TODAY'S CASE (DIRECT TAX)

June 29, 2019

++ Shares purchased pursuant to order of Company Court would not amount to capital gain and rather to be treated as dividend: HC

++ Revenue's appeal need not be listed for hearing if it fails to rectify defects pointed out by Registry regarding non-service of notice to assessee: HC

++ Section 40A(9) - Intrinsic purpose of this provision is not to deny genuine expense incurred by employer for welfare & benefit of employees: HC

++ Writ Court's interference is unwarranted if no substantial question of law is involved & if ITAT adequately examines issue at hand: HC

++ Deduction u/s 80HHC can be allowed on undisclosed income offered during Search by entity engaged solely in export business: HC

++ It is fit case for remand if Tribunal omits to consider application of precedent judgment & also fails to evaluate case on merits: ITAT

June 28, 2019

++ Industrial sheds are to be treated as long term capital asset instead of short term capital asset & so gains arising from such shed must be assessed as low tax effect: HC

++ Addition for unexplained income cannot be sustained if assessee has provided all details of investors and they have also personally appeared before AO: ITAT

++ Penalty cannot be levied if notice was issued in standard proforma and AO is not clear as to whether assessee has concealed particulars of income or furnished inaccurate particulars: ITAT

++ If taxpayer incures expenditure in cash in regard to business expediency and is not accused of suppressing its income, then no addition is called for lack of vounchers: ITAT

++ Estimation of net profit on contractual turnover of taxpayer determined on basis of his performance and net profit of preceeding years, is sustainable: ITAT

++ Interest u/s 201(1A) is to be calculated from date on which tax was first deducted by the deductor till date of filling of return by the recipient deductee: ITAT

++ If AO after considering assessee's submissions does not come to conclusion of potential escapement, then Pr. CIT cannot hold such assessment order as erroneous: ITAT

++ Revisionary order is beyond scope of Sec 263 if issue raised by Pr. CIT is not part of assessment order in limited scrutiny: ITAT

++ Search assessment is not confined to only materials found during search and not during requisition or survey or other records already available with AO: HC

++ While levying quantum of tax liability, AO should not mechanically follow the guidelines of CBDT Circulars and rather exercise its powers reasonably: HC

++ If employer has not credited employees contribution to PF & ESI on or before due date as prescribed in Explanation to Sec 36(i)(va), then he shall not be entitled to deduction: HC

++ Non-filing of transporters' details in Form 26Q in respect of lorry hire charges, would not resurrect liability to deduct TDS: ITAT

++ Foreign tour expenses warrant disallowance, if no evidence is put forth to explain nature or purpose of such expenses in nexus with commercial expediency: ITAT

++ Identical matters should be decided on basis of precedent value, after considering merits of ongoing case: ITAT

++ Income earned from sale of sugarcanes cannot be held as agricultural income, if no evidence is adduced to show existence of trees in subject land: ITAT

++ AO solely on basis of suspicion, is not empowered to make adjustments to deduction claimed on eligible profits from manufacturing unit in SEZ u/s 10A: ITAT

June 27, 2019

++ Commercial prudence of Cinestaan Entertainment stands established - if law provides taxpayer to get valuation done from prescribed expert as per prescribed method, then same cannot be rejected because neither AO nor taxpayer was recognized as expert under the law

++ Additions on account of bogus creditors & unexplained deposits made by AO merely on basis of suspicion, is not justified: HC

++ Once undisclosed income stands admitted and its sources stands explained during course of search, no penalty is leviable in terms of Sec 271AAA: HC

++ Appeals having low tax effect than what has been specifically prescribed by CBDT Circular, merits dismissal per se, without deciding merits of case: HC

++ Reassessment framed by AO, without disposing off objections raised by assessee, merits dismissal per se: ITAT

++ AO must follow similar practice in treatment of expenses, keeping with principle of consistency to previous years: ITAT

++ Completed assessment cannot be re-opened if no incriminating material is found during Search proceedings: ITAT

++ Issues arising from applicability of Sec 194H & if ruled in favour of assessee by Coordinate benches, indentical matters arising in subsequent AYs will also be ruled in similar manner: ITAT

++ No additions are permitted under block assessment on basis of property valuer reports, if no incriminating material is found during course of search regarding undisclosed investment: HC

++ Purchase tax on cane subsidy can be added as unascertained liability while computing book profit u/s 115JA, if there is no data to show adoption of scientific method by assessee: HC

++ If similar issue of reassessment is decided in assessee's favour by Division bench and appeal against such order is pending before Apex court, notice u/s 148 cannot be set aside: HC

++ Taxpayer deserves additional opportunity to explain his case upon his failure to submit objections to reopening notice, if exceptional circumstances attributable to him shown to have existed: HC

++ Once it stands factually established that credit is reasonably explained and even admitted to be so by the Revenue officer, no addition is permitted u/s 68: HC

++ Challenge against ITAT's findings deleting AO's additions before Writ Court cannot be saved, if there are no submissions to demonstrate perversity in conclusion of ITAT: HC

++ Act of curing AO's failure in examining claim of deduction during scrutiny assessment by issuing notice u/s 148 amounts to mere change of opinion and hence not permissible: HC

June 26, 2019

++ Wheel Loaders and Graders are motor vehicles eligible for depreciation @ 40% as per I-T Act: ITAT

++ Settled assessment cannot be re-opened without any incriminating material being found during search: ITAT

++ Interest paid on account of rent & other expenses merits disallowance if taxpayer fails to furnish documentary evidences: ITAT

++ AO is not vested with power to go against objective of Sec 44AD in order to sustain addition, if assessee was under no specific obligation to maintain books of accout: ITAT

++ Taxpayer is not expected to keep track of all persons to whom commissions are paid and absence of such beneficiaries at last known address is no basis to treat them dubious: ITAT

++ Undisclosed credit u/s 68 is permissible, if assessee fails to explain with cogent evidences as to how he is able to sell shares of penny stocks at much higher price: ITAT

++ Payment of EPF & ESI canot be disallowed, if contribution is paid by taxpayer on or before due date of filing return as specified in I-T Act: ITAT

++ If transaction is within parameters of law, then I-T Authorities cannot enter into shoe of assessee to decide prudence of commercial expediency: HC

++ If each division under a mill performs different functions, then repair of old machine will not be counted as 'current repairs' for purposes of deduction: HC

++ Bonafide taxpayer should not be penalized for mistake committed by his CA: ITAT

++ Disallowance for bogus purchases is limited to extent of profit element embedded in these purchases, is sales are not doubtful: ITAT 

++ Stamp duty charges paid for registration of lease deed and acquisition of a leasehold rights are capital in nature: ITAT

++ If entire business affairs are concealed and profit is estimated based on data collected during survey, penalty can be levied for concealment of facts: ITAT

++ Failure to interpret questions raised by AO at time of scrutiny, on grounds of technicality, is no defense to escape addition of unexplained cash deposit: ITAT

June 25, 2019

++ Taxes mistakenly paid, must not be retained by Revenue Department: HC

++ Mere non-disclosure of receipt would not automatically imply escapement of income chargeable to tax from assessment: HC

++ If no construction is carried out on piece of land, it cannot be treated as 'stock in trade' merely because it is shown as same in books of account: ITAT

++ Deduction claimed on account of insurance fee & registration charges merits disallowance, if taxpayer fails to demonstrate their genuineness: ITAT

++ Recognition u/s 80G granted to Trust merits extension if its charitable nature do not undergo any change in precedings AYs: ITAT

++ Taxpayer need not be penalised if interest paid by him on share capital at higher rate is found bonafide: ITAT

++ Two separate low housing projects constructed on common land should not be construed as one, so as to disallow statutory relief available u/s 80IB(10): HC

++ In absence of failure on part of assessee to disclose fully & truly all material facts, assumption of jurisdiction u/s 147 is not permitted: HC

++ Transfer of case to more pronounced location rather than one ordered u/s 127 at request of assessee, is permitted only if relative hardship to taxpayer stands proved: HC

++ Interference by Division Bench in intra-court appeal, would be justified only if order under appeal suffers from patent illegality: HC

++ Once surplus generated by educational society stands ploughed back for imparting education, registration u/s 12AA should not be denied to it: ITAT

June 24, 2019

++ Tribunal being last fact finding authority should not rest its judgment only on alternative contention raised by parties to litigation: HC

++ Once advances are not made out of interest bearing funds, no disallowance of interest expenditure is permitted: HC

++ Once joint title over property stands proved, entire LTCG should not be taxed in hands of only one owner on basis of lack of electricity bill: ITAT

++ Addition for excess capitalization and excess depreciation is not justifiable: ITAT

++ Any share trading activity can be deemed as bogus, if shares are found to be held in Demat A/c or if sale of shares from such account is not disputed: ITAT

++ Assessee is not liable for manipulations done by stock brokers where transactions are carried out through banking channels: ITAT

++ Once quantum addition stands deleted, then levy of penalty being consequential will not survive on its own: HC

++ Beneficial deduction u/s 36(1)(v) is available only if employees' contribution to EPF was made before due date: HC

++ Tax deposited under TCS scheme by coal buyer who otherwise does not fulfil requirement of waiver, shall be dealt with as payment of income tax in accordance with law: HC

++ Payments made for services of clerical & repetitive nature, does not attract provision of Sec 194C: HC

++ Initial year for purpose of Sec 80IA is initial A.Y from which claim of deduction is commenced and taxpayer is entitled to notional carry forward from that particular year: HC

++ Depreciation on matured investments is not ascertained liability and hence not eligible for deduction: HC

June 22, 2019

++ Rejection of bonafide claim of taxpayer is no ground for levy of penalty: HC

++ Setting of loss from commodity trading against income under other heads, need not be disallowed simply for not getting accounts audited: ITAT

++ Addition of unexplained cash deposits merits deletion, if AO fails to prove his satisfaction for initiation of reassessment process: ITAT

++ If profits on total turnover stands estimated by Revenue Authorities, then peak value of investment cannot be treated as unexplained income: ITAT

++ Taxpayer is not eligible for depreciation on leased office premises as business expenditure if it was assessed as income from house property and statutory deduction u/s 24 stands granted: ITAT

June 21, 2019

++ Powers u/s 264 does not enable CIT to over-step requirements u/s 80A(5) so as to allow deduction claimed by assessee: HC

++ Once AO of person other than person searched communicates reason for issuing notice u/s 153C alongwith seized material, that by itself accounts for giving satisfaction note to assessee: ITAT

++ Once assessee has established that provisions for payments of ascertained liabilities are made on basis of actuarial valuation method, no addition is warranted to its book profit u/s 115JB: ITAT

++ Onus lies on taxpayer to prove that reimbursement of expenses to related party are wholly & exclusively incurred for purposes of his business: ITAT

++ Mere production of documentary evidences relives assessee from its onus to prove genuineness of unsecured loans: ITAT

++ Failure of taxpayer to claim depriciation of goodwill while filing of return, will not disentitle him for such benefit: ITAT

++ Without indicating incidents of fraud, AO has no jurisdiction to reopen an assessment order which is already finalized after order of Settlement Commission: HC

++ Losses incurred in allotment of fertilizer bonds received in lieu of government subsidy in nature of debt, is allowable business loss: HC

++ If assessee admits inadvertent error in its returned income on its own, and fact that AO also accepts same, such case is not fit for imposing penalty: HC

++ Once matter stands concluded by order of AO during course of scrutiny, then question of going into such issue once again by way of reopening amounts to 'change of opinion': HC

++ AO is not vested with power to retrospectively annul the grant of registration u/s 12A to educational trust, if existing provisions in Income Tax statute only allows for prospective cancellation: HC

++ Appeals having tax effect lesser than threshold limit prescribed by CBDT, calls for dismissal per se: HC

++ Additions on account of bogus purchases should be restricted to extent of undue benefit of VAT & profit element embedded therein: ITAT

June 20, 2019

++ Requirement of live link between incriminating material and formation of belief that income of assessee has escaped assessment, is indispensible, before invoking Sec 148: ITAT

++ While audit objection in regard to errors of fact, may be taken cognizance of by AO, such audit officials cannot raise flag in relation to point of law: HC

++ Factual position which is thoroughly gone into and re-examined by Tribunal for its correctness, cannot be re-assessed in appeal u/s 260A: HC

++ In absence of specific evidence against assessee qua LTCG derived from transfer of share, no addition for bogus LTCG is permissible: ITAT

++ Filing of audit report in Form 56F in support of deduction for manufacturing units located at SEZ, is directory so long as assessee files such report till final determination of income: ITAT

++ If satisfaction for initiating penalty is recorded under assessment in respect of certain additions, it acts as bar against levy of penalty in respect of unmentioned additions: ITAT

++ Once issue of validity of reopening is not pressed in appeal, it amounts to abiding by decision of CIT(A) and then Tribunal cannot again entertain such issue of validity of reopening: ITAT

++ Once more than 20% of disputed tax stands recovered and no special case is made out for rigorous action, Department is not permitted to carry out further recovery pending disposal of appeal: HC

++ Expenses incurred for mere acquisition of right to use software without deriving any enduring benefit, would not amount to capital expenditure: HC

++ Reopening initiated on grounds of factual findings rendered by Revenue Authorities and confirmed by Last fact finding authority, merits no interference: HC

++ Employer is obligated to deposit employees's contribution towards PF/ESI with Government within 15 days of the close of every month: HC

++ Re assessment proceedings initiated merely on reviewing same subject matter of original assessment proceedings amounts to 'change of opinion': HC

++ Assessment under Income tax law is independent and separate for each assessment year, and hence, similar disallowances cannot be made applicable to each year: HC

June 19, 2019

++ Failure of taxpayer to produce documentary evidences in respect of deduction claims, calls for their disallowance: ITAT

++ Non-disposal of objections challenging validity of reopening notice is not a mere procedural lapse, and hence effects jurisdiction of AO u/s 147: ITAT

++ LTCG credited to P&L account and included in computation of book profit u/s 115JB should not be added for second time to such book profit: ITAT

++ Admission of additional evidence without allowing AO to rebut such documents in cross-examination is clear violation of procedural rules: ITAT

++ Simple admission of taxes under self assessment without actually offering it in return, does not entitle taxpayer to seek remedy of appeal : ITAT Special Bench

++ If issue of incurring conference expenses by charitable society is ruled in its favour by allowing grant u/s 12A, then matters arising subsequently in factually similar cases will be ruled in identical manner: ITAT

++ AO of person other than searched person has jurisdiction to record satisfaction to initiate assessment u/s 153C, if assessee was not classified to be within ambit of Sec 153C at time of making search: HC

++ Part consideration of facts uncovered in survey proceedings without application of mind to dispose of assessee's objections, is permissible for reopening: HC

++ If provision for diminution in value of investment so reduced is in nature of write off in P&L A/c, such provision cannot be added to income of assessee while computing book profit u/s 115JB: HC

++ AO is not permitted to estimate profits without pointing out any defect in books of accounts:ITAT

++ Penalty notice issued without specifying grounds for initiating such proceedings, merits annullment: ITAT

++ AO is not free to make additions to assessee's income after computing book profit u/s 115JB regarding liability to pay MAT, after making disallowance u/s 14A r/w rule 8D: ITAT

June 18, 2019

++ Appeals having tax effect less than prescribed monetary limits as per CBDT Circular, need not be pressed for adjudication: SC

++ Estimation of profit @20% of gross receipt is reasonable in absence of any documentary evidences:ITAT

++ Taxpayer is eligible to rebate only to extent of professional income & business profits arising from taxable security transaction: ITAT

++ Non–examination of applicability of a provision renders such assessment order not only erroneous but also prejudicial to interests of Revenue: ITAT

++ Term 'Agricultural produce' from DAPM Act, 1976 would include action of marketing of fish & poultry under benefit of exemption u/s 10(26AAB) of I-T Act: ITAT

++ AO is not permitted to reject books of account u/s 145(3) and estimate profits without any cogent evidence regarding genuineness of expenses: ITAT

++ Rental income earned by taxpayer from leasing out property owned by it is chargeable to tax under head 'income from house property' u/s 22 of I-T Act: ITAT

++ Differences in rate of commission paid to related & unrelated parties over their turnover, calls for addition u/s 40A(2)(b): ITAT

++ Loose sheets seized during survey of sister concern should not form basis for substantive addition in hands of principal concern: ITAT

++ AO is not permitted to disallow any expenditure without recording observation as to incorrectness in books of account maintained by assessee: ITAT

June 17, 2019

++ Loss occurring as result of share trading activity is not capable of being set off against profits which is earned against business of futures & option: SC

++ Failure to demonstrate credible evidence landed NDTV in trouble; Held guilty for tax evasion: ITAT

++ Purchases only to extent they are bogus, merits disallowance, that too only after excluding consequential value of sale: HC

++ Manufacturing Units are eligible for deduction u/s 80IB: HC

++ AO is free to clarify upon reasons recorded for reopening, but not intoduce novel grounds which do not form part of original reasons: HC

++ MRP mentioned in labels of liquor bottles should not form basis for concluding suppressed sale, without refuting genuineness of variables of competition in market: ITAT

++ Without showing that items considered in computing gross profit is same as item on which reduction of receipts is claimed, assessee's claim of rebate is not allowable: ITAT

++ One time settlement of debt by bank cannot be contrued as perquisite arising from business u/s 28(iv), if loan advanced to taxpayer itself was separate transaction: ITAT

June 15, 2019

++ I-T Department must necessarily follow the parameters laid down by Writ Courts for disposal of stay petition: HC

++ Reopening made after expiry of four years from date of original assessment, in absence of any failure to disclose materials necessary for assessment, calls for annullment: ITAT

++ In absence of any exempt income, no disalowance is pemitted u/s 14A on investment expenditure: ITAT

++ Notice proposing penalty merits dismissal, in absence of any specific charges for such levy: ITAT

++ Failure to justify genuineness of purchases, calls for addition on account of bogus purchases: ITAT

June 14, 2019

++ Merely because income is shown as NIL by claiming deductions which were not accepted by AO, it is no case for penalty: ITAT

++ Irrepairable loss & injury that may happen to the taxpayer, merits interim stay in its favour: ITAT

++ Lease rent is liable to TDS: ITAT

++ Unaccounted expenses does not call for penalty, if assessee's modus operandi is known to Revenue & if no concealment or furnishing of inaccurate particulars is established: ITAT

++ Revision order is sustainable if AO fails to make in-depth enquiry into creditworthiness of parties and verification of relevant documents: ITAT

++ No additions u/s 68 are permitted, if taxpayer establishes source & creditworthiness of lenders: HC

++ Sum collected from club members on principle of mutuality, is not taxable: HC

++ Provision of Sec 14A r/w Rule 8D is applicable, only if AO having regard to accounts of assessee, is not satisfied with correctness of his claim: HC

++ Whether expenditure incurred by a trader of iron & mining ore, for continuing its working permission for existing mining operation, is allowable u/s 37(1) - YES: HC

++ Liability to deduct tax at source arises in respect of payment made for reimbursement of costs: HC

++ Disallowance of expenditure under Rule 8D is not permissible, if taxpayer had earned no exempt income: HC

++ If there is virtually no difference in income computed under MAT provisions in original assessment as well as in reassessment, then reopening is futile exercise: HC

June 13, 2019

++ Grant of registration u/s 12A is only starting point on basis of which Charitable Trust stakes its claim for exemptions u/s 11 & 12: ITAT

++ In absence of receipt of service tax, there will be no liability to pay the same in Government account: ITAT

++ If additional income surrendered during course of survey already stands included in gross receipts, then no further addition of such sum is permitted: ITAT

++ Meagre increase in total receipts of Trust registered u/s 12A, is no basis to deny approval to it u/s 80G: ITAT

++ Business expenses cannot be treated as bogus merely because notices issued u/s 133(6) stands returned unserved giving rise to assumption that parties are non-existent: ITAT

++ Loan transaction between daughter & son-in law for giving financial support, is not a loan or deposit in stricter sense of section 269SS: ITAT

++ Cases where statutory appeal remedy is available in tax statute, ordinarily deserves no writ remedy: HC

++ Failure to offer reasonable explanation for non-fulfillment of requirement of Section 269SS, merits levy of penalty u/s 271D: HC

++ Benefit of deduction u/s 80IB merits allowance once construction was completed & duly certified by local authority: HC

++ Department must conduct enquiry as regards activities of Co-operative society before concluding that they are eligible for benefits of Sec 80P(4) or not: HC

++ Penalty notice issued u/s 274 r/w Section 271(1)(c) is invalid if exact charges of either concealment or furnishing inaccurate particulars thereof are not specified: ITAT

June 12, 2019

++ In absence of recording of satisfaction note in file of searched person, issue of notice u/s 153C against third person is without jurisdiction: ITAT

++ Cessation of liability u/s 41 occurs if expenses ought to be paid to the concerned party goes unpaid: ITAT

++ Client relationship & Goodwill' in respect of Internal Audit & Risk Consultancy practice is long term capital asset and sum received against it is capital gain eligible to deduction u/s 54EC: ITAT

++ Disallowance u/s 14A is permitted even on strategic investments: ITAT

++ Conscious assessment order passed after making thorough examination on suitability and legal position, cannot be subjected to revision u/s 263: ITAT

++ If taxpayer had established genuineness of transactions and established source & creditworthiness in lender, no addition is permitted in his hands u/s 68: HC

++ Provisions of Sec 115JB would be inapplicable to Banking/Insurance Companies whose accounts are prepared in accordance with Sec 227(5) r/w/s 211(5) of Companies Act: ITAT

++ Discount under ESOP is in nature of employees cost and hence deductible during vesting period: ITAT

++ If genuineness of payments & confirmation of account is not established, then it can be concluded that there is cessation of liability and same is assessable u/s 41(1): ITAT

++ Deduction u/s 80IC is allowed with respect to profits earned from eligible units, ignoring losses from other eligible units: ITAT

June 11, 2019

++ During remand proceedings, I-T Authorities are bound by decision of Apex Court which is brought to their notice though it was not part of remand directions: ITAT

++ For imposing penalty on ground of furnishing inaccurate particulars, it is important that claim is not only incorrect in law but must be made with mala fide intention: ITAT

++ Income of insurance company is taxable as per IRDA policies and should not be taxed merely because interest on bonds, debentures & investment has accrued in relevant year: ITAT

++ In absence of separate agreement, composite rent received towards letting off of building alongwith furniture & fixtures constitute 'income from house property' and not business income: ITAT

++ Once there is misrepresentation by non disclosure of income from liquor business in original return, then subsequent revision of return with audit report is not sufficient compliance u/s 44AB: ITAT

++ Re-assessment for want of fresh information, is inappropriate, if it is based on information received from another Govt Department regarding taxpayer's indulgence in hawala transactions: ITAT

++ As long as assessee has discharged intial burden to prove creditworthiness of transactions, AO is not permitted to make additions without conducting further inquiries: ITAT

++ Addition u/s 69C on account of bogus purchases is permissible to extent of discrepancies in bills & vouchers: ITAT

++ No penalty u/s 271D is mechanically leviable upon taking of cash loan in excess of stipulated quantum, if reasonable explanation for same is provided: ITAT

++ It is sine qua non for Trusts which are franchisee of Brand name to run in sync with concept of charity, in order to be eligible for grant registration u/s 12AA: ITAT

June 10, 2019

++ Limitation period to pass assessment order in continuous action of search & seizure, runs from day when last panchnama was recorded: HC

++ Undocumented substantial margins of cash payments in either books of recipient or lender, warrants categorization of amount as unexplained income of benefactor: ITAT

++ Interest expenditure cannot be disallowed u/s 40A(2)(b), if business loans are obtained from unrelated parties: ITAT

++ Corpus donation received by charitable trust cannot be treated as 'anonymous donation' u/s 115BBC: ITAT

++ If complete acquisition of immovable property flows from date when terms of buyers' agreement are undersigned by parties, then date of possession is immaterial to compute capital gain: ITAT

++ No Writ interference is required, if sufficient reason for remand to CIT(E) is given by Tribunal in order to form subjective satisfaction to ascertain charitable nature for approval of Sec 80G application: HC

++ Revenue's rejection of sole offer of bidder cannot be said to be whimsical simply because immoveable property was valued less than FMV during auction: HC

++ To survive test of law, reopening notice issued after 4 years ought to point out assessee's failure to disclose true & full material facts: HC

++ Acceptance of inadvertant mistake by assessee in making suo motu disallowance of franking charges which fact is not questioned by AO, does not merit levy of penalty: ITAT

++ If value adopted by taxpayer for property under sale is much more than FMV determined by Valuation officer, then reference to DVO is not required: ITAT

June 08, 2019

++ Purchases cannot be treated as bogus without disturbing corresponding sales in case of trader: HC

++ If Revenue forums have concluded that acquisition of property in name of secretary of educational society explicitly proves diversion of profits, no substantial question arises before Writ court for claim of exemption u/s 10(22): HC

++ If assignment of know-how under development is only for enabling manufacture, without conferring right over finished item, then cost of acquisition cannot be charged as capital gains: ITAT

++ Taxpayer cannot challenge additions u/s 68 as being unwarranted, in appeal against levy of penalty, in light of fresh evidences which were not available earlier: ITAT

++ Certificate in support of claim that payee has included interest amount while computing taxable income, filed after addition made by AO, can be considered as deemed compliance u/s 40(i)(a): ITAT

June 07, 2019

++ If investors are admittedly accommodation entry operator, then addition of investment is to be made in hands of entity whose indentity is used to provide genuineness to such transaction: ITAT

++ Interest earned by NBFC on NPAs is not taxable on accrual basis: ITAT

++ If loan transactions are routed through banking channel and parties have fulfilled KYC Norms establishing their source of funds, then no addition u/s 68 is permitted for unexplained cash credit: ITAT

++ Income from sale of cocoons cannot be categorized as agricultural income: ITAT

++ Mere statement in AO's order that there is cash trail without it being corroborated by incriminating material is not enough to justify addition: ITAT

++ Forfeiture of advances on account of inability to pay balance sum and claiming it as revenue loss, even after having surplus funds, cannot be concluded as evasion: ITAT

++ Once assessment is finalized, addition on account of credit card expenses is not sustainable if no incriminating material regarding undisclosed income is unearthed during search: ITAT

++ Addition made to income is valid, if assessee fails to produce evidence as to source of investment in immovable property: ITAT

++ Additions to income of assessee on grounds of discrepancy in cash flows is invalid if audited books of accounts are accepted & discrepancies are reconciled: ITAT

++ Absence of evidence to substantiate claim of genuineness of transactions, justifies additions on account of accommodation entries: ITAT

June 06, 2019

++ Once taxpayer is served with notice of scrutiny assessment, then corrections to declaration of his income, would not grant any immunity from penalty: HC

++ I-T - Formula prescribed by CBDT Circular for collection of 20% disputed tax pending appeals, is not applicable to each & every case: ITAT

++ Debt can come into existence only when taxpayer had acquitted his right to receive payment: ITAT

++ Transfer of property based on power of attorney is not valid transfer: ITAT

++ Exigent events surrounding financial health of assessee is valid ground to condone delay in deposit of TDS in Form No. 24Q & 26Q: ITAT

++ Cash payments made in transport business in pursuance of trade neccesities, need not be disallowed u/s 40A(3): ITAT

++ Non-acceptance of evidences & explanation furnished by taxpayer in support of cash credits, paves way for addition u/s 68 but not automatic levy of penalty u/s 271(1)(c): ITAT

++ Income can be recognized only if there is certainty over receivability of amount: ITAT

++ Mechanical rejection of deduction claimed u/s 80IC entails penalty for furnishing inaccurate particulars or concealment, if claimant harbors bona fide belief of being eligible for same: HC

++ Though Doctrine of Res Judicata is inapplicable to I-T matters, yet there must be element of conformity if CIT(A) disposes off matters by following decision in assessee's own case: ITAT

++ AO is not permitted to re-visit any issue which already stands settled by SETCOM: ITAT

++ Recording of terms of trademark assignment agreement on dated stamp duty paper is not sine qua non for deciding issue of allowance of depreciation of intangible asset: ITAT

++ If FDRs are purchased from cash credit a/c maintained with bank & interest is paid on such accounts, then interest earned from FDs can be set off against interest so paid: ITAT

June 05, 2019

++ No writ interference is warranted against Tribunal's order, if appeals against such order are pending before Writ Court themselves: HC

++ If original order u/s 16(3) r/w/s 17 of Wealth tax Act is passed without recording any reason showing escapement of wealth, then revisional order u/s 25(2) of WT Act is not permitted: ITAT

++ Advances received by borrower company cannot be treated as deemed dividend in its hands, if it was not a shareholder of lender company: ITAT

++ Expenses incurred for maintenance of establishment is eligible for set off as business loss, even if there is temporary cessation of business: ITAT

++ Omission in proper finding of fact on merits by FAA, merits restoration of matter while giving sufficient opportunity of being heard to assessee: ITAT

June 04, 2019

++ Mere presentation of documents of incorporation of company and making payment for application of shares through bank, is not enough to justify genuineness of transaction: ITAT

++ Cost of investment in land forms part of cost of construction of residential house, for purpose of availing exemption u/s 54F: ITAT

++ Refund due to taxpayer should not be delayed on account of technical glitches in system of I-T Department itself: HC

++ Exemption relief u/s 11 & 12 of I-T Act, granted to Trust could not be taken back in successive years in absence of any change in their charitable object: ITAT

++ Surplus generated by education society registered u/s 12AA from running hostel & transportation facilities being incidental to their main objectives, is exempt u/s 11: ITAT

++ Consideration received from sale of land is not taxable as per Sec 50C, if distance of such land from local municipal limit falls outside ambit of capital asset u/s 2(14): ITAT

++ No penalty is leviable on reasons which are used to rebut assessee's explanation regarding cash deposits during quantum proceedings: ITAT

++ AO is bound to consider DVO's report once he has made such reference, before proceeding to estimate fair market value of property under sale: ITAT

++ Element of 'personal use' has no significant role to play while granting depreciation on any vehicle: ITAT

++ Sales tax demand pertaining to previous F.Ys, if paid by assessee before due date of filing return u/s 139(1), is covered by provisions of Sec 43B: ITAT

++ Disallowance is permitted under Rule 8D(2)(iii) even in absence of any closing stock: ITAT

++ Recording of objective satisfaction by AO is of crucial importance before making disallowance of expenses attributable to earning of exempt income: ITAT

June 03, 2019

++ Failure to substantiate cash deposits in bank account, calls for addition on account of unexplained cash credit u/s 68: ITAT

++ In case of non-deduction and non-payment of TDS, mandate of second proviso to Sec 40(a)(ia) becomes applicable retrospectively and restricts disallowance only upto 30% of total expenditure: ITAT

++ Mere non production of parties will not justify additions for bogus purchases, once evidences with respect to source of source of purchases stands substantiated: ITAT

++ Once re-assessment stands initiated on specific issue resulting in addition in hands of assessee, then CIT cannot exercise jurisdiction u/s 263 on same ground: ITAT

++ Mere adoption of one plausible views which may results in loss to Revenue, is no basis to treat assessment as erroneous and invoke Sec 263: ITAT

++ Mere recording of expression 'approved' cannot be construed as sanction u/s 151 for purposes of reassessment: ITAT

++ Duty drawback which forms part of gross receipts, merits inclusion while working out percentage of profit of gross receipts: ITAT

++ Interest paid by construction company to banks on housing loan which is governed by Section 24(b) cannot be set off against interest income: ITAT

++ Expenditure incurred for procurement & safeguarding of property, is allowable u/s 48(i): ITAT

++ Business loss cannot be claimed as 'bad debts' unless it is shown to have crystallized during relevant year: ITAT

June 01, 2019

++ If claim of capital receipts upon accrual of non-compete fees is not disputed, then no disallowance is permitted under other heads of income: ITAT

++ If separate books are produced for both SEZ and manufacturing unit, then AO is not permitted to resort to proportionate disallowance u/s 10AA: ITAT

++ Being only a distributor and intermediary between service provider and retailer, no tax liability is attracted u/s 194H: ITAT

++ Penalty order merits rejection, if it is initiated for furnishing of inaccurate particulars but levied for concealment: ITAT

++ Only net profit and not gross profit of unaccounted sales merits consideration for taxation: ITAT