July 2020
- Appeal to Appellate Tribunal Duty of Tribunal to decide appeal on merits Rule 24 of ITAT Rules, 1963 Rectification of mistakes Section 254 of ITA, 1961 Order of Tribunal dismissing appeal ex parte for non-prosecution Rejection of application for recall on ground of limitation Not justified Assessee granted liberty to apply for recall of order; A.Y. 2006-07
- Business expenditure Section 37 of ITA, 1961 General principles Donations made by company under corporate social responsibility Deductible u/s 37; A.Y. 2010-11
- Business expenditure Disallowance u/s 40(a)(ia) of ITA, 1961 Amounts not deductible Payments liable to deduction of tax at source Failure to deduct tax at source Law applicable Effect of amendment of section 40(a)(ia) with effect from 1st April, 2013 providing for cases where recipient has declared income in question and paid tax thereon Amendment retrospective Non-deduction of tax at source not causing loss to Revenue Disallowance not applicable; A.Y. 2005-06
- Deduction u/s 80-IB(10) of ITA, 1961 Housing projects Scope of section 80-IB(10) Not necessary that developer should be owner of land Joint venture agreement showing assessee was developer Assessee entitled to special deduction u/s 80-IB(10); A.Y. 2010-11
- Exemption u/s 10(17A) of ITA, 1961 Award for meritorious service in public interest Scope of section 10(17A) Approval of State Government or Central Government Formal approval not mandatory Approval may be implied; A.Y. 2010-11
- Loss Set-off of Sections 72(2), 72A and 263 of ITA, 1961 and sections 18 and 32(2) of SICA, 1985 Amalgamation of companies Provision for carry forward by amalgamated company of accumulated loss and unabsorbed depreciation of amalgamating company Sick industrial company Sanction of scheme by Board for Industrial and Financial Reconstruction implies that requirements of section 72(2) satisfied; A.Y. 2004-05
- Search and seizure Assessment u/s 153A of ITA, 1961 Scope of section 153A Assessee can raise new claims for deduction in return filed u/s 153A; A.Y. 2008-09
- Section 5 When an assessee had an obligation to perform something and the assessee had not performed those obligations, nor does he even seem to be in a position to perform those obligations, a partial payment for fulfilling those obligations cannot be treated as income in the hands of the assessee
- Section 143(3), CBDT Instruction No. 5/2016 Assessment order passed upon conversion of case from limited scrutiny to complete scrutiny, in violation of CBDT Instruction No. 5/2016, is a nullity
- Rule 34 of the Income-tax Appellate Tribunal Rules The period of 90 days prescribed in Rule 34(5) needs to be computed by excluding the period during which lockdown was in force
- Section 153C Assessment u/s 153C which has been initiated without issuance of notice u/s 153C is bad in law
- Notional interest on security deposit received from lessee is not taxable even during the period when the property was sold, but the deposit continued with the lessee as the lease agreement had lock-in clause Only the incomes which fall under the deemed provisions which have been explicitly mentioned in the Act can be brought to tax under the deeming provisions but not any other notional or hypothetical income not envisaged by the Act
- Section 148 Assessment completed pursuant to a notice u/s 148 of the Act issued mechanically without application of mind is void and bad in law
- Section 271(1)(c) Disallowance u/s 43B in respect of service tax, not debited to P&L, does not attract penalty u/s 271(1)(c)
- Article 13 of India-Mauritius DTAA; section 245R of the Act As gain on sale of shares by a Mauritius company in a Singapore company which derived substantial value from assets in India was, prima facie, designed for avoidance of tax, applications were to be rejected under clause (iii) to proviso to section 245R(2) of the Act
- Explanations 6 and 7 to section 9(1)(i) of the Act Indirect transfer tests of 50% threshold of substantial value (Explanation 6) and small shareholder (Explanation 7) are to be applied retrospectively
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