CA Saurabh Chokhra's Posts - Page 4

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

Bolkunda Pachwai & (S) C.S. Shop vs. Income-tax Officer (ITAT Kolkata)

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 ...

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

CIT vs. Indu Surveyors & Loss Assessors P. Ltd. (Delhi High Court)

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 ...

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

Grindwell Norton Ltd. vs. Addl. CIT (ITAT Mumbai)

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....

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

CIT Vs M/s Micro Instruments Company (Punjab & Haryana High Court)

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...

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

Visvesvaraya Technological University Vs ACIT (Supreme court of India)

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. ...

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

M/s. Stellar Information Technology Private Ltd Vs. Mr Rakesh Kumar & Ors (Delhi High Court)

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....

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

Sri. Fatheraj Singhvi And Others Vs. UOI And others (Karnataka High Court)

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....

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

Smt. Rashmi M. Dhanani vs. ITO ( ITAT Mumbai)

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. ...

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

Pine Tree Finserve Pvt. Ltd. vs. CIT (Bombay HC): IT Appeal No.- 2242 OF 2013

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...

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

DCIT Vs. Mahanagar Gas Ltd. (ITAT Mumbai)

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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March 2023