"24 November 2015" Archive

Reopening based on retrospective amendment after 4 years not permissible in absence of failure in disclosure of material facts by assessee

M/s. Golden Tobacco Limited (Formerly GTC Industries Limited) Vs The JCIT (ITAT Mumbai)

ITAT Mumbai held In the case of M/s. Golden Tobacco Limited (Formerly GTC Industries Limited) vs. The JCIT that the law does not give powers to the AO to reopen an assessment carried out u/s 143(3) after the expiry of four years unless the AO is able to demonstrate that there was failure on the part of the assessee in disclosure of materi...

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Only companies are eligible for deduction u/s 80IA(4)

The ACIT Vs Shri. B. Dhanasekaran (ITAT Chennai)

ITAT Chennai held In the case of The ACIT vs. Shri. B. Dhanasekaran that the enterprises carrying on development of the infrastructure facilities should be owned by a company or consortium of companies. ...

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Transfer of capital assets not completes if Terms & Conditions of agreement not performed by both parties

ITO Vs Alok Mukherjee (Individual) (ITAT Jaipur)

ITAT Jaipur held In the case of ITO vs. Alok Mukherjee that where both the parties not performed terms & conditions of the agreement to sale in prescirbed time and prescribed maneeer, it is breach of contract, so it will not be a transfer of property on the date of such agreement....

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Interest income on NPA need not to be accrued in books of account in case of Bank and NBFCs

West Bengal Infrastructure Development Finance Corporation Vs ACIT (ITAT Kolkata)

ITAT Ahmedabad held In the case of West Bengal Infrastructure Development Finance Corporation vs. ACIT that in the case of CIT vs Vasisth Chayt Vyapar Ltd. 330 ITR 440 (Delhi) , it was held that the real income theory was still relevant and recognition of income in terms of Prudential Norms of RBI did not deviate from the mercantile syste...

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Consultancy services which are not of a technical nature cannot be treated as technical services

Shell Global Solutions International BV Vs ITO (ITAT Ahmedabad)

ITAT Ahmedabad held In the case of Shell Global Solutions International BV vs. ITO that as clearly stated in the MoU to the Indo US tax treaty, which stands incorporated in the Indo Dutch tax treaty as well by the virtue of MFN clause...

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Shares held by trust for issuance to employees as ESOPs is not in nature of stock in trade, any resultant gain will be taxed as capital gains

Mahindra & Mahindra Employees Stock Option Trust Vs ADCIT (ITAT Mumbai)

ITAT Mumbai held In the case of Mahindra & Mahindra Employees Stock Option Trust vs. ADCIT that the attributes available in the transaction of the assesee trust are unlike that of a trader and are more like that of an investor. ...

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Receipt already taxed in the head of sub-contractor cannot be disallowed to contractor considering same as inflated expense

M/s. KNR Constructions Ltd. Vs DCIT (ITAT Hyderabad)

ITAT Hyderabad held In the case of M/s. KNR Constructions Ltd. vs. DCIT that no such adverse inference however was drawn by the A.O. in the case of the concerned two sub-contractors and in the assessments completed under section 143(3) in their cases...

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Land eligible for wealth tax exemption even on conversion as non-agricultural if used for agricultural purposes

M.R Pattabhiram (HUF) Vs The Asst. Commissioner of Wealth tax (ITAT Bangalore)

ITAT Bangalore held In the case of M.R Pattabhiram (HUF) vs. The Asst. Commissioner of Wealth tax that mere conversion of land from agriculture to non-agriculture could not be taken as the sole criteria to hold it as a capital asset under section 2(14) of the Income tax act....

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Share of income received by University out of consultancy income earned by professors not entitled for exemption u/s 11

ACIT Vs Institute of Chemical Technology University of Mumbai (ITAT Mumbai)

ITAT Mumbai held In the case of The ACIT vs. Institute of Chemical Technology University of Mumbai that the consultancy work done by the assessee - University through its professors, in which part income is held by university and the rest lying with respective professors, is not in any way relatable to the aims and object for which the as...

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Denying registration u/s 12AA by testing ancillary objects rather than main objects for their charitable nature is unfair

Nanda Gokula Vs CIT (ITAT Bangalore)

The ITAT Bangalore in the case of Nanda Gokula vs. CIT held that denial of registration u/s 12AA by the CIT by considering only the ancillary objects is unfair, because it is the main objects of the trust which are required to be tested for their charitable nature. ...

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