Writ cannot be filed challenging that assessment order was passed without giving fair hearing opportunity

INCOME TAX : Where writ petition had been filed raising a plea that assessment order had been passed in violation of principles of natural justice, since each and every objection raised by petitioner in his written representation, had been considered by assessing authority and it had rejected same by giving reasons, and whether reasons for rejection given by respondent is correct or not cannot be held to be violation of principles of natural justice, respondent had adhered to principles of natur

from www.taxmann.com Latest Case Laws https://ift.tt/3msTiSo

HC cannot file writ challenging that assessment order was passed without giving fair hearing opportunity

INCOME TAX : Where writ petition had been filed raising a plea that assessment order had been passed in violation of principles of natural justice, since each and every objection raised by petitioner in his written representation, had been considered by assessing authority and it had rejected same by giving reasons, and whether reasons for rejection given by respondent is correct or not cannot be held to be violation of principles of natural justice, respondent had adhered to principles of natur

from www.taxmann.com Latest Case Laws https://ift.tt/39tAbno

SCN issued to Managing Director of a Co. was treated as issued to both MD and Co. when they were treated as one

COMPANY LAW : Show-cause notice relating to trading irregularities having been issued to Managing Director of Respondent No. 1 company will be treated as being issued to said company as both entities were being treated as one and same by said entities themselves further, there was no grievance ever made at stage of final hearing before Single Judge about absence of show-cause notice this aspect was sought to be brought in only at stage of appeal, for first time thus, no fresh show-cause notice w

from www.taxmann.com Latest Case Laws https://ift.tt/2KJqaYO

CIT was justified in granting registration from 2nd application as no steps were taken to dispose of 1st application

INCOME TAX : Where assessee-trust filed application in Form 10A under section 12AA on 11-3-2009 for granting registration and without pursuing same for 2 years filed another application on 28-6-2011 second application could not be considered as a letter in continuation of earlier application; it was to be considered as a fresh application and registration was rightly granted from 1-4-2011 and not from 1-4-2009

from www.taxmann.com Latest Case Laws https://ift.tt/3qcMtGD

Exp. attributable to exempt income to be added back for MAT computation without resorting to sec. 14A disallowances

INCOME TAX : Where assessee, carrying on trading activities in stock and commodities, made provision for mark to market loss on trading in derivative and claimed loss as deductable business expenditure, even though loss was not finally crystallized as per prudent and regular system of accounting, loss had to be accounted for and, thus, same should be allowed

from www.taxmann.com Latest Case Laws https://ift.tt/3fMA9YS

Discount on issue of ESOPs is deducible u/s 37 as it is an exp. to secure services of employee

INCOME TAX : Discount on issue of ESOPs was allowable as a deduction under section 37(1) as primary object was not to waste capital but to earn profits by securing consistent services of employees

from www.taxmann.com Latest Case Laws https://ift.tt/2HJ4Hy2

Office of FCRA wing of foreigners division of Home Ministry issues advisory for compliances under FC

Home Ministry issues advisory for Compliance by FCRA NGOs/Associations. Advisory is meant for associations that belongs to: (a) Those who have submitted application for registration (b) Those who have submitted application for Renewal (c) Those who are yet to submit application for registration/Prior Permission (d) Those who are yet to submit application for renewal (e) those who hold valid FCRA registration/Prior Permission and are not in immediate of renewal of such certificate/PP.

from taxmann.com News https://ift.tt/3lg3Brx

Cost of shares acquired on conversion of bonds to be determined on basis of price prevailing on BSE or NSE

INCOME TAX : Where bonds were issued under FCCB scheme and converted into shares, conversion price was to be determined on basis of price of shares at stock exchanges, namely, BSE or NSE and same was to be adopted as cost of acquisition

from www.taxmann.com Latest Case Laws https://ift.tt/2Vc9X0o

SC upholds validity of Tribunal Rules 2020 with modifications; orders setting up of National Tribunals Commission

COMPANY LAW : The Supreme Court has upheld the validity of Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020 with some modifications and ordered constitution of National Tribunals Commission to supervise the appointments to and functioning of tribunals

from www.taxmann.com Latest Case Laws https://ift.tt/3fEv0Cd

SC disposes of writ petition challenging interest on loan during moratorium in wake of Covid-19

FEMA, BANKING & INSURANCE : Where petitioner expressed its satisfaction on the measures taken by the Government redressing petitioner's grievances and the Union of India having taken specific measures vide its circular dated 23.10.2020, which has been brought on the record and follow-up measures were also taken in consequence thereof, writ petition challenging interest on loan during moratorium was to be disposed of

from www.taxmann.com Latest Case Laws https://ift.tt/3nZwJoy

Matter remanded to decide whether loss from eligible units u/s 80-IC can be set off against profits from ineligible unit

INCOME TAX : Loss incurred by assessee in respect of its unit eligible for deduction under section 80-IC could be set off against income of assessee from other unit not eligible for deduction under said section

from www.taxmann.com Latest Case Laws https://ift.tt/39jSnzL

SC upholds SAT’s order setting aside ex-parte interim order of SEBI due to pendency of investigation

COMPANY LAW/SEBI : Where SEBI by an ex parte interim order directed respondent, who was CEO of subject company to deposit notional gain made by him in trades carried out in scrips of company using unpublished price sensitive information but Tribunal set aside that order holding that investigation was pending and there was no urgency for passing an ex-parte interim order, it was held that Tribunal was on facts of case correct in setting aside ex-parte order of SEBI on ground that no urgency had b

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000197050/sc-upholds-sat’s-order-setting-aside-ex-parte-interim-order-of-sebi-due-to-pendency-of-investigation.aspx

Loss suffered in unit eligible for sec. 80-IC deduction can be set off against profits earned from ineligible unit

INCOME TAX : Loss incurred by assessee in respect of its unit eligible for deduction under section 80-IC could be set off against income of assessee from other unit not eligible for deduction under said section

from www.taxmann.com Latest Case Laws https://ift.tt/368e4AW

HC ought to decide writ challenging validity of section 40(a)(iib) though matter was sub-judice before AO: SC

INCOME-TAX : High Court to decide writ petition on merits with respect to challenge to vires of section 40(a)(iib), irrespective of fact whether matter was sub-judice before Income Tax Authority

from www.taxmann.com Latest Case Laws https://ift.tt/3l7Q850

Appointment/Removal of director in AGM and EoGM was to be stayed in absence of notice of agenda : NCLAT

COMPANY LAW : Where in AGM and EoGM, new directors were appointed and appellant was removed from directorship, in view of fact that neither any resolution or any minute of board meetings was in existence nor any notice of agenda was circulated in prescribed manner, appointment of new directors and removal of appellant as director was to be stayed

from www.taxmann.com Latest Case Laws https://ift.tt/3fChb7p

Successor company is eligible to claim depreciation on Intangible assets acquired under succession

INCOME TAX : Where under a scheme of succession intangible assets of a partnership firm were transferred to assessee-company in lieu of shares issued to partners of erstwhile firm, successor assessee-company was entitled to claim depreciation on such intangible assets on cost incurred by it with reference to such intangible assets

from www.taxmann.com Latest Case Laws https://ift.tt/3nUshrd

Investment in residential property outside India before AY 2015-16 was eligible for sec. 54F exemption

INCOME TAX : Requirement of investment in a residential house in India in order to claim exemption under section 54F(1) is applicable from assessment year 2015-16 only

from www.taxmann.com Latest Case Laws https://ift.tt/3l7DIdo

Interest on deposits made out of borrowed fund before commencement of business constitutes income from other sources

INCOME TAX : Interest earned by assessee-company on short-term deposits made by it with bank out of loans borrowed for setting-up of commercial complex in pre-operative period before commencement of business was to be considered as income of assessee from other sources

from www.taxmann.com Latest Case Laws https://ift.tt/37ddPDI

Right of secured creditors to realise secured credit interest to prevail over decree passed by Civil Court

FEMA/BANKING & INSURANCE : In view of overriding non obstante provisions under section 26E, realization of secured interest for satisfying debts of secured creditors is to prevail over all other dues including decretal dues under decree passed by civil courts and government dues like taxes etc.

from www.taxmann.com Latest Case Laws https://ift.tt/3q4Gcgj

Scheme of amalgamation being fair, reasonable and not detrimental against members or creditors was to be approved

COMPANY LAW/IBC : Scheme of amalgamation of companies was sanctioned as it was fair, reasonable and not detrimental against members or creditors and was in conformity with accounting standard and no statutory authority/regulator objected to same

from www.taxmann.com Latest Case Laws https://ift.tt/2JbF0GP

Status quo of properties attached under PMLA couldn’t have been interfered with by Court without hearing final appeal

FEMA, BANKING & INSURANCE : Properties of appellant were attached under PMLA. Vide order dated 21-12-2017 passed by Special Judge, CBI, New Delhi, all accused persons including applicants were acquitted of charges framed against them. Thereafter an ex parte ad interim order dated 21-3-2018 was passed, vide which status quo in respect of attached properties was directed to be maintained. Applicant preferred a leave to appeal before instant court for modification of order dated 21-3-2018 for exclu

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000197031/status-quo-of-properties-attached-under-pmla-couldn’t-have-been-interfered-with-by-court-without-hearing-final-appeal.aspx

Sec. 54F relief can’t be denied on mere ground that assessee had jointly owned another property on date of transfer

INCOME TAX : Where assessee was having only 50 per cent share in second residential house which was sold to assessee's son, Assessing Officer could not deny exemption under section 54F to assessee on ground that assessee had more than one residential house

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196042/sec-54f-relief-can’t-be-denied-on-mere-ground-that-assessee-had-jointly-owned-another-property-on-date-of-transfer.aspx

Real Estate developer isn't a dominant player in Pune due to presence of other developers : CCI

COMPETITION LAW : Where due to presence of other private real estate service providers in relevant market for developing and sale of retirement homes in form of residential flats in Pune District, consumers were not dependent on OPs alone for provision of real estate services under consideration, OPs developer could not be said to be dominant in relevant market and therefore, question of abuse of dominant position within meaning of provisions of section 4 did not arise

from www.taxmann.com Latest Case Laws https://ift.tt/39lrNWO

ITAT's order was unjustified as original return was not restored before AO after holding revised return time-barred

INCOME TAX : Where assessee pursuant to survey conducted upon it filed its revised return and an assessment order was passed making certain disallowances/additions, however, Tribunal held revised return as barred by limitation and also deleted such disallowances/additions, Tribunal was justified in holding revised return as barred by limitation but it was not justified in going into issue of disallowances before Assessing Officer had an opportunity of assessing original return and determining ta

from www.taxmann.com Latest Case Laws https://ift.tt/2V1TTy2

No denial of sec. 80-IB deduction if material before AO evidenced employment of more than 10 workers in each unit

INCOME TAX : Where even prior to assessment, assessee produced material before Assessing Officer which evidenced that each of Units of assessee employed more than 10 workers, assessee fulfilled conditions required for claiming deduction under section 80-IB even though it failed to mention same in Form No. 10CCB

from www.taxmann.com Latest Case Laws https://ift.tt/33aUcv9

Nothing is provided to prove that employees are of Indian Co., Activity qualifies as Manpower Supply Services : CESTAT

GST/EXCISE/ST/VAT : Where appellant had entered into agreement with FSE, whereby FSE had agreed to cause appearance and participation of Vijay Amritraj a renowned player in a tournament organized by appellant against payment of agreed consideration, services provided by FSE will be classified as Manpower Recruitment and Supply Agency Services

from www.taxmann.com Latest Case Laws https://ift.tt/39bDnnG

Sec. 263 revision was unjustified where AO has allowed assessee's claim on meticulous appreciation of evidence

INCOME TAX : Where Assessing Officer on meticulous appreciation of evidence on record allowed claim of assessee of depreciation on leasehold right held by it in a land by treating it as intangible asset, impugned invocation of revision under section 263 against said order on ground of inadequacy of enquiry by Assessing Officer was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3fwRHrN

SEBI comes up with consultation paper on re-classification of promoter group entities

The Market Regulator, SEBI has come up with consultative paper on re-classification of promoter/ promoter group entities and disclosure of the promoter group entities in the shareholding pattern. As a result, listed entities shall make an application to Stock Exchanges for re-classification of any person as promoter and listed entities shall require to follow the specified procedure not later than 30 days from the date of approval.

from taxmann.com News https://ift.tt/2UV1uhT

Additions related to Swiss Bank upheld as there was proper issue of notice u/s 143(2) before completing reassessment

INCOME TAX : Where reopening notice was issued against assessee on basis of information obtained from Investigation Wing that assessee had operated undeclared account with a bank located outside India and carried out unaccounted transactions and made deposits in it, impugned reopening notice was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3fr06gk

Matter which did not subject to revision under sec. 263 can be challenged before CIT(A)

INCOME TAX : Appeal filed by assessee before Commissioner (Appeals) would be maintainable in respect of subject matter which do not pertain to grounds under section 263

from www.taxmann.com Latest Case Laws https://ift.tt/3pCw5yL

Section 234B couldn't be levied as payer was liable to deduct tax from payment to non-resident : HC

INCOME TAX : If payer, who was required to make payments to non-resident, had deducted tax at source from such payments, question of payment of advance tax by payee would not arise and, therefore, it would not be permissible for revenue to charge any interest under section 234B

from www.taxmann.com Latest Case Laws https://ift.tt/3kBbA20

Onus is on payer to prove that taxes which he has failed to deduct has been paid by payee

INCOME TAX : Burden to prove that payee had paid tax directly under section 191 which assessee failed to deduct as TDS is placed on assessee, and not on Department; on failure to do so assessee is to be considered as assessee in default

from www.taxmann.com Latest Case Laws https://ift.tt/2H7rlQo

Safe harbour limit prescribed u/s 43CA and 56(2)(x) increased to 20%

To boost demand in the real-estate sector and to enable the real-estate developers to liquidate their unsold inventory, the Finance Minister has announced to increase the tolerable limit from 10% to 20% under Section 43CA and Section 56(2)(x). However, this increase shall be effective for a limited period only, i.e. from 12-11-2020 to 30-06-2021. Further, this increase shall be applicable in respect of the primary sale of residential units having value up to Rs 2 crores.

from taxmann.com News https://ift.tt/3pD13qP

SAT upholds SEBI’s order to disgorge unlawful gains against Reliance Industries

SEBI: Where appellant RIL decided to sell 5% of its shareholdings in RPL and it took route with help of its agents to perpetuate scheme in cornering a substantive portion of market-wide position limit in relevant RPL Futures Contract, same was manipulation of market and such manipulation could not be treated simply as a position limit violation and it was undoubtedly a pre-planned strategy of manipulation, with all actions done by a single entity,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196916/sat-upholds-sebi’s-order-to-disgorge-unlawful-gains-against-reliance-industries.aspx

Assessee controlled by Govt. & not having profit as dominant objective is eligible for sec. 11 exemption

INCOME TAX : Where assessee was a statutory body under provision of Karnataka Urban Development Authority Act, 1987 formed with, an object to promote and assist in rapid and orderly establishment, growth and development of industries in suitable areas in State, activities of assessee would be considered as charitable

from www.taxmann.com Latest Case Laws https://ift.tt/2ICmBms

Appeal against ITAT’s order which has jurisdiction in two States to be filed in State from where first order emanates

INCOME TAX : mere presence of an inter-State Tribunal cannot be determinative of High Court's jurisdiction for an aggrieved party to challenge that Tribunal's order

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196881/appeal-against-itat’s-order-which-has-jurisdiction-in-two-states-to-be-filed-in-state-from-where-first-order-emanates.aspx

Prosecution initiated couldn't be quashed if there was corroboration between documents seized from Co. & purchaser

INCOME TAX : Where complaints under section 276C/277 were filed against assessees on basis of seized material from purchaser of assessee's land and seized material's indicated that assessees received some part of sale consideration in cash but did not disclose same in return, trials of said complaints could not be quashed

from www.taxmann.com Latest Case Laws https://ift.tt/2UprQbu

No abuse of dominance by OP-company due to presence of other players in market : CCI

COMPETITION LAW : Where besides OP, there were number of other global players operating in market of safe rail system and OP did not appear to command any market power, allegation of abusive behaviour on part of OP under section 4 could not be considered

from www.taxmann.com Latest Case Laws https://ift.tt/35ru6oZ

FM raises tolerable limit under Section 43CA and 56(2)(x) from 10% to 20%

Considering the decline in prices of the residential unit due to economic slowdown, the Finance Minister has announced to increase this tolerable limit from 10% to 20%. However, this increase in the threshold from 10% to 20% shall be effective under Section 43CA and Section 56(2)(x) for a limited time period (from the date of the announcement to 30-06-2021) on primary sale of residential units having value up to Rs 2 crores

from taxmann.com News https://ift.tt/36xfP9w

FM announces Income-tax relief for Developers & Home Buyers under Atmanirbhar Bharat Package 3.0

The Finance Minister has announced Atmanirbhar Bharat Package 3.0 during a press conference held on November 12, 2020. FM has announced many stimulus packages including new announcement of new job scheme. With regards to tax relief, FM has announced increase in safe harbour limit u/s 43CA & 56(2)(x) from 10% to 20% (subject to certain conditions)

from taxmann.com News https://ift.tt/2Un1OG1

FinMin release another set of FAQs on LTC cash voucher scheme

The Ministry of Finance has release another set of Frequently Asked Questions (FAQs) on the Leave Travel Concession (LTC) voucher scheme which was announced as a special package in lieu of LTC during block of 2018-21. A set of FAQs was also released by the Govt. previously vide OM dated 20-10-2020

from taxmann.com News https://ift.tt/35onNTp

Production of poultry feeds by processing raw materials & other inputs amount to manufacture

INCOME TAX : Production of poultry feeds by assessee by way of receiving raw materials and other inputs and processing them by grinding, mixing, roasting and blending to produce large quantity of poultry feeds would amount to 'manufacture' and assessee would be entitled to claim deduction under section 80-IB

from www.taxmann.com Latest Case Laws https://ift.tt/36ocHgi

AO can withhold Vodafone's refund without processing ITR till AY 2017-18; review petition dismissed

INCOME TAX : Review petition dismissed against finding that section 241A requires a separate recording of satisfaction on part of Assessing Officer that having regard to fact that a notice has been issued under section 143(2), grant of refund is likely to adversely affect revenue whereafter, with previous approval of Principal Commissioner or Commissioner and for reasons to be recorded in writing, refund can be withheld

from www.taxmann.com Latest Case Laws https://ift.tt/3pkgLXF

IFSC approves draft Banking Regulations

The IFSC Authority has approved of the draft banking regulations which paves the way for putting in place the rules for the various aspects of banking operations that would be permissible at the IFSC. The salient aspects of the banking regulations include laying down the requirements for setting up IFSC Banking Units (IBUs) and permitting persons resident outside India (having net worth of not less than USD1 million).

from taxmann.com News https://ift.tt/3ngRYSy

IFSC International Retail Business Development Committee presented the final report to IFSCA

IFSC International Retail Business Development Committee presented the final report to IFSCA

from taxmann.com News https://ift.tt/2IrtOWn

No denial of sec. 80-IB deduction if unaccounted money found during search was treated as business income: HC

INCOME TAX : Where unaccounted money found during search proceedings at premises of assessee-company, engaged in business of building and developing housing project, was treated as business income of assessee by Assessing Officer, assessee could not be denied deduction under section 80-IB(10) in respect of such amount

from www.taxmann.com Latest Case Laws https://ift.tt/3lo8BuX

Provisions of Sec. 56(2)(viia) cannot be made applicable to capital contribution of a partner made in the firm

INCOME TAX : Where consideration for capital contribution made by a partner in a firm is share in profits of firm during firm's subsistence and share in assets after firm's dissolution, consideration was 'indeterminate' and as such computation provisions of section 48 would fail and hence, no capital gain would arise thereon; further, when consideration is indeterminate, computation provisions of section 56(2)(viia) to determine inadequacy or otherwise of 'such consideration' also fail and provi

from www.taxmann.com Latest Case Laws https://ift.tt/2Uj3Re2

Abuse of dominance by ‘Google’ on pre-installation of GPay on Android phones: CCI

COMPETITION LAW : Where informant filed information alleging that Google, through its control over Play Store and Android Operating system (OS) was favouring Google Pay over other competing apps, to disadvantage of both i.e. apps facilitating payment through UPI, as well as users, it was held conduct of Google in encouraging pre-installation and opting of Google Pay as default payment option on new smart mobile devices using Android OS at time of initial set up was prima facie abuse of dominance

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196884/abuse-of-dominance-by-‘google’-on-pre-installation-of-gpay-on-android-phones-cci.aspx

Consolidation of share capital approved of by 95% shareholding was to be allowed, rules NCLAT

COMPANY LAW : Where more than 95 per cent of shareholding was in favour of consolidation of shares, application filed for consolidation of share capital of company was to be allowed

from www.taxmann.com Latest Case Laws https://ift.tt/35lpnVU

Writ challenging auction proceedings not maintainable on ground of availability of alternate remedy u/s. 17(1): HC

FEMA, BANKING & INSURANCE : Writ petition challenging auction proceedings conducted by secured creditor would not be maintainable on ground of availability of alternate statutory remedy to petitioner in filing application under section 17(1) before Tribunal

from www.taxmann.com Latest Case Laws https://ift.tt/3lmOwF9

Sec. 12AA registration couldn't be declined without any finding that trust wasn't working for achieving its objects

INCOME TAX : Commissioner (Exemption) was not justified in declining registration to assessee-society when there was nothing on record to show that assessee was not working for achieving its aims and objects or that accumulated funds were used for purposes other than aims and objects of assessee

from www.taxmann.com Latest Case Laws https://ift.tt/2JPy1DK

SEBI issues consultation paper on applicability and role of ‘Risk Management Committee’

As the requirement of constituting a Risk Management Committee may be extended from top 500 to top 1000 listed entities, the market regulator, SEBI has issued consultation paper on applicability and role of Risk Management Committee.

from taxmann.com News https://www.taxmann.com/topstories/222330000000021039/sebi-issues-consultation-paper-on-applicability-and-role-of-‘risk-management-committee’.aspx

Matter remanded back as CIT(A) failed to record reasons for not considering condonation's grounds sufficient

INCOME TAX : Where Commissioner (Appeals)'s order did not record materials on basis of which satisfaction was arrived at that grounds urged by assessee in support of its prayer for condonation of delay were not sufficient grounds to condone delay, matter was remanded back to Commissioner (Appeals) to decide afresh issue of condonation of delay

from www.taxmann.com Latest Case Laws https://ift.tt/3ngyugy

SCC 12AA registration couldn't be declined without any finding that trust wasn't working for achieving its objects

INCOME TAX : Commissioner (Exemption) was not justified in declining registration to assessee-society when there was nothing on record to show that assessee was not working for achieving its aims and objects or that accumulated funds were used for purposes other than aims and objects of assessee

from www.taxmann.com Latest Case Laws https://ift.tt/3eOqUH7

Banks account to be made operational if revenue only attached fixed deposit maintained with banks: HC

INCOME TAX : Where revenue had provisionally attached fixed deposit receipts of two bank accounts of assessee, assessee's prayer to operate said bank accounts was to be allowed

from www.taxmann.com Latest Case Laws https://ift.tt/35jZ6Hr

Loss on account of settlement of forward contracts allowable even if no actual payment was made

INCOME TAX : Loss on account of settlement of forward contracts for purchase of plant and machinery was allowable even in a case where payment was not actually made by assessee

from www.taxmann.com Latest Case Laws https://ift.tt/3ePpZpK

Transaction of sale of assets of co. carried out only to whisk away assets by co. wasn't allowed to be registered: HC

COMPANY LAW : Where applicant purchased land from companies of JVG Group which at that time were likely to go under liquidation through ex-director of said companies and from investigation it was found that said transaction was not bona fide and was carried out only to whisk away valuable assets of JVG Group of companies, applicant could not be granted permission to complete process of registration/execution of sale deeds of land

from www.taxmann.com Latest Case Laws https://ift.tt/36lGCpp

Foreign exchange derivative loss incurred in respect of revenue item is allowable as deduction

INCOME TAX : Loss incurred on foreign exchange derivative cannot be disallowed holding it to be a speculative loss

from www.taxmann.com Latest Case Laws https://ift.tt/36knAQm

Product development expenses deductible u/s. 37 irrespective of accounting practice adopted for its amortisation

INCOME-TAX : Product development expenses are deductible even though said expenditure was to be amortized over a period of 3 years as per accounting practice adopted by assessee

from www.taxmann.com Latest Case Laws https://ift.tt/35dkE8A

Guarantee Commission for TP purpose is chargeable to extent of actual exposure of facility availed

INCOME TAX : Where during search operation at premises of assessee, 288 paintings were found but Assessing Officer noted that description of paintings mentioned on vouchers given by assessee did not match and were not verifiable, since paintings were acquired by assessee in years much prior to date of search, addition in respect of said paintings could not be made in search proceedings, and, thus, it would be appropriate to restore this issue to file of Assessing Officer

from www.taxmann.com Latest Case Laws https://ift.tt/2U8XdqK

Sec. 36(1)(iii) disallowance couldn't be attracted in absence of any material to show diversion of loans

INCOME TAX : Where Assessing Officer holding that cash sales of bullions were effected by assessee by quoting low rates as against sales effected against jewellery made addition for suppression of sales, however, Tribunal after taking note of number of instances where assessee had charged lesser on its jewellery customers than for cash sales and also finding that there was no additions for supression of sales for other assessment years deleted said addition, impugned order of Tribunal was justif

from www.taxmann.com Latest Case Laws https://ift.tt/3lmJc4Y

Notice couldn't be issued to person who acted as short term director if there were active directors in Co.

INCOME TAX : Where petitioner had acted as a director of company for a short period and disclosed details of acting directors, acting directors of company being available, department could have proceeded against any one of such acting directors for reassessment proceedings and could have treated any one of them as Principal Officer, and, thus, impugned order treating petitioner as Principal Officer was set aside

from www.taxmann.com Latest Case Laws https://ift.tt/2GLTXi7

No cancellation of registration if trust spending earning from newspaper business for education: Madras HC

INCOME TAX : Where assessee-trust was engaged in business of publishing newspaper, though assessee did not run any school or college, surplus of income from business was utilized for donation to a particular assessee-trust which was running educational institution and in earlier years, it was confirmed that amounts which were earned by assessee-trust was spent for a charitable purpose, registration granted to assessee-trust could not be cancelled

from www.taxmann.com Latest Case Laws https://ift.tt/32sbnaY

ST can’t be imposed on Bariatric surgery as it is not a cosmetic surgery

CGST/EXCISE/ST/VAT : Bariatric surgery performed by hospital on patients suffering from morbid obesity coupled with life-taking diseases like Type-II diabetes and Hypertension, arthritis, lipid disorder or obstructed sleep apnea or disease of a like nature, is not cosmetic surgery or plastic surgery and same cannot be subjected to service tax under section 65(105)(zzzzk) of Finance Act

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196816/st-can’t-be-imposed-on-bariatric-surgery-as-it-is-not-a-cosmetic-surgery.aspx

Suo motu disallowance of expenses u/s. 40(a)(ia) could not amount to disallowance u/s. 37

INCOME TAX: Where Assessing Officer denied exemption under section 10AA to assessee-company on ground that relevant documents did not reveal any specific details regarding services rendered by assessee to its AEs and that these were in nature of software development activity, since TP adjustment proposed by TPO was in respect of payments received on account of services rendered by assessee under software development segment, assessee could not be denied exemption under said section on abovesaid

from www.taxmann.com Latest Case Laws https://ift.tt/2Uc3YrG

AO can't disallow loss in trading from stock option solely on basis of interim order of SEBI

INCOME TAX : Where there were no material available with authorities below so as to conclude that assessee had entered into any dubious or other transactions deliberately to show business loss, disallowance of loss in trading from stock option could not have been disallowed by Assessing Officer solely on basis of interim order of SEBI alleging that certain entities were deliberately making repeated losses through their trading in stock option

from www.taxmann.com Latest Case Laws https://ift.tt/3lcIZRr

Proviso to sec. 2(15) not applicable as income generated by trust from 'Garba' event was utilised for its object

INCOME TAX : Where assessee charitable trust, engaged into health and human services for purpose of improving quality of life in society, earned revenue from organizing event of garba during navratri festival, since profit making was not an objective of assessee and said income generated by it was utilized fully for purposes of objects of trust, assessee would not be hit by proviso to section 2(15) and assessee was to be granted exemption under section 11

from www.taxmann.com Latest Case Laws https://ift.tt/2U9t2Q8

No refund of tax on prior period income which is declared in subsequent year: HC

INCOME TAX : Where income of petitioner was chargeable to tax and assessee paid self assessment tax which was admittedly payable, merely because income was not assessed in relevant year and was admitted by assessee on a later date, claim for refund of tax paid on admitted income is not sustainable

from www.taxmann.com Latest Case Laws https://ift.tt/32oRqSB

Real Estate Appellate Tribunal should be made full functional with financial autonomy, rules High Court Orissa

COMPANY LAW/RERA : Real Estate Appellate Tribunal should be made fully functional with financial autonomy; appropriate directions were issued and opposite party-State should make all endeavour to ensure compliance of each of directions within fifteen days so as to enable Real Estate Appellate Tribunal to function smoothly in interest of litigants, failing which it would be construed as contempt of Court

from www.taxmann.com Latest Case Laws https://ift.tt/3mVMDj6

Excise duty couldn't be included while valuing closing stock of goods manufactured and lying in stock

INCOME TAX : In respect of excisable goods manufactured and lying in stock, excise duty element is not to be included in valuation of closing stock

from www.taxmann.com Latest Case Laws https://ift.tt/36cm9mL

No. sec. 263 revision without any finding that as to how order passed by AO was erroneous

INCOME TAX : Where Assessing Officer examined issue regarding substantial increase in capital investment reflected by assessee in balance sheet in scrutiny assessment and passed assessment order, in absence of any finding by Pr. Commissioner as to how assessment order was erroneous, Tribunal rightly set aside revisional order passed by Pr. Commissioner on said issue

from www.taxmann.com Latest Case Laws https://ift.tt/32D3K1N

Time limit in Section 14 of SARFAESI Act mandating DM to deliver possession of a secured asset is directory: SC

FEMA, BANKING & INSURANCE : Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 mandating District Magistrate to deliver possession of a secured asset within 30 days, extendable to an aggregate of 60 days upon reasons recorded in writing, is a directory and not mandatory provision

from www.taxmann.com Latest Case Laws https://ift.tt/3evdH5O

Authority executing work related to supply of water, disposal of sewerage, etc. eligible for sec. 11 exemption

INCOME TAX : Assessee-Authority, constituted under Gujarat Town Planning and Urban Development Act, 1976, with functions, inter alia, to undertake preparation of development plans and to execute works in connection with supply of water, disposal of sewerage and provisions of other services, could be said to be carrying out charitable activities and thus entitled to exemption under section 11

from www.taxmann.com Latest Case Laws https://ift.tt/32jJ5zt

Only Director General of Foreign Trade empowered to block IEC Code: Bombay HC

GST : Blocking of importer exporter code by any authority other than Director General of Foreign Trade or by his authorized officer under section 8 of Foreign Trade (Development and Regulation) Act, 1992 would be unauthorized, unwarranted and without jurisdiction suspension and cancellation of importer exporter code number can be done only under Foreign Trade (Development and Regulation) Act, 1992 by Director General of Foreign Trade or by his authorized officer for reasons specified and in mann

from www.taxmann.com Latest Case Laws https://ift.tt/32iybtD

No denial of Sec. 54F exemption just because new house was let out by assessee for commercial purpose

INCOME TAX : Where reopening notice was issued against assessee on ground that land sold by it was situated within limits of city corporation and same could not be treated as an agricultural land as claimed by assessee, since assessee had already brought entire details about sale of land during original assessment and Assessing Officer had no new tangible material available to clarify its reopening, impugned reopening was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/2TXPMmn

Guideline value couldn't be treated as sale consideration where actual sale consideration is recited in sale deed

INCOME TAX: Guideline value shown in sale deed could not be construed as actual sale value to conclude that assessee had under quoted sale amount in return

from www.taxmann.com Latest Case Laws https://ift.tt/2TYEYEl

Provision of up-linking and broadcasting programmes in electronic media does not amount to technical services

INCOME TAX : Where payee simply carried out a contractual work of up-linking and broadcasting programmes made or produced by assessee in electronic media by permitting assessee to avail benefit of requisite electronic set up against payment of fee as long as contract subsisted, facilities provided by payee did not amount to providing 'technical services' and, hence, payments could not be termed as fees for technical services under section 194J and would be liable to TDS under section 194C

from www.taxmann.com Latest Case Laws https://ift.tt/3mWZAt3

Assessee couldn't be held liable for deduction of tax u/s 194C if truck owners have filed declaration in Form-15-I

INCOME TAX : Where assessee had duly complied with provisions of section 194C by collecting requisite 15-I Form, assessee was not liable to deduct TDS, on payment made to transporters

from www.taxmann.com Latest Case Laws https://ift.tt/3eAgavR

Sec. 151 sanction is pre-requisite for reassessment; AO is obliged to hand over a copy of same to assessee

INCOME TAX : Where Assessing Officer received information from entry operators that their bank accounts were used for layering funds and providing accommodation entries in form of bogus share capital/premium, bogus LTCG/STCG to several beneficiaries, including assessee, reassessment notice issued to assessee to tax concealed capital gain was valid

from www.taxmann.com Latest Case Laws https://ift.tt/3evr468

SC upholds order of Consumer Commission granting refund to allottees on delay in completion of housing project

COMPANY LAW/RERA : Where complainants had booked apartments in appellant's housing project in 2011-12 and as promised, construction should have been completed in 42 months but period had expired well before project was registered under provisions of RERA Act, it was held that merely because registration under RERA Act was valid till 31-12-2020 did not mean that entitlement of concerned allottees to maintain an action stood deferred and, therefore,

from www.taxmann.com Latest Case Laws https://ift.tt/32bgZGD

Service tax Audit can be done in GST regime: Delhi HC

GST : Section 174(2)(e) of CGST Act, 2017 specifically empowers authorities to institute any investigation, inquiry, verification, assessment proceedings, adjudication, etc. including service tax audit under rule 5A of Service Tax Rules, as said Rule framed under repealed or omitted chapter V of Finance Act, 1994 is saved

from www.taxmann.com Latest Case Laws https://ift.tt/38fuAR0

Refund allowed to assessee after wrong reversal of proportionate credit on exempted services: Chennai- CESTAT

GST : Where Amazon was providing BSS and warehousing services to appellant and appellant having utilized input services for trading (exempted services) as well as taxable output services, they opted for reversal of proportionate credit as provided under rule 6(3A)(ii) of Cenvat Credit Rules, 2004, it was held that appellant would be eligible for refund after reversal/paying of proportionate credit on exempted services by applying Rule 6(3)(i)

from www.taxmann.com Latest Case Laws https://ift.tt/3jZFBbw

Exemption u/s 54B available if deposit in capital gain account scheme made before due date of filing of belated ITR

INCOME TAX : Section 54B(1) requires purchasing of new agricultural land within period of two years from date of sale of earlier agricultural land, thus, where original agricultural land was sold by assessee on 12-10-2011 and new agricultural land was purchased on 26-8-2013, which was well within given period of two years from date of transfer, assessee having complied with conditions for availing exemption under section 54B could not have been denied exemption

from www.taxmann.com Latest Case Laws https://ift.tt/38duSYt

President promulgates Arbitration and Conciliation (Amendment) Ordinance, 2020

To ensure that all the stakeholder parties get an opportunity to seek unconditional stay of enforcement of arbitral awards where the underlying arbitration agreement or contract or making of the arbitral award are induced by fraud or corruption, it has become necessary to make further amendments to the Arbitration and Conciliation Act, 1996. As a result the Govt. has promulgated the Arbitration and Conciliation (Amendment) Ordinance, 2020

from taxmann.com News https://ift.tt/369a1Tt

No substantial question of law arises on ITAT’s ruling allowing only 50% of salary paid by society to its society

INCOME TAX : Where assessee-society paid 10 per cent of amount earmarked for charitable purposes to its Secretary as 'salary' and Tribunal upheld order of Commissioner (Appeals) that only 50 per cent of salary paid to its Secretary was to be allowed, since there was no substantial questions of law arising for consideration, assessee's appeal against order of Tribunal was to be dismissed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196064/no-substantial-question-of-law-arises-on-itat’s-ruling-allowing-only-50-of-salary-paid-by-society-to-its-society.aspx

CBDT authorises CIT to condone the delay in filing audit report in Form No. 10BB

CBDT has authorised the CIT to admit belated applications for condonation of delay under section 119(2), where there is a delay of up to 365 days in filing Form 10BB for Assessment Year 2018-19 or any subsequent Assessment Year. Further, for years prior to Assessment Year 2018-19, CIT is also authorised to admit the application for condonation of delay after satisfying himself that applicant was prevented by reasonable cause from filing such application within the stipulated time.

from taxmann.com News https://ift.tt/32aW4mY

Sum paid to clear encumbrance of inherited property to be treated as part of cost of acquisition

INCOME TAX: Where assessee had inherited property with encumbrance by way of mortgage, amount paid by assessee to clear that encumbrance to be treated as part of cost of acquisition or cost of improvement under section 48/49

from www.taxmann.com Latest Case Laws https://ift.tt/34Wo6nW

​Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10BB for Assessment Year 2016-17 and subsequent years

Publish Date : Tuesday, November 3, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/36717WQ

Notification No. 89/2020 [F. No. 370133/16/2020-TPL] / SO 3952(E)

Publish Date : Monday, November 2, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/3oOL2xD

AO isn’t empower to challenge SetCom order relying on income disclosed in earlier application which stands abated

INCOME TAX : When Income-tax law does not empower Assessing Officer to rely on income disclosed in earlier proceedings that had abated before ITSC, the department is not justified in making a comparison with such an income and thereby finding fault with ITSC decision making process

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196730/ao-isn’t-empower-to-challenge-setcom-order-relying-on-income-disclosed-in-earlier-application-which-stands-abated.aspx

Non-industrial undertaking cannot claim section 35D deduction in respect of share issue expenses

INCOME TAX: Where assessee was not an industrial undertaking, deduction under section 35D in respect of share issue expenditure was not allowable to it

from www.taxmann.com Latest Case Laws https://ift.tt/3mNSJSC

Telecommunication, insurance charges & Forex loss to be excluded from turnover while computing sec. 10A relief

TRANSFER PRICING : Charges/expenses relating to telecommunication, insurance and foreign exchange loss should be excluded both from export turnover and total turnover while computing deduction under section 10A

from www.taxmann.com Latest Case Laws https://ift.tt/3p20aYy

Second proviso to sec. 40(a)(ia) providing relief from being an assessee-in-default has retrospective effect

INCOME TAX: Second proviso to section 40(a)(ia) inserted by Finance Act, 2012, is clarificatory and it has retrospective effect from 1-4-2013

from www.taxmann.com Latest Case Laws https://ift.tt/3mZsid5

Back office work from legal dept. of software companies classified as data processing for Sec. 10A exemption

INCOME TAX : Where assessee received back office work from legal department of software companies in USA and back office standard required a level of control over formulation of editing of content of application, which was possible only with use of information technology, activities of assessee could be classified as Data Processing, Legal Databases and remote maintenance under Notification No. 890, dated 26-9-2000

from www.taxmann.com Latest Case Laws https://ift.tt/3efRdpw

HC slam AO for denying Sec. 80P deduction on interest income without considering assessee's arguments

INCOME TAX : Assessing Officer was not justified in denying exemption under section 80P to assessee-society on interest income without considering assessee's argument that funds deposited which gave rise to interest income did not constitute a surplus, but a mandatory statutory reserve

from www.taxmann.com Latest Case Laws https://ift.tt/3mM0Cs2

SC dismissed SLP against ruling that reassessment notice couldn't be issued by AO who had no jurisdiction

INCOME TAX : SLP dismissed against High Court ruling that where reasons for reopening of assessment was recorded by an Assessing Officer who had jurisdiction over petitioner while reopening notice under section 148 for this purpose was issued by another Assessing Officer who had no jurisdiction over assessee, said notice was bad in law

from www.taxmann.com Latest Case Laws https://ift.tt/3jN1aMb

No sec. 194C TDS if Co. has control over advertisement space with exclusive rights either to retain it or resell it

INCOME TAX: Where assessee-company purchased an advertisement space in a local newspaper and exercised control over such space with right to either sell it to other or retain it for itself, payment made by assessee for purchase of such advertisement space would not be liable for tax deduction at source under section 194C

from www.taxmann.com Latest Case Laws https://ift.tt/3ejngFa