S. 37(1) : Business expenditure-Penalty, fine, etc.-Payment of licence fee for use of goodwill by legal firm to heirs of goodwill owner-Alleged breach of Bar Council of India Rules not an offence or purpose prohibited by law-Deduction allowable. [S. 37(1), Explanation.]
S. 36(1)(vii) : Bad debt-Loss on account of guarantee obligation to group company-Financing business-Isolated transaction-Arrangement resulting in transfer of losses within group-Not allowable as deduction. [S. 36(2), 37(1)]
S. 12AA : Procedure for registration –Trust or institution-Objects of the assessee trust are both charitable as well as religious in nature-Entitle for registration-Order of Tribunal affirmed.[S.260A]
S. 12A : Registration-Trust or institution-Retrospective registration-Delay in application-Assessee having claimed exemption under section 10(23C)(iiiad) from inception, being aware of statutory requirements, but not seeking registration under section 12A and failing to furnish cogent and justifiable reasons for delay-Denial of retrospective registration held justified. [S. 10(23C)(iiiad), 260A]
S. 10(26) : Schedule Tribes-Residing in Ladakh-Failure to prove residence in specified area and income derived from such area-Mere production of ST certificate not sufficient-Concurrent findings of fact not interfered with in writ jurisdiction-Writ petition dismissed. [S. 144, 264, Art. 226]
S. 4 : Charge of income-tax-Accrual-Sale of fly ash-Did not belong to assessee-A separate utilization account as mandated, and used funds solely for specified purposes without deriving any benefit or ownership-Income not accrued to assessee-Sale proceeds were not taxable.[S. 5, 260A]
S. 288 : Appearance by authorised representative –Duties – Appellate Tribunal – Adjournment sought by Departmental Representative – Statement of loss of trust in the Bench – Conduct held wholly unacceptable – Revenue representative duty bound to assist Tribunal – Matter adjourned with direction for proper representation. [S. 254(1)]
Maharashtra Cooperative Societies Act, 1960 .
S. 23(2) : Open membership – Nominee – Succession dispute – Scope of revisional jurisdiction – Nomination does not confer ownership – Majority legal heirs supporting claim – Tenant has no locus to challenge internal arrangement among heirs – Revisional authority exceeded jurisdiction in interfering with grant of membership.[ Art. 226 ]
S. 151 : Reassessment – Sanction for issue of notice – Sanction of specified authority – Notice issued beyond three years from end of relevant assessment year – Approval obtained from Pr.CIT instead of Pr.CCIT/CCIT – Invalid assumption of jurisdiction – Reassessment quashed. [ S. 144, 147 , 148, 148A(d), 151(ii) ]
S. 263 : Commissioner – Revision of orders prejudicial to revenue – Long-term capital gains on equity-oriented funds – Annual letting value of properties – Non-initiation of penalty proceedings – Where AO had examined the details and taken a possible view, revision was not justified. [S. 45, 112A, 14A, 23, 24(b), 143(3), 271C]