CA Saurabh Chokhra's Posts - Page 7

Transfer of leasehold rights in land won’t attract Section 50C

Farid Gulmohamed Vs ITO (ITAT Mumbai)

The ITAT Mumbai held that the provisions of Sec 50C is applicable only to transfer of land of which the assessee is absolute and legal owner and cannot be applicable to the transfer of leasehold rights in land.Thus, the transfer value cannot be benchmarked to stamp duty value. ...

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Reopening is invalid when there is no direct nexus between material gathered & formation of belief of income escaping assessment

C.M Mahadeva Vs CIT (Karantaka High Court)

The Hon'ble Karnataka HC in the above cited case held that there must be a direct nexus between the material coming to the notice of the Income-Tax Officer and the formation of his belief that income has escaped assessment....

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Raising of invoices per se won’t result in accrual of income

Bechtel International Inc. Vs DDIT-3(2) , Mumbai (ITAT Mumbai)

The ITAT Mumbai in the above cited case held that raising of invoices per se doesn’t result in accrual of income rather an income can be considered to have been accrued only when there is a corresponding liability of the other party to pay the amount to the assessee and there is realistic probability of realization of the income to the ...

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Levy of Luxury tax on DTH operators while exempting cable operators is discriminatory

Bharati Telemedia Ltd. Vs Union of India , State of Kerala & others (Kerala High Court)

The Hon'ble Kerala HC in the above cited case held that exempting cable operators from luxury tax while making DTH operators to pay the same is a case of discriminatory levy of luxury tax merely because of technological differences in the system of deliveryof entertainment in both the services....

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No Penalty u/s 271AAA on post search voluntarily disclosed income

DCIT Vs M/s Salasar Stock Broking Ltd. (ITAT Kolkata)

The ITAT Kolkata in the above cited case held that if the additional income disclosed by assessee u/s 132(4) voluntarily without being any incriminating material found during the course of search , then department cannot levy penalty u/s 271AAA on such voluntarily disclosed income. ...

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Incorrect claim based on CA report won’t attract penalty

Oxford Softech Pvt Ltd. Vs ITO (ITAT Delhi)

ITAT held that making of an incorrect claim by assessee which is supported by a report of Chartered Accountant cannot be hold as furnishing inaccurate particulars of income. Therefore, penalty u/s 271(1)(c) is not warranted as the claim made under bonafide belief. ...

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Export made through third parties eligible for deduction u/s 10B

M/s Earth Stone Group Vs Additional CIT (ITAT Delhi)

The ITAT New Delhi in the above cited case held even export made by assessee through third parties are also to be considered while working out deductions allowable u/s 10B as such exports are deemed exports and recognized by Foreign trade policy for extending export benefits....

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Section 94-A(1) is Constitutional Valid : Madras High Court

T. Rajkumar & Others Vs UOI & Ors. (Madras High Court)

The Hon'ble Madras High court in the above cited case held that central govt can notify a country as notified jurisdictional area u/s 94A inspite of the fact that there exist a Double Tax Avoidance Agreement provided the DTAA is not serving the intended purpose for which it was entered into. ...

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Primary Agricultural Credit Society can claim deduction u/s 80P

The Chirakkal Service Co-Operative Bank Ltd Vs CIT (Kerala High Court)

It is held that deduction u/s 80P is allowable to a primary agricultural credit society. In the instant case , assessee being a registered society classified in bye-laws as primary agricultural credit society is entitled to claim exemption u/s 80P. ...

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Registration u/s 12AA cannot be denied questioning profit motive

MS. Sree Anjaneya Medical Trust Vs CIT (Kerala High Court)

HC held that while disposing off an application for registration u/s 12AA , the CIT is required only to verify the geniuses of the trust’s activity so as to ensure that the same matches with the objects stated in the trust deed....

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