TODAY'S CASE (DIRECT TAX)

June 30, 2021

++ I-T - Undisclosed income cannot be taxed in hands of both partnership firm as well as its partner : ITAT

++ I-T - Provisions of sec. 11(1)(c) are only for purpose of determining income that qualifies for exemption u/s 11 and not for grant of registration u/s 12A :ITAT

++ I-T - If taxpayer does not have any house property to let out and rental income was received by him out of equipments given on hire, then no addition is permitted on account of 'income from house property': ITAT

++ I-T- Assessee can't take divergent stand for the same income in different years : ITAT

++ I-T - When return of income is pending before AO, reopening proceedings cannot be initiated by issue of notice u/s 148 : ITAT

++ I-T - Assessee is entitled to interest u/s 244A as per clause (l)(b), when refund arises on account of payment of self-assessment tax : ITAT

++ I-T - Providing sports facilities to general public without restriction to any caste, creed, religion or profession is eligible for exemption u/s 11: ITAT

++ I-T - Adoption of methodology contemplated in Rule 8D(2) is not mechanical proceeding which requires the satisfaction of the AO: ITAT

++ I-T - Assessment cannot be reopened merely because of change in opinion of AO : ITAT

June 29, 2021

++ I-T - If assessee has set up new coffee shops, which amounts to expansion of business and therefore, the bar under proviso Sec 36(1)(iii) not applicable: HC

++ I-T - AO has power to reasses, but not review, under probisions of Sec 147: HC

++ I-T - AO must first examine documents submitted by assessee to prove genuineness of his/her claim before resorting to completing assessment merely based on observations by other authorities: ITAT

++ I-T - Considering additional evidence, statement of assessee u/s 131 and facts of case, addition for unexplained income out of undisclosed sources is rightly made as Bank Deposits are not rightly explained : ITAT

++ I-T - Relaxation provided vide 3rd proviso to sec. 50C, which comes into force vide Finance Act 2018 w.e.f. 01-04-2019, must be given a retrospective effect : ITAT

++ I-T - Where two views are possible and AO has taken one view with which Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to interests of Revenue, unless view taken by AO is unsustainable in law : ITAT

++ I-T - If reason to believe escapement of income is not that of AO, reopening of assessment u/s 147 is vitiated and bad in law : ITAT

++ I-T - Guarantee commission charged by bank for provision of services, cannot be said to be 'commission' as intended to u/s 194H, but it is in nature of Bank charges: ITAT

++ I-T - Merely because investor has incurred losses, it cannot be said that investment made by such investor is not genuine: ITAT

++ I-T - Addition cannot be made on basis of presumption and surmises in absence of corroborating evidence : ITAT

June 28, 2021

++ I-T- I f interest income is more than interest expenses, and assessee is having net positive interest income, the interest expenditure cannot be considered for disallowance u/s 14A: ITAT

++ I-T - Cooperative society is eligible to claim deduction under section 80P(2)(d) of the Act in respect interest income on fixed deposits with the cooperative banks : ITAT

++ I-T - At time of grant of registration, CIT (E) must not examine application of income but only whether application is in accordance with section 12A: ITAT

++ I-T - Where quantum of remuneration and manner of computing is not specified in partnership deed, remuneration paid to partners cannot be allowed as deduction u/s 40(b)(v): ITAT

++ I-T - When tax liability on impugned issue is less than Rs. 10 lakhs, AO can make addition beyond the matter he has selected for limited scrutiny: ITAT

++ I-T - Assessee is entitled to benefit of exemption u/s 54B only on amount invested by him after sale of his original property: ITAT

++ I -T - Defective penalty notice with no specific charges for such levy, makes the entire penalty proceedings invalid : ITAT

++ I-T - Sec. 50C is not applicable in case of slump sale: ITAT

June 26, 2021

++ I-T - AO cannot initiate proceedings u/s 147 r.w.s. 148 merely on basis of information received from Department without application of his mind : ITAT

++ I-T - Genuineness of transaction and it being free from vice of any device of evasion of tax is relevant consideration for purposes of sec. 40A(3) : ITAT

++ I-T- If the advance has been given for the purchase of property which belongs to the company and only name of the shareholder has been put on record, then ostensibly it is in the nature of advance for the purpose of company's business and in such a case it cannot be taxed as deemed dividend u/s. 2(22)(e) in the hands of shareholder : ITAT

++ I-T- If the advance has been given for the purchase of property which belongs to the company and only name of the shareholder has been put on record, then ostensibly it is in the nature of advance for the purpose of company's business and in such a case it cannot be taxed as deemed dividend u/s. 2(22)(e) in the hands of shareholder : ITAT

June 25, 2021

++ Assessment order warrants being quashed where it is passed without issuing SCN cum draft assessment order which is a mandatory requirement u/s 144B : HC

++ Disproportionate income - Complaint seeking investigation cannot be entertained where it arises due to private dispute between the complainant & the respondent: HC

++ Non-compete fee paid is Revenue in nature as assessee entering into strategic alliance is able to control the marketing activities in a manner clearly beneficial to the assessee :ITAT

++ If TDS deducted u/s 194C & 194J was deposited by taxpayer through cheque to Government's Banker before due date, no interest u/s 201(1A) for delay in deposit of TDS is chargeable: ITAT

++ While completing assessment under best judgement assessment, AO has to bring on record certain material to support finding: ITAT

++ Payment made as compensation is not hit by Explanation 1 to sec. 37(1) and is allowable expenditure : ITAT

June 24, 2021

++ I-T - Co-operative banks are primarily co-operative societies & so any interest/dividend earned from such co-operative banks would be eligible for deduction under section 80P(2)(d) : ITAT

++ I-T - Disallowance of delayed deposit of contribution received by the employees' towards PF & ESI is not tenable where such contribution is made before due date of filing ITR: ITAT

++ I-T - Unless assessee offered income for taxation, TDS cannot be given credit: ITAT

++ I-T - Interest on unutilised grant has to be treated as part of grant itself and cannot be subjected to tax: ITAT

++ I-T - Simply because progress billing was more than stage of percentage of completion, the same in itself, is no basis to usurp consistent method of accounting followed by taxpayer: ITAT

June 23, 2021

++ ITO's failure to tick mark applicable grounds' in notice issued u/s 271, will vitiate entire penalty proceedings: HC Larger Bench

++ I-T - If subject assessment year lies beyond ambit of provision u/s 153A, then AO has no jurisdiction to issue notice under such provision: HC

++ I-T - Re-opening of assessment upheld where it is driven by returns filed by assessee, as well as assessee's failure to make correct computation of income tax: HC

++ I-T - An alternate remedy is a self-imposed limitation placed on itself by the Court & it does not prevent the Court from entertaining an action if it otherwise has jurisdiction in the matter : HC

++ Cash saved by a lady over the years & subsequently deposited in bank account in course of the demonetisation drive, cannot be treated as unexplained money: ITAT

++ I-T - If neither ownership of land was transferred to State corporation, nor it was held as 'deemed owner' of same, then assessing lease premiums as income of corporation is not justified: ITAT

++ I-T - Disallowance made by AO to resurrect an already settled issue is not sustainable - Judicial disciple requires adherence to binding judgment in assessee's own case: ITAT

++ I-T - Deemed rent on unsold stock is exigible to tax under head of 'income from house property': ITAT

++ I-T - Unverifiable purchases during course of assessment, merits rejection of books u/s 145(3): ITAT

++ I-T - PCIT can invoke revisionary jurisdiction u/s 263 only by satisfying both conditions laid thereunder : ITAT

++ I-T - Amount received on account of renting out of terrace for purpose of installation of antenna tower, is to be treated as 'income from house property': ITAT

++ I-T - Penalty u/s 271(1)(c) cannot be imposed on an assessee solely because any claimed raised is disallowed by AO: ITAT

June 22, 2021

++ I-T - Reopening of completed assessment based on change of opinion, is not permitted: HC

++ I-T - Amount received by assessee that is not its business income must be treated as 'income from other sources' : ITAT

++ I-T - AO cannot make addition relating to any other issue that has not been recorded as a reason for reopening assessment : ITAT

++ I-T - Addition cannot be made solely based on statement retracted by assessee recorded u/s 132(4) : ITAT

++ I-T - Shortage of cash cannot be a reason to reject assessee's books of accounts and recompute gross profit based on company's performance : ITAT

++ I-T - Sec. 14A cannot be invoked, where no exempt income is earned by assessee in relevant AY : ITAT

++ I-T - Disallowance made u/s 14A should not be added to assessee's book profit u/s 115JB : ITAT

June 21, 2021

++ Additions framed u/s 68 in respect of loans taken merit being quashed where assessee furnishes all documents needed to prove identity & creditworthiness of the creditors as well as genuineness of transaction: ITAT

++ In course of enquiry u/s 80G(5)(vi) of the Act, the scope of enquiry cannot extend to the actual assessment of income: ITAT

++ Loan disbursed in a commercial transaction is not deemed dividend u/s 2(22)(e): ITAT

++ Delay caused due to negligence and inaction on assessee's part that could have very well been avoided by exercising due care and attention cannot be condoned: ITAT

++ Proceedings initiated u/s 153C without having any incriminating material belonging to assessee that have bearing on its income are not sustainable : ITAT

June 19, 2021

++ I-T - Quantum proceedings & penalty proceedings are independent proceedings & confirmation of addition cannot on standalone basis justify imposition of penalty u/s 271(1)(c) : ITAT

++ I-T - When additional evidences are filed for first time before appellate authority, matter must be restored to lower authority for denovo adjudication : ITAT

++ I-T - Application for registration u/s 12AA cannot be denied to a trust solely on grounds that taxes were not paid on the donations or voluntary contributions received by it: ITAT

++ I-T - When very basis for determination of assessee's taxable income has changed, determination of income and adjudication of consequential issues should be done afresh by AO: ITAT

June 18, 2021

++ Varied methods cannot be adopted for making provisions without recording any scientific basis for such variation: ITAT

++ No addition can be made based merely on surmises, suspicion and conjecture, in absence of corroborating evidence: ITAT

++ When assessment order is no longer in existence, pursuant to its quashing, order passed by PCIT u/s 263 revising original order, becomes void: ITAT

++ Deduction is allowed to cooperative societies u/s 80P in respect of interest income earned from amounts advanced to cooperative banks: ITAT

++ For purposes of sec. 2(15), an object beneficial to a section of public is an object of general public utility : ITAT

++ Addition u/s 68 cannot sustain as cash receipts represent the sales proved with evidences & which assessee offered for taxation: ITAT

++ Penalty notice is invalidated where specific provision of Sec 271(1)(c) which is sought to be invoked, is not mentioned & where inapplicable provision is not struck off: ITAT

June 17, 2021

++ Assessment order merits being set aside where the assessee is given a very narrow time frame to file reply to SCN & where the reply so furnished is not considered : HC

++ Income from sale of scrap generated in regular course of business is not an independent source of income and is eligible for deduction u/s 80IA: ITAT

++ Failure of state organisation to follow provisions of I-T act, in order to maintain mandate of Govt, can be deemed as genuine hardship to be granted exemption from rigours of provisions of I-T Act u/s 119: ITAT

++ Assessee can seek support of CIT (A)'s order, on ground which was not urged before him, as long as it is not going to be adverse to case of Revenue: ITAT

++ Reopening of assessment u/s 147 on wrong set of facts makes assessment a nullity: ITAT

++ Disallowance of parking expenses is not tenable where assessee is legally & commercially obliged to provide parking spaces: ITAT

++ Addition can't be framed u/s 153A in respect of concluded proceeding without existence of any incriminating materials found in course of search: ITAT

++ Expenditure crystallised in a particular year cannot be termed as prior period expenditure: ITAT

June 16, 2021

++ I-T - Disallowances cannot be made in assessment framed u/s 153A in absence of any incriminating material found during search relatable to concluded assessment on date of search: ITAT

++ I-T - Addition made on the basis of valuation report does not sustain and deserved to be deleted as report does not specifically set out that differential amount has been received by the assessee : ITAT

++ I-T - Vehicle expenses cannot be disallowed solely on the ground of quantum of expenditure incurred, while it is not doubted that such expense is in relation to the assessee's business activities : ITAT

++ I-T - PCIT is not justified in invoking revisionary jurisdiction u/s 263 merely because he is of a completely different view and opinion on the issue of allowability of LTCL to be carried forward to subsequent years: ITAT

++ I-T - Merely because assessee is engaged in certain profit-generating activities, assessee cannot be deemed to have ceased carrying on primary charitable activity : ITAT

++ I-T - Investment which does not yield exempt income is liable to be excluded while assessing the expenditure to earn the exempt income u/s 14A r.w. Rule 8D(2): ITAT

++ I-T - Genuine recorded transaction undertaken in cash in best interest of business and otherwise allowable cannot be disallowed merely for technical default u/s 40A(3): ITAT

++ I-T - Reliance by AO on report of investigation wing without conducting independent enquiry is in violation of sec. 142(1): ITAT

++ I-T - Unless there is change in facts, AO cannot take a different view for denying deduction claimed u/s 10B : ITAT

++ I-T - Payment to commission agent - Penalty not imposable solely because agent's name is not mentioned on purchase bill: ITAT

June 15, 2021

++ I-T - It is incumbent upon Revenue to accord personal hearing to taxpayer before proceeding with any addition: HC

++ I-T - Re-opening of assessment commenced after expiry of 4 years from end of relevant AY, merits being upheld, where proceedings earlier initiated within limitation period were dropped on technical grounds & without assigning any reasons: HC

++ Invalid and defective notices issued u/s 271(1)(c) r/w/s 274 before levy of penalty, vitiates penalty proceedings: ITAT

++ Reopening of assesseement based on wrong, incorrect and non-existing reasons, inabsence of tangible material is invalid in law: ITAT

++ Disallowance of rent expenses is not tenable, where it is clear that a property had been taken on rent by the assessee in furtherance of its business : ITAT

++ PCIT cannot exercise revisionary jurisdiction u/s 263 when necessary details and documents are furnished by assessee, based on which AO takes a particular view: ITAT

++ When AO forms a plausible view after conducting proper enquiry, such view cannot be held erroneous by PCIT u/s 263 for want of no enquiry: ITAT

++ Amount received on sale of additional FSI, can't be taxed as long term capital gain in the hands of the assessee: ITAT

++ AO should record reasons for belief u/s 147 that escapement is due to any failure on assessee's part: ITAT

June 14, 2021

++ I-T - Reopening of assessment is not valid as proceedings are initiated not on the basis of satisfaction of the AO, but on the basis of mere recommendation of ADIT (Inv.), Meerut: ITAT

++ I-T - Exemption u/s 11(1)(a) must be granted only with respect to activities specified in object clause of charitable trust and not to activities ultra vires to object clause : ITAT

++ I-T - No addition u/s 69 can be made based on dumb documents, absence of any corroborative evidence to establish that land is actually purchased by assessee: ITAT

++ I-T - Grant received from holding company cannot be allowed to be treated as exempt, if its utilisation was allowed as deduction from total income chargeable to tax: ITAT

++ I-T - Assessee who is a power of attorney holder, cannot be treated as rightful owner of the income, which has arisen on sale of a particular property: ITAT

++ I-T - If quantum appeal itself has been decided in favour of taxpayer and addition stands deleted, then penalty levied on such quantum does not survive: ITAT

++ I-T - Deduction u/s 80IC must be allowed when assessee has established new business unit and has not split or recontsructed its existing unit : ITAT

++ I-T - Tax or any amount paid under statutory obligation is allowable in the subsequent year in accordance with law : ITAT

++ I-T - Prior period expenditure disallowance in such a case ought not to be made as it is a revenue-neutral instance only : ITAT

++ I-T - Disallowance u/s 14A cannot be in excess of exempt income claimed: ITAT

June 12, 2021

++ I-T - In the absence of enabling provisions u/s 200A of the Act, such levy of late fee is not valid: ITAT

++ I-T - additions towards Fringe Benefit Tax merit being framed in respect of expenditure incurred towards electricity consumption in residential premises of the assessee's employees: ITAT

++ I-T - Penalty notice u/s 271(1)(c) is invalid where non-applicable sub-section has not been struck off & the applicable sub-section is not mentioned: ITAT

++ I-T - Revisionary power cannot be exercised based on doubt alone, where otherwise no deficiency is found in original assessment order: ITAT

June 11, 2021

++ I-T - Addition u/s 68 cannot be made solely based on statement recorded during course of survey proceedings: ITAT

++ I-T - When incorrect, wrong and non-existing reasons are recorded by AO for reopening of assessment, such reopening must be set aside: ITAT

++ I-T - Non-service of summons issued to some of the creditors or their failure to appear before AO cannot solely be a ground to make addition u/s 68: ITAT

++ I-T - Assessee being charitable or religious institution is eligible for depreciation on fixed assets: ITAT

++ I-T - Addition with respect to non-genuine purchases must be restricted only to profit element of income earned thereunder : ITAT

++ I-T - In respect of an issue that is not a subject matter of re-assessment, limitation u/s 263(2) runs from date of original assessment as there is no merger in such case - ITAT

++ I-T - Any expenditure that does not bring any additional advantage to assessee's business is revenue expenditure: ITAT

++ I-T - conversion of limited scrutiny into complete scrutiny is invalid - ad hoc additions are not tenable: ITAT

++ I-T - When assessee-company is not owner of lender company but there is a common shareholder with substantial shareholding and voting power of more than 10% in assessee and lending companies, amount received in hands of assessee must be treated as deemed dividend u/s 2(22)(e): ITAT

June 10, 2021

++ Provisions of Sec. 115BBE are not attracted where surrender of undisclosed income is not covered under provisions of Ss. 68, 69, 69A, 69B, 69C & 69D : ITAT

++ A statement that element of personal expenses cannot be ruled out, is per se insufficient grounds to disallow travelling & telephone expenses otherwise incurred for business purposes : ITAT

++ Sale consideration as declared by assessee is to be accepted, where the variance in value of property is in the value of tenancy rights adopted by assessee as sale consideration: ITAT

++ In case of bogus purchases, only the profit arising from non-payment of tax thereon, is to be considered for framing additions, rather than the entire quantum of purchases made: ITAT

++ In respect of valuation of property, the report of the DVO is binding upon the AO, unless any glaring errors are pointed out therein : ITAT

++ Dismissing appeal without hearing issue on merits contravenes mandate provided u/s 250(6) : ITAT

++ When assessment order lacks a finding of fact, it can be set aside u/s 263 by revisionary jurisdiction of PCIT: ITAT

++ Only advances given to assessee's own employees and not employees of associate companies can be allowed u/s 36(2)(i): ITAT

++ Profits of life insurance business has to be taken to be annual average of surplus disclosed in actuarial valuation report of year: ITAT

June 09, 2021

++ I-T - If employer had admittedly not paid remittance of employees' contribution to PF within due dates, then he was not entitled to deduction of such amount: ITAT

++ I-T - When g ross turnover of taxpayer seems to be higher than net profit, then provisions of presumptive tax u/s 44AD will not be applicable: ITAT

++ I-T - Deduction u/s 80IA(4), granted in first year of claim, cannot be denied in subsequent years, unless assessee has changed original terms and conditions in first year: ITAT

++ I-T - PCIT cannot hold reassessment order to be erroneous on ground that AO failed to make addition w.r.t. issue that never formed basis for reopening of case : ITAT

++ I-T - Additions framed u/s 68 cannot be upheld where assessee has established three limbs of genuineness, creditworthiness and identity of transactions: ITAT

++ I-T -Disallowance of sales costs is untenable where in identical circumstances, no such disallowance was made in previous AYs: ITAT

++ I-T - Penalty u/s 221(1) is rightly imposed where it is clearly established that the assessee did not pay tax withing the stipulated time : ITAT

++ I-T - Past history plays vital role in determining profit on estimation basis: ITAT

June 08, 2021

++ I-T - Garnishee notice cannot be issued without first passing a speaking order, in which AO reaches a finding on as to whether or not the recipient of the garnishee notice owes any money to the alleged defaulter: HC

++ I-T - Recovery of tax arrears - Attachment - Grievance against certain contents in attachment notice can be raised before Competent Authority - Intervention of High Court unwarranted: HC

++ I-T - Differences in interest rate paid on loans, does not call for addition u/s 40A(2)(b): ITAT

++ I-T - No disallowance of interest could be made for amounts advanced out of term loan, if advances were made before date of disbursement of term loan: ITAT

++ I-T - Provisions of sec 13(1)(b) are attracted in case of charitable societies only and not in case of religious societies: ITAT

++ I-T - Addition framed in respect of bogus purchases, allegedly made from Hawala dealers, warrants being restricted to the excess gross profit rate earned therefrom : ITAT

++ I-T - Disallowances u/s 40A(2)(b) for classifying expenditure as excessive or unreasonable is not satisfied as comparable market rate for same services provided by unrelated parties are higher : ITAT

June 07, 2021

++ I-T - Faceless Assessment - assessment order merits being set aside where it is passed without giving a personal hearing to the assessee or without considering the assessee's reply to SCN : HC

++ I-T - Once a SCN-cum-draft assessment order is issued, the noticee's statutory right to file a reply and to seek a personal hearing kicks in & which cannot be curtailed: HC

++ I-T - When money lending is part of business of assessee company, no addition u/s 2(22)(e) can be made: ITAT

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

++ I-T - Legislation that modifies accrued rights or imposes obligations or new duties or attaches new disability must be treated as prospective unless legislative intent is clearly to give the enactment a retrospective effect: ITAT

++ I-T - In case of bogus purchases where corresponding sales are not doubted, only profit embedded in the sales should be brought to tax - ITAT

++ I-T - Prior period interest expenses relating to work-in-progress must be allowed if they have not been claimed as deduction in earlier year: ITAT

++ I-T - Co-operative credit society engaged in providing credit facilities only to its members, cannot be construed as primary co-operative bank and hence, not hit by Sec 80P(4): ITAT

++ I-T - Acquisition of holding company, resignation of existing directives and delay occurred in appointing new Directors by process of law, constitutes sufficient cause for filing appeal with delay: ITAT

June 05, 2021

++ I-T - Assessment order passed without conducting necessary verification and analysis or examination of evidence is erroneous and prejudicial to interest of Revenue for purposes of invoking revisionary jurisdiction u/s 263 : ITAT

++ I-T - When an exercise is revenue neutral, action on part of Revenue authority is not sustainable: ITAT

++ I-T - When income accrues before amalgamation/slump sale, it must be taxed in hands of predecessor company: ITAT

June 04, 2021

++ I-T - Search - Seizure of documents - Assessee must approach relevant authority for release of relevant documents - Writ petition not maintainable where such option is not exercised: HC

++ I-T - Assessment order merits being set aside where the assessee is not given an opportunity to submit its replies to the draft order-cum-show cause notice : HC

++ I-T - If there is live link between material which suggested escapement of income and information of belief, then AO is justified in initiating proceedings u/s 147: HC

++ I-T - Whether there is live link between material which suggested escapement of income and information of belief, then AO is justified in initiating proceedings u/s 147: HC

++ I-T - When assessee has discharged onus cast upon him to prove identity, creditworthiness and genuineness of transactions, no addition can be made to assessee's income u/s 68: ITAT

++ I-T - Benefit of claiming depreciation u/s 32 cannot be denied to assessee merely because assets are not registered in assessee's name: ITAT

++ I-T - Only when activities of assessee can be reckoned as in nature of trade, commerce and business with profit motive, proviso to sec. 2(15) gets attracted: ITAT

++ I-T - Penalty order is vitiated where the specific charge is not set out in the notice & where both parts of the penalty provision stand without striking off the inapplicable part: ITAT

++ I-T - Provisions of Sec 269SS are not to be invoked, where cash transaction in question is done to meet day-to-day emergency expenses: ITAT

++ I-T - Interest expenses are to be allowed where they are incurred in respect of assets leased by the assessee-company & where income in the form of rental & maintenance charges is credited to Profit & Loss and accordingly offered to tax: ITAT

June 03, 2021

++ Re-opening of assessment is sustainable where the AO does not dispose off the objections raised by the assessee against such proceedings: HC

++ Assessment order passed by AO based on technical approval granted by JCIT u/s 153D without application of mind is a nullity: ITAT

++ When assessee files revised return, notice issued u/s 143(2) with reference to original return does not become invalid: ITAT

++ Wealth Tax - Question of suppression in valuation of jewellery does not arises when it is already declared in wealth tax return: ITAT 

++ When land sold by assessee is proved to be an agricultural land, assessee is entitled to benefits u/s 54B: ITAT

June 02, 2021

++ Order passed by National Faceless Assessment Centre merits being set aside, where passed without enabling assessee file reply to show cause notice issued : HC

++ It is axiomatic that incorrect application of law also envelopes within its scope a case of non-application of the relevant provisions of law : ITAT

++ Sec 35D permits amortization of certain capital expenses which are incurred in the preliminary stage of the company or in the normal course of business: ITAT

++ Partial disallowance of telephone expenses is sustained where element of its personal use is not ruled out: ITAT

++ Expenses attributable to earlier years but crystallised in year under consideration ought to be allowed: ITAT

++ In case of bogus purchases where sales are established, only profit element embedded in these purchase transactions can be brought to tax: ITAT

June 01, 2021

++ Writ petition assailing auction of property for recovering tax arrears, is not maintainable, where auction has not yet taken place: HC

++ AO cannot make addition purely on basis of statement given u/s 132(4) without showing any incriminating material found during course of search that has e direct nexus with income declared u/s 132(4): ITAT

++ Action u/s 263 can be taken only when twin conditions of the order being erroneous and prejudicial to interest of Revenue are satisfied: ITAT

++ At stage of invoking jurisdiction u/s 147 it is not required to test whether material would conclusively prove escapement of income: ITAT

++ Power of revision cannot be exercised in respect of a non est order: ITAT

++ Sale consideration of property cannot be determined only on the basis of Form 26AS: ITAT