Saturday, November 19, 2011

Direct Tax Laws Oct 14


Where assessee had made provision for sales tax liability and paid it before due date of filing return, assessee would get deduction in view of proviso of section 43B - [2011] 15 taxmann 207 (Madhya Pradesh)

Where in spite of service of notice neither any return was submitted nor was any cause shown pursuant to notice, Assessing Officer was justified in making best judgment assessment - [2011] 15 taxmann 206 (Calcutta)

Where assessee had satisfactorily explained source of cash deposits in bank, said deposits could not be treated as unexplained - [2011] 15 taxmann 203 (Karnataka)

Where amount of rent which property in question could reasonably fetch, was much higher than annual rent shown by assessee on basis of lease deed, penalty was leviable under section 271(1)(c) - [2011] 15 taxmann 201 (Delhi)

Where promissory note found during search was in name of director of assessee-company, amount of said promissory note could not be treated as undisclosed income of assessee in block assessment - [2011] 15 taxmann 199 (Calcutta)

Where assessee was running a mall, maintenance charges recovered by it from tenants towards promotion and upkeep of mall& were assessable as business income - [2011] 15 taxmann 196 (Bombay)

Where persons, in whose names credits were shown had themselves denied to have any transaction with assessee, mere production of demand drafts could not be considered as sufficient explanation - [2011] 15 taxmann 195 (Karnataka)

Arrangement for transportation of petroleum products is essentially a contract for transportation of goods and not an arrangement of hiring of vehicles; in view thereof, tax is required to be deducted at source from the payments to the carrier in terms of provisions of section 194C and not section 194-I - [2011] 15 taxmann 210 (Delhi - Trib.)

Non-compliance simpliciter with provisions of section of Act would not automatically lead to levy of penalty, if there is a reasonable cause for such a default - [2011] 15 taxmann 208 (Chennai - Trib.)

Dispute Resolution Panel (DRP) cannot issue direction which is beyond proposed draft order Provision for foreseeable losses made in accordance with guidelines of AS-7 and duly debited in audited accounts of company is an allowable expenditure - [2011] 15 taxmann 198 (Mumbai - Trib.)

Where assessee a Netherland based company and subsidiary of Star Ltd. was granted exclusive rights for sale of advertising time in India on channels, it could not be treated as conduit of STAR Ltd. and income from sales of revenue of advertisement was to be taxed in its hand - [2011] 15 taxmann 197 (Mumbai - Trib.)

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