Mumbai Tribunal : S. 4 : Charge of income-tax-Compensation-Surrender of premises - Allocated flat as compensation to remove illegal occupant-The value of flat received by the assessee as compensation for removing nuisance shall constitute capital receipt -Not taxable. [S. 2(24),54F, 56(2)(vii)( b )] The assessee was an illegal occupant of land, who was allotted a flat worth ₹2.59… Read More ...

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Chennai Tribunal: S. 56 : Income from other sources-Long term capital loss-Share transfer agreement-Shares sold at an undervalued price-Related party transaction-AO claimed that the transaction was structured to avoid tax-Shares valued at upwards of Rs 19,000/-, per share were sold for Rs.100 per share-Valuation was not in accordance with Rule 11UA-Matter remanded back to AO for recalculating… Read More ...

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Mumbai Tribunal : S. 36(1)(iii) : Interest on borrowed capital-Interest on ICDs used for giving interest-free security deposit for getting the premises on leave and license-Business purpose-Interest is allowed as deduction. [S. 37(1)] The assessee had taken an office premises on leave and license by providing an interest-free security deposit, funded partly through Inter Corporate Deposits (ICDs) on… Read More ...

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Mumbai Tribunal : S. 45 : Capital gains Interim order-Year of taxability of capital gains on compensation-Interest on compensation-Income from other sources - Delay of 404 days-Delay is condoned-The compensation and interest received by in pursuance of an interim order of the Bombay High Court cannot be taxed in the year of receipt-Addition is deleted -Compensation and interest… Read More ...

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ITAT (Mumbai): Sec. 80-IA: Even if income under the head Business/ profession is a loss, deduction under section 80-IA(4) is allowable from other heads of income if the Gross Total Income is a positive figure. Sec. 14A: Only investments yielding exempt income during the relevant previous year shall be taken into consideration for the purpose of computing… Read More ...

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Supreme Court: The object of section 80- IA(9) is not to curtail the deductions computable under various provisions under Chapter VI-A. Section 80-IA(9) affects allowability of deduction and not computation of deduction (i) Section 80-IA(9) does not affect the computability of deduction under various provisions under heading C of Chapter VI-A, but it affects the allowability of… Read More ...

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Supreme Court: What is "manufacture"? Whether the process carried out by using soyabean as raw material and ending in the product crude degummed soyabean oil is manufacturing? (1) To constitute manufacture, the following are the essential features: i. There must be a process or series of process. ii. The original commodity or raw material undergoes a transformation… Read More ...

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Mumbai Tribunal : S. 68 : Cash credits-Cash deposit-Demoetizaation-Produced names, address, PAN etc-Parties have responded to the notices u/s 133(6)-Sales are accepted by VAT department-No defects in the books of account-Order of CIT(A) deleting the addition is affirmed. [S. 133(6), 143(3)] The assesseee has deposited cash sales in the bank account. The Assessing officer assessed the said deposit… Read More ...

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ITAT Mumbai: Interest under section 234B of the Act, even though mandatory, cannot be levied if the addition to income is made on account of a retrospective amendment. In this case, the addition was made during assessment on account of excess credit period granted to an associated enterprise. The provisions which regard excess credit period granted to… Read More ...

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Hon'ble Mumbai ITAT: Statement / details / information filed by third party or searched party before Income Tax Settlement Commission cannot be reason to make the addition in the case of an assessee sans any corroborative evidence. Read More ...

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