The ITAT Delhi held that Section 56(2)(viib) was not attracted where shares were allotted to existing shareholders without any change in ownership or control. It deleted the addition after finding that the purpose of the deeming provision was not defeated.
The Supreme Court ruled that requiring employers to purchase shares from the market instead of issuing ESOP shares ignores commercial realities. Finding no substantial question of law, it dismissed the Revenue’s appeal.
The Delhi High Court held that ESOP expenditure cannot be disallowed merely because shares were allotted instead of purchased from third parties. It found no substantial question of law and dismissed the Revenue’s appeal.
The Telangana High Court held that a show cause notice merely reproducing Section 29(2)(e) of the CGST Act without disclosing factual allegations violates principles of natural justice. It set aside both the cancellation notice and the suspension of GST registration while permitting fresh proceedings in accordance with law.
The ITAT Hyderabad held that delayed filing of Form No. 67 cannot result in denial of foreign tax credit under Section 90. It ruled that the filing requirement is directory and cannot override the substantive benefit available under the DTAA.
The ITAT Hyderabad held that delayed filing of Form 67 does not justify denial of Foreign Tax Credit under the India–USA DTAA. It ruled that Rule 128(9) is directory and cannot override the substantive treaty benefit.
The ITAT Kolkata held that foreign tax credit cannot be denied merely because Form 67 was filed after the prescribed due date. It ruled that the filing requirement is procedural and does not extinguish the substantive claim.
The ITAT remanded the foreign tax credit claim to the CIT(A) after noting that the assessee had subsequently furnished the documents required under Rule 128. The appellate authority was directed to reconsider the claim on merits after granting a hearing.
The Supreme Court held that Mediclaim reimbursements cannot be deducted from compensation awarded under the Motor Vehicles Act because the two arise from different legal sources. The ruling clarifies that contractual insurance benefits earned through premium payments do not reduce statutory compensation payable for motor accident claims.
Bangalore ITAT held that mine development expenditure incurred by a mining contractor was allowable as a revenue deduction under Section 37 and not governed by Section 35E. The Tribunal followed its earlier decision in the assessee’s own case and dismissed the Revenue’s appeal.
