Madras High Court

Penalty Notice cannot be challenged merely for issue in Template manner

Amtex Software Solutions Pvt. Ltd Vs ACIT (Madras High Court)

Issuing of show cause notice in a template-like manner  cannot be challenged on basis that it was not clear as to whether the same had been issued for concealing particulars of income' or furnishing of inaccurate particulars' of such income merely by reason of mistake or defect i.e., mistake or defect of issuing it in a template and not ...

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Gains to shareholders due to buy-back of shares amounted to dividend not capital gain

Cognizant Technology Solutions India Pvt. Ltd. Vs DCIT (Madras High Court)

Shares purchased pursuant to the order of Company Court would not amount to capital gain and rather to be treated as a dividend.Whenever a company distributes its profits to its shareholders, the profit so disbursed, will amount to dividend and Dividend Distribution Tax at 15% was required to be paid by assessee u/s 115O....

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Tax cannot be levied on Exempt Service for non co-operation by assessee

GET Water Solutions Pvt. Ltd. Vs Additional Commissioner of GST and Central Excise (Madras High Court)

In this case, the eligibility to the exemption sought has not been  denied by the department and rightly so. Thus, the defence that the assessment is correct in the light of the assessee non co-operation is not a defence at all, and is rejected....

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Unclaimed creditors to be added to Income u/s 41, even if the same is not written back in Income statement

M/s. West Asia Exports & Imports Vs. ACIT (Madras High Court)

M/s. West Asia Exports & Imports Vs. ACIT (Madras High Court) We know that Sec 41(1) of Income Tax Act 1961, where there is cessation of any trading liability then the benefit accruing on account of cessation of such liability will be deemed to profits and gains of business or profession whether or not such […]...

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Reassessment after 4 years where assessee made true and full disclosure in original assessment was not valid

DCIT Vs Visvas Promoters (P) Ltd. (Madras High Court)

Reassessment after period of four years on the ground that assessee had claimed excess deduction under Section 80IB(10) was not valid where assessee had made true and full disclosure and had consciously made only a proportionate claim under Section 80IB(10), which was rightly allowed by AO at the time of original assessment proceedings un...

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Tribunal to decide appeal on merits irrespective of appearance of Assessee: HC

Smt Ritha Sabapathy Vs DCIT (Madras High Court)

Smt. Ritha Sabapathy Vs DCIT (Madras High Court) We reiterate that the fact finding Tribunals should not shirk their responsibility to decide the cases on merits because the view and reasons given by such Tribunals are important for the Constitutional Higher Courts to look into while deciding the substantial questions of law under Section...

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TDS not deductible on salary to Nuns/Fathers/Priests

Institute of the Fransican Missionaries of Mary Vs Union of India (Madras High Court)

The common issue which falls for consideration in these batch of cases is as to whether the respondent, the Income Tax Department, is justified in insisting upon recovery of tax at source from the salary payable to Nuns/Fathers/Priests working in various Teaching Institutions established and administered by the petitioners....

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AO cannot demand 20% of disputed Tax mechanically without examining facts of case

Uthangarai Sri Vidya Mandir Educational and Social Welfare Trust Vs ACIT (Madras High Court)

Uthangarai Sri Vidya Mandir Educational and Social Welfare Trust Vs ACIT (Madras High Court) In the present case, the officer proceeds to mechanically call upon the petitioner to remit 20% of the demand without examining the appropriateness of the direction to the facts and circumstances of the petitioners’ case. For this sole reason, H...

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No deduction u/s 48 for clearing off mortgage created by assessee prior to transfer of land

Smt. D. Zeenath Vs ITO (Madras High Court)

Smt. D. Zeenath Vs ITO (Madras High Court) Conclusion: Assessee created mortgage after acquiring the property and clearing off of the mortgage debt prior to transfer of the property would not entitle her to claim deduction under section 48 as there was only a mere application by the owners themselves of the profits realized on […]...

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Mistake to claim deduction U/s. 80I cannot be considered U/s. 154

Lakshmi Card Clothing Mfg. Co. (P.) Ltd. Vs DCIT (Madras High Court)

Lakshmi Card Clothing Mfg. Co. (P.) Ltd. Vs DCIT (Madras High Court) Facts of the case clearly show that the assessee did not make any claim for deduction under Section 80-I of the Act, for the relevant assessment year. Secondly, as pointed out by us in the preceding paragraph, while discussing about the applicability of […]...

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