Mitsui & Co India Pvt Ltd v Addl CIT (ITAT Delhi) – Directors of the assessee were entitled to use the vehicles for their personal use in accordance with the terms and conditions on which they were appointed and the perquisites given to the directors formed part of their ‘remuneration’ under the Explanation to section 198 of the Companies Act, 1956, for the purpose of determining their remuneration under section 309 of that Act. Once such remuneration was fixed as provided in section 309 it was not possible to state that the assessee incurred the expenditure for the personal use of the directors. Even if there was any personal use by the directors that was as per the terms and conditions of service and, in so far as the assessee was concerned, it was business expenditure and no part of the expenditure could be disallowed.
Sita Jain & Ors. v. ACIT & Anr. (ITAT Delhi) – We have duly considered the rival contention and gone through the record carefully. The Hon’ble Punjab & Haryana High Court in the subsequent decision has upheld grant of exemption u/s 54B in a case where land was purchased in the joint name. The ITAT had discussed this issue in the case of Smt. Saraswati Swaminathan reported in 116 ITD 234 and has observed that the object of section 54EC is to utilize the sale proceed of long term capital gain in the purchase of specified bonds.
iPolicy Network (P) Ltd. v ITO (ITAT, Delhi)- If the difference in the ALP price determined by the TPO in international transaction and the revenue received by the assessee does not exceed the safe harbour of -/+ 5 per cent as per proviso (2) of s 92C (pre-amended) no addition can be made to the income of the assessee on account of transfer pricing adjustment.
Facts (a) that the appellant had disclosed all material facts and (b) raising a legal claim, even if it is ultimately found to be legally unacceptable, cannot amount to furnishing of inaccurate particulars of income,
Indian Railway Finance Corpn Ltd Vs Addl.CIT (ITAT Delhi) – Whether the lease equalisation charges which represented the recovery of fair value of leased assets are rightly added to the net income as per the profit and loss account while computing the book profits u/s 115JB – Whether the bond issue charges are revenue in nature – Whether the assessee is entitled to depreciation on the assets which were in its possession and it cannot be denied merely on the ground that the registration formalities were pending – Assessee’s appeal allowed.
ITO Vs. Vijay Bharat Roadlines Pvt. Ltd. (ITAT Delhi) -Whether the assessee was not liable to deduct tax at source as per the provisions of section 194C(2) of the Act , for the payment of freight charges amounting to 1,32,58,651/- made to the lorry owners and consequently, the provisions of section 40(a)(ia) of the Act were not applicable to such payments. Held, Yes the payments in question were made to lorry/truck owners who merely placed the vehicles at the disposal of the assessee and never involved themselves in the work to be carried out by the assessee for FCI.
DCIT Vs M/s Sapient Corporation Pvt Ltd. (ITAT Delhi) – It is by now well-settled that if the expenditure incurred by the taxpayer is of revenue nature, the same is entirely deductible even if there accrues an advantage of enduring nature in favour of the taxpayer as a result of the said expenditure. This is because going by the very nature of the expenditure being revenue, it operates in the revenue field leaving the capital field untouched.
Rambagh Palace Hotels Pvt Ltd Vs ITO (ITAT Delhi) – In this case ld CIT(A) had adjudicated upon on all the issues. Therefore, the assessment order has merged in the order of CIT(A). Hence, ld. CIT was debarred to assume jurisdiction u/s 263 of the Act. The assessment cannot be treated as erroneous in so far as prejudicial to the interest of revenue merely on the basis of a complaint and that too for the purpose of making roving enquiries.
ITO Vs M/s Kailashpati Overseas Pvt Ltd (ITAT Delhi) – Whether when assessee submits the relevant details in respect of share application money such as PAN Number, confirmation and the bank particulars it can be said that the assessee has discharged its burden and no addition can be made on the basis of investigation averments, and it is incumbent on the AO to prove that averments of investigation wing applies in the case of the assessee-Held-Yes.
Siel Ltd Vs DCIT (ITAT Delhi)- The issue raised is that Ld. Commissioner of Income Tax (Appeals) erred in upholding the disallowance of Rs. 18,49,950/- being amount claimed by the assessee u/s 43B of the IT Act. The assessee was asked to establish the facts from the records and from the bank accounts, but the same was never produced. Assessee contended before the Ld. Commissioner of Income Tax (Appeals) that certificate of CA is sufficient for allowing such deduction. When the factual evidence was again called for, it was stated that the details were related to 10 years old bank record and the same is not readily available. Ld. Commissioner of Income Tax (Appeals) noted that assessee has failed to establish the evidence of such payments before the Assessing Officer at the assessment stage and also before him. hence, he sustained the disallowance of Rs. 18,49,950/-.
