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, […]

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 […]

If the stamp duty value is higher than consideration recd, the AO must refer valuation to DVO even if there is no request by assessee

The Hon’ble Calcutta High Court on S. 50C has held : If the stamp duty valuation is higher than the consideration received, the AO must refer the valuation to the DVO even if there is no request by the assessee No inference can be made that the assessee has accepted the price fixed by the […]

S. 2(47)(v): Transfer under a dev. ag. effects on handing over possession. Capital gains chargeable even if no consideration recd

In AY 2003-04, the assessee entered into an agreement with Bhavya Constructions pursuant to which he agreed to transfer the land in consideration of the developer giving him four flats in the developed area. The assessee received a token advance and handed over possession of the land. The developer obtained the approval of the municipality […]

Calcutta HC : Expl to s. 73: Speculation loss on transactions in derivatives can be set off against the gains of delivery shares

In AY 2005-06, the assessee, a share broker, entered into derivatives in which it suffered losses. The said losses constituted “speculation loss” (prior to the exclusion of derivatives from the ambit of speculative transactions under clause (d) of s. 43 (5) w.e.f. AY 2006-07). The assessee claimed that the said speculation loss was eligible to […]

The limitation u/s 153 re-starts from date of stay vacation order of HC and not from date of communication – All. HC

The Hon’ble Allahabad High Court has answered an important question regarding the limitation period of assessment. In this case, the assessment proceedings were stayed by High Court. But lateron the stay was vacated since the assessee failed to bring on record the necessary legal heirs. The order of HC vacating the stay was passed on […]

Calcutta HC holds damages paid for clearing title deductible for computing Capital Gains

The assessee entered into an agreement dated 2nd September, 2004 with one, Bhagyalakshmi Commercial Company Pvt. Ltd. Under the aforesaid agreement the latter agreed to sub-lease the flat nos. 3b and 3c at premises no.5, Lowdon Street, Kolkata to the assessee. The assessee on his part entered into an agreement dated 5th May, 2005 with […]

Guj HC holds no 14A disallowance in absence of any tax free income

No disallowance u/s 14A & Rule 8D can be made if the assessee does not have tax-free income & no claim for exemption is sought In AY 2009-10, the assessee had investments in tax-free securities on which it had earned no income. It claimed that as there was no tax-free income, no disallowance u/s 14A […]

No 14A disallowance if no tax free income – All HC

No s. 14A & Rule 8D disallowance if there is no tax-free income In AY 2008-09, the assessee claimed that no s. 14A & Rule 8D disallowance could be made on the ground that (i) the assessee had not earned any tax-free income during the year and (ii) the assessee had sufficient surplus fund and […]

Del HC says rectification u/s 154 of intimation u/s 143(1) possible even after scrutiny assessment

The Hon’ble Delhi High Court in a decision dated 06.05.2014 has held that rectification u/s 154 of an intimation u/s 143(1) is possible even after scrutiny assessment has been concluded. The Court held as under : “It is apparent from the bare reading of the above provision that the power of rectification extends to amendment […]