DCIT vs. Zuari Estate Development & Investment Co Ltd (Supreme Court) After going through the detailed order passed by the High Court, we find that the main issue which is involved in this case is not at all addressed by the High Court.
The Jurisdictional Commissioners of Income Tax are unable to understand specific applicability of Rule 55 of Income Tax Rules, 1962 in connection/relation with each & every Clause of Subsection (2) of Section 288 of the Income Tax Act, 1961,and are blindly rejecting the applications of aspirants opting to become & be Registered Income Tax Practitioners, under a pretext that though the applicant possess the educational qualifications specified u/s 288(2)(v)/(vi), the applicant has not practiced before the Income Tax Authorities for not less than one year on the date of application
ITAT Delhi held In the case of ACIT vs. M/s Command Detective & Securities Pvt. Ltd. that when all the purchases are accounted in the regular books of accounts, it means the source is explained and the provisions of section 69C are not applicable, as there was no unaccounted expenditure.
ITAT Delhi held In the case of ACIT vs. Smt. Divya Jain that the adoption of Fair Market Value of share in lieu of value of sale consideration as declared by the assessee is not valid . There is no provision under the law to include prospective benefit in the ambit of the word income.
Varshaben Sanatbhai Patel vs. ITO (Gujarat High Court) It is settled legal position as held by a catena of decisions that the substratum for formation of belief that income liable to tax has escaped assessment has to form part of the reasons recorded.
DCM Ltd vs. DCIT (ITAT Delhi) AO has neither recorded his satisfaction nor given reasons as to how the claim of expenditure in relation to tax free income has not been correctly made by the assessee as envisaged under section 14A(2).
Bechtel India Pvt. Ltd. vs DCIT (ITAT Delhi)- In view of ratio laid down by Hon’ble Supreme Court in the case of Woodward Governer (312 ITR 254), while the assessee is following mercantile system of accounting, the loss suffered by the assessee by fluctuation in the foreign exchange as on the date of balance sheet is an item of expenditure u/s 37(1) of the Act.
ITAT Bangalore held In the case of M/s. Agila Specialties Pvt. Ltd vs. DCIT that when the data is available showing profit margin of that enterprise itself from a third party, it is always safe and advisable to adopt internal comparable.
ITAT Mumbai held In the case of Greaves Cotton Ltd. vs. ITO that under the transfer pricing regulations, a comparability analysis is a comparison of a controlled transaction with uncontrolled transaction
According to Chapter VI of Finance Act 2015 it contains provisions for levy and collection of Swachh Bharat Cess. Government has notified levy of Swachh Bharat Cess at the rate of 0.5% of the value of taxable services. Swachh Bharat Cess is not leviable on services which are fully exempt from service tax or those covered under the negative list of services. Presently new service tax rate is 14% and rate of SBC is 0.5%. New rate of service tax plus SBC would be 14.5% on all value of taxable services.
