Editors Pick

VEISA TECHNOLOGIES VS ASSISTANT COMMISSIONER OF INCOME TAX & ANR.
HIGH COURT OF MADRAS, Feb 27, 2019

Assessee can obtain stay order of demand by paying 20% of disputed demand of tax by filing an application under Ss 220(3) or 220(6).

Subject : Recovery
Legislation Referred To : Section 220(3), 220(6)
In Favour Of : Assessee

DEPUTY COMMISSIONER OF INCOME TAX VS NSS KARAYOGAM
COCHIN TRIBUNAL, Mar 05, 2019

Where fresh assessment is directed to be made by ITAT consequent to restoring matter to AO, same ought to have been completed within 9 months from end of FY as per s. 153(2A).

Subject : Assessment
Legislation Referred To : Section 153(2A)
In Favour Of : Assessee

COMMISSIONER OF INCOME TAX & ANR. VS TAKSHILA EDUCATION SOCIETY & ANR.
HIGH COURT OF PATNA, Feb 14, 2019

When Commissioner has dropped proceeding for cancellation of registration u/s 12AA on examining material facts, AO is not permitted to pursue appeals before High Court challenging same grounds.

Subject : Charitable Trusts
Legislation Referred To : Section 11, 12AA
In Favour Of : Assessee

ASSISTANT COMMISSIONER OF INCOME TAX & ANR. VS MADHURI SUNIL KOTECHA & ANR.
PUNE TRIBUNAL, Feb 28, 2019

Without there being any incriminating material, in case of completed assessments, neither any addition could be made nor there could be any change of opinion, be it change of head of income.

Subject : Search & seizure
Legislation Referred To : Section 139, 153A
In Favour Of : Assessee

COMMISSIONER OF INCOME TAX VS TASGAON TALUKA S.S.K. LTD.
SUPREME COURT OF INDIA, Mar 05, 2019

Difference of amount between SMP determined under Clause 3 and SAP/additional purchase price determined under Clause 5A had an element of profit and/or one of components would be profit.

Subject : Business expenditure
Legislation Referred To : Section 40A(3)
In Favour Of : Matter remitted

VIJAY INDUSTRIES VS COMMISSIONER OF INCOME TAX
SUPREME COURT OF INDIA, Mar 01, 2019

Deduction u/s 80HH had to be of GP and gains, i.e., before computing income as specified in Ss 30 to 43D.

Subject : Deduction
Legislation Referred To : Section 80HH, 80AB and CBDT Circular No. 281.
In Favour Of : Assessee

PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) VS NRA IRON & STEEL PVT. LTD.
SUPREME COURT OF INDIA, Mar 05, 2019

Mere mention of income tax file number of an investor is not sufficient to discharge initial onus on assessee to establish genuineness of transaction and creditworthiness of investors u/s 68.

Subject : Income
Legislation Referred To : Section 68
In Favour Of : Revenue

KAKADIA BUILDERS PVT. LTD. & ANR. VS INCOME TAX OFFICER & ANR.
SUPREME COURT OF INDIA, Mar 05, 2019

Settlement Commission in exercise of its power under Sections 245-D(4) and (6) does not have the power to reduce or waive interest statutorily payable under Sections 234-A, 234-B and 234-C except to the extent of granting relief under the circulars issued by the Board under Section 119 of the Act

Subject : Settlement Commission
Legislation Referred To : Section 234A, 234B, 234C
In Favour Of : Assessee

PUNJAB HIDE COMPANY VS INCOME TAX OFFICER
AMRITSAR TRIBUNAL, Feb 25, 2019

Net profit cannot be computed or arrived at independent of or de hors the gross profit, being only derived there-from.

Subject : Accounts
Legislation Referred To : Section 145(3)
In Favour Of : Revenue

DIPTI MEHTA VS INCOME TAX OFFICER
KOLKATA TRIBUNAL, Mar 01, 2019

When the income which was foundation on which AO based his belief of escapement of income disappeared then, AO's very usurpation of jurisdiction was on non-existing jurisdictional fact to reopen assessment.

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

K. VENKATACHALAM AIYER & CO. VS DEPUTY COMMISSIONER OF INCOME TAX
COCHIN TRIBUNAL, Mar 01, 2019

Payment made by a firm to ex-partners and spouses/legal heirs of deceased partners would be paid part of assessee’s income for services rendered by them and hence, should be allowed as deduction.

Subject : Income
Legislation Referred To : null
In Favour Of : Assessee

TECHNIP ITALY S.P.A. VS DEPUTY COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)
DELHI TRIBUNAL, Feb 28, 2019

As per Article 25 of India-Italy DTAA, an Italian national should not be subjected to in India to any taxation or any requirement connected therewith to which Indian nationals in same circumstances and under same conditions were or may be subjected which was more burdensome to Italian national

Subject : Transfer Pricing applicability
Legislation Referred To : Section 45, 234B and Article 25 of India-Italy DTAA
In Favour Of : Assessee(Partly)

PRINCIPAL COMMISSIONER OF INCOME TAX VS N.R. PROTFOLIO PVT. LTD.
HIGH COURT OF DELHI, Feb 25, 2019

Overriding power to rectify is absent in case of ITAT since, its authority to amend or rectify its order is confined by language of s. 254(2).

Subject : Appeals
Legislation Referred To : Section 254(2)
In Favour Of : Revenue

COMMISSIONER OF INCOME TAX VS RASHTRADOOT (HUF)
SUPREME COURT OF INDIA, Feb 27, 2019

High Court had jurisdiction to dismiss appeal filed u/s 260A on ground that it does not involve any substantial question of law.

Subject : Appeals
Legislation Referred To : Section 260A
In Favour Of : Revenue

SATTAR SONS PACKAGING PRIVATE LIMITED VS ADDITIONAL COMMISSIONER OF INCOME TAX
HYDERABAD TRIBUNAL, Feb 27, 2019

When transactions are not for tax evasion/concealment of income, penalty is not automatic and penalty levied there under u/s 271E is not valid.

Subject : Penalty
Legislation Referred To : Section 271E
In Favour Of : Assessee

PRINCIPAL COMMISSIONER OF INCOME TAX VS PMP AUTO COMPOUNENTS PVT. LTD.
HIGH COURT OF BOMBAY, Feb 20, 2019

Amendment to s. 56(2)(viib) was made effective only w.e.f. 1st April 2013 hence, would not be applicable for AY 2010-11.

Subject : Income from other sources
Legislation Referred To : Section 260A, 143(3), 144C(13)
In Favour Of : Assessee

KARTHIK FINANCIAL SERVICES LTD. VS COMMISSIONER OF INCOME TAX
BOMBAY TRIBUNAL, Feb 26, 2019

Under sec. 263, CIT was not justified to set aside assessment order and direct AO to reframe same de-novo.

Subject : Revision
Legislation Referred To : Section 263
In Favour Of : Assessee

ENI SPA VS DEPUTY COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)
DELHI TRIBUNAL, Feb 25, 2019

Provision of s. 44BB were applicable to second leg contractor/sub-contractor.

Subject : Non-resident
Legislation Referred To : Section 9(1)(vii), 44BB, 234B
In Favour Of : Assessee

PRINCIPAL COMMISSIONER OF INCOME TAX VS AARHAM SOFTRONICS
SUPREME COURT OF INDIA, Feb 20, 2019

Assessees is entitled to 100% deduction if it carries out substantial expansion of its existing units after expiry of 5 years in accordance with provisions of s. 80-IC.

Subject : Deduction
Legislation Referred To : Section 80-IC, 80-IC(3)
In Favour Of : Assessee

COMMISSIONER OF INCOME TAX (EXEMPTIONS) VS JAGANNATH GUPTA FAMILY TRUST
SUPREME COURT OF INDIA, Feb 01, 2019

Registration granted to assessee trust is liable to be cancelled where the activities of the trust are not genuine as well as not being carried out in accordance with its declared objects.

Subject : Charitable Purpose
Legislation Referred To : Section 12AA(3)
In Favour Of : Revenue