Instruction No. 16/2015 Sub-section (2) of Section 12AA of the Income-tax Act 1961 prescribes that every order granting or refusing registration under clause (b) of sub-section (I) of that Section shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) of the sub-section (1) thereof. Thus while processing the application u/s 12AA of the Act, the time limit of six months has to be adhered to by the Commissioner of Income Tax (Exemptions). However, it has been brought to the notice of the Board that the said time limit has not been observed in some cases.
This notification shall come into force with effect from the 7th day of November, 2015
Where AO allowed interest on capital and remuneration paid to the partners from the estimated income on the basis of partnership deed, assessment made by AO on estimation of income could not be treated as erroneous or prejudicial to the interest of Revenue for invoking the jurisdiction under section 263.
Knorr-Bremse India Pvt. Ltd. vs. ACIT (P&H HC) A reading of the orders of the TPO, the DRP and of the Tribunal makes it clear that one of the main reasons for not accepting the assessee’s case was that the assessee had not been able to substantiate that the payment for the services had actually increased its profits.
ITAT Delhi held In the case of DCIT vs. M/s. Spice Retail Ltd. that the expenditure incurred by the assessee on advertisement has been treated as revenue in nature. It is not open for the AO to treat an expenditure as party revenue in nature and balance 25% as deferred revenue expenditure.
ITAT Mumbai held In the case of M/s. National Pharmaceuticals vs. ITO that there is no straight jacket formula can be applied to check sufficient reasons for late filing of appeal. It will depend on the facts and circumstances of the particular case.
ITAT Delhi held In the case of M/s SRK Education & Research Charitable Trust vs. CIT that it is clear in this case that the CIT refused to grant the trust registration because there was no dissolution clause in the trust deed and also the assessee had not done any charitable activity.
ITAT Mumbai held In the case of The ACIT vs. M/s Sandeep Shrivastava that AO is not authorized to make any addition merely on account of presumption. In this case because the assessee is Share holder and Director of the company, which sold the property
ITAT Lucknow held In the case of M/s Clara Swain Hospital vs. ITO that no capital gain liability can be imposed on the assessee where he does not own the asset and more ever he has not received any payment for such transfer.
The term “such as” is often used in statutes as well as judicial pronouncements. However, it is merely illustrative and not exhaustive. Definition of certain services and input service uses the term ‘such as’ which is purely illustrative but not exhaustive. See: Concise Oxford Dictionary: “Such as” means for example or of a kind that; and Chambers Dictionary: ‘Such as’ means for example.
