Reassessment : Where section 10A exemption was allowed during assessment proceedings after examining return and accompanying document, reassessment to deny said exemption after expiry of 4 years is not justified unless there is allegation that facts were not truely and fully disclosed – (2015) 57 taxmann.com 36 (Delhi)
SECTION 12AA
CHARITABLE OR RELIGIOUS TRUST – REGISTRATION PROCEDURE
Cancellation of registration : If case of assessee falls in first proviso to section 2(15) and, therefore, benefit of registration under section 12A is not available, this is a matter to be considered by Assessing Officer but, registration cannot be cancelled on that ground – (2015) 57 taxmann.com 187 (Karnataka)
SECTION 32
DEPRECIATION – ALLOWANCE/RATE OF
Intangible assets : Assessee was entitled to claim depreciation on consideration paid and accounted for as goodwill – (2015) 57 taxmann.com 17 (Himachal Pradesh)
SECTION 36(1)(iii)
INTEREST ON BORROWED CAPITAL
Acquisition of capital asset : Where assessee, a dealer of vehicles, having taken loan, used certain amount for booking of showroom, in view of fact that assessee had sufficient surplus funds for making said advance and, moreover, it was a commercial decision which could not have been gone into unless Assessing Officer had concrete material to contend that transaction was a sham, assessee’s claim for interest on borrowed capital could not be rejected – (2015) 57 taxmann.com 310 (Delhi)
SECTION 80-IB
DEDUCTIONS – PROFIT AND GAINS FROM INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTRUCTURE DEVELOPMENT UNDERTAKINGS
Small Scale Industrial Undertaking : Where Assessing Officer allowed deduction under section 80-IB(10) assessee being small scale industrial unit but sought to reopen assessment for withdrawing same on ground that total value of plant and machinery exceeded limit of Rs. Adidas Yeezy Boost 550 1 crore but he had not brought any new material which came to his notice, initiation of reassessment was bad in law – (2015) 57 taxmann.com 278 (Ahmedabad – Trib.)
SECTION 92C
TRANSFER PRICING – COMPUTATION OF ARMS LENGTH PRICE
Comparables and adjustments/Comparables – Illustrations : Where comparables rejected by TPO were accepted to be good comparables in subsequent years/earlier years, assessee had a prima facie case for partial stay of demand arising mainly out of transfer pricing adjustment – (2015) 57 taxmann.com 181 (Mumbai – Trib.)
Comparables and adjustments/Comparables – Illustrations : Where TPO disallowed payment of royalty made by assessee to its AE on sales, in view of fact that there were no comparable companies offering similar services comparison made by TPO on basis of transactions of assessee’s subsidiary company much prior to year under consideration could not be considered as internal CUP and, consequently, impugned disallowance was to be deleted – (2015) 57 taxmann.com 206 (Hyderabad – Trib.)
Comparables and adjustments/Adjustments – Royalty/Trade mark usage fees : Where TPO relying upon CUP method, disallowed payment made by assessee to its group company for use of trademark holding that there was no justification for said payment, in absence of any evidence on record in support of aforesaid conclusion, impugned disallowance deserved to be deleted – (2015) 57 taxmann.com 206 (Hyderabad – Trib.)
SECTION 132
SEARCH AND SEIZURE – GENERAL
Release of seized assets : Seized jewellery could be released on furnishing of bank guarantee by Karta of HUFs even if it was not cleared whether jewellery belonged to HUFs or Karta – (2015) 57 taxmann.com 5 (Bombay)
SECTION 145
METHOD OF ACCOUNTING – CHANGE OF
Uncertainty in ultimate collectability of revenue justifies change of method of accounting by property developer from percentage of completion to recognition of income based on registration of agreements for sale or completion of possession and consequential reversal of revenue on cancellations/legal cases. This is so especially where such uncertainty is evidenced by cancellations of property bookings and National Consumer Dispute Redressal Commission upholding cancellation and dismissal by Supreme Court of SLP against NCDRC orders – (2015) 57 taxmann.com 400 (Hyderabad – Trib.)
SECTION 234B
INTEREST – CHARGEABLE AS
Rectification : Where assessee’s liability to pay advance-tax within time prescribed under section 211 existed on last date for payment of advance tax or at least on last date of financial year, on failure to pay advance tax on stipulated dates, interest was to be levied – -(2015) 57 taxmann.com 34 (Mumbai – Trib.)
SECTION 271(1)(c)
PENALTY – FOR CONCEALMENT OF INCOME
Survey, declaration of income in : Where assessee, consequent to survey, declared additional income which was accepted by Assessing Officer, imposition of penalty under section 271(1)(c) was not justified – (2015) 57 taxmann.com 25 (Mumbai – Trib.)
SECTION 2(22)
DEEMED DIVIDEND
Loans and advances to shareholders : Even if trade advance is given to shareholder or a concern out of accumulated profits, same would not fall within ambit of provisions of section 2(22)(e) – (2015) 57 taxmann.com 120 (Karnataka)
SECTION 9
INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA
Royalty : Revenue should have adjudicated assessee’s plea relating to non-taxability of payment made to foreign associate on basis of principle of mutuality – (2015) 57 taxmann.com 234 (Mumbai – Trib.)
SECTION 14A
EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME
Applicability of Rule 8D : Where assessee incurred indirect expenses having proximate relationship with exempted dividend income, in view of assessee’s failure to produce complete books of account, Assessing Officer was justified in computing amount of disallowance by invoking provisions of rule 8D(2)(iii) of 1962 Rules – (2015) 57 taxmann.com 192 (Kolkata – Trib.)
Interest : SLP granted against order of High Court where it was held that since funds utilized by assessee being mixed funds, interest paid on borrowed fund relatable to investment made in tax free funds was to be computed under provisions of rule 8D(2)(ii) – (2015) 57 taxmann.com 83 (SC)
SECTION 36(1)(iii)
INTEREST ON BORROWED CAPITAL
Tax neutral transactions : Where assessee used a part of loan taken from bank for making fixed deposits, even if income from interest on ‘fixed deposit’ was considered as income from other sources, still interest incurred by assessee on borrowings used for making said deposits would be allowable as deduction – (2015) 57 taxmann.com 237 (Chennai – Trib.)
SECTION 36(1)(viia)
BAD DEBTS
In case of banks : In order to determine status of a bank as a ‘rural branch’ for allowing claim of deduction under section 36(1)(viia) even provisional figures of census data available on first day of relevant financial year can be taken into consideration and if figure shown in provisional population total exceeds 10,000, then bank would not be entitled to benefit granted for rural branch – (2015) 57 taxmann.com 253 (Karnataka)
SECTION 37(1)
BUSINESS EXPENDITURE – ALLOWABILITY OF
Interest on income tax dues : Assessee could not claim set off of interest payment on income tax dues against interest earned on income tax refund – (2015) 57 taxmann.com 192 (Kolkata – Trib.)
Royalty-reassessment : Where Assessing Officer and Transfer Pricing Officer were not only aware of payment of royalty but had taken same into consideration at every stage, reopening of assessment on ground that on account of Supreme Court’s ruling part of royalty was to be treated as capital expenditure, would be case of change of opinion which is not permissible in law – (2015) 57 taxmann.com 240 (Punjab & Haryana)
SECTION 44AD
PRESUMPTIVE INCOME – CIVIL CONSTRUCTION BUSINESS
Disallowance of expenses : Where a civil contractor did not produce salary and wage register and other evidences in support of expenses incurred, Assessing Officer was justified in estimating profit at 8 per cent of gross contract receipts – (2015) 57 taxmann.com 209 (Cuttack – Trib.)
SECTION 44BB
NON-RESIDENTS – MINERAL OIL, BUSINESS OF PROSPECTING/EXPLORATION OF
Section 44BB v. Acheter Adidas Yeezy Boost 550Ropa Interior Calvin Klein Mujer section 44DA : Income of assessee, a foreign company, from hiring of equipments and rendering services to entities engaged in oil exploration in India, was to be taxed on presumptive basis under section 44BB – (2015) 57 taxmann.com 191 (Delhi – Trib.)
SECTION 56
INCOME FROM OTHER SOURCES – CHARGEABLE AS
Interest : In absence of any material to show that interest income was business income, such income could not be treated as business income of assessee in order to allow set off of brought forward business loss from earlier years against said interest income – (2015) 57 taxmann.com 161 (Calcutta)
SECTION 80C
DEDUCTIONS – LIFE INSURANCE PREMIA, CONTRIBUTION TO PROVIDENT FUND, ETC.
Interest on housing loan : Where assessee paid interest to bank for housing loan and it was duly supported by bank statement, deduction under section 80C was allowable – (2015) 57 taxmann.com 209 (Cuttack – Trib.)
SECTION 80-IA
DEDUCTIONS – PROFITS AND GAINS FROM INFRASTRUCTURE UNDERTAKINGS
Power generation through steam : Where power is generated through steam and said industrial undertaking complies with all other conditions as stipulated under section 80-IA, it would be an eligible undertaking for claiming deduction in terms of section 80-IA(4) – (2015) 57 taxmann.com 192 (Kolkata – Trib.)
Assessee-company was incorporated as a Special Purpose Vehicle (SPV) for developing operating and maintaining toll roads. Assessee entered into a concession agreement with Taj Expressway Development Authority (TEA) in terms of which assessee was to develop, operate and maintain six lane access controlled expressway toll road, it was granted by TEA, rights for land development of 25 million sq. Ropa Interior Calvin Klein Hombre mts. Adidas Yeezy Boost 350 V2 Pas Cher of land along proposed Expressway for commercial amusement, industrial, institutional and residential development. In terms of agreement, assessee could sub-lease developed or undeveloped land to sub-leases or land users. Chaussures Adidas Yeezy Boost 350 Assessee claimed that profit derived by it from toll road included profit from sale/sub-lease on development of land which formed intrinsic part of infrastructure facility.
