Category: All Judgements

Archive for the ‘All Judgements’ Category


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DATE: October 5, 2009 (Date of publication)
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The judgement of the Full Bench of the Delhi High Court in CIT vs. Kelvinator of India Ltd. 256 ITR 1 where it was held that when an order u/s 143 (3) is passed, a presumption is raised that it has been passed on application of mind and that the Revenue cannot support reopening on the ground of non-application of mind because that would amount to giving a premium to an authority to take benefit of its own wrong cannot be followed as it is contrary to the law laid down by the Supreme Court in Kalyanji Mavji 102 ITR 286, Indian Eastern Newspaper Society 119 ITR 996 and A. L. A. Firm 189 ITR 285 where it was held that if the AO had not considered the material on record and subsequently came across it, the case fell within the scope of s. 147(b) and could be reopened. The Full Bench also did not consider the effect of Explanations 1 & 2 to s. 147.

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DATE: October 2, 2009 (Date of publication)
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The fact that the assessee is a regulatory body does not mean it cannot pursue an ‘object of general public utility’ which qualifies to be a charitable activity u/s 2(15). The scope of the expression ‘any other object of general public utility’ is very wide, though it excludes objects of private gain such as an undertaking for commercial profit even though the undertaking may subserve general public utility. On facts, as the assessee was engaged in the activities of “prevention, control or abatement of pollution”, its objects were of general public utility

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DATE: (Date of pronouncement)
DATE: October 1, 2009 (Date of publication)
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The assessee, a Third party Administrator (“TPA”) licensed by IRDA, engaged in providing “cashless” health insurance claim services is required to deduct tax at source under section 194J of the Act when making payment to hospitals out of funds provided by the insurance company.

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DATE: September 30, 2009 (Date of publication)
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The Income-tax Act is a complete Code in itself. While the Commissioner, Commissioner (Appeals) and Tribunal have been given power to condone delay, no such power has been conferred upon the High Court u/s 260A. In the absence of a provision in s. 260A conferring jurisdiction to condone delay in filing the appeal, the Limitation Act would not apply and the delay cannot be condoned.

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DATE: September 29, 2009 (Date of publication)
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There cannot be two opinions about the irresistible conclusion that the orders of the settlement commission having been passed without a reasonable hearing, examination of records and due application of mind is in violation of s.245-D(4) and not sustainable.

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DATE: (Date of pronouncement)
DATE: September 25, 2009 (Date of publication)
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The judgement of the Calcutta High Court in Exide Industries Ltd vs. UOI 292 ITR 470 holding that s. 43B (f) is arbitrary, unconscionable and de hors the apex Court decision in Bharat Earth Movers vs. CIT 245 ITR 428 has been stayed by the Supreme Court and it has been clarified that the assessee must pay tax as if s. 43B (f) is on the Statute Book though it is entitled to make a claim in its return.

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DATE: (Date of pronouncement)
DATE: September 18, 2009 (Date of publication)
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Share broker is eligible to claim “bad debts” u/s 36 (1) (vii) / 36 (2) The assessee, a broker, purchased shares of the value of Rs.1,06,10,247 on behalf of its sub-broker. The sub-broker made payment of Rs.64 lakhs. As the …

CIT vs. DB (India) Securities (Delhi High Court) Read More »

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DATE: (Date of pronouncement)
DATE: September 16, 2009 (Date of publication)
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Vide Notification dated 3rd June 2009, Rule 13E was inserted in the Income Tax Appellate Tribunal Members (Recruitment and Conditions of Service) Rules, 1963 to provide that “The President, the Senior Vice-President, the Vice-President and the Members of the Tribunal shall not practice before the Tribunal after retirement from the service of the Tribunal”. The Special Bench had to consider whether the said Notification applied to Members who resigned / retired before the date of issue of the said Notification and allied issues.

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DATE: (Date of pronouncement)
DATE: September 14, 2009 (Date of publication)
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In granting approval to the ESOP, the RBI had stipulated that no payment could be made while exercising the right to purchase shares. Accordingly, there was no “cost of acquisition” and in accordance with B. C. Srinivasa Setty 128 ITR 294 (SC), the gains could not be taxed.

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DATE: (Date of pronouncement)
DATE: September 11, 2009 (Date of publication)
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Though the term ‘licences’ is a very wide term and includes permission to carry on any trade, business, profession, etc, it is used in s. 32(1)(ii) in a restricted sense. S. 32 restricts depreciation to a class of tangible & intangible assets specifically enumerated therein. All intangible assets enumerated in s. 32(1)(ii) (except the term ‘licences’) belong to the class of intellectual properties. As the expression ‘licences’ in s. 32(1)(ii) is preceded by the expressions know-how, patents, copyrights, trade marks and succeeded by the expression ‘franchises’ which are all relatable to intellectual property rights, the term ‘licences’ in s. 32(1)(ii) is, applying the principle of Noscitur a sociis, intended to be used restrictively and as applying only to licences relating to acquisition / user of intellectual property rights.