"06 July 2012" Archive

Allowing Leave encashment expense only on payment basis unconstitutional

CIT Vs Hindustan Latex Ltd. (Kerala High Court)

Calcutta High Court in Exide Industries case (supra) held that leave encashment is neither a statutory liability nor a contingent liability and it is a provision to be made for the entitlement of an employee achieved in a particular financial year. Testing clause (f) with the objects sought to be achieved by the introduction of Section 43...

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If a particular sum is not income, requirement of making TDS non-existent

Meil-Sew-Maytas-Bhel(JV) Vs ITO (ITAT Hyderabad)

Section 201(1) uses the expression 'any person, who is required to deduct any sum in accordance with the provisions of the Act…..'. Assessee's stand was that there was no such requirement. As per the provisions of section 194C, an amount has to be deducted out of the sum in pursuance to a contract, at the time of payment/credit towards ...

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S. 2(47)(v) Possession need not necessarily be sole & exclusive

Assistant Commissioner of Income-tax Vs A. Ram Reddy (ITAT Hyderabad)

Owners have entered into an agreement for development of the property and certain rights were assigned to the developer who in turn had made the substantial payment and consequently entered into the property and thereafter if the transferee has taken any steps in relation to construction of the flats, then it is to be considered as transf...

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Absence of a provision, can’t be ground for declaring statute as arbitrary

Larsen and Toubro Ltd. Vs UOI (Delhi High Court)

Larsen and Toubro Ltd. v. UOI There is no provision like section 4(7) of the Andhra Pradesh VAT Act in Delhi VAT Act. The entire case of the petitioner was that there should have been a provision like this in Delhi VAT Act as well, otherwise it is leading to various difficulties. Even if one presume that the provision like section 4(7) in...

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CCI imposes penalty of more than Eight Crores on Multi System Operators Group

Kansan News (P.) Ltd. Vs Fast Way Transmission (P.) Ltd. (Competition Commission of India)

The Competition Commission of India has found Fast Way Group abusing its dominance in the cable TV service in the territory of Punjab and Chandigarh in violation of the provisions of the Competition Act, 2002. The order was passed pursuant to investigation carried out by the Director General upon information filed by M/s Kansan News Priva...

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Posted Under: Income Tax |

TP – A.O. cannot reject method adopted in earlier years if facts are identical

Agility Logistics (P.) Ltd. Vs Deputy Commissioner of Income-tax-8(1), Mumbai (ITAT Mumbai)

Agility Logistics (P.) Ltd. v. DCIT As the facts in issue for the year under appeal are identical with facts of the AY 2004 -05 & 2005 -06, respectfully following the decisions of the tribunal mentioned here in above in the appellants own case for the AY 2004 -05 & 2005 -06, we allow the appeal filed by the assessee and hold that the addi...

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Transfer of file u/s.158BD without recording of satisfaction makes s.158BC assessment invalid

CIT Vs DR. T.M. Kuriachan (Kerala High Court)

Section 158BD is only an enabling provision to assess any other assessee other than the searched assessee if in the course of search of another assessee evidence of undisclosed income is received in respect of the assessee who is not searched. However, the assessment pursuant to the enabling provision i.e. under section 158BD also is an a...

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TDS not deductible on reimbursement of brokerage

D C I T Vs. M /s. Tata Asset Management Ltd (ITAT Mumbai)

With regard to the first issue the AO was under the wrong impression in treating the reimbursement of ‘scheme expenses’ as provision for expenses whereas the fact remains that the expenses were crystallized and it was paid immediately after the end of the financial year and similar expenses were allowed as eligible for deduction in th...

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Search warrant issued in the name of group concerns with names of assessees separately stated therein is valid

Commissioner of Income-tax, Cochin Vs Khyber Foods (Kerala High Court)

CIT v. Khyber Foods The only question raised is whether the Tribunal was justified in holding that the assessments were invalid for the reason that search warrant issued in Form 45 was invalid. The contention of Senior counsel for the Revenue is that assessee never had a case on the validity of assessments except at the Tribunal stage whe...

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S. 54G Amounts should be utilized for acquisition of assets for business purpose

Dy. Commissioner of Income Tax Vs Enpro Finance Ltd (ITAT Mumbai)

DCIT v. Enpro Finance Ltd Clause-b of sub section (1) of section 54G does not use its specific phrase ‘for the purpose of its business of under taking’ except that the business should be in non-urban area. Therefore, it can be interpreted that assessee should carry on any business in non urban area. If the amounts are utilized for ac...

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