Income Tax Judgements
P&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 MoreRajkot SB of ITAT holds amendment to Sec 206C(6A) retrospective; Also rules all scrap trading subject to TCS
ITAT Special Bench discusses law on application of Tax collection at source (TCS) provisions u/s 206C and meaning of “scarp”; TCS apply to sale of ‘brass scarp’ imported by the trader; Meaning of scrap not restricted to one arising only from manufacture or mechanical operations; Sec 206C provisions also apply to business of trading in…
Read MoreLucknow ITAT distinguishes Liberty India SC Judgement on 80-IB
Whether duty drawbacks is to be considered for deduction u/s 80-IB depends upon their nexus with business operations; Question of whether duty drawback an “incidental profit” or “profit of first degree” depends on the business model; Despite SC rulings in Liberty India, there may still be a room for considering a plea that assessee would…
Read More12AA Registration denied to Play school for pre KG Students : Cochin ITAT
The Cochin ITAT has denied registration u/s 12AA of the Act to a play school for pre-KG Students by holding that education covered in Charity as per Sec 2(15) means formal schooling and not pre-KG schools. The ITAT has laid down as under : “This Tribunal found that “education” means a formal schooling, which resulted…
Read MorePartners can not forego salary & intt to inflate exemption u/s 10B
Reverses CIT(A)’s orders and upholds AO’s order of reducing interest on capital and remuneration to partners, while computing profits eligible for exemption u/s 10B; Partners chose to forego interest and remuneration but it does not ipso-facto mean that firm is not admissible for deduction; Interest & remuneration payable to partners not charged to inflate profits…
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