Exorbitant Profit earned by University, exists for profit, No 10(23C) exemption

For complete Text of Judgement, click here Visveswaraiah-University-1023C-Exemption   The Visvesvraya Technological University (VTU) has been constituted under the Visveswaraiah Technological University Act, 1994. It discharges functions earlier performed by the Department of Technical Education, Government of Karnataka. The University exercises control over all Government and Private Engineering Colleges within Karnataka. The University claimed exemption under […]

Non Compete Fees received shall not be liable to Capital Gains and shall not be added to the book profits : Bom HC

In a recent decision, Hon’ble Bombay High Court held that: Section 55(2)(a) of the Act would have no application in the present circumstances, as it deals with the cost of acquisition in relation to a capital asset which includes a right to manufacture or carrying on business. In the present case, the Agreement prohibits the […]

Kerala HC confirms penalty u/s 271C on non-deduction of TDS on interest paid by partner to the firm.

In a decision titled CIT vs. Thomas Muthoot, ITA No. 139 OF 2013, dtd. 03/07/2015, the Hon’ble Kerala HC has confirmed the levy of penalty u/s 271C for non- deduction of TDS in respect of interest paid by partner to the firm. For complete text of judgement, click here Thomas Muthoot

P&H HC dilutes impact of Abhishek Industries 286 ITR 1

The Hon’ble P&H in two decisions reported in July 2015 has diluted the impact of decision in case of Abhishek Industries vs. CIT 286 ITR 1 wherein the Hon’ble High Court had laid down that disallowance u/s 36(1)(iii) is warranted if interest free advance is given coupled with fact that assessee has outstanding interest bearing […]

Disallowance u/s 36(1)(iii) shall not be made if interest free loan is given to a relative out of free reserves : P&H HC

In a recent decision, Hon’ble Gujarat High Court held that: The appellant’s case is that an amount of 8.89 crores was advanced by the respondent/assessee to his son. The assessee on the other hand contends that during the AY in question 2008-2009, only about Rs. 2.14 crores was advanced by him to his son. It […]

Excess stock will fall under the definition of S. 14 of the Act and therefore entitled to set off u/s 71 : Guj HC

In a recent decision, Hon’ble Gujarat High Court held that: We are also of the opinion that the submissions made by the Ld. advocate is that the case would fall under the proviso of S. 69(c) of the act does not apply to the facts of the present case. It is not the case of […]

Unaccounted sales of the assessee have been shown as income by its sister concern : SC

In a recent decision, Hon’ble Supreme Court held that: Income from undisclosed sources – addition – unaccounted sales vis-a-vjs sales accounted for by sister concern – Partners of the assessee firm admitted excess stock in their statements recorded u/s 131 -Though the assessee explained the difference before the CIT(A) with the help of the books […]

Reopening of the assessment on a mere change of opinion is impermissible in law : Bom HC

In a recent decision, Hon’ble Bombay High Court held that: “We find similar response at item Nos.13.3, 13.4, so also 13.5. The legal position has been summarised that the capital gains earned by the assessee should be assessed as such and not as business income. Thus, each of the queries which have been raised came […]

Mandatory pre-conditions were not abided by, the notice u/s 148 cannot be sustained : Bom HC

In a recent decision, Hon’ble Bombay High Court held that: “Upon hearing both sides and perusing the Writ Petition and all annexures thereto so also the affidavit in reply, we fail to understand as to how the Respondents justify the issuance of the notice u/s 148 of the IT Act and by referring to such […]

Wheeling Charges are not rent nor fees for technical services : Bom HC

In a recent decision, Hon’ble Bombay High Court held that: “In our view the Transmission Charges and/or Wheeling Charges are not amount paid under any arrangement for use of land, building, plant & machinery, equipment, furniture, fitting etc. and, therefore, not rent. Equally, the amounts are not fees for technical services. In the facts and […]