Kar HC holds : Denial of deduction u/s 80-IB due to non-production of completion certificate not justified when no provision for issuance of same under BDA Act

The Hon’ble Karnataka HC extends Sec 80IB(10) deduction to assessee-builder undertaking housing project approved by Bangalore Development Authority (‘BDA’); Denial of deduction on ground of non-production of project completion certificate not justified when there is no provision for issuance of same under BDA Act or under any other Karnataka State Municipal Act; Not proper in…

Read More

Kar HC holds substantially financed in previous years eligible for exemption u/s 10(23C)(iiiab)

The Hon’ble Karnataka HC has held that for the purposes of sec. 10(23C)(iiiab), wherein exemption is available to Educational institutes substantially financed by government, the terms wholly or substantially financed by the Government contemplated in section 10(23C)(iiiab) of the Act would include finances and value of infrastructure given to the Institution during the previous AYs…

Read More

Kar HC holds interest on tax refund u/s 244A taxable in yr of receipt

The Hon’ble Karnataka HC has confirmed addition holding that interest received on tax refund u/s 244A taxable in year of receipt, notwithstanding pendency of appeal; Rejects assessee’s argument that interest income an unascertained liability & not taxable since Revenue’s appeal against ITAT’s order granting refund was pending before HC; Holds that once assessee receives income…

Read More

Madras HC allows Cast reusage cast iron moulds as revenue exp.

The Hon’ble Madras HC has allowed payment towards Cast reusage cast iron moulds as revenue expense. The Court held as under : 6. The question that is posed before this Court is as to whether in the nature of manufacturing process carried out by the assessee, where the shell life of the cast iron ingot…

Read More

HP HC overrules Merilyn shipping judgement on 40(a)(ia)

The Hon’ble HP HC in the case of Palam Gas Service Vs. CIT in ITA No. 9/2014 dated 25.06.2014 has held that provisions of 40(a)(ia) are applicable to amounts paid during the year as well as to amounts payable as at the close of the year. The Hon’ble High Court held as under : “Lastly,…

Read More

Karnataka HC: Quashes Revenue’s ‘arbitrary’, non-judicious order u/s 201(1); Assessee entitled to appeal remedy

HC allows assessee’s writ, quashes AO’s order u/s 201(1)/(1A) holding assessee as being in default for violating TDS provisions, being passed in breach of natural justice principles; Allows appeal remedy to assessee u/s 246A against AO’s order, since it was  passed without giving due opportunity to assessee to substantiate its defense; Observing that assessee was  saddled with…

Read More