Category: Tax Laws

Archive for the ‘Tax Laws’ Category


Ameya Logistics Pvt. Ltd. v. Dy. CIT (2020) 83 ITR 46 (SN) (Mum.) (Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Only investments yielding exempt income during year to be considered for computing average value of investments. [R. 8D]

Bangalore Club v. CWT (2020) 427 ITR 260/ 316 CTR 622/ 193 DTR 441 (SC )

Wealth -tax Act, 1957

S. 21AA: Assessment – Association of persons – Members’ Club — No business or profession carried on by social members’ Club- Surplus assets to be divided equally amongst members — Members’ shares determinate at that date —Club not chargeable to Wealth-Tax. [ S.2(31) 3(1) ]

Lakshmi Satyanarayana Dutt Tadikonda v. UOI(2020)426 ITR 550 (Delhi)(HC)

Black Money (Undisclosed Foreign Income And Assets) And Imposition Of Tax Act, 2015,

S.53 : Punishment for abetment – Tax evasion —Bogus bills – Statement on oath — Petitioner appearing before authorities and co-operating in investigation and making admissions — Directions to authorities to recall look out circular ,in name of petitioner [Income -tax Act , 1961 , S 131(IA ) 133A ,Art , 226 ]

Thomas Mathew v. ITO (2020) 426 ITR 438 / 315 CTR 193/ 273 Taxman 34 (Ker)(HC)

Black Money (Undisclosed Foreign Income And Assets) And Imposition Of Tax Act, 2015

S.42 : Penalty for failure to furnish return relation to foreign income and asset -Black Money — Failure to file return -Alternative remedy – Court under writ jurisdiction cannot exercise the role of an appellate authority defined under the Black Money Act to deal with the controversy if brought into motion. [ S.3 , 10 ,11 , Income -tax Act , 1961 ,139(5) , Art , 226 ]

Anila Rasiklal Mehta v. UOI (2020)425 ITR 545 (Bom)(HC)

Black Money (Undisclosed Foreign Income and Assets) and Imposition of tax Act, 2015

S.10(1): Assessment – Penalty – Taking an overall view of the matter, the respondents could proceed pursuant to the notices dated December 20, 2017. However, no coercive measures could be taken against the assessees if the occasion so arose. [ S. 4(3), 59, Income -tax Act , 1961 S.131 ,148 ]

ACIT v. Amartara P. Ltd. (2020) 78 ITR 46 (SN) (Mum)(Trib)

S. 45(3) : Capital gains – Transfer of capital asset to firm – Transfer of capital asset by Partner to Firm as capital contribution – Amount recorded in books of account of Firm deemed to be full value of consideration – One deeming provision cannot be extended by importing another deeming provision [S. 48 , 50C].

Catherene Thomas (Smt.) v. ACIT (2020) 78 ITR 18 (SN)(Cochin) (Trib)

S.45: Capital gains — Long-term capital gains — Transfer of land — Reference to Valuation officer — FMV as proposed by AO to be adopted for purposes of computation of capital gains [ S.48, 49 ]

Barnala Steel Industries Ltd. v. JCIT (2020) 78 ITR 29 (SN) (Delhi) (Trib)

S. 40A(3) : Expenses or payments not deductible — Cash payments exceeding specified limit — Assessee taking different stands before AO and CIT(A) – General remark that payment made in cash due to business exigencies not acceptable — Disallowance is held to be justified

Addl CIT v. National Research Development Corporation (2020) 78 ITR 56 (SN)(Delhi)(Trib)

S. 37(1) : Business expenditure — Expenses prohibited by law — Grants — Assessee receiving grants on annual basis and grants used in accordance with directions of Government — AO allowing salary expenses in preceding year — AO should not have taken a different stand in current year — Salary paid to all old employees who worked for Assessee and expenses genuine — Expenses wholly and exclusively for purpose of business, hence expenses are deductible.

Barnala Steel Industries Ltd. v. JCIT (2020) 78 ITR 29 (SN) (Delhi) (Trib)

S.37(1): Business expenditure – adhoc addition on account of weight and rate difference – No evidence to establish basis of arriving the amount debited in P&L Account — Addition justified.