Posts by Team RPA
Del HC confirms 271(1)(c) on estimated income
The Hon’ble Delhi High Court in decision dated 15.04.2014 in the case of kalindi Rail Nirman Engg Ltd. has reversed the decisions of CIT(A) as well as ITAT and has confirmed the levy of penalty u/s 271(1)(c) by holding that said penalty can be levied even in cases where income is estimated by AO. The…
Read MoreCalcutta HC holds 40(a)(ia) applies on WIP
In a recent decision dated 09.04.2014 rendered by Hon’ble Calcutta High Court in the case of CIT vs. FAIRLAND DEVELOPMENT PVT LTD, the Hon’ble Court has held that “when an expenditure of a revenue nature was incurred and shown as work in progress, it could not be said that the provisions of section 40(a)(ia) were…
Read MoreBombay HC holds over priced selling of shares valid tax planning
In a recent judgement, the Hon’ble Bombay High Court (Goa Bench) has held that over priced selling of shares of group company to off set capital losses is valid tax planning and is not tax evasion. To view complete text of judgement, click here Goa HC on sale of shares
Read MoreP&H HC holds that short term selling by investment company is business income
The Hon’ble P&H HC in a recent decision 11.04.2014 has held that short term selling by investment company is nothing but business income and the same can not be held as short term capital gain. Interestingly, the ITAT as well as CIT(A) had held the same as STCG. The HC reversed the said findings by…
Read MoreMadras HC rules disallowance of one time claim of upfront lease money
The Hon’ble Madras High Court in the case of Rane Brake Linings Ltd. dated 07.04.2014 has ruled that long term lease transaction wherein lumpsum upfront is paid, the said upfront is a capital expense and not allowable as revenue expense. The Court held as under : “Incidentally, we may also point out that as early…
Read MoreBombay HC quashes notice u/s 148
The Hon’ble Bombay High Court has quashed the notice issued by Assessing officer u/s 148. The reasons recorded by assessing officer did not contain words that the what the assessee had failed to disclose since the re-opening was beyond 4 years. To read complete text of judgement, click here Bom HC on no mention of…
Read MoreNo 194H on discount to stockist-dealers – Bom HC
The Hon’ble Bombay High Court in the Intervet India Private Limited has ruled that provisions of Sec 194H and thereby sec 40(a)(ia) are not applicable on discounts paid to stockists and dealers as the relationship was on principal to principal basis. For complete text of judgement click here No 194H on discount to stockists-dealers-Bom HC
Read MoreS. 226: AO warned of contempt action
S. 226: AO warned of contempt action for seeking to overreach ITAT’s stay order The assessee filed a stay application before the Tribunal and informed the AO about the same. Thereafter, the Tribunal heard the matter on 14.02.2014 and granted stay of the demand. Despite this, the AO attached the assessee’s bank account on 19.02.2014…
Read Morecommission paid by MF broker to sub-agent, 194H not apply
The Hon’ble Allahabad HC in a decision dated 13.03.2014 has held that on reading of provision of sec 194H, the Mutual fund broker is not required to deduct TDS on payment to sub-agent as section excludes TDS on commission paid for securities. Interestingly the broker was a firm of Chartered Accountants. To read complete text…
Read MoreCash Payment and haunt of Sec 40A(3) partially removed
To read complete article on the subject, click here Detailed article on 40A(3)
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