"25 December 2017" Archive

Subsidy by Govt to accelerate industrial development and generation of employment is capital in nature: SC

Commissioner of Income Tax Vs M/s. Chaphalkar Brothers Pune (Supreme Court of India)

The present appeals arise from a batch of judgments dealing with cases which come from Maharashtra and West Bengal. Insofar as the civil appeals relating to Maharashtra are concerned, the subsidy scheme of the State Government took the form of an exemption of entertainment duty in Multiplex Theatre Complexes newly set up...

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Expense on replacement of optic fibre cables on regular basis to retain existing Customers is revenue expense

DCIT Vs Ms Alliance Broad Band Services Pvt. Ltd. (ITAT Kolkata)

Contention of that assessee was that the traditional cable was cut and damaged by the rival cable network operators. The assessee therein had to necessarily replace the damaged part of the cables alone and not the entire cable by optical fibre cable for transmitting TV signals....

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AO cannot treat advances as gift merely on assumptions and presumptions

Shri Nilesh Janardan Thakur Vs. ITO (ITAT Mumbai)

Shri Nilesh Janardan Thakur Vs. ITO (ITAT Mumbai) The AOs case is that the assessee has received money without any consideration which is taxable under the provisions of section 56(2)(vi) of the Act. The AO has brought out number of reasons to come to the conclusion that money is taxable u/s 56(2)(vi) of the Act. […]...

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Expenses incurred to earn Interest Income can be claimed u/s 57(iii)

Income Tax Officer Vs. M/s Borojalingh Tea Co. (ITAT Kolkata)

ITO Vs. M/s Borojalingh Tea Co. (ITAT Kolkata) The question before us arises so as to whether the assessee is entitled for claiming the interest expense against the interest income in the given facts and circumstances. It is undisputed fact that the loan was provided to the parties on interest and accordingly interest income was […...

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Large amount spent on repair and maintenance having no enduring benefit allowable as expense

Dy. CIT Vs. Kalyanapur Cement Ltd. (ITAT Kolkata)

Expense was classified under the head major repair and maintenance on the ground that the large expense was spent on repair and maintenance but the fact is that there was no enhancement in the capacity of the plant and machinery as well as no increase in the efficiency....

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Reopening based on Change of opinion is invalid; HC dismisses Appeal in Airtel case

Principal Commissioner Of Income Tax Vs. Bharti Airtel Ltd. (Delhi High Court)

This Court is of the opinion that the ITAT’s impugned order is unexceptionable because it is premised upon the circumstance that in the absence of any fresh tangible material, it was not open, on mere re-appreciation of the existing circumstances, to reopen the concluded scrutiny assessment. The ITAT’s reasoning cannot, therefore, be ...

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Purchase of property from defaulting Sales Tax Dealer not liable for his Sales Tax Arrears in absence of charge over property by Sales Tax Dept.

Noor M. Saied Vs. The Commercial Tax Officer (Madras High Court)

Noor M. Saied Vs. The Commercial Tax Officer (Madras High Court) Petitioner has purchased the property for valuable consideration and in the absence of charge over the property by the Sales Tax Department, the petitioner cannot be made liable to pay alleged arrears of Sales Tax for the defaulting dealer and for such reason, the […]...

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S. 147 / 148 Non disposal of objection raised makes reassessment invalid

M/S Veer Vardhman Finance Investment Pvt. Ltd. Vs. DCIT (ITAT Delhi)

M/S Veer Vardhman Finance Investment Pvt. Ltd. Vs. DCIT (ITAT Delhi) As AO has not passed the speaking order in disposing of the assessee ‘s objections against the notice u/s. 148 of the I. T. Act, before proceeding with the assessment, hence subsequent assessment order is bad in law and deserving of being quashed. Full […]...

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Amount payable on fulfilment of conditions has to be excluded while computing capital gains

Late Shri Gordhandas S. Garodia Vs. Dy. Commissioner of Income Tax (ITAT Mumbai)

Unless, a debt due by somebody has been created in favour of assessee, it cannot be said that he has acquired a right to receive the income or that income has accrued to him. An amount can accrue to assessee if he acquires a legally enforceable right to receive it from the debtor. ...

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Taxability of subsidies: SC stays judgement of Delhi HC in Bhushan Steels

Bhushan Steel Vs. CIT (Supreme Court of India)

Tax ability of subsidies: Supreme Court stays judgement of the Delhi High Court in CIT vs. Bhushan Steels And Strips which held that if the recipient has the flexibility of using it for any purpose and is not confined to using it for capital purposes, the subsidy is revenue in nature and is taxable as profits...

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