Editors Pick

INCOME TAX OFFICER VS LATE SHRI AMARCHAND P SHAH BY LEGAL HEIR NITIN A SHAH
BOMBAY TRIBUNAL, Jun 08, 2019

Information received by AO from Directorate of Income-tax (Investigation) is an information received from internal sources and is not covered by exception as is contained in para 10(e) of CBDT circular dated 11.07.2018 as modified on 20

Subject : Appeals
Legislation Referred To : Section
In Favour Of : Assessee

CHEDDA HOUSING DEVELOPMENT CORPORATION VS ADDITIONAL COMMISSIONER OF INCOME TAX
BOMBAY TRIBUNAL, May 29, 2019

Amount received by the assessee in excess of advance on account of compensation for extinction of its right to sue the owner, is a Capital receipt not chargeable to tax.

Subject : Capital Gains
Legislation Referred To : Section 2(47)
In Favour Of : Assessee

BHUP SINGH VS INCOME TAX OFFICER
DELHI TRIBUNAL, Jul 08, 2019

Assessee should not be denied the benefit of deduction u/s 54F of the Act merely because the property has been purchased in name of assessee’s wife when the money has been flown from the bank account of the assessee, wherein the sale proceeds were deposited

Subject : Capital Gains
Legislation Referred To : Section 54F
In Favour Of : Matter Remanded

NAVSHIP MARINE SERVICES (P) LTD. VS INCOME TAX OFFICER (INTERNATIONAL TAXATION)
VISHAKAPATNAM TRIBUNAL, Jul 03, 2019

The profits from operation of ship or aircraft are taxable in the Contracting State.

Subject : Non-residents
Legislation Referred To : Section 172(3) and Article 8 of Indo-Singapore DTAA
In Favour Of : Matter Remanded

ASSISTANT COMMISSIONER OF INCOME TAX VS FUTURE VALUE RETAIL LTD.
BOMBAY TRIBUNAL, Jul 04, 2019

No TDS is required to be deducted u/s 194H on credit card charges paid by assessee to Banks on payments received from customers on purchases made through credit card.

Subject : Business expenditure
Legislation Referred To : Section 14A, 40(a)(ia), 194H and Rule 8D of Income Tax Rules
In Favour Of : Assessee

ANIL KISANLAL MARDA VS INCOME TAX OFFICER
PUNE TRIBUNAL, Jul 01, 2019

'Issue of notice’ cannot be substituted with 'service of notice’.

Subject : Assessment
Legislation Referred To : Section 143(2)
In Favour Of : Assessee(Partly)

UTI MUTUAL FUND VS DEPUTY COMMISSIONER OF INCOME TAX
BOMBAY TRIBUNAL, Jun 01, 2019

For purpose of computation of interest payable u/s. 201(1A)(ii) r/w Rule 119A(b) of the 1962 Rules, ‘month’ is to be interpreted as period of 30 days and not British Calendar Month.

Subject : Interest payable
Legislation Referred To : Section 201(1A)
In Favour Of : Matter Remanded

QUALCOMM TECHNOLOGIES INC. S.R. BATLIBIO & CO. VS DEPUTY COMMISSIONER OF INCOME TAX
DELHI TRIBUNAL, Jun 01, 2019

When payment is made for a copyrighted article and represents the purchase price of an article, same cannot be considered as royalty either under the Income Tax Act or under the DTAA.

Subject : Income
Legislation Referred To : Section 9(1)(vi)(b) and Article 12 of Indo-US DTAA
In Favour Of : Assessee

DEPUTY COMMISSIONER OF INCOME TAX & ANR. VS ACCELERATED FREEZE DRYING CO. LTD. & ANR.
COCHIN TRIBUNAL, Jun 28, 2019

Where industrial unit sold is as a whole and as a continuing business concern with land, building, plant, machinery and all equipments as a going business with assets and liabilities for a consolidated sum, the same squarely attracts definition of the undertaking covered by Explanation 1 of s

Subject : Capital gains
Legislation Referred To : Section 2(42C), 50B, 50
In Favour Of : Assessee(Partly)

DELHI METRO RAIL CORPORATION LTD. & ORS. VS JOINT COMMISSIONER OF INCOME TAX & ORS.
DELHI TRIBUNAL, Jun 28, 2019

Assessee is not eligible for exemption under section 10(20A) of the Act where it is not constituted by or under any Central Act,

Subject : Exemptions
Legislation Referred To : Section 10(20A), 35D
In Favour Of : Revenue

SHILPA SHETTY VS ASSISTANT COMMISSIONER OF INCOME TAX
BOMBAY TRIBUNAL, Jun 25, 2019

Where no income has been accrued to or received by assessee u/s 5, no notional income can be brought to tax u/s 92.

Subject : Transfer Pricing
Legislation Referred To : Section 14A, 92, 92C
In Favour Of : Assessee(Partly)

PRINCIPAL COMMISSIONER OF INCOME TAX VS BINOD KUMAR SINGH
HIGH COURT OF BOMBAY, Apr 22, 2019

As per the Explanation to Section 6(1), if the assessee comes to a visit in India, the requirement of stay in India in the previous year would be 182 days and not 60 days as contained in clause (c).

Subject : Income
Legislation Referred To : Section 6(1), 6(1)(c)
In Favour Of : Assessee

NISHIT PRABHATBHAI DESAI & ORS. VS INCOME TAX OFFICER & ORS.
AHMEDABAD TRIBUNAL, Jun 27, 2019

In view of the provision of s. 151, “sanction of issuance of notice” is the first and foremost condition rather the pre-condition to be complied with by AO before invoking s. 147 for reassessment proceeding.

Subject : Reassessment
Legislation Referred To : Section 147, 148, 151
In Favour Of : Assessee

SOUTH CITY PROJECTS (KOLKTA) LTD. & ANR. VS ASSISTANT COMMISSIONER OF INCOME TAX & ANR.
KOLKATA TRIBUNAL, Jun 21, 2019

Car parking is an integral part of housing project and hence, eligible for deduction u/s 80IB.

Subject : Deductions
Legislation Referred To : Section 80-IB(10)
In Favour Of : Assessee(Partly)

PRINCIPAL COMMISSIONER OF INCOME TAX VS STATE BANK OF INDIA
HIGH COURT OF BOMBAY, Jun 18, 2019

Provision of sub-section (9) inserted to s. 40A w.e.f. 1st April, 1985 was not meant to hit genuine expenditure by an employer for the welfare and the benefit of the employees.

Subject : Business expenditure
Legislation Referred To : Section 40A(9), 36(1)(iv)
In Favour Of : Assessee

GEMOLOGICAL INSTITUTE OF AMERICA VS ADDITIONAL COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)
BOMBAY TRIBUNAL, Jun 21, 2019

The mere fact that a company has controlling interest in the other company does not by itself construe the other company to be its PE.

Subject : Income
Legislation Referred To : Section 9 and Article 5 of India-USA DTAA
In Favour Of : Assessee

ESTEE AUTO PRESSINGS PVT. LTD. VS ASSISTANT COMMISSIONER OF INCOME TAX
CHENNAI TRIBUNAL, Jun 11, 2019

It is open for the AO to pass separate order u/s. 234E levying the fee, provided the limitation for such a levy did not expire.

Subject : Penalty
Legislation Referred To : Section 234E
In Favour Of : Assessee

INDUS MOBILE DISTRIBUTION PVT. LTD. VS INCOME TAX OFFICER
CHENNAI TRIBUNAL, May 16, 2019

Intangible assets such as trademark, goodwill are qualified for depreciation at prescribed rates.

Subject : Depreciation
Legislation Referred To : Section 143(3)
In Favour Of : Assessee

PUNJAB INFRASTRUCTURE DEVELOPMENT BOARD & ORS. VS ASSISTANT COMMISSIONER OF INCOME TAX (TDS) & ORS.
CHANDIGARH TRIBUNAL, Mar 29, 2019

Provisions of s. 206C(1C) is applicable where assessee, acting as a grantor has failed to collect tax at source towards an amount received from Concessionaire in entering into an agreement for toll plaza operation/Toll based operation and maintenance

Subject : Interest payable
Legislation Referred To : Section 206C(1C), 206C(7), 271CA
In Favour Of : Revenue

COMMISSIONER OF INCOME TAX AND ANR. VS DHARMA PRODUCTIONS PVT LTD.
HIGH COURT OF BOMBAY, Mar 19, 2019

Advertising and Publicity expenses are not part of cost of production as per Rule 9A of Income Tax Rules, 1962 and are governed by Section 37 of the Act.

Subject : Business expenditure
Legislation Referred To : Section 37 and Rule 9A of Income Tax Rules
In Favour Of : Assessee