Category Archives: Income Tax Judgments

Advance tax couldn’t be treated as tax paid under PMGKY : Delhi HC

By | March 15, 2018

HIGH COURT OF DELHI Virag Tiwari v. Principal Commissioner of Income-tax SANJIV KHANNA AND MS. PRATHIBA M. SINGH, JJ. WRIT PETITION (CIVIL) NO. 6312 OF 2017 MARCH  12, 2018 Balbir Singh, Sr. Adv. Rajesh Jain and Ms. Rubal Bansal, Advs. for the Petitioner. Zoheb Hossain, Sr. Standing Counselfor the Revenue. ORDER Sanjiv Khanna, J. – The writ petitioner, an advocate by profession and… Read More »

CBDT Circular are Binding on Revenue (Income Tax Department officers)

By | March 11, 2018

CBDT Circular are Binding on Revenue  J.C.I.T. Vs. M/s. Celica Developers Pvt. Ltd. (ITAT Kolkata) Appeal Number : ITA No. 658/Kol/2016 Date of Judgement/Order : 21/11/2017 Related Assessment Year : 2007- 08 Summary of Decision : J.C.I.T. Vs. M/s. Celica Developers Pvt. Ltd. (ITAT Kolkata) It is a settled law that the Circulars issued by CBDT… Read More »

No penalty u/s 221 be levied for non-payment of self-assessment tax by assessee : Mumbai ITAT

By | February 28, 2018

IN THE ITAT MUMBAI BENCH ‘A’ Heddle Knowledge (P.) Ltd. v. Income Tax Officer, Ward- 8 (1) (4), Mumbai G.S. PANNU, ACCOUNTANT MEMBER AND RAM LAL NEGI, JUDICIAL MEMBER IT APPEAL NO. 7509 (MUM.) OF 2011 [ASSESSMENT YEAR 2009-10] JANUARY  19, 2018 Pavan Ved for the Appellant. Rajesh Kumar Yadav for the Respondent. ORDER G.S. Pannu, Accountant Member – The… Read More »

Film Projector could not be treated as computer for charging depreciation : ITAT

By | February 28, 2018

Issue Assessing Officer in disallowing the claim of Depreciation amounting to Rs. 91,87,713/- on the alleged plea that the Film Projector is to be depreciated @ 15% instead of 60%, IN THE ITAT MUMBAI BENCH ‘SMC’ Cinetech Entertainment India (P.) Ltd. v. Income Tax Officer, Ward- 16 (1) (1), Mumbai SHAMIM YAHYA, ACCOUNTANT MEMBER IT… Read More »

Salary paid in India to employee deputed abroad not taxable in India : AAR

By | February 26, 2018

The applicant has posed the following questions, seeking a ruling from this Authority: (i) Based on the above facts, Salary paid by the applicant to the assignee, Mr. T.N. Santhosh Kumar in India, is not liable to be taxed in India in FY 2011-12 having regard to the provisions of the Act and the relevant… Read More »

No Recovery proceedings before expiry of limitation period to file appeal before ITAT : HC

By | February 21, 2018

[2018] 22122017 21022018 income tax HIGH COURT OF MADRAS Rapid Care Transcription (P.) Ltd. v. Income Tax Officer, Corporate Ward 5(4), Chennai T. S. SIVAGNANAM, J. WRIT PETITION NO. 33765 OF 2017 W.M.P NOS. 37408 AND 37410 OF 2017 DECEMBER  22, 2017 K. Jayachandran for the Petitioner. Mrs. Hema Muralikrishnan, Sr. Standing Counsel for the Respondent. ORDER 1. Heard… Read More »

Jewellery disclosed in regular return : No addition to income : Judgment

By | January 8, 2018

Issue CIT(A) confirmed addition of Rs. 22,57,632 on account of jewellery u/s. 69A of the Income Tax Act, 1961.  Held CBDT Instruction 1916 dated 11-05-1994 “Instances of seizure of jewellery of small quantity in the course of operation under section 132 have come to the notice of the Board. The question of a common approach… Read More »

Transferring Income Tax Case of Assessee to different officer : Hearing opportunity to Assessee not required

By | December 26, 2017

Held This Court has found that there has been an agreement between the two Heads of Department and the petitioner cannot plead for an opportunity to be granted before an order of transfer, as there is no such statutory requirement under the Act, rather, the said procedure has been specifically excluded. [ 2017 ] 05122017… Read More »

Subsidy scheme incentive for Multiplex Theatre held as Capital receipts : Supreme Court

By | December 26, 2017

Held The subsidy scheme in the West Bengal case is similar to the scheme in the Maharashtra case being to encourage development of Multiplex Theatre Complexes which are capital intensive in nature, and since the subsidy scheme in that case is also similar to the Maharashtra cases, in that the amount of entertainment tax collected… Read More »

Linking of Aadhaar with mobile no. & opening of Bank Account : Supreme Court Extended timelines

By | December 26, 2017

SC extends deadline for linking of Aadhaar with mobile no. & opening of Bank Accout till 31.03.2018 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL ORIGINAL JURISDICTION WRIT PETITION (CIVIL) NO 494 OF 2012 JUSTICE K S PUTTASWAMY (RETD ) AND ANR ….. PETITIONERS Versus UNION OF INDIA AND ORS ….. RESPONDENTS WITH T C… Read More »

CBDT circular of revised limits for filing appeal applies to pending appeals also : Supreme Court

By | November 25, 2017

Issue : Instruction No.3 of 2011 dated 9.2.2011, provids for appeals not to be filed before the High Court(s) where the tax impact was less than Rs.10 lakh. The Instruction/Circular in question is stated to have a prospective effect as per the Revenue and, thus, cases which were pending in the High Court(s) and had been… Read More »

Income Tax Audit not done u/s 44AB : No penalty if assessee acted bona fide

By | November 24, 2017

Held Even though the net profit / loss arising from the purchase and sale of securities was disclosed by the assessee in the profit and loss account, the value of such securities held by the assessee was fully and truly disclosed by the assessee under the head investment in the relevant balance sheet.The said method… Read More »

Filing of manual ITR without Aadhaar number rejected by Madaras High Court

By | November 10, 2017

Held In the case of Binoy Viswam, it would clearly show that the Hon’ble Supreme Court has not stayed the Proviso to Sub-Section (2) of Section 139AA of the Act and the partial stay would be applicable only to facilitate the other transactions, which are mentioned in Rule 114B of the Rules, which pertains to transactions, in… Read More »

Delhi HC Judgment : Income Tax ICDS provisions : ultra vires

By | November 9, 2017

Income Tax ICDS provisions The Central Government cannot do what is otherwise legally impermissible. Therefore, the following provisions of ICDS are held as ultra vires and are liable to be struck down:- (1) ICDS I : It does away with the concept of ‘prudence’ and is contrary to the Act and to binding judicial precedents. Therefore, it is… Read More »

Condonation of delay in making IDS payment : CIT to dispose of application

By | October 10, 2017

HIGH COURT OF BOMBAY Sadhana Rajendra Jain v. Central Board of Direct Taxes S.C. DHARMADHIKARI AND SMT. VIBHA KANKANWADI, JJ. WRIT PETITION NO. 8066 OF 2017 AUGUST  29, 2017 Rohan Deshpande for the Petitioner. S.V. Walve for the Respondent. ORDER 1. This petition was placed before us on 14-8-2017 but due to paucity of time it could not be taken… Read More »

Son was legal representative of deceased father : Tax Recovery can be done

By | October 8, 2017

[2017] 85 308 (Calcutta) HIGH COURT OF CALCUTTA Arvind Kayan v. Union of India DEBANGSU BASAK, J. WP NO. 504 OF 2017 AUGUST  30, 2017 Koushik Chowdhury, Adv. and Ms. Sumita Shaw, Adv. for the Petitioner. Kaushik Chandra, ld. ASG, Md. Nizumuddin, Adv. and Ms. Smita Das De, Adv. for the Respondent. ORDER 1. The Court : The petitioner assails an order dated… Read More »

Non payment of self assessment tax attracts penalty under Income Tax Act : ITAT

By | October 4, 2017

Whether an assessee is liable to penalty under section 221(1) of the Act in a case in which the though the assessee has not paid the self assessment tax under section 140A, while filing the return of income, but revises the income, by filing revised return of income, and pays the tax on the revised… Read More »

Two assets falling within tangible and intangible assets constitute single block of assets

By | October 4, 2017

Section 2(11) of the Indian Income Tax Act, 1961 specifies as only two class of assets i.e. tangible and intangible assets and within these two classes of assets, assets having same rate of depreciation are prescribed and they fall within the same block. Whereas, the concept of an asset falling within the same block is… Read More »

Salary in NRE account of non-resident seafarer not taxable in India: ITAT

By | October 3, 2017

Held we are of the view that CBDT has issued a Circular No. 13/2017 dated 11.04.2017 wherein CBDT has clarified that the salary accrued to a non-resident seafarer for services rendered outside India on a foreign ship shall not be included in the total income merely because the salary has been credited in the NRE account maintained… Read More »

AO can’t pass order because PAN was still lying within his jurisdiction

By | October 3, 2017

Held In the present case, the jurisdiction is transferred by Commissioner of Income Tax-3, Mumbai on 19-12-2014. The copy of order transferring jurisdiction was sent to the DCIT 3(1)(1), Mumbai and to other concerned officials but not to ITO 3(1)(3) who passed assessment order in the case of assessee. If the information given in jurisdiction… Read More »

Section 54F allowed if multiple flats sold to purchase one big flat

By | August 19, 2017

IN THE ITAT DELHI BENCH: ‘E’ Assistant Commissioner of Income-tax, Circle-27(1), New Delhi v. Mohinder Kumar Jain H.S. SIDHU, JUDICIAL MEMBER AND O.P. KANT, ACCOUNTANT MEMBER IT APPEAL NO. 5254 (DELHI) OF 2014 [ASSESSMENT YEAR 2011-12] AUGUST  4, 2017 R.C. Dandaya, Sr. DR for the Appellant. R.S. Singhvi and Satyajeet Goel, CAs for the Respondent. ORDER O.P. Kant, Accountant Member – This… Read More »

Sales tax subsidy is revenue receipt if can be used for any purpose

By | July 15, 2017

Q : Whether the amount received by the assessee by way of exemption of sales tax payments was  a trading receipt and not a capital receipt, hence  liable to tax ? Held , Yes HIGH COURT OF DELHI Commissioner of Income-tax v. Bhushan Steels & Strips Ltd. S. RAVINDRA BHAT AND NAJMI WAZIRI, JJ. IT APPEAL NOS.… Read More »