"02 February 2016" Archive

FTP: Addition of two Pre-Shippment Inspection Agencies (PSIA) in Appendix 2G at Sl. no. 36 and 37 upto 31.05.2016

Public Notice No. 59/2015-2020 (02/02/2016)

PUBLIC NOTICE No. 59/2015-2020 Two Pre-Shipment Inspection Agencies (PSIA) are added in Appendix 2G at Sl. No.36 & 37 upto 31st May 2016....

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Receipts as per maintenance agreement not in nature of rental income, assessable as income from other sources

Abhishek Govil & Somya Salwan Vs CIT (Delhi High Court)

Delhi High Court held In the case of Abhishek Govil & Somya Salwan vs. CIT that the maintenance agreements expressly referred to the payments in question as “Maintenance and service charges”. A plain reading of the agreements also indicates that the said charges were payable as consideration for providing services mentioned therein....

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Difference in opinion, whether gross total income eligible for deduction u/s 80HHC will be reduced by deduction already allowed u/s 80IA – SC

ACIT Vs M/s. Micro Labs Ltd. (Supreme Court of India)

Supreme Court held In the case of ACIT vs. M/s. Micro Labs Ltd. that - As per first thought of opinion, Section 80-IA (9) is quite unambiguous, which clearly provides that if an assessee claims any deduction under the provisions of Section 80-IA...

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Discount adjustment allowed while calculating suppression of sale due to difference in price of menu card and daily stock sheet

ACIT Vs Sh. R. Paneerselvam (ITAT Chennai)

ITAT Chennai held In the case of ACIT vs. Sh. R. Paneerselvam (Individual) that normally, the sale price mentioned in the menu card would be the sale price of the liquor. However, the fact is that the liquor shops are giving discount on the liquor sold to their corporate guests, walk in customers, etc. for various reasons....

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Charges of prosecution for false statement during search not sustainable, where statement recorded without Oath

ADIT Vs Sh. Dhan Singh Sharma (Punjab and Haryana High Court)

Punjab and Haryana High Court held In the case of ADIT vs. Sh. Dhan Singh Sharma that ld counsel for the applicant admitted at the time of arguments that statement was re-started after some time on the same day....

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Subsidy for wind power project being capital receipts neither taxable u/s 41(1) / 50 nor to be deducted in actual cost u/s 43

M/s. UniDeritend Limited Vs ACIT (ITAT Mumbai)

ITAT Mumbai held In the case of M/s. UniDeritend Limited vs. ACIT that the subsidy being provided to the assessee to encourage the setting up of wind mill to promote generation of energy through non conventional sources, thus, is to be treated as capital receipt....

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Municipal value is a bonafide method to determine ALV even if market value of rent is higher

CIT Vs M/s NRB Bearing Ltd (ITATMumbai)

M/s NRB Bearing Ltd vs. Addl. Commissioner of Income Tax (ITAT Mumbai) Municipal rateable value cannot be rejected straightway.To reject the same, there must be reliable material on record.The market rate in the locality is an approved method for determining the fair rental value but it is only when the AO is convinced that the case befor...

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Interest Expense would be allowed only if there is nexus between Expense and Income Earned

ACIT Vs Shri JugalKishore K. Agrawal (ITAT Ahmedabad)

In the case of ACIT Vs. Shri JugalKishore K. Agrawal, ITAT Ahmedabad on the basis of revenue observation and after going thought the case file, held that if there is no nexus between the interest income earned and interest paid, then interest paid cannot be allowed within preview of section 57(iii)....

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If there is no loss to revenue then there would be no Disallowance and Rule 8D is not applicable for A.Y. 2007-08

M/s Trident Limited Vs The Addl. CIT (ITAT Chandigarh)

M/s Trident Limited vs. The Addl. CIT (ITAT Chandigarh) Assessee company made an investment of Rs. 5038.88 lacs and Rs. 4575.77 Lacs as on 31.03.2006 & 31.03.2007 in various tax free equity funds, from which assessee company gain an dividend of Rs. 46,91,849/-....

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Lease Premium Paid to CIDCO is a Capital Expenditure, Thus Not Liable to TDS

ITO (TDS) Vs M/s Progressive Civil Engineers Private Limited (ITAT Mumbai)

In the Case of Income Tax Officer (TDS) Vs. M/s Progressive Civil Engineers Private Limited, ITAT Mumbai held that Lease Premium payment made to CIDCO is to acquire capital asset being long term holding rights along with right to construct and therefore it is capital expenditure in nature....

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