Indusind Bank Ltd Vs ACIT (ITAT Mumbai) – Whether interest on government securities will become taxable on the date of coupon date as the assessee receives the right of the interest in the said securities only on the said date and it does not become due on day to day basis. – Assessee’s appeal partly allowed.
HSBC Asset Management (India) Private Limited Vs DDIT (ITAT Mumbai)- Pre-operative expenses and registration fee paid to SEBI are allowable as intangible asset and assessee can claim depreciation on the same and AO cannot question the allowability if same was allowed in the earlier AY.
Bachhraj Factories Pvt Ltd Vs ITO (ITAT Mumbai)- in regard to 14 bighas, the assessee was found to be a trespasser. The law does not recognize the rights of a trespasser. Ordinarily, it is said that the possession is the nine point of ownership. The possessor has got right over the property and his right cannot be challenged by any one except the true owner. Undoubtedly, for some time, the assessee was the possessor of the land and building. But from the facts culled out from the records, it cannot be concluded that the possessory rights of the assessee bear any legal recognition. Unless such rights are protected by law to associate the word ‘right’ with the said type of possession will be a misnomer, since right is a legally protected interest.
DCIT Vs Mr Sanjeev R Kanwar (ITAT Mumbai) – For making additions, FIR is contemporaneous evidence and the contents of the same cannot be ignored in the light of self-serving documents. Human conduct and human probabilities are to be given weightage over the self generated evidences.
Harish P. Mashruwala v. Asst. CIT (ITAT Mumbai)- In this case, tax sought to be evaded is very clear as the tax rate applicable is 30% whereas the assessee has paid 20%. The tax sought to be evaded was because of the lower rate of tax paid and not because of any addition to the income and, therefore, provisions of Explanation 1 are not applicable. The penalty is imposable under the main provision and there is no need to refer to any Explanations. As regards the merit of the case, the claim of the assessee that amount paid for receiving the gift was from the cash received on surrender of tenancy right is not supported by any evidence.
CIT v Rajiv Shukla (High Court of Delhi) Assessing Officer rejected the claim of the assessee under section 54F on the ground that the assessee had not produced any evidence showing investment in Capital Deposit Account Scheme under section 54F and that the flat sold by him was a depreciable asset. As per provisions of section 50, the capital gain arising from transfer of depreciable asset shall be deemed to be the capital gain arising from transfer of short term capital asset and, therefore, deduction under section 54F was not available. Accordingly, AO made an addition of Rs.91,77,118/- under the head Short Term Capital Gain.
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.
Deere and Co., In re (Authority for Advance Rulings)- American company is not liable to pay any capital gain under s 45 read with s 47(iii) on transfer of shares of Indian subsidiary to Singapore subsidiary without consideration on account of reorganisation as same amounts to gift.
ADIT (IT), Circle 2(2) v Taj TV Ltd. (ITAT Mumbai) -The assessee was entitled to interest under s 244A in respect of the excess payment of tax in response to the order passed under s 201 read with s 195, 201(1A) and 250.
ADIT v Fidelity Management Trust Co (ITAT Mumbai) The mere making of a claim, which was not sustainable in law, by itself, would not amount to furnishing inaccurate particulars when the assessee had made a bona fide claim relying on the advance ruling pronounced in the case of a sister concern which was reversed later on.
