"27 May 2018" Archive

Bogus Loan: No need to explain source of source prior to insertion of proviso to Sec. 68

Pr. CIT Vs Veedhata Tower Pvt. Ltd (Bombay High Court)

This Appeal under Section 260-A of the Income Tax Act, 1961 (the Act), challenges the order dated 21st January, 2015 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 21st January, 2015 is in respect of Assessment Year 2010-11....

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Expense on Software cannot be capitalised mere because depreciation rate is spelt out in Schedule to Income-tax Act

Oriental Bank of Commerce Vs Additional Commissioner of Income Tax (Delhi High Court)

The mere circumstance that the depreciation rate is spelt out in the Schedule to the Income-tax Act in our opinion is not conclusive as to the nature of the expenditure and whether it resulted an enduring advantage to a particular assesseeIt is nobody’s case that assessee is dealing with computer softwares or is in the business of any r...

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Deduction U/s. 80HHC not available on Interest, rent and miscellaneous income

M/s. Ashok Leyland Ltd Vs The Deputy Commissioner of Income Tax (Madras High Court)

A bare reading of cl. (baa) (1) indicates that receipts by way of brokerage, commission, interest, rent, charges etc., formed part of gross total income being business profits. But, for the purposes of working out the formula and in order to avoid distortion of arriving export profits cl. (baa) stood inserted to say that although incentiv...

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Section 50C: Sale value approved by Charity Commissioner had to be followed in case of Trust’s Sale Deed

DCIT Vs. Saifee Jubiee High School & Madressa Yusufiyan Society (ITAT Ahmedabad)

This Revenue’s appeal and assessee’s cross objection for assessment year 2010-11 arise against the CIT(A), Gandhinagar’s order dated 22.05.2014, in case no. CIT(A)/GNR/2 12/2013-14, reversing Assessing Officer’s action making long term capital gains addition of Rs. 70,34,635/- by invoking Section 50C of the Act, in proceedings u/s...

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Section 41(1) not applies if amount was not claimed in earlier year

Pr. CIT Vs Gujarat State Co-Op. Bank Ltd.(Gujarat High Court)

Section 41(1) of the Act in plain terms provides for adding back of an allowance or deduction which has been made by the assessee in any year in respect of loss expenditure or trading liability and subsequently during any previous year such liability ceases. The primary requirement of applicability of this provision therefore is where an ...

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Penalty cannot be deleted for mere admission of appeal in quantum proceedings

Principal Commissioner of Income Tax Vs M/s. Shree Gopal Housing (Bombay High Court)

Principal CIT Vs M/s. Shree Gopal Housing (Bombay High Court) Admission of an appeal in quantum proceedings, if arising on a pure interpretation of law or on a claim for deduction in respect of which full disclosure has been made, may, give rise to a possible iew, that admission of appeal in the quantum proceedings […]...

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Interest on NPA of NBFC cannot be taxed for mere crossholding of debtor

CIT Vs. Brahmaputra Capital & Financial Services Ltd (Delhi High Court)

CIT Vs. Brahmaputra Capital & Financial Services Ltd (Delhi High Court) The revenue argues that in respect of the three entities, the decision not to reflect revenue recognition, and treat the interest payable as NPA could not be allowed and the ITAT erred in holding that under RBI’s norms, the revenue recognition method adopted was...

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Section 35AB applies to both capital expenditure and revenue expenditure

M/s. Standard Batteries Ltd. Vs Commissioner of Income Tax (Bombay High Court)

1. Section 35AB(1) : Obtaining of technical knowhow under a license would also amount to acquiring knowhow 2. Section 35AB: Making of lumpsum payment in 3 installments would not make the payment any less a lumpsum payment 3. Expenditure on knowhow which is used for the purposes of carrying on business would stand covered by Section 3...

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Interest received from debtors for late payment of sale proceeds eligible for Deduction U/s. 80-IC

Quadrant EPP Surlon Vs. ITO (ITAT Delhi)

Interest received from debtors for late payment of sale proceeds partakes the character of sale proceeds, and therefore, assessee was eligible for deduction under section 80-IC in respect of such interest....

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Registration U/s. 12AA cannot be denied if trust activities are genuine and in consonance with objects of trust or institution

Chokhraj Tulasyan Sarswati Vidya Mandir Inter College Vs. CIT (ITAT Lucknow)

Income Tax Appellate Tribunal, Lucknow bench recently held that the charitable nature of the activities of a society cannot be suspected as the same was within its objects as given in the bye-laws....

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February 2021