"12 August 2015" Archive

ITAT referred case back to lower authorities as pre-requisite condition of DTAA is not ascertained

Outotec India Pvt Ltd Vs ACIT (ITAT Delhi)

In the present case services were provided by the non-resident individuals so article 15 was applicable but the pre-requisite condition that the each non-resident individual had to be present in India for more than 90 days which was not ascertained....

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Loss from Forex Derivative trading upto export turnover is business loss & not speculative loss

M/s. Majestic Exports Vs JCIT (ITAT Chennai)

In the case of M/s. Majestic Exports vs. JCIT, ITAT Chennai held that the loss in the transactions of the forex derivatives contracts will be considered to be the business loss and the same can be set off against the business income. ...

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Lessee can claim depreciation if entire control & rights of building are with him

CIT Vs M/s Bharat Hotels (Delhi High Court)

Delhi High Court has in the case of CIT Vs M/s Bharat Hotels held that If appellant Leasee is having entire control over the building than even though no ownership rights vest him, still he can claim depreciation on the same....

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If creditors are found bogus then addition can be made u/s 68 or u/s 41(1)

Perfect Paradise Emporium Pvt. Ltd. Vs ITO (ITAT Delhi)

ITAT Delhi has held in the case of Perfect Paradise Emporium Pvt. Ltd vs. ITO that If creditors are found bogus then the amount can be added back to income u/s 68 as unexplained cash credits or us 41(1) as business income....

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TDS Provision on Year end provisions and Roaming charges

Dishnet Wireless Limited Vs DCIT (ITAT Chennai)

ITAT Chennai has held in In the case of Dishnet Wireless Limited vs. DCIT that No liability of TDS will arise if the amount of expense or payee is not ascertainable though year-end provisions are made by the Appellant....

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Claim cannot be denied for mere non-reply to notice u/s 133(6) if AO have other sufficient evidences

Cheil India Pvt. Ltd. Vs ITO Ward 3(3) (ITAT Delhi)

Claim cannot be denied if sufficient documents are in hand of AO even though the party does not reply to notice issued u/s 133(6); (even though the party confirmation is not available against notice issued u/s 133(6)). ...

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Transfer u/s 2(47) completes only when conditions of sec 53A of transfer of property act gets fulfilled

C.S. Atwal Vs CIT (Punjab & Haryana High Court at Chandigarh)

ITAT held that Section 53A of 1882 Act, by incorporation, stood embodied in section 2(47)(v) of the Act and all the essential ingredients of Section 53A of 1882 Act were required to be fulfilled to attract sec 2(47). In the absence of registration of JDA...

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Penalty cannot be escaped by payment of taxes before initiation of Penalty Proceedings or for financial hardship/diverse location

Reliance Industries Ltd. Vs CIT (Bombay High Court)

In, the present case the Hon’ble High Court held that the deposit of tax before the initiation of penalty proceedings will not help Assessee in escaping the penalty proceedings u/s 221. Also, the point of Financial hardship, diverse locations and lack of computerization will not give any relief to the assessee. ...

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Judicial Functions should not be performed in Arbitrary Manner- HC

Hinduja Global Solutions Ltd. Vs Union of India (Bombay High Court)

In the present case the Hon’ble High Court while accepting the Writ filed by the assessee, restored the matter back to the Tribunal by observing that the Judicial Functions should not be performed in the arbitrary manner....

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No malafide intention no penalty

CIT Vs Dalmia Dyechem Industries Ltd. (Bombay High Court)

In, the present facts of the Case the Hon’ble High Court held that no penalty could be levied until it is proved that there was an active concealment or there is deliberate furnishing of inaccurate particulars....

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