Rishabh Mehra

Sorry No Post Found
Sorry No Post Found

Expenses not charged to P&L cannot be adjusted to income in TP adjustment

M/s DQ Entertainment (International) Ltd Vs ACIT (ITAT Hyderabad) - ITAT Hyderabad held in M/s DQ Entertainment (International) Ltd Vs ACIT that if the effect of expenses has been given in the balance sheet then the upward TP adjustment could not be made because the same had not been charged to P&L account and so same could not be be added to the income of the asses...

Read More

Mere Change in profit sharing ratio would not change constitution of Partnership firm

DCIT Vs Deepsons Southend (ITAT Delhi) - ITAT Delhi in DCIT Vs Deepsons Southend held that if there is change in the profit sharing ratio of the partnership and all the partners remain same in the new partnership deed then that would not be change in the constitution of the firm so the loss of the firm could be carried forward....

Read More

Continuously selling of product depicts commercial production not trial production

ACIT Vs Phonix Lamps India Ltd. (ITAT Delhi) - ITAT New Delhi held in ACIT Vs Phonix Lamps India Ltd that if the assessee was selling its final product to particular parties continuously and there was no return of the final product. Moreover there was no complaint of any defect in the finished product....

Read More

Expense allowed for earlier year cannot be disallowed in subsequent years if facts & circumstances are same

DCIT Vs M/s Ashiana Ispat Ltd (ITAT Jaipur) - ITAT Jaipur held in DCIT Vs. M/s Ashiana Ispat Ltd that if the facts and circumstances were same in the assesse’s own case of earlier years then, disallowance could not be made if the same was allowed in the earlier years by any appellate authority....

Read More

Time gap between withdrawal of cash & spending of cash not relevant unless it is proved that assessee spent the amount somewhere else

ITO Vs Shri pardeep Singh Hooda (ITAT Chandigarh) - ITO Vs. Shri pardeep Singh Hooda (ITAT Chandigarh) ITAT held that there was no big or unreasonable gap between the amount withdrawn from the bank account and paid for purchase of the property. Since the amount was taken into cashbook after withdrawal from the bank account...

Read More
Sorry No Post Found

Recent Posts in "Rishabh Mehra"

Expenses not charged to P&L cannot be adjusted to income in TP adjustment

M/s DQ Entertainment (International) Ltd Vs ACIT (ITAT Hyderabad)

ITAT Hyderabad held in M/s DQ Entertainment (International) Ltd Vs ACIT that if the effect of expenses has been given in the balance sheet then the upward TP adjustment could not be made because the same had not been charged to P&L account and so same could not be be added to the income of the assessee....

Read More

Mere Change in profit sharing ratio would not change constitution of Partnership firm

DCIT Vs Deepsons Southend (ITAT Delhi)

ITAT Delhi in DCIT Vs Deepsons Southend held that if there is change in the profit sharing ratio of the partnership and all the partners remain same in the new partnership deed then that would not be change in the constitution of the firm so the loss of the firm could be carried forward....

Read More

Continuously selling of product depicts commercial production not trial production

ACIT Vs Phonix Lamps India Ltd. (ITAT Delhi)

ITAT New Delhi held in ACIT Vs Phonix Lamps India Ltd that if the assessee was selling its final product to particular parties continuously and there was no return of the final product. Moreover there was no complaint of any defect in the finished product....

Read More

Expense allowed for earlier year cannot be disallowed in subsequent years if facts & circumstances are same

DCIT Vs M/s Ashiana Ispat Ltd (ITAT Jaipur)

ITAT Jaipur held in DCIT Vs. M/s Ashiana Ispat Ltd that if the facts and circumstances were same in the assesse’s own case of earlier years then, disallowance could not be made if the same was allowed in the earlier years by any appellate authority....

Read More

Time gap between withdrawal of cash & spending of cash not relevant unless it is proved that assessee spent the amount somewhere else

ITO Vs Shri pardeep Singh Hooda (ITAT Chandigarh)

ITO Vs. Shri pardeep Singh Hooda (ITAT Chandigarh) ITAT held that there was no big or unreasonable gap between the amount withdrawn from the bank account and paid for purchase of the property. Since the amount was taken into cashbook after withdrawal from the bank account...

Read More

Under Mercantile method of accounting Loss in business can be booked in the year in which it is determined

Lakshmi Energy & Foods Products Ltd Vs The ACIT (ITAT Chandigarh)

ITAT Chandigarh held in Lakshmi Energy & Foods Products Ltd Vs The ACIT that if the assessee was following mercantile method of accounting and it had booked loss in the assessment year in which the same had been determined then the same should be allowed because the assessee...

Read More

Payment of broken period interest will be allowed as a business expense

Asst. DIT Vs M/s Hongkong and Shanghani Banking Corporation Ltd (ITAT Mumbai)

1.ITAT Mumbai held in the case of Asst. DIT Vs M/s Hongkong and Shanghani Banking Corporation Ltd that the broken period interest paid would be allowed to the assessee after relying the case of the assessee itself in The Hongkong and Shanghai Banking Corporation Ltd V/s DCIT...

Read More

Transfer Pricing: Only functionally comparable companies can be compared for calculating ALP

Acclaris Business Solutions Pvt. Ltd. Vs I.T.O. (ITAT Kolkata)

ITAT held in Acclaris Business Solutions Lvt Ltd. Vs I.T.O that only those companies could be compared for calculating ALP which were functionally similar. Those companies which were not performing similar functions could not be compared for calculating ALP....

Read More

Agricultural land purchased without an adventure in the nature of trade is not a capital asset

The ACIT Vs M/s Mansi Finance Chennai Ltd (ITAT Chennai)

ITAT Chennai held in The ACIT Vs M/s Mansi Finance Chennai Ltd that if the agricultural land purchased by the assessee was not with an adventure in the nature of trade then that agricultural land could not be treated as a capital asset and liable for capital gain....

Read More

For ALP of AMP, Comparable company performing similar function and cost plus method should be adopted

Haier Appliances India Ltd Vs DCIT (ITAT Delhi)

ITAT held in Haier Appliances India Ltd Vs DCIT and Haier Appliances India Ltd Vs ACIT after relying on the case of Sony Ericsson Mobile Communications India Pvt Ltd reported in (2015) 374 ITR 118 (Delhi) that the above transaction of AMP...

Read More

Only Functionally Comparable Company should be compared for applying margin percentage

M/s Goldman Sachs (India) Securities Pvt. Ltd Vs The DCIT (ITAT Mumbai)

ITAT Mumbai held in Goldman Sachs( India) Securities Pvt. Ltd Vs The DCIT that only functionally comparable company should be compared for comparing the margin percentage of the assessee company with comparable company....

Read More

Amendment to sec 9 will not have retrospective effect on tax withholding liability

DCIT Vs Shri Subhotosh Majumder (ITAT Kolkata)

ITAT Kolkata held in the case of DCIT Vs Shri Subhotosh Majumder that the amended law of the deduction of tax at source of services which were to be utilized in India would be taxable in India would not have retrospective effect on the tax liability of withholding taxes....

Read More

Earlier year’s appellate decision could not be applied if facts of current year has changed

Punjab & Sind Dairy Products Pvt Ltd Vs Dy. CIT (ITAT Mumbai)

ITAT Mumbai held in Punjab & Sind Dairy Products Pvt Ltd Vs Dy. CIT that in the case of assessee itself in earlier year, ITAT had rejected the books of accounts on the basis that assessee failed to produce books of accounts as demanded by ITAT....

Read More

Premium paid under Keyman Insurance policy allowable as business expense

M/s F.C. Sondhi & Co.(India) P Ltd Vs The DCIT (ITAT Amritsar), M/s Vishal Tools & Forgings Pvt Ltd Vs The Additional Commissioner of Income Tax

ITAT held in M/s F.C Sondhi & Co.(India) P Ltd Vs The DCIT that the premium paid on the keyman Insurance Policy would be allowed as a business expense because the same had been paid for the growth ...

Read More

Books cannot be rejected only on the basis that qualitative and piece wise record of Diamonds not been maintained

Dy CIT Vs Ms Nevil Gems (ITAT Ahmedabad)

ITAT held in Dy CIT Vs Ms Nevil Gems that if the assessee had maintained quantitative details of diamonds but had not qualitative and piece-wise details then in that case books of account could not be rejected...

Read More

Merely because assessment order of AO is Brief & Cryptic it cannot be considered as erroneous & prejudicial to revenue interest

M/s Ved Parkash Contractors Vs CIT (ITAT Chandigarh)

ITAT Chandigarh held in M/s. Ved Parkash Contractors Vs CIT that if the AO had passed brief and cryptic assessment order but had checked and verified all the related documents submitted by the assesse in reply to the questionnaire of the AO...

Read More

Speculative loss can be carried forward even if revised return claiming loss is filed u/s 139(5)

ITO Vs Ramesh Kumar Jajodia (ITAT Kolkatta)

ITAT held in ITO Vs Ramesh Kumar Jajodia that if the assessee had filed its original return u/s 139(1) but forgot to claim the speculative loss in its original return and filed revised return u/s 139(5) and claimed the loss in its revised return then the speculative loss should be allowed to be carried forward....

Read More

Revenue expenses after setting up of business allowable despite non-commencement of business

Reliance Gems & Jewels Ltd. Vs DCIT (ITAT Mumbai)

ITAT Mumbai held in Reliance gems & Jewels ltd Vs DCIT that the revenue expenditure would be allowed as an expense after the setting up of the business before the commencement of the business. The expense incurred on recruitment of employees gave indication that the business had been set up ...

Read More

Interest on IT Refund/ FDR, Other interest and Tender fees eligible for deduction u/s 80IA

M/s Hiranandani Builders Vs ITO (ITAT Mumbai)

ITAT Mumbai held in M/s Hiranandani Builders Vs ITO that the followings receipts were also eligible for deduction u/s 80IA considering the same to be profits from undertakings: 1.Interest on IT refund 2.Other Interest 3. FDR Interest 4. Tender fees...

Read More

If income been disclosed by assesse after search by filing return u/s 153A then penalty u/s 271(1)(c) is imposable

Mrs Sarita Manjeet Singh Chopra Vs ITO (ITAT Pune)

ITAT Pune held in Mrs Sarita Manjeet Singh Chopra Vs ITO that if the assesse had disclosed its unaccounted income filing return u/s 153A only after it was caught in search by the income tax department then that disclosed income through return would be considered as undisclosed income ...

Read More

Payment made in excess of Rs 20000/- should be allowed if made in business exigency

Manikanta Concerns Vs DCIT (ITAT Hyderabad)

ITAT held in Manikanta Concerns Vs DCIT that if the assesse had claimed deduction of shortage in weight or quality at the time of purchase then it did not mean that assesse could not claim deduction of shortage in weight or quality at the time of sale....

Read More

Mere wrong claim of deduction did not give rise to penalty u/s 271(1)(C)

Pooja Industries Vs ITO ( ITAT Chandigarh)

ITAT held in Pooja Industries Vs ITO that penalty u/s 271(1)(c) could not be levied only because that the assessee had wrongly claimed deduction u/s 80IC @ 100% instead of deduction u/s 80IB. Penalty could only be levied only...

Read More

If percentage of Commission earned from AE transactions is higher than AE transactions no addition can be made

Sumitomo Corporation India Pvt. Ltd. Vs DCIT (ITAT Delhi)

ITAT held in Sumitomo Corporation India Pvt. Ltd. Vs. DCIT that if the case of assessee was decided in the earlier assessment years and if the facts and circumstances were same as in the previous years ,then in the current year also same basis for assessment should be adopted. ...

Read More

Incentive paid by BSNL to its franchisee is a trade discount not commission liable to TDS

ITO Vs General Manager Bharat Sanchar Nigam Ltd (ITAT Hyderabad)

ITAT held in ITO Vs General Manager Bharat Sanchar Nigam Ltd that the incentive offered by the BSNL to its franchisee was in the nature of trade discount not in the nature of commission because after the payment made by the franchisee to the BSNL all risks and rewards relate to the franchisee. ...

Read More

For claiming deduction u/s 54F mere bank statement showing withdrawal of amount is not sufficient

Shri M.S Lakshmana Rao Vs DCIT (ITAT Hyderabad)

ITAT Hyderabad held in Shri M.S Lakshmana Rao Vs DCIT that if the assesse had not deposited the capital gain amount under the capital gain account scheme in bank then the assesse should not be barred of the exemption of sec 54 ...

Read More

ITAT allows Exemption u/s 54EC on short term capital gain from sale of depreciable assets

ITO Vs Legal Heir of Shri Durgaprasad Agnihotri (ITAT Mumbai)

ITAT Mumbai held in ITO Vs Legal Heir of Shri Durgaprasad Agnihotri that to respect the decision given by jurisdictional Hon’ble High Court in CIT vs. Ace Builders (P.) Ltd. [2006] 281 ITR 210 (Bom) it was upholding the decision given by CIT(A) that the exemption u/s 54EC...

Read More

Profit Exempt U/s. 10AA not to be included in calculation of Book Profit U/s. 115JB

ITO Vs M/s. Last Peak Data Pvt. Ltd (ITAT Kolkatta)

ITAT held in ITO Vs M/s.Last Peak Data Pvt. Ltd that if the assesse was an existing recognized Software Technology Park (STP) then it would be considered at par at of Special Economic Zone(SEZ) and exemptions available to SEZ would also be available to STP...

Read More

Bogus Purchase- Mere Adjustment in Purchase without disturbing Sales not Justified

ACIT Vs Advert Communication (ITAT Delhi)

ACIT vs Advert Communication ( ITAT Delhi) 1.If addition has to be made for bogus purchases then sales should also be disturbed ; 2.Until and unless both parties don’t confirm the cessation of liability then addition cannot be made u/s 41(1); 3....

Read More

Pooja & Temple expenses allowable as related with harmony of business

Joint Commissioner of Income Tax (OSD) Vs M/s Gillander Arbithnot & Co. Ltd (ITAT Kolkata)

JCIT Vs M/s Gillander Arbithnot & Co. Ltd (ITAT Kolkata) 1.Assessee would be allowed deduction of payment of employees contribution of ESI and PF if it paid the same before the due date of filing of return u/s 139(1). 2. Pooja & Temple expenses would be allowed as a business expenditure because it was related with the harmony of business ...

Read More

Registration u/s 12AA cannot be denied to partly religious & partly charitable trust

Sri Maramma Temple Seva Trust Vs CIT (ITAT Bangalore)

ITAT Bangalore held in Sri Maramma Temple Seva Trust Vs CIT that even if the objective of an organization was both religious and charitable then also registration u/s 12AA could not be denied on the basis that registration could only be granted either to wholly religious...

Read More

Registration u/s 12AA cannot be denied to an educational institute merely because it’s is been run by Christian community

Alexandra School Vs CIT, Amritsar (Punjab & Haryana High Court)

Punjab & Haryana High Court held in Alexandera School Vs CIT, Amritsar that if an educational institute had been run by a particular section of community then registration u/s 12AA could not be denied provided it was running to benefit all sections of society....

Read More

Interest u/s 215 cannot be levied if partner had paid advance tax in individual capacity on bonafide estimate of firm’s income

CIT Vs M/s Mahesh Munjal HUF (Punjab & Haryana High Court)

Punjab & Haryana High Court in CIT Vs M/s Mahesh Munjal HUF held that if the assesse had paid advance tax in his individual capacity after considering his estimated share in his firm’s income without any anticipation that the firm’s income on which he was paying advance tax was false then interest u/s 215 could not be levied. ...

Read More

Reassessment u/s 147 not permitted for failure of AO to draw correct inference from details disclosed by assesse

CIT(A) Vs M/s ITW India Limited (Punjab & Haryana High Court)

Punjab & Haryana High Court held in CIT(A) Vs M/s ITW India Limited that mere change in opinion of the AO could not amount to issue of notice for re-assessment u/s 147. AO should had reasonable tangible facts in hand before issuing notice u/s 147....

Read More

Comparable which is to be considered as a benchmark for comparing with comparable company should belong to year under consideration

CIT Vs DSM Anti Infectives India Ltd. (Punjab & Haryana High Court)

Punjab & Haryana High Court held in CIT Vs DSM Anti Infectives India ltd that the benchmark comparable which was used to compare with the comparable company that should be considered only of that year of which TP case was involved....

Read More

Penalty u/s 271(1)(c) leviable for failure to prove genuineness of exemption u/s 54

Manpreet Kaur Vs CIT (Punjab & Haryana High Court)

Punjab & Haryana High Court held in Manpreet Kaur vs CIT that if the assesse had claimed exemption u/s 54 for utilizing the sales proceeds in the construction of the residential house then the onus to prove that the sales proceeds had actually been used in the construction of residential house in on assesse....

Read More

Exemption u/s 54B can be claimed for long term & short term assets; land purchased has to be in the name of assesse

CIT Vs Shri Dinesh Verma (Punjab & Haryana Court High Court)

Punjab & Haryana High court held in CIT vs Shri Dinesh Verma that exemption u/s 54B could be claimed for short term & Long term assets because there was no such provision u/s 54B which denies exemption for short term assets. ...

Read More

Appellate order passed without reasons for conclusions Not Valid

CIT, TDS Vs Khadim Shoes Pvt Ltd (Kolkata High Court)

High Court Kolkatta held in CIT,TDS Vs Khadim Shoes Pvt Ltd that the order passed by the CIT(A) should contain reasons for its conclusions of decisions. An order without reasons is of no relevance. So the appeal had been dismissed....

Read More

Reasoned speaking order is mandatory for passing any judicial order

CIT(A) Vs M/s Rashtriya Vikas Party (Punjab & Haryana High Court)

Punjab & Haryana High Court held in CIT(A) Vs M/s Rashtriya Vikas party that for passing any order reasons for conclusions should be given accompanying that order then only that order would be considered as complete order....

Read More

Depreciation allowable for suspended period of business for reasons not attributable to Assessee

M/s Budge Budge Company Ltd Vs CIT (Calcutta High Court)

Calcutta High Court Held in the case of M/s Budge Budge Company Ltd Vs CIT if the business had been suspended for some period of time without any malice contention of the assesse and the plant was still ready for use during that suspended period also...

Read More

Income from business of letting of property taxable as Business Income

Shyam Burlap Company Ltd Vs CIT (Kolkata High Court)

Kolkatta High court held Shyam Burlap Company Ltd Vs CIT that as the assesse’s main business is purchasing, developing and letting out of property. The same was mentioned in the object clause of memorandum of the company....

Read More

Disclosure of Income after Search at sister concerns office cannot be called voluntary

CIT Vs Balampur Chini Mills Pvt Ltd. (Calcutta High Court)

High Court Calcutta held in CIT Vs Balampur Chini Mills Pvt Ltd that even if the assesse had voluntary disclosed its income by filing revised ROI though not detected by the revenue during scrutiny proceedings u/s 143(3), penalty u/s 272(1)(c) would be levied. ...

Read More

Penalty U/s. 271(1)(c) cannot be imposed for mere non-application of Rule 8D by assessee

ACIT Vs Ms Shyam Basic Infrastructure Pvt. Ltd. (ITAT Delhi)

ITAT held in ACIT Vs Ms Shyam Basic that if the assessee had made a wrong claim in the return of income but had furnished full particulars in its return of income then it would not amount to concealment if income and penalty u/s 271(1)(c) could not be levied....

Read More

Deduction cannot be allowed merely on consistency or on the basis of mere Footnote in Audited Balance Sheet

Indo Count Industries Ltd. Vs DCIT (ITAT Delhi)

ITAT New Delhi held in Indo Count Industries Ltd Vs DCIT( ITAT New Delhi) that it all depends upon the facts of the case that whether the assesse was eligible to claim exemption u/s 10B for all the units as a single entity or every unit was independently eligible to claim exemption u/s 10B as a separate unit. ...

Read More

Service Tax not to be included while calculating the gross receipts for sec 44BB

M/s Sundowner Offshore International (Bermuda) Ltd. Vs ADIT (International Taxation) (ITAT Delhi)

ITAT Delhi held in M/s Sundowner offshore International (Bermuda) Ltd Vs ADIT (International Taxation, Dehradun) that for calculating the gross receipts for sec 44BB, reimbursement of service tax not to be included in gross receipts and 10% of the total gross receipts without considering the service tax would be taken as taxable income of...

Read More

Mere Frequency of transactions in shares did not determine nature of transaction

CIT (Kolkata) Vs Merlin Holding Private Limited (Calcutta High Court)

ITAT held in CIT( Kolkatta) Vs Merlin Holding Private Limited that it was the question of the fact to decide between the share income as an investment income or as a business income. Mere Frequency of the transactions in the shares did not determine the transaction to be business transaction or investment transaction....

Read More

Search will be deemed to be concluded for completion of assessment from the date when keys were handed over to assessee

Navin Kumar Agarwal Vs CIT(A) (Kolkata High Court)

Kolkatta High Court held in Navin Kumar Agarwal Vs CIT(A) that for the conclusion of search, date of last panchnama was to be seen provided keys had been handed over to the assessee. If the keys were still with the department it meant that department could resume the search any time if necessary irrespective of the fact that only restrain...

Read More

Depreciation cannot be allowed forcefully if not claimed by Assessee

Gujarat Paguthan Energy Corporation P Ltd Vs ITO (ITAT Ahmedabad)

Gujarat Paguthan Energy Corporation P Ltd Vs ITO (ITAT Ahmedabad)- For allowing any income based deduction to the assessee, if the assessee had not claimed depreciation and claimed the deduction without claiming depreciation then AO could not forcefully deduct the depreciation from profit & Loss Account....

Read More

Deduction u/s 80IB(10) cannot be denied to developer for mere P&L presentation without appreciation of facts

Megha Developers Vs ITO(Ahmedabad) (ITAT Ahmedabad)

ITAT Ahmedabad held in Megha Developers Vs ITO that as the assessee had entered into an agreement in which he had to bear all the costs related with the building of the project and also he was having the rights to receive all the payments from the members of the society...

Read More

Sec 80IB(10) 5% Commercial Area Restriction applicable from 01-04-2005

M/s Sun Enterprise Vs ACIT (ITAT Ahmedabad)

ITAT Ahmedabad held in M/s Sun Rise enterprise Vs ACIT that the insertion of clause d to sec 80IB(10) would be applicable from 01-04-2005 i.e the amendment related with built up area of commercial establishments not to exceed more than 5% of total built up area of housing project would have prospective effect not retrospective effect....

Read More

AO cannot disallow loss for mere non-maintenance of qualitative stock records

Dhami Brothers Vs DCIT (ITAT Ahmedabad)

ITAT Ahmedabad held in Dhami Brothers Vs DCIT that if the assessee had not maintained any qualitative stock records to justify the sales price of diamonds and closing price of stock then the loss in the books of accounts would not be disallowed if after verification the AO had not found anything adverse about the transactions of the asse...

Read More

Penalty u/s 271(1)(c) cannot be levied for mere Assessment of Income at higher Percentage

Sohan Builders Vs ACIT(ITAT Ahmedabad)

ITAT Ahmedabad held in Sohan Builders Vs ACIT that if the AO had assessed the income of the assessee at some higher percentage than what the assessee had already shown in the computation then it would not amount to the concealment of income, ...

Read More

Deduction u/s 80IB(11A) allowable from A.Y in which business commences

M/s Anand Food Dairy & products Vs ITO (ITAT Ahmedabad)

ITAT Ahmedabad held in M/s Anand Food Dairy & products Vs ITO that the deduction u/s 80IB(11A) would be allowed from the initial assessment year i.e A.Y relevant to the previous year in which the business was commenced but not from the A.Y of the incorporation of this provision in the I.T Act i. e not from -01-04-2005....

Read More

Penalty U/s 271(1)(b) cannot be imposed without giving reasonable opportunity of being heard to Assessee

Mr.Lakhamshi J. Gala Vs DCIT (ITAT Mumbai)

ITAT Mumbai held in J. Gala Vs DCIT that for levying the penalty u/s 271(1)(b) revenue has to give a reasonable opportunity of being heard to the assessee, without which penalty could not be levied. Further for giving reasonable opportunity of being heard...

Read More

Reimbursement of expenses will be included in calculating taxable receipts u/s 44BB

Siem Offshore Inc Vs Dy. DIT (International Taxation) (ITAT Delhi)

ITAT Delhi held in Siem Offshore Inc Vs Dy. DIT (International Taxation) that any payment received (whether in India or outside India) by an assessee who falls within sec 44BB would be taxed as per the provisions contained u/s 44BB. So the reimbursement of expenses would also be taxed u/s 44BB....

Read More

Ownership of land is required for claiming deduction u/s 80IB(10)

M/s Nirmala Developers C/o Manish Shah & Asso. Vs ITO (ITAT Ahmedabad)

ITAT Ahmedabad held in M/s Nirmala Developers Vs ITO that it was not necessary to be the owner of the land to claim the deduction u/s 80IB(10). But the necessary condition to claim the deduction u/s 80(IB)10 was that the assessee had borne the all expenses and took all the risk involved in the project....

Read More

Disallowance u/s 14A cannot be made on ad-hoc basis

Swew Benefit Company Vs DCIT (ITAT Kolkatta)

ITAT Kolkatta held in Swew Benefit Company Vs DCIT that for disallowing expenses u/s 14A i.e expense incurred for non-taxable income, there had to be some logical strong basis like rule 8D or something else but it could not be disallowed on ad-hoc basis....

Read More

Revision of return u/s 139(5) is not required when undisputed apparent mistake is there in ROI

ACIT Vs Amrapali Capital & Financial services Ltd. (ITAT Ahmedabad)

ITAT Ahmedabad held in ACIT Vs Amrapali Capital & Financial services Ltd that if the assessee had by mistake wrongly computed its computation of income because of unawareness of the law and he had not revised it return within the time mentioned u/s 139(5)...

Read More

Commitment by lawyer without express consent of client will not bind the client : SC

Himalayan Cooperative Group Housing Society Vs Balwan Singh (Supreme Court of India)

Supreme Court held in Himalayan Cooperative Group Housing Society Vs Balwan Singh that the lawyers owe fiduciary duties to their clients, so they should act with the express consent of clients. Lawyers should not make any commitment without the consent of their clients and any commitment...

Read More

Bonafide mistake in Disclosure of income under wrong head – No penalty u/s 271(1)( c)

Simran Singh Gambhir Vs DDIT International Taxation (ITAT Delhi)

ITAT New Delhi held in Simran Singh Gambhir Vs DDIT International Taxation that if the assessee had disclosed the income by mistake under wrong head of income and that mistake was bonafide then the same could not be treated as an undisclosed income and penalty u/s 271(1)( C) could not be levied. ...

Read More

Conditions to avail deduction u/s 80IB should be fulfilled only in initial A.Y not in every 10 years of deduction

CIT Vs M/s Sunder Forging (Punjab & Haryana High Court)

Punjab & Haryana High Court held in CIT Vs M/s Sunder Forging that to claim the deduction u/s 80IB for consecutive 10 years all the relevant conditions should be required to be fulfilled only in the initial assessment year...

Read More

Wrongly disclosed income does not mean undisclosed income, penalty u/s 271(1)(c) cannot be levied.

CIT Vs Control and Switch gear Contractors Ltd (Delhi High Court)

New Delhi court held in PR. CIT Vs Control and Switch gear Contractors Ltd that if the assessee had disclosed the income in its return of income though wrongly disclosed it did not mean that the assessee had tried to hide its income so that wrongly disclosed income could not be considered as an undisclosed income and penalty u/s 271(1)( C...

Read More

2nd proviso to sec 40(a)(ia) inserted in FA ,2012 have retrospective effect from 01-04-2005

CIT Vs Ansal Landmark Township P Ltd (Delhi High Court)

The High Court of New Delhi has held in case of CIT-1 Vs Ansal Landmark Township P Ltd that second proviso to sec 40(a)(ia) will have retrospective effect from 01-04-2005 which means that if the assessee had forgot to deduct the TDS on payment...

Read More

sec 263 can be invoked If assessment has been done without examinations/inquiry

Ambience Hotel & Resort Pvt. Ltd Vs CIT, Ambience Developers & Infrastructure Pvt. Ltd Vs CIT II [ITAT Delhi]

ITAT Delhi held in Ambience Hotel & Resort Pvt. Vs CIT that if the AO had done his assessment ignoring the provisions of the IT act and TPA and ignoring the examinations/inquiry then that assessment was erroneous...

Read More

NO TDS on payment of Interest by co-operative society to its Members

Almora Urban Co-operative Bank Ltd Vs ITO (ITAT Delhi)

ITAT held in Almora Urban Co-operative Bank Ltd Vs ITO that TDS was not required to be deducted when co-operative society pays interest to its members as per sec 194A(3)....

Read More

Hundi discounting charges to carry on business is revenue expenses

CIT Vs DLF Universal Ltd (Delhi High Court)

Delhi High Court held in CIT Vs DLF Universal Ltd held that If assessee got hundi from its suppliers and get it discounted from the bank ,then the discounting charges paid by the assessee would be treated as a revenue expense;...

Read More

Penalty u/s 271D & 271E for raising & repayment of loans in cash cannot be imposed if sufficient reasonable cause exist

Envogue Wood Working Pvt Ltd Vs ACIT (ITAT Delhi)

ITAT held in Envogue Wood Working Pvt Ltd Vs ACIT that if the assessee had taken and repaid the loan in cash and provided the sufficient reasonable cause of doing such then penalty u/s 271D & 271E would not be imposed....

Read More

Order u/s 250 cannot be passed ex-parte without giving reasonable opportunity of being heard to assessee

Executive solutions Pvt Ltd Vs ITO (ITAT Delhi)

ITAT Delhi held in Executive solutions Pvt Ltd Vs ITO that reasonable opportunity of being heard should be given to the assessee as per the principle of natural justice irrespective of the fact the number of times opportunity of being heard had already been given to the assessee....

Read More

If building is constructed by trust on land owned by trustee; the provisions of sec 13(1) does not gets attracted

M/s Natya Sankalpaa Vs DIT Exemptions (Madras High Court)

Madras High Court in M/s Natya sankalpaa Vs DIT Exemptions held that if the trustee would compensate the trust with the amount which trust had applied on the property of the trustee then it could not be said that the income of trust had applied to the benefit of trustee ...

Read More

No wealth tax on land which remains vacant as per construction Plan

CIT Vs M/s MIL Industries Ltd. (Madras High Court)

Madras High Court held in CIT Vs M/s MIL Industries Ltd that the vacant land left on constructed property as per the construction plan of that property would not be treated as a vacant urban land because the vacant land left was the requirement of the construction plan...

Read More

For computing income u/s 80I or 80 IA only losses and deductions of eligible business has to be considered from initial A.Y.

CIT Vs K Rajinikanth (Madras High Court)

Madras High Court in CIT Vs K Rajinikanth (Madras High Court) held that for computing the income for calculating the deduction u/s 80IA, only the profits & Losses of the eligible business had to be taken into consideration as if it was the only business of the assessee....

Read More

Re-assessment proceedings cannot be initiated u/s 147 just because of change in opinion

CIT Vs M/s Schwing Stetter India P Ltd (Madras High Court)

Madras High Court held in CIT Vs M/s Schwing Stetter India P Ltd that the case only be opened for re-assessment u/s 147 only if there was a tangible material in the hand of AO , it could not be opened just because of the change in the opinion of AO....

Read More

In case of failure to issue proper notice to assessee, ITAT has right to review its own order

CIT Vs M/s Sea Rose Marines Pvt Ltd (Madras High Court)

Madras High court in CIT Vs M/s Sea Rose Marines Pvt Ltd (Madras High Court) held that if the notice was not issued to the assessee properly then the ITAT had the right to review its own order. The ITAT had recalled the order and gave new decision after reviewing ...

Read More

sec 80HHC- Taxation Laws (2nd Amendment) Act, 2005 have prospective effect

CIT Vs Ms Orient Express (Madras High Court)

Madras High Court held in CIT V/s Ms Orient Express that the amendment to sec 80HHC would have prospective effect from 2005 not retrospective effect....

Read More

Income from sell of land is capital gain, if purchase and sell of land is not the business of Assessee

CIT Vs Ms Vidya Thangakumar (Madras High Court)

Madras High Court held in CIT Vs Ms Vidya Thangakumar that it would vary from case to case that whether the land in the hand of assessee is a capital asset or business stock. In the present case the assessee had got the land under settlement and it had to sell the land...

Read More

Expenses related with improvement in operations of existing business product line is revenue expense

CIT Vs M/s Southern Petrochemicals Industries Corporation Ltd (Madras High Court)

Madras High Court in the case of CIT Vs M/s Southern Petrochemicals Industries Corporation Ltd held that market research expense incurred to increase the efficiency of the existing business product line, the same should be treated as revenue expense. ...

Read More

Only operational income related with main business activity of assessee will qualify for deduction u/s 80HHC

CIT Vs Funskool (I) Ltd (Madras High Court)

Madras High Court held in CIT Vs Funskool (I) Ltd (Madras High Court) that for calculating the cost of the finished product the process of designing or stickering which had been used to design or give a final look to the finished product ...

Read More

MAT credit should be adjusted in priority to other credit of taxes like TDS, advance tax or other taxes

CIT Vs M/s Ambattur Clothing Limited (Madras High Court)

Madras High Court in the case of CIT Vs M/s Ambattur Clothing Limited held that for calculating the assessed tax priority has to be given to adjust the MAT credit then TDS and advance tax would be adjusted by relying on the decision of Supreme Court...

Read More

ITAT referred case back to lower authorities as pre-requisite condition of DTAA is not ascertained

Outotec India Pvt Ltd Vs ACIT (ITAT Delhi)

In the present case services were provided by the non-resident individuals so article 15 was applicable but the pre-requisite condition that the each non-resident individual had to be present in India for more than 90 days which was not ascertained....

Read More

Loss from Forex Derivative trading upto export turnover is business loss & not speculative loss

M/s. Majestic Exports Vs JCIT (ITAT Chennai)

In the case of M/s. Majestic Exports vs. JCIT, ITAT Chennai held that the loss in the transactions of the forex derivatives contracts will be considered to be the business loss and the same can be set off against the business income. ...

Read More

Lessee can claim depreciation if entire control & rights of building are with him

CIT Vs M/s Bharat Hotels (Delhi High Court)

Delhi High Court has in the case of CIT Vs M/s Bharat Hotels held that If appellant Leasee is having entire control over the building than even though no ownership rights vest him, still he can claim depreciation on the same....

Read More

If creditors are found bogus then addition can be made u/s 68 or u/s 41(1)

Perfect Paradise Emporium Pvt. Ltd. Vs ITO (ITAT Delhi)

ITAT Delhi has held in the case of Perfect Paradise Emporium Pvt. Ltd vs. ITO that If creditors are found bogus then the amount can be added back to income u/s 68 as unexplained cash credits or us 41(1) as business income....

Read More

TDS Provision on Year end provisions and Roaming charges

Dishnet Wireless Limited Vs DCIT (ITAT Chennai)

ITAT Chennai has held in In the case of Dishnet Wireless Limited vs. DCIT that No liability of TDS will arise if the amount of expense or payee is not ascertainable though year-end provisions are made by the Appellant....

Read More

Claim cannot be denied for mere non-reply to notice u/s 133(6) if AO have other sufficient evidences

Cheil India Pvt. Ltd. Vs ITO Ward 3(3) (ITAT Delhi)

Claim cannot be denied if sufficient documents are in hand of AO even though the party does not reply to notice issued u/s 133(6); (even though the party confirmation is not available against notice issued u/s 133(6)). ...

Read More

Transfer u/s 2(47) completes only when conditions of sec 53A of transfer of property act gets fulfilled

C.S. Atwal Vs CIT (Punjab & Haryana High Court at Chandigarh)

ITAT held that Section 53A of 1882 Act, by incorporation, stood embodied in section 2(47)(v) of the Act and all the essential ingredients of Section 53A of 1882 Act were required to be fulfilled to attract sec 2(47). In the absence of registration of JDA...

Read More

If remand report given by AO is without any adverse comments then appeal of revenue would be dismissed

DCIT Vs Mohan Proteins Ltd, (ITAT Delhi)

ITAT held that CIT(A) had made detailed observations on the remand report of the AO who also in his report had not questioned any of the submissions made by assessee and in fact also had not made any adverse comments on the same....

Read More

Transfer Pricing- Companies having abnormal cost cannot be taken as comparable

JCB India Limited Vs ACIT (ITAT Delhi)

Assessee had reduced its operating expenses to calculate ratio of operating profit/Total cost which was the base to calculate the value of export of goods in transfer pricing on the basis that it was its first year of operation ...

Read More

In transfer pricing 2 companies can be compared only if they are functionally comparable

Xchanging Technologies Services India Pvt. Ltd. Vs ACIT (ITAT Delhi)

Assessee was engaged in the field of providing insurance & Human Resources services to its associated enterprise in UK. The Ld. AO /TPO made an addition to the income of the assessee by comparing the income of the assessee with the income of the comparable companies ...

Read More

Provisions of Rule 8D applicable from A.Y. 2008-09 and is not retrospective

Shree Dinesh Mills Limited Vs ACIT (ITAT Ahmedabad)

AO had disallowed the expenses u/s 14A by applying the rule 8D for the A.Y 07-08 but the assessee argued and gave the supporting of the decided case law by Hon’ble High Court in its own decision in which it was decided that the sec 14A would be applicable from A.Y 08-09...

Read More

Interest earned on idle funds raised through share capital for project establishment is capital receipt

ITO Vs M/s Factor Power Ltd,(ITAT Delhi)

ITAT Delhi has held in the case of ITO vs. M/s Factor Power Ltd that Interest Earned on Fund Raised Through Share Capital for installation of thermal power plant , which is been deposited temporarily in bank as fund were lying idle, with a motive to reduce the capital cost of thermal power plant ...

Read More

No Disallowance for non-deduction of TDS if payee includes the same amount in his ITR and paid taxes on the same

M/s Debdutta Construction Vs ITO (ITAT Kolkata)

The assessee had made payment to the labour contractors without deducting TDS on the same and claimed the same as an expense in his profit & Loss account. AO disallowed the same as per sec 40(a)(ia) for non-deduction of TDS....

Read More

Section 263 can be invoked for late deduction and deposit of TDS

Menally Sayaji Engineering Ltd. Vs CIT (ITAT Kolkata)

ITAT Kolkatta has held In the case of Menally Sayaji Engineering Ltd. VS -CIT that if assessee failed to deduct TDS during the previous year on payments of management service fee and royalty debited to the profit and loss account and if in his Assessment Order Passed U/s. 143(3)...

Read More

AO cannot made addition for Anonymous donations treated as Income by Assessee

M/s Saraswati Educational Charitable Trust Vs ITO (ITAT Lucknow)

Respective court was of the view that section 68 has no application because the same had already been taken in income of the assessee so it no where remains undisclosed. Moreover the assessee has duly discharged its onus to prove the credit worthiness of the donor by giving the list of the same ...

Read More

Payment for rights to use know-how and technology without ownership is revenue expenditure

Commissioner of Income Tax Vs Hero Honda Motors Limited (Delhi High Court)

As the only rights to use the know-how and the technology has been granted to the assessee not the ownership of the know-how has been transferred .The ultimate ownership remains with the Honda Motorcycle company Limited....

Read More

TDS on payment to doctors working in hospital under section 192 or 194J?

The Commissioner of Income Tax Vs Grant Medical Foundation (Bombay High Court)

The hospital had hired the doctors i.e professionals for their expertise, experience, and skill in the profession and requests them to be associated with the hospital, then their engagement cannot be said to be of employer-employee relationship. ...

Read More

Unabsorbed depreciation can be set off against capital gain from sale of depreciable asset

M/s. Southern Travels Vs The Assistant Commissioner (Madras High Court)

Hon’ble High Court relied on the decision of Cocanada reported in 57 ITR 306 and Sasoon V/s CIT in which it was held that carry forward unabsorbed depreciation can be set off against the capital gain from sale of depreciable asset. ...

Read More

Customization of electronic data amounts to manufacture for claiming exemption u/s 10B

Commissioner Of Income Tax Vs Ms. Kiran Kapoor (Delhi High Court)

The assessee’s effort of collection, designing, layout, refining the photographs to make the book ready to print out is manufacturing and the same is also exported outside India so exemption u/s 10B cannot be denied....

Read More

Section 158B – Initiation of Block Assessment without Valid satisfaction is invalid

The Commissioner of Income Tax Vs Manoj Bansal (Delhi High Court)

Hon’ble High Court is of the opinion that the note written by the AO lacks satisfaction as required u/s 158BD.In other words there is lack of the satisfaction of the AO that there is material that the respondent assessee had undisclosed income. ...

Read More

Exemption u/s 11 cannot be denied on giving interest free loan and renting of property

St. Joseph's Technical School Vs Asst. DIT(E) (ITAT Mumbai)

Interest free loan given by the assessee society to another society with identical object cannot be treated as investment or deposit in which event there is no violation of section 13(1)(d) row’s. 11(5) of the Act....

Read More

Ground of ill health without any cogent material for condonation of delay not sustainable

Mrs. P. S. Rajeswari Vs Assistant Commissioner Of Income Tax (Madras High Court)

Tribunal held that the explanation regarding the illness of husband offered by one of the assessee Mrs P.S Rajeshwari was untenable.The tribunal further pointed out that plea of illness between November,2010 and November 2013 and sudden regaining of health was not supported by evidence. ...

Read More

Browse All Categories

CA, CS, CMA (5,044)
Company Law (6,703)
Custom Duty (8,077)
DGFT (4,386)
Excise Duty (4,406)
Fema / RBI (4,433)
Finance (4,694)
Income Tax (35,056)
SEBI (3,754)
Service Tax (3,626)

Search Posts by Date

November 2020
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30