Direct Tax Laws
-> Amount paid by
assessee-company
to Bank for services rendered in connection with issue of shares to increase
capital base of company, could not be allowed as revenue expenditure - [2011]
15 taxmann 371 <Bangalore - Trib.)
-> Article 14 : DTAA
between India and France - Where transactions of sale of shares by foreign
entities involving another foreign company, having controlling interest in an
Indian company, are part of scheme for avoidance of tax, gain arising from such
transaction is taxable in India, even if it is not an alienation of shares of
an Indian company - [2011] 16 taxmann 21 <New Delhi)
-> Assessee himself
having treated income as business income and had suddenly changed to heading
'agricultural income' - [2011] 16 taxmann 9 <Karnataka)
-> Assessee was
assessable in respect of gross interest received from department on income-tax
refund and not merely on not interest remaining after set off of interest paid
to department on account of late payment of tax - [2011] 15 taxmann 381 <Pune
- Trib.)<TM)
-> Assessee was entitled
to receive interest under section 214(1A) on difference between
advance tax and tax assessed under section 251 from first day of assessment
year till day of passing regular assessment order under section 143(3) - [2011]
15 taxmann 365 <Delhi - Trib.)
-> Assessee was not
liable to deduct tax at source from commission payment to non-resident which was
not rendering any service or performing any activity in India itself - [2011]
15 taxmann 391 <Delhi)
-> Computation of
undisclosed income should be based on material seized during search - [2011] 15
taxmann 394 <Karnataka)
-> Consideration received
by assessee from a company on letting his name 'S' to be used in company's
name and its product would be taxable under head 'Capital gains' - [2011] 15
taxmann 388 <Chennai - Trib.)
-> Deduction under
section 80P(2) cannot be denied to co-operative society engaged in producing and
marketing of sugar from sugarcane grown by members - [2011] 16 taxmann 14 <Punjab
and Haryana)
-> Enhanced compensation
alongwith interest received by assessee on account of acquisition of his land would be taxed
in assessment year in which it was received - [2011] 15 taxmann 366 <Delhi -
Trib.)
-> Even where assessee
deducted gross payment made to sub-contractor from its gross income from
contract and had shown commission income separately in profit & loss
account, TDS liability under section 194C would arise - [2011] 15 taxmann 380 <Ahmedabad
- Trib.)
-> Expenditure incurred
by assessee-company for installation of a common effluent treatment plant under infrastructure
upgradation scheme was to be allowed as revenue expenditure - [2011] 15 taxmann
370 <Chennai - Trib.)
-> Expenses incurred by
assessee on installation of an accounting software to enable management to run
its business more effectively and efficiently would be revenue expenditure -
[2011] 15 taxmann 382 <Delhi)
-> In case of direct
nexus between borrowing and advancing of money, interest spent is to be
deducted from interest earned - [2011] 15 taxmann 386 <Delhi - Trib.)
-> Liaison office of
non-resident assessee in India performing activities of selection of right
goods and
negotiation of price as part of purchasing process as per assessee's
instructions cannot be considered PE of assessee in India - [2011] 15 taxmann
358 <Mumbai - Trib.)
-> Merely because
Assessing Officer had decided to disallow certain expenses on ad hoc
basis after making necessary enquiry, that by itself cannot be a ground to
invoke powers under section 263 - [2011] 15 taxmann 384 <Delhi - Trib.)
-> Once assessment
proceedings are initiated under section 158BD for computing undisclosed
income of person other than person searched, based on evidence found in course
of search, then it would be open to Assessing Officer to make use of any other
information available with him for making block assessment - [2011] 15 taxmann
393 <Kerala)
-> Ownership of toll road
under State-private joint-venture on Build, Own, Operate and Transfer <BOOT)
basis rests with private party till transfer, entitling it to depreciation on
same - [2011] 15 taxmann 387 <Ahmedabad - Trib.)
-> Penalty under section
271(1)(c) was
imposable where assessee wrongly claimed set off of loss incurred in capacity
of a partner of a firm against his individual income - [2011] 16 taxmann 11 <Delhi
- Trib.)
-> Proceedings under
section 147 cannot be initiated when time available for issuing notice under
section 143(2) has not expired - [2011] 16 taxmann 12 <Lucknow - Trib.)
-> Revision of AO's order
where
Assessing Officer after examining various details of case had disallowed a part
of purchases made under section 40A(3) - [2011] 16 taxmann 13 <Mumbai -
Trib.)
-> Rule 8D of Income-tax
Rules 1962,
which was introduced by virtue of Notification No. 45/2008, dated 24-3-2008, is
prospective in operation and cannot be regarded as being retrospective - [2011]
15 taxmann 390 <Delhi)
-> Temporary wooden
structure and partition for running Computer Centre is eligible to 100%
depreciation.NBFC can claim deduction of irrecoverable loans and advances under
section 36(1)(vii) if there is an actual write off in books - [2011] 15 taxmann
392 <Madras)
-> Terms 'exempt income'
and 'deduction from income' are two different propositions and, therefore, where
assessee's income was not exempt under section 10 rather same was eligible for
deduction under section 80P, assessee's case was not hit by provisions of
section 14A - [2011] 16 taxmann 10 <Delhi - Trib.)
-> Transfer Pricing - Where assessee-company
had entered into international transaction with its AE and in course of
assessment assessee had furnished all details and documents in respect of these
transactions which was accepted to be one confirming to arm's length price, no
penalty could be levied on assessee under section 271AA - [2011] 16 taxmann 5 <Mumbai
- Trib.)
-> Tribunal was justified
in
holding that case of assessee was a fit case for stay of outstanding demand
beyond period of 365 days as per provisions of section 254(2A) - [2011] 15
taxmann 369 <Bombay)
-> When an assessee
writes off a debt or part thereof as irrecoverable in accounts for previous year, same can
be allowed as deduction under section 36(1)(vii) and, no further proof is
necessary - [2011] 15 taxmann 373 <Andhra Pradesh)
-> Where after completion
of search proceedings, assessee did not file a block return rather, it filed a regular return
belatedly which was rejected by Assessing Officer, it did not make assessee
liable to penalty under section 158BFA - [2011] 15 taxmann 375 <Chennai -
Trib.)
-> Where assessee
borrowed certain amount for its business purpose and earned interest on
unutilized portion of loan interest income was taxable as business income -
[2011] 16 taxmann 8 <Bombay)
-> Where assessee entered
into agreements with finance companies to provide access to their customer database,
it was not a contract for service and, thus, assessee was not required to
deduct tax at source while making payments to finance companies - [2011] 16
taxmann 6 <Chennai - Trib.)
-> Where assessee showed
purchase value of shares as debit to profit and loss account and, further, closing
stock of shares was valued at cost or market value whichever was less, it was
to be held that assessee treated shares as stock-in-trade and, thus, fall in
value of same was allowable as business loss - [2011] 15 taxmann 385 <Mumbai
- Trib.)
-> Where
assessee-authority carried on systematic activity of development and sale of immovable properties
which was incidental to its main object of town planning, exemption under
section 11 was available to assessee only if it maintained separate books of
account for aforesaid activity - [2011] 15 taxmann 389 <Delhi - Trib.)
-> Where Assessing
Officer at time of passing assessment order, charged interest under a
non-existent provision, it constituted a glaring, patent and obvious mistake
which had to be rectified under section 154 - [2011] 16 taxmann 15 <Chennai
- Trib.)
-> Where Assessing
Officer could not rebut assessee's contention that no expenditure had been
incurred to earn exempt income under section 10(33) and, moreover, rule 8D of
Income-tax Rules, 1962, was also not applicable for assessment year in
question, disallowance made under section 14A on ad hoc basis was to be set
aside - [2011] 15 taxmann 376 <Delhi - Trib.)
-> where Assessing
Officer had not brought out any specific expenditure which had been incurred by
assessee for earning of tax exempt dividend income, disallowance of expenses
invoking provisions of section 14A was not justified - [2011] 15 taxmann 383 <Delhi
- Trib.)
-> Where interest earned
on FDRs had direct nexus with assessee's export business, assessee should be allowed
netting of such interest from interest paid by it to bank in terms of
Explanation (baa) of section 80HHC - [2011] 15 taxmann 361 <Delhi)
-> Where Tribunal
remanded an issue back to Assessing Officer for disposal afresh, subsequent decision of
Supreme Court on said issue did not make Tribunal's order erroneous on face of
record which could be rectified under section 254 (2) - [2011] 15 taxmann 367 <Lucknow
- Trib.)
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