S.43B: Deductions on actual payment-Explanation 5 to S. 43B, which was inserted by Finance Act, 2021 with effect from 1-4-2021 is clarificatory in nature and would apply retrospectively-Due date fell on a date which was a National Holiday, i.e., 15-8-2018, deposit could have been made by assessee only on date which followed National Holiday, i.e., 16-8-2018-the amount deposited on 16-8-2018 was to be allowed as deduction to assessee.[S. 36(i)(va), 139(1), 143(1(a)]
S. 40(a)(ia): Amounts not deductible-Deduction at source-Contractors-Payments were not linked to actual expenses supported by bills and constituted contractual payments attracting TDS under section 194C-Disallowance under section 40(a)(ia) was justified. [S.194C]
S. 10(10AA): Leave salary-Employee of the Central Government or State Government-Leave encashment-Employees of BSNL absorbed from Central Government service-Retirement to be treated as retirement from Central Government service-Exemption allowable. [CCS (Pension) Rules, 1972, Rule 37A(4), (8), Art. 226]
S. 4: Charge of income-tax-Agricultural income-Tea cultivation-Applicability of amended provision-The law applicable is the law in force in the relevant assessment year unless the amendment is retrospective. [Assam Agricultural Income-tax (Amendment) Act, 2009, S. 8B]
S.2(14)(iii): Capital asset-Agricultural land-Capital gains-Land situated beyond 8 kms. from municipality-Agricultural land excluded from the definition of capital asset. [S. 45, 260A]
S.68: Cash credits – Share capital and share premium – Identity, genuineness and creditworthiness of subscriber established – Assessee issued 22,50,000 equity shares of face value ₹10 at ₹50 per share, including premium of ₹40 –Merely because shares were issued at a high premium, addition under section 68 could not be made – Second proviso to section 68 inserted w.e.f. 1-4-2013 – A.Y. 2012-13 – Even assuming applicability, factual requirement stood satisfied as subscriber had explained source of investment received from group companies – No substantial question of law arose – Revenue’s appeal dismissed. [ S. 260A ]
S.45: Capital gains – Co-operative housing society – Redevelopment of property – Development Agreement entered into by society on behalf of its members – Society continued to be owner of land – No consideration received by society – Developer entered into Permanent Alternate Accommodation Agreements with individual members – Society merely acted as representative of members – Capital gains arising from redevelopment transaction, if any, taxable in hands of individual members and not in hands of society – Addition made in hands of society deleted. [ S.2(47), 143(3), Maharashtra Co-operative Societies Act, 1960, S.79A .]
S.264: Commissioner – Revision of orders – Assessment – Addition under section 69 – Cost imposed Rs .1 lakh – Redevelopment of property – Permanent Alternate Accommodation Agreements entered into with existing tenants – Assessee contending that PAAA’s were entered into to allot area to existing tenants in lieu of their existing area, free of cost – Assessment completed under section 143(3) read with section 144B by adding ₹4.24 crore as unexplained investment under section 69 – In revision proceedings, assessee produced only Index-II and failed to produce PAAA’s, MHADA permission and other supporting evidence – Revision application dismissed – High Court restored revision proceedings to Revisional Authority to enable assessee to produce complete evidence and fresh order – Subject to payment of costs of ₹1 lakh – Order passed in peculiar facts and not to be treated as precedent. [ S.69, 143(2), 143(3), 144B, 264, 43CB .]
Maharashtra Co-operative Societies Act, 1960.
S.154B(29): Co-operative societies – Recovery of dues – Penalty for encroachment of common space – Parking of bicycle in staircase – Society had not adopted new Model Bye-laws containing Bye-law 169(a) authorising levy of penalty – Recovery certificate issued for ₹15.45 lakh for alleged parking of bicycle for 11 years – Levy of penalty retrospectively without any contemporaneous objection by Society – Recovery certificate set aside – Remand for fresh enquiry held unwarranted – Society could not retrospectively levy excessive penalty after acquiescing in the alleged encroachment for 11 years. [ S.154(2A), Maharashtra Co-operative Societies Act, 1960, Bye-law 169(a).]
S.195: Deduction of tax at source – Non-resident – Purchase of trademark – Assessee acquired absolute ownership of trademark “Jamawar” from a non-resident for lump-sum consideration – Payment made for outright purchase of a capital asset and not for use of trademark – Consideration for transfer of ownership of trademark taxable, if at all, under the head “Capital gains” and not as “royalty” – Assessee not liable to deduct tax at source under section 195 – Demand under sections 201(1) and 201(1A) deleted. [S.5(2), 9(1)(vi), 201(1), 201(1A).]