Year: 2018

Archive for 2018


Dr. Thirupathy Reddy (HUF) v. ACIT (2018) 258 Taxman 177/(2019) 410 ITR 186 (Mad.)(HC)

S. 237 : Refunds –Annulment of assessment -Only tax paid by assessee in excess of what was declared by it on its own in return of income would be entitled to be refunded [ S.4(1), 140A(3), 158BD, 240(b), 244]

Travancore Sugars & Chemicals Ltd. v. Addl. CIT (2018) 258 Taxman 273 (Ker.)(HC)

S. 234B : Interest – Advance tax – Sale proceeds were deposited in a ‘No Lien’ account with bank as per direction of BIFR – Assessee could not remit tax within time as amount received from sale proceeds were lying with bank –Rejection application for waiver of interest I held to be not justified- Directed the Commissioner to pass the order on merits. [ S.220(2)]

Aruvikkara Farmers Service Co-Operative Bank Ltd. v. ITO (2018) 258 Taxman 18 (Ker.)(HC)

S. 226 : Collection and recovery -Stay- Pendency of Appeal before – Commissioner (Appeals) –CIT(A) granted stay on condition of 50% of tax in dispute- Single judge reduced to 20% of tax in dispute –On appeal considering the assessee being a co-operative bank , stay is granted by paying 1 % 0f tax in dispute. [ S.68, 249]

Mundela Service Co-Operative Bank Ltd. v. ITO (2018) 258 Taxman 233 (Ker.)(HC)

S. 226 : Collection and recovery – Modes of recovery –Co-operative societies -Cash credits- Direction to deposit 50% of tax in dispute is reduced to 20% and directed the CIT(A) to expedite the hearing. [S.68, 80P]

Sankalp Recreation (P.) Ltd. v. Union of India (2018) 258 Taxman 341 / (2019) 411 ITR 671 (Bom.)(HC) Editorial: Affirmed , Sankalp Recreation Pvt.Ltd v. UOI (2019) 418 ITR 673/ 267 Taxman 13 (SC)

S. 222 : Collection and recovery –Auction of property- Direction of CBDT to hold fresh auction after determining the a reserve price by taking in to account fresh valuation report of District valuer is held to be justified. [ S.269UD ]

MPhasis Ltd. v. Dy. CIT (2018) 258 Taxman 120 (Karn.)(HC)

S. 220 : Collection and recovery – Assessee deemed in default – When an appeal is pending there is no automatic stay – Commissioner (Appeals) is directed to dispose of appeal expeditiously- Matter remanded. [S. 154, 246]

Apar Mukhya Adhikari v. ITO (TDS) (2018) 258 Taxman 111 / 171 DTR 302/ 305 CTR 574/( 2019) 416 ITR 60 (All.)(HC)

S. 206C :Collection at source –Toll plaza does not include Tahbazari-Tahbazari does not come within ambit of S.206C(1C) –Order of Tribunal is set aside-Interpretation- Taxing provisions to be construed strictly .

TVS Motor Co. Ltd. v. ITO (2018) 258 Taxman 77 /170 DTR 15 / 304 CTR 853/ (2019) 413 ITR 171 (Mad.)(HC)

S. 195A : Deduction at source – Net of tax -Deduction of tax at source- Gross amount of fees for technical services – Since obligation to pay tax was on university and assessee in terms of agreement, agreed to pay tax, same had to be necessarily added to income of university and therefore principle of grossing up had to be applied – DTAA-India-UK [ S. 2(24)(iva),9(1)(i), 90,201(1), 201(IA), Art. 13]

PCIT v. Hakmichand D & Sons (2018) 258 Taxman 208/97 taxmann.com 583 (Guj.)(HC) Editorial: SLP of revenue is dismissed, PCIT v. Hakmichand D & Sons (2018) 258 Taxman 207 (SC)

S. 194C :Deduction at source – Contractors –Licence fee paid to contractor to contractee and not vice versa –Not liable to deduct tax at source[ S.201 (1)]

PCIT v. AT & T Global Network Services (India) (P.) Ltd. (2018) 258 Taxman 197 / 305 CTR 283/ 169 DTR 473(Delhi)(HC)

S. 153 : Assessment- Limitation -Special audit- Period from date when Assessing Officer directs special audit till last date of furnishing such report under section 142 (2A) shall be excluded and not counted for limitation- Accordingly the draft assessment order is not bared by limitation.[ S.142(2A)]