HC upholds application of Sec. 55(3) for computation of cost of acquisition, in absence of its ascertainment in hands of previous owner; Rejects assessee’s plea for non-taxability of capital gains since cost of acquisition not ascertainable; Approves AO’s action in adopting fair market value as on April 1, 1981 as cost of acquisition u/s 55(3); […]
Gujarat HC allows interest u/s 36(1)(iii) following SA Builders
The Hon’ble Gujarat High Court has allowed the claim of Interest u/s 36(1)(iii) following the judgement of Hon’ble Supreme Court in the case of S.A. Builders 288 ITR 1. For complete text of judgement, click here 36(1)(iii)-Gujarat HC
Bom HC holds courtyard can’t be included for 1500 Ft. defined in 80-IB(10)
In a recent decision dated 11.03.2014 rendered by Hon’ble Bombay High Court (Goa Bench) in the case of Commonwealth Developers has held that the area of Rear Courtyard which is open to sky but has only a boundary wall can not be included in built area limit of 1500 Sq. Ft. provided in Sec 80-IB(10) […]
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 […]
Calcutta 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 […]
Bombay 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
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 […]
Madras 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 […]
Bombay 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 […]
No 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
