CESTAT Delhi held that air craft engine stand imported by the appellant would deserve classification under CTI 8609 00 00 and not under CTI 8716 39 00. Accordingly, order passed by the Principal Commissioner is set aside.
Since the business sales were accepted as genuine and only the purchases were routed through accommodation entries, only a part of the purchases needed adjustment to reflect possible inflation of expenses confirming the restriction of bogus purchase addition to 5% and when additions were made on an estimated basis, penalty for concealment under Section 271(1)(c) could not be imposed.
ITAT Delhi held that services rendered under Intra Group Service Agreement do not make available technical knowledge and hence would not fall within the definition of FTS as provided under Article 13(4) of India UK DTAA and hence not taxable in India.
An assessment order passed by AO was quashed on the reason that assessment year was beyond the ten-year outer ceiling limit prescribed by Section 153A. Assessee challenged the assumption of jurisdiction by AO and consequent passing of the Assessment Order. Assessee challenged the issuance of notice u/s 153A for the assessment year 2008-09 on the reasoning that the said notice was issued beyond the period of limitation.
Tribunal had set aside an order by CIT (Appeals) directing AO to recalculate the Tax Deducted at Source (TDS) demand under section 194 C as the original demand had already been nullified by the Delhi High Court, making the CIT(A)’s directions untenable and CIT(A) erred by ignoring the High Court’s judgment and basing its decision on a different TDS provision (Section 194C) than the one applied by the AO (Section 194I).
Bombay High Court held that initiation of reassessment proceedings under section 147 of the Income Tax Act resulting into change of opinion and review of the assessment order is not permissible in law. Accordingly, reassessment proceedings are liable to be quashed.
ITAT Delhi rules in Om Prakash Jakhotia case that income must be taxed to the rightful owner, deleting additions based on documents not belonging to assessee.
Gujarat High Court sets aside ITAT’s order, criticising the casual remand of a tax evasion case despite the assessee’s non-compliance.
Gujarat High Court rules B Nanji & Co. can claim interest deduction under Section 36(1)(iii) for borrowed funds used in business expansion via share acquisition.
Punjab & Haryana High Court rules in Rakesh Gupta Vs CIT that tangible information on client code modification justifies income tax re-assessment.
