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 […]

AO is not empowered to comment on the correctness of the certificate granted u/s 12A : Del HC

In a recent decision Hon’ble Delhi High Court held that: “Whilst there can be quarrel with the ITAT’s generalization that the Director of Income Tax (DIT), in order to hold that the exemption certificate u/s 12A has to be revoked, is to base himself or herself on material & cogent reasoning, at the same time, […]

Current Yr Profit not part of accumulated Profit for 2(22)(e) : Guj HC

In a recent decision, the Hon’ble Gujarat High Court has laid down that Profit for the year till the date of giving of advance in question can not be considered for level of accumulated Profits for the purposes of taxation of deemed dividend u/s 2(22)(e). For this, the Hon’ble Gujarat HC has relied upon the […]

CIT(A) has inherent power to Grant Stay : P&H HC

The Hon’ble Punjab & Haryana High Court in a landmark judgement has laid down that CIT(A) has power to Grant stay of demand. In this case, even the demand had already been recovered from the appellant. But still the court went on to hold so. While disposing off this issue, the Court relied upon the […]

Himachal HC lays important law on what amounts to manufacture in Income Tax

The issue that what amounts to manufacture came up for hearing before the Hon’ble Himachal High Court and the court held as under : “18. From the perusal of the factual aspects, it is evident that the qualitative changes effected in the raw material by various means like annealing, quenching, acid pickling and flux application, […]