TODAY'S CASE (DIRECT TAX)

August 31, 2019

++ Writ court's intervention is unwarranted in respect of attachment order where objections raised against such order are pending disposal before the tax Recovery Officer: HC

++ Where issue raises issue of cross-examination before the CIT(A) by way of alternate appeal u/s 246A, the procedure of appeal u/s 250 becomes ineffective: HC

++ Where assessee borrows funds from foreign company, which holds over 10% of voting power in the former, the same are taxable u/s 2(22)(e) in the hands of the foreign company: HC

++ Re-assessment proceedings are unsustainable where no reasons had been recorded by the AO before issuing notice to such end; legally sound findings of Tribunal warrant no interference with: HC

++ Factual findings of Tribunal and CIT(A) upholding additions made on account of concealment of income by assessee, do not warrant writ court's intervention: HC

August 30, 2019

++ Revisional authority is empowered to condone delay under proviso to Section 264(3) without any statutory cap qua length of delay: HC

++ Revenue's appeal seeking condonation of delay in filing appeal is untenable where ITAT gave detailed reasons for rejecting vague explanations for such delay: HC

++ Matter warrants remand if Tribunal does not express any definite view on the contentions raised by the assessee or by the Revenue: HC

++ Re-assessment initiated without having any fresh evidence at hand is tantamount to change of opinion, which invalidates such proceedings: HC

++ Additions made u/s 68 on account of unexplained cash credit are sustainable if assessee fails to show creditworthiness and genuineness of its shareholders: HC

++ Question of escapement of income does not arise where deduction u/s 80IA is not allowed in the first instance; re-assessment proceedings initiated in this regard suffer from non-application of mind: HC

++ Writ court's intervention is not needed where assessee's application to the SETCOM is revived & further proceedings are dependent on the SETCOM's order: HC

August 29, 2019

++ Disallowance of interest u/s 36(1)(iii) is untenable if assessee uses own funds to give advances to related party due to commercial expediency: ITAT

++ Deduction u/s 80P(2)(d) merits being allowed in respect of amount invested in cooperative & other banks: ITAT

++ Assessment order passed in respect of company which becomes non-existent upon its merger is unsustainable where AO passes such order despite being aware of such merger: ITAT

++ Penalty levied u/s 271E by Addl. CIT is unsustainable if no findings in this regard have been rendered by the AO: ITAT

++ Additions framed u/s 68 on account of unsecured loan are unsustainable where identity & creditworthiness of creditors are established: ITAT

++ Order passed by CIT(A) is untenable where based on additional evidence hitherto not examined by AO, in contravention of mandate of Rule 46A(3): ITAT

++ Plausible view taken by AO on genuineness of issue of shares cannot be deemed to be erroneous where based on due application of mind in respect of evidence at hand: ITAT

++ Exemption u/s 10(23C)(vi) cannot be revoked where application for such benefit is filed in Form 56D & receives approval from the authority concerned: ITAT

++ Additions made for undervaluation of stock are unsustainable where books of accounts are not rejected & no adjustment is made to opening stock of subsequent AY: ITAT

++ Doubts in valuation of share premium upon conversion of shares are per se insufficient grounds to frame additions u/s 68: ITAT

++ Re-assessment initiated after four year limitation is untenable if there is no failure on assessee's part to make full & true disclosure of material facts leading to escapement of income: ITAT

++ Exemption u/s 10(38) merits being allowed where assessee holds shares for more than 12 months; profits arising from their sale is taxable as LTCG: ITAT

August 28, 2019

++ Black Money Act 2015 - Criminal proceedings launched cannot be dropped where prima facie case is made out against assessee to initiate prosecution: HC

++ Alternate remedy of statutory revision u/s 264 is preferred over writ remedy where revisional authority is better suited to pass order not prejudicial to the assessee against whom duty is demanded u/s 179: HC

++ TDR qualifies as capital asset & surplus from sale of such capital assets is assessable under capital gain & not under speculative profits: ITAT

++ Transfer of immovable property as a gift is taxable under LTCG if assessee fails to comply with conditions u/s 56(2 )( vi): ITAT

++ Penalty imposed u/s 271(1)(b) is sustainable if assessee defaulted in compliance of notices issued u/s 142(1) & failed to disclose reasonable cause for not furnishing information sought for during assessment: ITAT

++ Disallowance of expenses u/s 40(a )( ia ) is untenable if assessee furnishes certificate showing that credit amount is in conformity with proviso to Section 201(1): ITAT

++ Principles of consistency are applicable in cases where issue at hand already attains finality in previous judgments of the writ court: HC

++ Re-assessment proceedings are unsustainable where initiated by the lower authorities in ignorance of a contextual remand order passed by the Tribunal: HC

++ Provisions of Section 80IB(10) do not mandate that eligibility for deduction is conditional upon obtaining completion certificate for residential project within four years from date of approval granted by Development Authority: HC

++ An officer of the Enforcement Wing cannot be equated with an Assessing Officer for purposes of assessment: HC

++ Discrepancy in cash inventory & cash in hand is untenable if certain expenses incurred after survey proceedings are yet to be entered in books of accounts: ITAT

August 27, 2019

++ Entity predominantly engaged in renting out mechanical cranes cannot be denied higher rate of depreciation merely because it also uses such cranes for its own construction business: HC

++ Power of revision u/s 263 cannot be exercised where view taken by AO in allowing assessee's claim u/s 10A is justified as per the relevant provisions: ITAT

++ Deduction u/s 54B cannot be denied merely because assessee does not get legal title to the lands when all other conditions stand satisfied: ITAT

++ Where assessee provides no explanation regarding STCG earned, addition made by AO for undisclosed STCG based on justified method merits being upheld: ITAT

++ Interest rate of 18% paid to associated enterprise is justified where obtaining unsecured loan saves time & paperwork and involves no guarantee: ITAT

++ Additions on account of obtaining fictitious losses through CCM & of commission paid to obtain fictitious loss, are untenable where transactions took place on Stock Exchange & only brokers could modify client code: ITAT

++ Additions made u/s 69B on account of on-money paid for purchase of land are sustainable where based on documents seized during Search operations & on un-rebutted statements admitting such transaction: ITAT

++ Defence of unavoidable circumstances on grounds of rejection of its legal contentions, will not aid an assessee in petition seeking waiver of interest levied on STCG earned: HC

++ Any person paying interest or any other sum to a non-resident is not liable to deduct TDS if such payment is not taxable under the I-T Act: HC

++ Re-assessment proceedings are invalid where the AO frames the reasons to believe at the insistence of a jurisdictional Audit Wing officer: HC

++ Bank is obliged to deduct TDS on interest paid for fixed deposit where no return was filed by official liquidator declaring company's losses or filing certificate u/s 197A: HC

++ Non-deduction of tax will not attract penalty u/s 271C if assessee furnishes reasonable explanation for such default: ITAT

August 26, 2019

++ Where AO reviewed all relevant evidence during original assessment, then issuing SCN u/s 148 based on same material is invalid, as being tantamount to change of opinion: HC

++ It is fit case for remand where order passed by revisional authority does not deal with the issue in the correct perspective & is inconsonant with stipulations u/s 264: HC

++ Where AO notices default u/s 269T, then time limit laid down u/s 275(1)(c) for levying penalty is to be complied with: ITAT

++ Imposition of penalty u/s 158BFA(2) is sustainable if assessee fails to disclose actual returns for the block period: ITAT

++ Any partial expense not authorized by a trust is no grounds to deny registration to it; a suitable alternative is to curtail benefit u/s 11 to such extent: HC

++ Re-assessment proceedings are intrinsically meant for Revenue's benefit & so can be dropped even if assessee does not challenge them: HC

++ Power of revision u/s 263 cannot be exercised if it is not established that original assessment order is erroneous or was passed without application of mind: HC

++ Assessee's onus of proving genuineness of transaction is not satisfied where trail of money received is not established to dispel the notion of any unexplained investment: HC

++ Re-assessment proceedings cannot be used to carry out a roving enquiry where AO omits to challenge certain submissions of the assessee during original assessment proceedings: HC

++ Registration of charitable institution cannot be cancelled u/s 12AA(3) by CIT on grounds that its activities are aimed solely for benefit of the Christian community: HC

August 24, 2019

++ Revenue is not bound to issue notice before passing order rejecting declaration of undisclosed income if assessee does not submit complete details of shares invested in: HC

++ Royalty is revenue expense if linked to production & is paid for use of technology without transfer of ownership: ITAT

August 23, 2019

++ Cash recovered from residential premises of individual's parent's in law, cannot be added to individual's income in absence of any reasonable nexus: HC

++ Re-assessment proceedings are unsustainable where based on same set of facts already available during original assessment, hence leading to change of opinion of AO: ITAT

++ Additions made while determining book profit u/s 115JB are unwarranted if no deduction is claimed on provision for bad & doubtful advances: ITAT

++ Assessee must be given chance to cross examine deponents whose statements are relied upon by AO; failure to do so invalidates any consequent additions or disallowances: ITAT

++ Deduction u/s 54 can be claimed even where adjacent units or flats are combined into one residential house: ITAT

++ Additions on account of bogus purchases are to be restricted to the profit element embedded & undue benefit obtained from evading VAT payment: ITAT

++ Additions u/s 14A are sustained where shares are held as stock in trade & such investments do not fall within ambit of Rule 8D(iii): ITAT

++ Purchases cannot be treated as genuine where although backed by bills & proof of payment, the dealers admit to have provided accommodation entries in statements before sales tax authority: ITAT

++ Additions u/s 68 on account of bogus Short Term Capital Loss are unsustainable where based on statements which are uncorroborated by supporting evidence: ITAT

++ Unexplained expenses cannot be disallowed where PAN & address of recipient parties is submitted to AO, who in turn failed to verify the same by issuing notice u/s 133(6): ITAT

++ Penalty notice is defective & vitiated proceedings where it does not specify the charges based on which penalty is being levied: ITAT

August 22, 2019

++ Writ courts should not entertain petitions under Article 226 of Constitution in face of availability of efficacious alternative appellate remedy, if such relegation does not causes prejudice to assessee: HC

++ Deduction u/s 80IB(7)(a) merits being disallowed where assessee fails to show nexus of core activity between hotel and saloon business: HC

++ Writ Court need not intervene against an order passed by AO where assessee has alternate remedy of filing appeal before the CIT(A): HC

++ Additions on grounds of unexplained cash credit are untenable if transaction does not involve receipt or payment of cash: ITAT

++ AO is bound to adopt value as declared u/s 50C where valuation adopted by Stamp Valuation Authority is less than 10% as declared by assessee: ITAT

++ A third party has no locus standi to challenge an order once discretion available u/s 119(2)(b) has been exercised; no scope for writ court's intervention in this regard: HC

++ Management fee paid in subsequent AY is appropriate where commercial operation is not completed within stipulated time as per terms of agreement: ITAT

++ Interest on ICDs qualifies as business income similar to interest on FDs where it is a business decision to use idle funds for some productive purpose: ITAT

++ Additions on account of undisclosed income are unsustainable where based on borrowed satisfaction rather than material found in search & seizure: ITAT

++ Interest on FDs maintained with banks to obtain bank guarantees are capital receipt, where such loans were taken by a society for building houses for its members: ITAT

August 21, 2019

++ Expenses incurred on transfer fee & development charges paid to a society merit being allowed where payments are made through banking channels: ITAT

++ No disallowance can be made u/s 14A r/w Rule 8D where investment does not result in any exempt income being earned in the relevant AY: ITAT

++ Disallowance u/s 40(a)(ia) is justified if assessee deducted TDS before filing return but did not deposit it with the Govt during time period stipulated: ITAT

++ Matter warrants remand where appellate authorities omit to consider any claim merely because it was not made in the original or revised return: ITAT

++ A company being a juristic person is not at liberty to file writ petition in place of its director, whose property was attached by Revenue: HC

++ CIT is not vested with power to conduct a roving enquiry so as to supplant views formed by AO during original assessment: HC

++ ITAT's accepting lower selling price of shares as quotes by assessee is unjustified where such shares would otherwise garner a higher price point for other sellers: HC

++ Limitation period stipulated u/s 158BFA(3)(e) applicable to current penalty proceedings is inapplicable to penalty proceedings initiated in preceding AYs: HC

++ Summary rejection of accounting method to reach an estimated income based on guesswork, constitutes substantial question of law requiring writ court's intervention: HC

August 20, 2019

++ Assessee is ineligible for higher rate of depreciation on commercial vehicles which used for rural marketing & promotion, but not for running on hire: ITAT

++ Benefit of accumulation is not available to income assessed u/s 11(3) and any unutilized amount is liable to be taxed: ITAT

++ No additions are warranted if mistake of transferring quantity from purchase to consumption without giving a matching effect in monetary terms is a bona fide error causing no loss of revenue: ITAT

++ Disallowance of mess expenses is justified where assessee fails to discharge onus of proving that such expense was incurred wholly for business purposes: ITAT

++ If a shareholder is not obliged to pay sucess fee to financial advisor on valuation of shares transferred, it cannot be held that the former benefitted from such fee paid: ITAT

++ Requirement of jurisdiction u/s 153C is not satisfied if based on information which merely relate to assessee & do not pertain to it: HC

++ In normal circumstances, writ court need not record findings on merit where SLP is already pending disposal before Apex Court: HC

++ Penalty imposed for furnishing inaccurate particulars of income merits being sustained if assessee does not controvert grounds for its levy: ITAT

++ Amount taken as loan is not taxable as deemed dividend u/s 2(22)(e) if its recipient is shareholder having controlling interest in lender company: ITAT

++ Additions u/s 68 are sustainable if assessee fails to discharge onus of proving identity & creditworthiness of creditors & genuineness of transactions in respect of share subscription: ITAT

++ Penalty u/s 271(1)(c) is justified where assessee set off business expenses & depreciation against income from house property, without having commenced business, so as to reduce tax liability: ITAT

August 19, 2019

++ Invoking power of revision is unwarranted where AO framed assessment order after making due enquiries & verifications and adopted the only possible view as per law: ITAT

++ AO cannot disallow interest payment based on general observations of Special Auditor's report, while ignoring the specific findings therein: ITAT

++ AO cannot invoke provisions of Rule 8D to make disallowance u/s 14A, without first recording dis-satisfaction with the assessee's accounts & explanation: ITAT

++ Additions made of Short Term Capital Loss are invalid where based solely on Investigation Wing's report & without furnishing a copy of such report to the assessee for verification: ITAT

++ Where debentures are issued to raise funds for the purpose of its business then deduction is allowed on the interest paid: ITAT

++ Exemption u/s 11 cannot be denied where shares are donated to Trust with condition that they be retained for at least five years: HC

++ Re-assessment noticee issued to a deceased person is invalid where such person's legal representative refuses to waive right to be issued a notice u/s 148: HC

++ Claiming exemption u/s 54B requires that assessee refrain from selling newly-acquired agricultural land within lock-in period of three years from date of its purchase: HC

++ Re-assessment proceedings cannot be assailed as being based on change of opinion, where the AO had no occasion to form an opinion in the first place: HC

++ Where CIT(A) refuses to adjudicate issue of validity of re-assessment, then assessee can raise such issue before ITAT without independently filing an appeal as per Rule 27: HC

++ Power of revision cannot be exercised merely because CIT differs with conclusions drawn by AO in the original assessment order, where such order is passed after considering all details: ITAT

August 17, 2019

++ If AO has duly applied his mind and has discharged his duties as investigator as well as that of adjudicator, then exercise of power by Pr.CIT u/s 263 is unjustified: ITAT

++ If nature & source of share application money stands duly explained, then onus shifts to AO to disprove materials placed before making addition u/s 68: ITAT

++ For claiming deduction u/s 54B, condition of investment prior to filing of ROI is applicable only if sale consideration is received before filing of Return: ITAT

++ Disallowance made without following directions of Spl. Bench of Tribunal to compute exempt income, warrants remand of issue before AO: ITAT

++ AO must reckon holding period from actual date of allotment in order to treat accrual of capital gain as SCTG to disallow an otherwise valid claim u/s 54F: ITAT

++ Order passed u/s 263 is justified, if assessment made by AO is erroneous & prejudicial to interest of Revenue: ITAT

August 16, 2019

++ Negotiation agreement between parties on final sale consideration will not per se alter character of acquisition of land from compulsory acquisition to voluntary sale: ITAT

++ Books of accounts cannot be rejected merely on grounds that they involve too many complications: ITAT

++ Additions made u/s 68 on account of unexplained credit are invalid where based on statements which were subsequently retracted: ITAT

++ Disallowance of expenses claimed to have been incurred u/s 35D is justified where assessee-company's business operations are yet to commence: ITAT

++ Receipts from sale of office premises held as asset for over 36 months are assessable as Long Term Capital Gain or loss, despite having been rented out at some point of time in the past: ITAT

++ Assessee is entitled to full credit of TDS in pursuance of Form 26AS, where corresponding TDS claim is not made by the other entity: ITAT

++ Refunds granted cannot be segregated into tax & interest portions, so as to reduce the former from refund originally sanctioned, for calculating interest u/s 244A: ITAT

++ Purchases cannot be disallowed because sellers did not -acknowledge notices served u/s 133(6), where assessee produces relevant documents to substantiate purchases: ITAT

++ Disallowance of business promotion expenses on ad hoc basis is unsustainable: ITAT

++ LTCG claimed u/s 10(38) cannot be denied as being undisclosed income, based merely on suspicions & without allowing assessee the right to cross-examination: ITAT

++ Personnel costs, administrative & other manufacturing expenses incurred during pre-operative period, for expansion of business, is allowed as revenue expenditure: ITAT

++ Ascertaining amount of borrowed capital used for financing non-business advances must necessarily precede disallowance of interest expenditure: ITAT

++ Re-opening of assessment is invalid for want of jurisdiction where it is based on borrowed satisfaction: ITAT

August 14, 2019

++ Hike in monetary limit for Departmental appeals to have retrospective effect: ITAT

++ Penalty imposed u/s 271(1)(c) is sustainable if assessee is unable to provide reasons for filing returns beyond statutory limitation period: ITAT

++ Interest on funds belonging to cooperative society but held by assessee in fiduciary capacity cannot be treated as assessee's own income: ITAT

++ Audit of books of accounts u/s 142(2A) is valid where assessee does not cooperate in assessment proceedings & considering complex nature of accounts: ITAT

++ Re-assessment proceedings are invalid where reasons recorded for such exercise are identical to those recorded by CIT when invoking power of revision: ITAT

++ Exercise of revisionary powers u/s 263 is unsustainable where based per se on assessee's confessions and admission that certain expenses were not allowable u/s 37(1): ITAT

++ If identity, creditworthiness & genuineness of share applicants are proven by assessee, then onus shifts on AO to disprove the same; additions u/s 68 based on inferences are untenable: ITAT

++ Exemption u/s 10(38) on LTCG cannot be denied based solely on report of Investigation Wing & without independent application of mind by AO, where relevant material evidence like contract notes & bank statements are available with Revenue: ITAT

++ Re-assessment proceedings initiated by AO based on report borrowed from Enforcement Directorate is unsustainable, more so if no independent reasons to believe have been formed: HC

++ AO is not restrained from issuing re-assessment notice in respect of preceding AY, during pendency of appeal against assessment order passed in current AY: HC

++ Deduction u/s 32AB in respect of which assets are claimed cannot be disallowed as transfer to other company, where such assets are still held by amalgamating company: HC

++ Deduction u/s 80P(2)(a)(i) cannot be denied by discriminating different classes of members of agricultural credit cooperative society, where its activities cannot be truncated from those activities eligible for such benefit: HC

++ When computing tax liability on consideration arising from selling agricultural land, jurisdictional municipality as per Sec 2(14) is nearest municipality which may not necessarily be that division in which the property lies: HC

++ Re-assessment proceedings are valid where based on tangible evidence found subsequent to assessment proceedings: ITAT

August 13, 2019

++ Centralization of different assessees' cases under one ITO is invalid if proposal to such effect or its approval is not disclosed in SCN issued by Pr CIT: HC

++ Real estate development project on standalone basis which is complete in all respects, constitutes a housing project for purposes of Section 80IB: HC

++ Payment of enhanced security to protect Revenue's interests is warranted where stay petition is moved against recovery of tax, at advanced stage of appeal: HC

++ Writ court's intervention is unwarranted where assessee has alternate remedy of statutory appeal available to it: HC

++ It is fit case for remand if AO omits to consider application of relevant Notification issued by Ministry of Law & Justice, when determining the Non Performing Assets of the assessee in current AY: HC

++ Reflecting lower profit margins in a particular AY is per se no reason to infer suppression of profits warranting framing of additions: HC

++ Non-speaking order passed by AO dropping penalty proceedings does not validate extending limitation u/s 275 to levy penalty by CIT by invoking Section 263: HC

++ Assessment order is invalidated where passed against a deceased assessee, despite assessment notice having been served to such assessee's Legal Representative: HC

++ Section 14A can be invoked where assessee seeks to square off expenses against income not forming part of total income: HC

++ Re-opening of assessment based on audit objection cannot be dismissed for low tax effect & without delving into merits of the case: HC

++ ITAT cannot grant approval u/s 80G by assuming powers of appropriate authority vested with power to grant registration u/s 12A: HC

August 12, 2019

++ Interest on government securities is beyond the ambit of Interest tax Act, 1974: HC

++ Cessation of order passed u/s 201 rejecting application u/s 197, warrants fresh consideration of such application: HC

++ Writ court's intervention against Tribunal's orders is unwarranted if Revenue is unable to highlight any substantial question of law: HC

++ Additions on account of loss of gross profit are untenable if no evidence indicates that assessee sold the goods at higher value or that they were deliberately declared at lower value: HC

++Exemption u/s 54 is allowed where possession of residential property is transferred by collaboration agreement & new residential property is acquired within two years from date of transfer: ITAT

August 10, 2019

++ Interest awarded in motor accident claim cases from date of Claim Petition till passing of award, would not be exigible to tax, not being an income: HC

++ Jewellery found during Search can be treated as unexplained investment if there is no evidence to show source of income for their purchase: ITAT

++ Weighted deduction u/s 35(1)(ii) is yet available if subsequent to date of contribution made by assessee, recognition granted to payee is withdrawn: ITAT

++ Writ Court need not look into an appeal in which question of law stands settled in assessee's favor & Revenue filed no appeal in challenge thereof: HC

++ Where proceedings under IBC 2016 are pending before both NCLT & NCLAT, dealer deserves opportunity to pitch claim in respect of VAT paid by it: HC

++ Writ Court's intervention is unwarranted where re-assessment proceedings are pending completion: HC

++ AO is obliged to ensure strict implementation of Tribunal's order; failure to do so calls for remand: HC

August 09, 2019

++ Anticipation with uncertainty regarding acrrual of advance tax liability, is no basis to deny 'waiver of interest': HC

++ Repayment of advances by shareholders via open current a/c has no bearing on notion of deemed dividend created as per Section 2(22)(e): HC

++ Contributions to gratuity & superannuation funds u/s 36(1)(iv) cannot be disallowed u/s 40A(7) merely because a letter containing amendment suggested by CIT is not submitted: ITAT

++ Carry forward of losses claimed in returns u/s 139 & 153A cannot be denied merely because such claims do not appear in acknowledgment by Revenue: ITAT

++ No penalty leviable where additions made to assessee's income are contested before appellate authorities or have been remanded for re-verification: ITAT

++ Penalty is sustainable where imposed by invoking both limbs of Section 271(1)(c), which vitiates the need to specify under exactly which part it is being levied: ITAT

++ No TDS is to be deducted on service charges retained by a bank if it has no principal-agent relationship with the assessee: ITAT

++ Depreciation on residential accommodation used by assessee's employees for business purposes, cannot be restricted, where the same is allowed by a CBDT Circular: HC

++ ITAT is vested with inherent power to rectify, alter or modify its own order u/s 254(1) so as to permit modification of order granting conditional stay: HC

++ A Search warrant need not be restricted to mentioning only the registered place of business; it can mention any place which the Revenue has reason to believe, harbors unaccounted assets: HC

++ Power of revisions u/s 263 are validly exercised if original assessment order allows relief to assessee without proper enquiry into the claims: ITAT

++ Penalty imposed u/s 271(1)(c) must necessarily be preceded by tax evasion; any incorrect but nonetheless bona fide claim made by an assessee will not attract penalty: ITAT

August 08, 2019

++ Discovery of new material coming to notice of AO subsequently and which led to formation of basis for reassessment, cannot be construed as 'change of opinion': HC

++ Unutilized MODVAT credit cannot be added to assessee's income where such credit has no impact on profit: ITAT

++ Additions become invalid where based on assumption that certain commission paid is bogus, merely because recipient of notice u/s 133(6) did not reply to it: ITAT

++ Provisions of Section 2(22)(e) are inapplicable to advances paid by an individual to a certain company in which such person is substantial shareholder: ITAT

++ Limitation prescribed u/s 201(3) for deducting TDS cannot be applied to proceedings u/s 206C, in absence of limitation prescribed for passing order for default in TDS collected: ITAT

++ Exemption from LTCG is available on sale consideration of some land which is recognized as agricultural land as per Revenue's records: ITAT

++ Trade discount given by telecom service provider on sale of prepaid cards & starter kits is not equivalent to payment of commission: ITAT

++ Additions made u/s 68 are unsustainable where based purely on statements of third parties and without any independent enquiry by AO: ITAT

++ Additions made of deemed dividend u/s 2(22)(e) on account of loans advanced are not sustainable if recipient of such loans is not shareholder in lender company: ITAT

++ Surplus amount recorded in documents seized during Search cannot be treated as liability paid to owner of land merely because assessee failed to show evidences of excess receipt over payments: ITAT

++ If assessee discharges onus of proving genuineness of transaction & creditworthiness of creditors, then additions u/s 68 are untenable where framed merely because assessee failed to secure attendance of such creditors: ITAT

August 07, 2019

++ Deduction u/s 40(a)(ia) is allowed in respect of expenses incurred on services rendered by ICMS to itself without outsourcing it to third party: ITAT

++ Additions u/s 68 are sustainable if assessee fails to discharge onus of proving genuineness of transaction in respect of money borrowed from spouse for meeting business expenses: ITAT

++ Donation received by trust can be treated as corpus donation in its hands where requirement of specific directions in respect of donations is fulfilled through e-mails: ITAT

++ Non-appearance of parties in response to notices issued u/s 133(6) is per se insufficient to infer that purchases made from them are not genuine: ITAT

++ Loan advanced by a company & interest paid by recipient on such debt, cannot be disallowed on account of being bogus, if it is not established that such lender is a shell company: ITAT

++ Disallowance of bogus purchases merits being restricted to extent of profit element embedded where purchases themselves are not doubted: ITAT

++ Date of accrual of income is only relevant for deciding liability of particular provision of Income Tax Act: HC Larger Bench

++ Rejection of books of accounts u/s 145(3) & consequent additions are sustainable if assessee does not discharge onus of proving genuineness of transactions & creditworthiness of parties: HC

++ SCN issued u/s 153C must necessarily be backed with satisfaction recorded by AO based on cogent evidence, rather than surmises and conjectures: HC

++ Fee levied for late submission of TDS statements u/s 234E is not invalid as such provisions seeks to regularize incidents of belated filings to remove cascading delay in claiming tax refund: HC

++ SETCOM has no carte blanche of authority to proceed with application u/s 245 even if question of full and true disclosure is tainted with fresh declaration of additional income in excess of that disclosed earlier: HC

++ Onus rests with assessee to prove that certain landed property qualifies as business asset where it claims that it will not attract wealth tax: ITAT

August 06, 2019

++ Title-holder of property is not exclusively liable to be taxed under capital gain in respect of sale consideration if rights are subject to leasehold rights: ITAT

++ TDS need not be deducted on payment for leaflet where such purchase transactions attract VAT as per the Delhi VAT Act: ITAT

++ Deduction is available on expenses incurred due to business exigencies where genuineness of expenses is established from relevant evidence: ITAT

++ Participating interest in the products which is right to carry oil exploration business, is intangible asset eligible for depreciation u/s 32(1)(ii): ITAT

++ Brokerage costs incurred on sale consideration by purchaser need not be taken into account for purposes of Section 50C: ITAT

++ TDS u/s 194IA is not to be deducted in the hands of property owner if its sale consideration is less than Rs 50 lakhs: ITAT

++ Writ court's intervention is unwarranted where factual findings of Tribunal in respect of certain disallowances do not suffer from any discrepancies: HC

++ Disallowance of interest as per second limb of Rule 8D is untenable if assessee proves that investment is made using own funds: ITAT

++ Interest earned on fixed deposits with banks qualifies as capital receipt & can reduce cost of capita work in progress: ITAT

++ Assessment u/s 153A is void if approval given by JCIT is not final as mandated u/s 153D, but is merely conditional or technical approval: ITAT

++ If certain scheme provides subsidy for establishing new units, then incentives received in form of sales tax waiver would not change nature of such subsidy into revenue receipt: ITAT

++ Additions u/s 68 are sustainable if source & nature of payments for purchase of flat, remain unproven, where such payment is made by licensees on assessee's behalf despite any contractual obligation: ITAT

August 05, 2019

++ Additions made on account of accommodation entries are unsustainable where based solely on loose sheets found during Search proceedings: HC

++ Revenue's appeal merits being withdrawn where CBDT issues approval notification for deduction claimed by assessee: HC

++ Arbitrary orders passed by Tribunal during grant of stay are untenable if they direct recovery of tax from any third party who was not participant in proceedings: HC

++ Two different manufacturing units in different States cannot be considered as extension of existing unit even if they have separate Central Excise registrations: HC

++ Jurisdictional requirements of Sec 153A are not satisfied to validate additions on account of share capital, if search proceedings reveal no incriminating documents: HC

++ Penalty levied u/s 271AAB is sustainable if assessee admits to having undisclosed income from commission & brokerages and that discrepancies exist in books of accounts: ITAT

++ No capital gains arise if there is no transfer of property on account of it being subject to legal disputes, owing to which possession is not given to developer: ITAT

++ Re-assessment proceedings are invalid where based on change of opinion of AO pursuant to directions received from superior officer to take certain remedial action: HC

++ Disposal of stay petition mandates in-depth examination of the claimant's submissions: HC

++ AO is obliged to pass speaking order when disposing off assessee's objections to re-assessment proceedings: HC

++ AO can exercise powers u/s 154 only to rectify mistakes apparent from record & not to change or review in such order: HC

++ Conditions u/s 271(1)(c) for imposing penalty are not satisfied by AO's opinion per se of assessee having not declared undisclosed income if not for Survey proceedings conducted u/s 133A: HC

++ Writ court is not obliged to intervene in decision to transfer the investigation, where the requisite procedure as per law has been followed: HC

August 03, 2019

++ Matter warrants remand for determining appropriate rate of commission in respect of such commission income arising from accommodation entries: ITAT

++ Bonus and commission paid to director cum shareholder can be allowed in current AY where such payments were allowed in earlier AYs: ITAT

++ It is fit case for remand if there are un-reconciled entries of Annual Information Report & AO must also examine applicability of relevant CBDT Instruction: ITAT

++ Provisions towards leave travel allowance and medical reimbursements payable to employees are not contingent or unascertained liabilities: ITAT

August 02, 2019

++ Penalty is imposable u/s 271(1)(c) where charges based on which penalty proceedings are commenced & penalty is levied, are the same: ITAT

++ Additions exceeding the total amount surrendered after Search proceedings, are invalid, if such submissions are subject to further verification & reconciliation: ITAT

++ It is fit case for remand where expert's report, regarding projected cash flows supporting receipt of share premium, is regarded by AO as well as by CIT(A): ITAT

++ No disallowance u/s 14A r/w Rule 8D is to be made where no exempt income is earned in two subsequent AYs: ITAT

++ Power of revision is justly exercised if AO omits to enquire into certain share transactions, where information points towards their being suspicious in nature: ITAT

++ Income from Banana crops cannot be validly claimed to be agricultural income where Adangal extracts & documents maintained by Revenue disprove any cultivation: ITAT

++ Entire quantum of suppressed sales need not be disallowed where not supported by day-to-day records; taxing just the net profit element is sufficient: HC

++ Additions made u/s 153A in non-abated assessments are untenable if no incriminating material is found during Search proceedings: HC

++ Deduction can be allowed for sixth & eighth AYs where also allowed for preceding five AYs & also where Development Commissioner also accords approval: ITAT

++ Fee u/s 234E is payable where though TDS statements are filed, the assessee nonetheless is delayed in furnishing TDS statements u/s 200(3): ITAT

++ Deduction u/s 35(2AB) on R&D facility merits being allowed if AO does not doubt genuineness of such expenditure: ITAT

++ Additions based on non-service of notice to some creditors are unsustainable where notices are properly served to other creditors & if AO accepts genuineness of purchases made from them: ITAT

++ Quashing proceedings u/s 153 is not tenable merely because assessee & the searched person shared the same AO, who did not record a separate satisfaction note: ITAT

August 01, 2019

++ If any receipt is sought to be taxed as income, then Department is required to prove that same falls within taxing provision: ITAT

++ Donations received by charitable trust if shown to have received under specific heads for specific purposes, cannot be treated as anonymous: ITAT

++ ITO must provide assessee with relevant materials which he has proposed to utilize against him while framing assessment, so as to enable assessee to submit objections: HC

++ It is settled law that deduction u/s 10A is also to be considered when computing disallowance u/s 40(a)(ia): ITAT

++ Deduction on employee's contribution to PF & ESI is allowed as long as such amounts are deposited before date of filing I-T returns: ITAT

++ Assessment order framing additions is in contravention of principles of natural justice if right to cross examine relevant witnesses is not allowed: ITAT

++ Invocation of powers of revision is unsustainable if CIT fails to establish how original assessment order is prejudicial to Revenue's interests: ITAT

++ Additions in case of bogus purchases must be restricted to extent of profit element embedded therein & not the entire quantum of purchases: ITAT

++ Power of revision is correctly exercised if during original assessment AO failed to disclose LTCG, as per value adopted by stamp valuation authority u/s 50C: ITAT

++ It is fit case to remand revisionary order if CIT, uninfluenced by earlier order, does not raise any new grounds to invoke powers u/s 263: HC

++ AO cannot selectively reject books of accounts of current AY, while accepting those of the immediately preceding or succeeding AYs: HC

++ Sale proclamation calling for auction of attached immovable properties is untenable if attachment is already vacated as per Rule 68B upon completion of limitation period: HC

++ Penalty proceedings are not vitiated merely because assessee is not given personal hearing where separate notice u/s 271AAB is issued to correct erroneous mention of Section 271AAA in earlier notice: HC

++ Rejection of application u/s 12A filed by society engaged in imparting education is untenable, where based merely on possibility of high capitation fees & past accrual of business income: ITAT