Category Archives: Judgements

Section 50C could not be applied to sale of development rights of land

Held The provisions of section 50C are deeming provisions. It is settled law and well accepted rule of interpretation that deeming provisions are to be construed strictly. Thus, while interpreting deeming provisions neither any words can be added nor deleted from language used expressly. We should apply the ‘Rule of Strict Interpretation’ as well as… Read More »

Burden on assessee to prove interest-free funds exceeded value of investment to escape section 14A disallowance

Held The burden is upon the assessee to show and prove that interest free fund far exceeds the value of investment and thereafter, to justify the quantification of amount of Rs. 4 lakhs towards disallowance for the exempted income. In the present case, the said burden has not been discharged satisfactorily and thereafter, the assessing… Read More »

Payment for broadcasting rights of Olympic games isn’t royalty :Federal Court of Australia

Issue is whether s 128B of the Income Tax Assessment Act 1936 (ITAA 1936) applied to payments that Seven Network Limited (Seven), a resident of Australia, paid to the International Olympic Committee (IOC), a resident of Switzerland, between March 2006 and August 2008 for the broadcasting rights to the Olympic Games. Whether s 128B of… Read More »

Computerized machines are not Computers, 60 % Depreciation not allowed

Held Increasingly organizations are moving towards computerized integrated manufacturing, where more and more computers, robots, and microprocessors are used in conjunction with the machines. But the machines cannot be called as computers even though computer is an integral and dedicated part of the whole machine. That computer in the machine cannot be used for any… Read More »

Encashment of bank guarantee doesn’t amount to payment of duty: Madras HC

HIGH COURT OF MADRAS Nizamabad Agro (P.) Ltd. v. Assistant Commissioner of Customs -EODC T.S. SIVAGNANAM, J. W.P. NO. 27525 OF 2016 AUGUST  30, 2016 S. Murugappan for the Petitioner. Rajkumar Jhabakh, Senior Standing Counsel for the Respondent. ORDER 1. Heard Mr.S.Murugappan, learned counsel appearing for the petitioner and Mr.Rajkumar Jhabakh, learned Senior Standing Counsel… Read More »

Foreign trip expenses of Doctors & their spouses by Pharma Co Disallowed

IN THE ITAT MUMBAI BENCH ‘A’ Assistant Commissioner of Income-tax, Circle 6 (3), Mumbai v. Liva Healthcare Ltd. MAHAVIR SINGH, JUDICIAL MEMBER AND RAMIT KOCHAR, ACCOUNTANT MEMBER IT APPEAL NOS. 904, 945 (MUM.) OF 2013 [ASSESSMENT YEAR 2009-10] SEPTEMBER  12, 2016 A. Ramachandran for the Appellant. B.V. Jhaveri for the Respondent. ORDER   Ramit Kochar,… Read More »

Territorial jurisdiction issue can’t be raised after 30 days issuance of reassessment notice

Held Section 124(3) stipulates a bar to any contention about lack of jurisdiction of an AO. It is not as if the provisions of the Act disable an assessee from contending that in the given circumstances the AO lacks jurisdiction; rather Section 124(3) limits the availability of those options at the threshold. The assessee upon… Read More »

Club membership fee paid for employee is admissible business expenditure

IN THE ITAT MUMBAI BENCH ‘F’ Foods and Inns Ltd. v. Assistant Commissioner of Income-tax, Circle 10(2), Mumbai JASON P. BOAZ, ACCOUNTANT MEMBER AND SANDEEP GOSAIN, JUDICIAL MEMBER IT APPEAL NOS. 1262/MUM/2011, 6629/MUM./2012 & 6271/MUM./2014 [ASSESSMENT YEARS 2007-08, 2009-10 & 2010-11] JUNE  7, 2016 Keshav B. Bhujle for the Appellant. G.M. Doss and S.R. Kirtane… Read More »

High Court can’t direct CIT(A) to condone the delay beyond condonation power of CIT(A)

Held Section 85 of the Finance Act, is similar to Section 128 of the Customs Act, 1962; Section 34(3) of the Arbitration and Conciliation Act, 1996; Section 125 of the Electricity Act, 2003; Section 35-G of the Central Excise Act, 1944 and the statutes referred to above, are self contained Acts and codes by themselves.… Read More »

Personal properties of directors can’t be attached to recover sales tax due of company : HC

HIGH COURT OF GUJARAT Different Solution Marketing (P.) Ltd. v. Assistant Commissioner of Commercial Taxes AKIL KURESHI AND A.J. SHASTRI, JJ. SPECIAL CIVIL APPLICATION NO. 19949 OF 2015 JUNE  30, 2016 Sikandar M. Pathan, Advocate for the Petitioner. Jirga Zaveri, Asstt. Govt. Pleader for the Respondent. JUDGMENT Akil Kureshi, J. – Leave to delete petitioner… Read More »

SCN can’t allege suppression when facts were known to department

CESTAT, CHENNAI BENCH Ishvarya Publicities (P.) Ltd. v. Commissioner of Service Tax, Chennai-II P.K. CHOUDHARY, JUDICIAL MEMBER FINAL ORDER NO. 40864/2016 APPEAL NO. ST/42102/2015 MAY  31, 2016 M. Karthikeyan, Adv. for the Appellant. K. Veerabhadra Reddy, JC (AR) for the Respondent. ORDER 1. M/s. Ishvarya Publicities Pvt. Ltd. are engaged in the business relating to… Read More »

Refund of brought forward CENVAT Credit in case of 100% exporter of services,

Held Since in the present case, 100% services are exported therefore total turnover and exports turnover will come to the same amount and accordingly entire Cenvat credit availed by the appellant irrespective of any period shall become refundable, CESTAT, MUMBAI BENCH Q Logic India (P.) Ltd. v. Commissioner of Service Tax, Pune RAMESH NAIR, JUDICIAL… Read More »

Digest of 700 judgements on Transfer Pricing, International Tax and Domestic Tax

Judgements on Transfer Pricing, International Tax and Domestic Tax Transfer Pricing – Page 2 International Tax – Page 42 Domestic Tax – Page 57 International transactions Cases 1 to 11 Permanent Establishment Cases 243 to 256 Income – Cases 321 to 330 Most Appropriate Method Royalty / Fees for technical services – Cases 257 to… Read More »

Upfront payment of interest allowable in the year of payment , No Spreading required over the years : SC

[2015] 372 ITR 605 (SC) SUPREME COURT OF INDIA Taparia Tools Ltd. v. Joint Commissioner of Income-tax, Nasik A.K. SIKRI AND ROHINTON FALI NARIMAN, JJ. CIVIL APPEAL NOS. 6366 – 6368 OF 2003 AND 6946 – 6948 OF 2004 MARCH  23, 2015 K. Radhakrishnan, Sr. Adv., Sanjay M. Shah, Rustom B. Hathikhanawala, Ms. Niranjana Singh,… Read More »

Writ petition can be filed in case of question of Law involved even if alternative remedy of filing an appeal was available

Held The questions that have been raised by the appellant being absolutely pure questions of law, the High Court should have decided these matters. SUPREME COURT OF INDIA Aircel Ltd. v. Commercial Tax Officer DIPAK MISRA AND SHIVA KIRTI SINGH, JJ. WRIT PETITION (CIVIL) NOS. 1055 & 1057 OF 2013 & OTHERS APRIL  22, 2016… Read More »

Higher Secondary School certificate acceptable as age proof : Supreme Court

Issue whether the second respondent-Corporation was justified in rejecting the application of the appellant for allotment of retail outlet of petroleum/diesel dealership  on the ground that the age proof submitted by her was not of the Secondary School as per the norms, but of a Higher Secondary School. Held NO The requirement of the Corporation… Read More »

Reopening of the assessment should indicate which material fact was not disclosed by the Assessee

Issue The assessee company has earned a dividend of Rs. 1,85,30,220/- which has been treated as exempt u/s 10(34) of the Act. However, no disallowance of expenditure have been made u/s 14A neither has assessee produced any details to show that no expenditure was incurred on earning of this exempt income. Held It was insisted… Read More »

Second marriage in subsistence of first marriage is held void in law

IN THE HIGH COURT OF JUDICATURE AT  BOMBAY CIVIL APPELLATE JURISDICTION FIRST APPEAL NO.577 OF 2015 WITH CIVIL APPLICATION NO.1770 OF 2015 Draupada @ Draupadi Jaydeo Pawar and Others …  Appellants vs. Indubai d/o. Kashinath Shivram Chavan and Another …  Respondents Mr. C.M. Kothari, for the Appellants and Applicants. Mr. Mahindra Deshmukh, for Respondent Nos. 1 and 2. CORAM : MRS.MRIDULA BHATKAR, J. RESERVED ON  : 5th JANUARY, 2016 PRONOUNCED ON  : 10th FEBRUARY, 2016 Held “The Indian system has adopted monogamy as a legal structure of the marriage institution and, therefore, occasional second marriage in subsistence of first marriage is held void in law,” Justice Mridula Bhatkar observed,… Read More »