the earlier one analysing the itat order in re. Shantikumar D Majithia vs. DCIT

     Reply

   January 16, 2014 at 9:53 pm