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Madras HC : For valuation of Cosntruction, State PWD rates to be adopted over CPWD
In a recent decision, the Hon’ble Madras HC has held that for the purposes of valuation of construction of any building for computing undisclosed investment under section 69 of Income Tax Act, 1961, in case of conflict in State PWD Rates and Central PWD Rates, State PWD Rates are to be adopted. For complete text…
Read MoreAP HC holds Interest on Tax also covered u/s 43B
In a recent decision dated 02.07.2014, the Hon’ble Andhra Pradesh High Court has held that Interest on any tax levied under any statute is also covered u/s 43B and has to be paid before the specified date. While disposing off the case, the court distinguished the judgement of Hon’ble SC rendered in the case of…
Read MoreDelhi HC holds that by virtue of Sec 160(1)(i), expression “representative assessee” has to be seen “in respect of the income of a non-resident”
Hon’ble Delhi HC allows assessee’s writ, quashes notice u/s 163(2) and subsequent proceedings holding assessee company as ‘representative assessee’ of its former employee for AY 2003-04; Employee filed return in India for said year in capacity of ‘Resident & Ordinarily Resident’; Assessee-company cannot be treated as ‘representative assessee’ of employee based on subsequent change in…
Read MoreKar 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 MoreKar 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 MoreKar 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 MoreMadras 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 MoreMadras HC confirms penalty u/s 271(1)(c) where Book profit was wrongly computed by Assessee
The Hon’ble Madras HC has confirmed the levy of penalty u/s 271(1)(c) in a case where the assessee made wrong computation of Book Profit. In respect of reduction in Book profit under MAT u/s 115JB on account of loss or depreciation whichever is less, the assessee made computational error. The said error was discovered in…
Read MoreGuj HC holds Appellate Tribunal has power to extend stay beyond 365 days
The Hon’ble Gujarat High Court in a case decided on 09.07.2014 has held that the Appellate Tribunal has power to extend the stay beyond 365 days, if the delay is not at all attributable to the assessee. The Hon’ble Court agreed with the view of Hon’ble Bombay HC in the case of Navrang Overseas Pvt.…
Read MoreDelhi HC rules Oral statement in response to summons has full evidentiary value
The Hon’ble Delhi HC in the case of Narinder Kr. Budhiraja Vs. CIT decided on 01.07.2014 has laid down an important proposition that Oral statement before Tax Authorities in response to summons u/s 131 have full evidentiary value. The Court held as under : “The statement made by the assessee on 18.11.2005 in pursuance of…
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