Analysis of HC, SC and ITAT Judgment on Taxation and Corporate Law

The powers under section 254 (2) can only be exercised when it is found that there is a mistake in the order of the Tribunal and the mistake is such that no two views are possible on the same. The powers under section 254(2) cannot be exercised for reviewing a considered and conscious decision on the grounds which are inherently subjective and capable of debate and discussion on adoption of one view or the other. Full Article

Where total debt debited in the account of the client is inclusive of brokerage then brokerage being part of the total debt having been taken into account in computing the income, would satisfy the provisions of sec. 36(2) and therefore, when assessee writes off such debt then he would be entitled for deduction u/s. 36(1)(vii). Full Article

If books of account are found to be correct and complete in all respect and no defect is pointed out therein and cost of construction of building is recorded therein, then the addition on account of difference in cost of construction cannot be made even if a report is obtained within the meaning of section 142A from the DVO. Full Article

Merely because the liabilities are outstanding for last many years, it cannot be inferred that the said liabilities have ceased to exist. It is also a fact that the assessee has not written off the outstanding liabilities in the books of account and the outstanding liabilities are still in existence would prove that the assessee acknowledged his liabilities as per the books of account. Section 41(1) of the IT Act is attracted when there is cessation or remission of a tra.. Full Article

When any fact material to the determination of an item as income or material to the correct computation is not filed or that which is filed is not accurate, then the assessee would be liable to penalty under section 271(1)(c). Full Article

Once there is no patent or any intellectual right vested in a person over a thing, no claim of royalty can be allowed to him. Full Article

The agreement of the assessee to acquire a rented property for running its office cannot be considered as an intangible asset similar to know how, patents, copy rights, trade marks, etc under section 32(1)(ii). Full Article

The sale/transfer of stock-in-trade cannot be equated with the transfer of capital asset under section 2(47). The meaning of the words "otherwise transferred" in section 45(2), should be according to its ordinary popular and natural sense, and it should not include a transaction referred to under sub-clause (v) of sub-section (47) of section 2 in relation to a 'capital asset'. Full Article

Scope of Explanation 2 to Section 147 is such that Assessing Officer is free to re-examine correctness of a regular assessment and decide whether tax assessed, rate applied, relief and allowances granted, etc., are in terms of provisions of Act and if not, to revise assessment in terms of Section 147. Section 147, after amendment, is large enough to cover situations whereby deductions have been wrongly or excessively granted, the Tribunal has no authority to restrict the.. Full Article

Where Parliament has intended to make a specific provision imposing a liability to pay penalty apart from the tax which is due and payable, a specific provision to that effect has been made; the expression "tax due" in section 179(1) cannot comprehend within the meaning of that expression a liability to pay a penalty that may have been imposed on the company. Full Article