TODAY'S CASE (DIRECT TAX)

January 18, 2021

++ I-T - Due dates for filing of audit reports & ITRs cannot be delayed indefinitely, on whims & fancies of taxpayers: HC

++ Term 'agreement' in Sec 56(2)(vii)(b) does not specify any document with title agreement - Thereby, date of transfer of title of immovable property is immaterial for purpose of Sec 56(2)(vii)(b): ITAT

++ Assessee provides vehicles to Govt agencies engaged in solid waste management system - Deduction u/s 80IA allowed thereon: ITAT

++ Re-assessment - assessee baldly stated to not have received notice without rebutting Revenue's postage pre-paid, proving proper service of notice at assessee's correct address - Proceedings upheld: ITAT

++ Unabsorbed short term brought forward capital loss can be set off against the income arising in current AY: ITAT

++ Unexplained investment - Additions framed based on bills found in Search operation at third party premises are upheld, as assessee accepted bill in its name: ITAT

January 16, 2021

++ Income tax - CBDT directed to pass reasoned order on why due dates cannot be extended: HC

++ An amount which has already been adjusted with dividend amount distributed by company as per Section 2(22)(3), must be excluded from deemed dividend u/s 2(22)(e): ITAT

++ Disallowance framed by the AO are not sustainable where no reasons are assigned for the same & where such disallowances are based on surmises alone: ITAT

++ Additions on account of accrued interest are not tenable when no money is received by way of interest or dividend nor the investment amount was returned: ITAT

++ Search assessment cannot be resorted to where no material incriminating the assessee has been seized in course of Search operations: ITAT

January 15, 2021

++ When computing MAT credit u/s 115JAA, the tax portion must include surcharge and Education Cess: ITAT

++ Single incident of non-compliance with notice issued u/s 142(1) is not compelling reason to impose penalty u/s 271(1)(b): ITAT

++ AO conducted best of judgment assessment due to non availability of relevant documentary evidence, which the assessee was unable to submit due to being incapacitated by illness - Case remanded - Assessee to pay costs for inconvenience caused to Department: ITAT

++ It is case for remand where CIT A passes ex parte order without hearing assessee, on account of assessee's non-appearance on date of hearing: ITAT

January 14, 2021

++ Income tax - No need to intervene if CBDT has considered representations and taken a decision in its wisdom not to extend due dates for filings: HC

++ An amount earlier treated as loan in books of account & repaid as such, cannot be treated as a gift - Where husband treats loan given to wife as gift, then loans given to unrelated parties cannot similarly be treated as gift: ITAT

++ Where contribution to EPF is not made on or before due date prescribed in Explanation to Section 36(1)(va), then deduction of such amount is not allowable: ITAT

++ Non-consideration of Supreme Court judgment constitutes mistake apparent on record within the meaning of Section 254(2): ITAT

++ Assessment order cannot be branded as erroneous by the CIT merely because it has been worded differently or more elaborately: ITAT

++ Power of revision is erroneously exercised where the CIT does not examine the issues at hand: ITAT

January 13, 2021

++ Where assessee's business is accepted by AO by accepting assessee's returns of income, then AO cannot doubt source of cash income generated from such business: ITAT

++ Bogus purchases - Additions are upheld where assessee does not establish genuineness of purchases & where notices u/s 133(6) elicit no response: ITAT

++ Penalty cannot be imposed solely due to deduction benefit being claimed under mistaken belief: ITAT

++ Re-assessment cannot be resorted to based on discrepancy pointed out in audit objection, when the appeal against original assessment is already pending before CIT(A): ITAT

January 12, 2021

++ I-T - Loans given by cooperative credit societies to nominal members qualify for purpose of deduction u/s 80P(2)(a)(i) of I-T Act: SC LB

++ Registration of a Society u/s 12A is deemed to be allowed if no decision is taken on application for 12 years, though it should have been decided within the period of 6 months: HC

++ Provisions of Section 50C of the Act do not apply onto transfer of leasehold right in plot of land: ITAT

++ Expense incurred on attending training courses for acquiring knowledge & technical expertise for better management of the process, is directly connected to business of assessee & is to be allowed as business expenses: ITAT

++ Where property purchased in joint ownership is transferred by joint owners, any profit or loss therefrom is to be shared by joint owners & not in the hands of one person to exclusion of the other: ITAT

January 11, 2021

++ Subsidy received by assessee under a Government Scheme has to be treated as capital receipt and is not taxable: ITAT

++ Disallowance u/r 8D is to be computed after considering assessee's accounts & only if method adopted by assessee is found to be unsatisfactory: ITAT

++ Donation made by assessee to an approved Trust cannot be denied deduction, where registration granted u/s 35(1)(ii)(iii) to the trust was subsequently withdrawn: ITAT

January 09, 2021

++ Powers of CBDT beneficial in nature; must be exercised for proper administration of fiscal laws without causing undue hardship to taxpayers: Guj HC

++ Guj HC directs CBDT to consider extending due date for ITR & TAR filing; fresh hearing of petition seeking extension on Jan 12

++ Re-assessment proceedings cannot be sustained if based solely on report of the Investigation Wing & not involving any independent application of mind by the AO: ITAT

++ Provisions of Section 40A(3) are applicable on payments made for acquiring stock-in-trade & other material & cannot be applied onto payments made for procuring agricultural produce: ITAT

++ Additions u/s 68 are not tenable where assessee discharges onus of establishing identity & creditworthiness of parties & genuineness of transactions: ITAT

January 08, 2021

++ Late Fee cannot be charged in respect of TDS returns filed for period prior to introduction of Section 200A which introduced levy of such fee: ITAT

++ Re-assessment proceedings are upheld where AO obtains tangible information pointing towards escapement of income from taxation & when there is proper application of mind by the AO when commencing proceedings: ITAT

++ Bogus purchases supposedly made from the grey market, need not be disallowed in entirety & additions warrant being framed only in respect of the profit element embedded therein: ITAT

++ Penalty u/s 271(l)(c) cannot be levied when both the charges inaccurate particulars of income and concealment of income are mentioned in the penalty notice: ITAT

January 07, 2021

++ PCIT cannot excersise revisionary power u/s 263 solely due to difference of opinion with the AO: ITAT

++ Cash credit loan can assessed as unexplained cash credit because income source of the person giving the loan is not fully explained: ITAT

++ Surplus in one AY does not per se change the character of the trust to a business or profit making entity which is otherwise a charitable trust advancing work of general public utility: ITAT

January 06, 2021

++ Excess salary refunded as per the provisions of law cannot be added to the taxable to income of the assessee: ITAT

++ Addition u/s 68 is not tenable where Revenue omitted to conduct enquiry into genuineness of transactions: ITAT

++ Disallowance cannot be made by AO solely due to dis-agreement with accounting method adopted by assessee & which was earlier accepted by Revenue: ITAT

++ Addition on account of unaccounted investment cannot be framed based on estimation notings found during search operation: ITAT

January 05, 2021

++ Addition on account of unaccounted cash seized during the search operation fund cannot be added to assessee's income in absence of corrobrative evidence: ITAT

++ Penalty u/s 271(1)(c) cannot be imposed where additions are framed on estimate basis: ITAT

January 04, 2021

++ Interest income earned from money lending business is taxable under the head Business Income: ITAT

++ Recognition u/s 80G(5)(vi) cannot be denied solely on grounds that financial statements for some period were not submitted, when in fact assessee is already registered u/s 12AA: ITAT

January 02, 2021

++ Review of Tribunal's order under the garb of rectification of mistake, is not permissible in law: ITAT

++ Amounts received by manufacturer from State Government as Industrial Promotion Assistance, qualifies as capital receipt: ITAT

January 01, 2021

++ Revenue cannot compute tax liability on a broad and generalized basis, by rejecting estimates provided by assessee & in ignorance of mandate of Rule 28AA: HC

++ Interest paid before commencement of production by a company on amounts borrowed for the acquisition and installation of plant and machinery cannot be taxed as income u/s 56: HC

++ Dismissal of appeal on technical grounds, vide ex parte order passed without hearing the assessee, is unsustainable: ITAT

++ Exemption u/s 12AA is to be allowed to a trust engaged in imparting education, where the claimant had put forth evidence of its compliance with the Right to Education norms, but the same was ignored by the CIT(E): ITAT

++ Penalty u/s 271B cannot be imposed for not maintaining books of account: ITAT