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Direct cash deposit in suppliers bank a/c not attract disallowance u/s 40A (3)

September 14, 2016 13666 Views 0 comment Print

ITAT Kolkata held that the consequence, which were to be fall on account of non-observation of section 40A(3) must have nexus to the failure of object of introducing of the provision. Therefore, no disallowance can be made if the transactions do not defeat the object of Sec 40A(3) in as much as there genuiness is not challenged and they can be tracked end to end.

Assessment proceedings invalid against company which got amalgamated with other company on a date prior to search

September 11, 2016 1747 Views 0 comment Print

High court held that assessment proceedings to be invalid against the assessee in those cases where the assessee ceased to have legal existence on account of amalgamation with another entity on a date even prior to search. Because when the assessee ceased to have existence even on the date of search, no notice as a result of search can be issued in its name.

Surplus/Savings arising on prepayment of deferred sales tax not taxable u/s (iv)

September 4, 2016 1039 Views 0 comment Print

The ITAT Mumbai in the above cited case held that the surplus/savings arising on prepayment of deferred cannot be taxed u/s 28(iv) as by making prepayment of a future liabity at present value no monetary benefit arises to assessee as the savings it made by prepayment would get set off against the interest it loses by making prepayment.

S. 80IB deduction conditions to be fulfilled in all years of deduction claim

September 2, 2016 2317 Views 0 comment Print

Deduction U/s. 80IB is allowable over a period of 6 years which follows that conditions for claiming deduction must remain fulfilled in all years for which deduction being claimed

University not wholly or substantially financed by govt not eligible for exemption u/s 10(23)(iiiab)

August 31, 2016 2572 Views 0 comment Print

Honorable ble Supreme court held that Visveswaraiah Technological University being not wholly or substantially financed by government is not entitled to claim exemption u/s 10(23)(iiiab). Further, the fees collected by the University as per prescribed govt. norms cannot be said to finance provided by govt. Therefore, assistance by govt. by way of loans, grants and subsidies only to be considered as financing from it.

Information which is otherwise available in public domain cannot be considered as confidential

August 29, 2016 5497 Views 0 comment Print

Delhi HC in the above cited case held that an employee cannot be restrained from competing with its former employer provided he/she is not using the confidential information of employer.

Section 234E Late TDS return fees invalid for periods prior to 01.06.2015

August 26, 2016 9282 Views 1 comment Print

HC held that since before 01.06.2015 section 234E providing for late fee for delay filling of TDS returns was not linked to / not referred under Sec 200A processing of TDS returns. As a result of this the late fee charge was invalid and illegal.

Cost of amenities paid under unregistered agreement forms part of cost of acquisition of flat

August 25, 2016 13400 Views 0 comment Print

ITAT Mumbai held that the cost of acquisition of flat shall include the cost of amenities even when the agreement requiring the flat purchaser to pay such cost is not registered and no stamp duty paid on amenities cost.

High frequency & volume in share deals with short holding period is trading activity

August 15, 2016 4598 Views 1 comment Print

Bombay HC in the above cited case held that when the assessee’s volume of purchasing and selling shares is quite high with higher frequency of buying and selling with holding 75 days or less then its prima facie indicate that it is engaged in trading of shares unless assessee provide a sound reasoning that why transactions should not be considered as trading activity.

Reimbursement of seconded employees’ salaries to seconding company not subject to TDS

August 11, 2016 8034 Views 0 comment Print

The ITAT Mumbai in the above cited case held that reimbursement of secondment expensed by assessee to the company seconding its employees to assessee is not subject to TDS as the employer-employee relationship for all legal purposes subsist between seconding company and seconded employees for which seconding company is liable

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