Though the assessee was following the mercantile system and was entitled to royalty under an agreement, the royalty was not assessable in accordance with the principles of real income, in view of the dispute pending in arbitration.
Where the assessee bought units of a mutual fund, received tax-free dividend thereon and immediately thereafter redeemed the units and claimed the difference between the cost price and redemption value as a loss and the same had been upheld by…
While computing normal profits which do not involve Ch VI-A relief, an assessee is entitled not to claim depreciation. However, where deduction under Ch VI-A is claimed depreciation is mandatory.
Where the assessee is carrying on an illegal activity which is treated as a business, any loss arising in such business as a result of confiscation by the authorities is an allowable loss. However, where the assessee is carrying on a lawful business, any loss arising as a result of infraction of the law is not allowable.
Where the assessee, a resident of Singapore, received consideration from Indian customers for grading and certification reports of diamonds and the AO took the view in s. 197 proceedings that the income was taxable as “royalty” on the ground that there was transfer of commercial experience in the shape of the diamond grading report
As s. 35-G of the Central Excise Act (and s. 130 of the Customs Act) provides that an appeal to the High Court shall be filed within 180 days of the receipt of the order appealed against and there is no provision for condonation of delay the court has no power to condone delay;
Where the department sought condonation of delay of several months in filing appeals in several matters and explained the reasons for the delay in a casual and negligent manner and without giving even the basic details, HELD, castigating the department that:
The effect of Article 7 (1) of the DTAA and Circular No. 23 dated 23.7.1969 is that the income of a non-resident which is neither directly nor indirectly attributable to the PE cannot be brought to tax.
With regard to the sting operation carried out by NDTV regarding the role of a defense lawyer (R. K. Anand) and the Special Public Prosecutor (I. U. Khan) in an ongoing Sessions trial commonly called the “BMW case” and the suo motu criminal contempt action undertaken by the High Court, the Court passed strictures against two senior advocates and directed that they should be prohibited from appearing before the Court and subordinate courts for four months and that they should be stripped of their designation as senior advocates. The case discusses important aspects of the law as to when abuse of an advocate and when abuse by an advocate can constitute contempt of the law.
the Supreme Court held that the assessee was not entitled to claim a deduction by way of a letter filed before the AO without filing a revised return. However, this judgement is limited to the power of the AO to entertain a claim for deduction otherwise than by revised return and does not impinge on the power of the Tribunal to entertain the claim by way of an additional ground.