Month: February 2020

Archive for February, 2020


Mylan Laboratories Ltd. v. DCIT (2020) 180 ITD 558/ 187 DTR 259/ 204 TTJ 426 (Hyd) (Trib.)

S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot exceed exempt income- Average of investments which have yielded exempt income is to be considered for computation of S. 14A disallowance. .[ R.8D ]

Devki Devi Foundation. v. DIT (2020) 180 ITD 417 (Delhi) (Trib.)

S. 12AA : Procedure for registration –Trust or institution-Contract with unrelated party for achieving purpose of charitable object – Denial of exemption is not justified – Withdrawal of registration is held to be not valid- Registration granted earlier under S. 12A is restored. [ S.2(15) 11 , 12A,13(3) ]

ACIT v. JSW Steel Ltd. (2020) 180 ITD 505 (Mum) (Trib.)

S. 4 : Charge of income-tax – Subsidy – Sales tax exemption, subsidy was to be treated as capital receipt. [ S. 28 (i) ]

Maharashtra Police Mega City Co-Operative Society Ltd. v ITO (Pune) (Trib.) (2020) CTCJ-Feb-P.122

S. 57 : Income from other sources-Deductions–Co-Operative Housing Society-Administrative expenses are allowable against the interest on fixed deposit. [S.56]

Bairang Naredi v. ITO (Ranchi) (Trib.) (2020) CTCJ-Feb-P.121

S. 56 : Income from other sources–Registration of agreement– Consideration received preceding year and possession was also taken–Amended provision is not applicable–No addition can be made taking in to value of difference between value on the date of registration and actual consideration. [S. 45, 56(2)(vii)(b)]

CIT v. Lokhandwala Construction Industries Pvt. Ltd. (2019) BCAJ-December-P. 41 (Bom.)(HC)

S. 271(1)(c) : Penalty–Concealment–Method of accounting-Project completion method-Year of allowability of expenses–Mere making the claim which is not sustainable in law will not amount to furnishing in accurate particulars of income-Penalty cannot be levied. [S. 145]

PCIT v. Dinesh Chandra Jain (2019) CTCJ-October-P. 81 (All.) (HC)

S. 271(1)(c) : Penalty–Concealment–Gift received by minor son-Addition confirmed on the ground of human probabilities-Levy of penalty is held to be not valid. [S. 153A]

St. Thomas Orthodox Syiran Church v. CIT(E) (Bom.)(HC) (2020) CTCJ-Feb-P.120

S. 264 : Commissioner-Revision of other orders–Accumulation of income-Mistake in form no 10-Delay in filing the form–CIT is directed to consider whether cogent reason exists for condonation of delay. [S. 11(2), 12AA, 139(4A), Form No 10, Art. 226]

Janalaxmi Co-Operative Bank Ltd. v. PCIT (2019) BCAJ-December-P. 40 (Bom.)(HC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue– Interest on NPA-AO passed the order after due consideration of the submission-Revision is held to be not justified.[S. 145]

Cavalier Trading Pvt. Ltd. v. Dy.CIT (2020)421 ITR 394 (Bom.)(HC)/ Kalpit Trading Pvt. Ltd. v Dy. CIT (2020)421 ITR 394 (Bom) (HC) www.itatonline.org

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record –Bogus purchases–Estimation of profit at 1.5 % of on sales and purchases- Re hearing of appeal is not permissible in law-Writ against the rectification is held to be not bonafide – Cost of Rs 10000 is imposed on each of the petitioners. [S.69C, 254(1), Art. 226]