Category: Tax Laws

Archive for the ‘Tax Laws’ Category


ACIT v. D. A. Jhaveri (2017) 183 TTJ 447/ 148 DTR 132 (Mum.)(Trib.)

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-DTAA-India & Belgium–Issuing gradation certificate, the payment cannot be characterize as fees for technical services, not liable to deduct tax at source-DTAA-India- Belgium [S. 9(1)(vii], Art.
12,13]

Sunbeam Auto Pvt. Ltd. v. CIT (2018) 402 ITR 309 / ( 2020) 116 taxmann.com 763 (Delhi) (HC)

S. 4 :Charge of income-tax – Capital or revenue- Sales tax subsidy is a capital receipt. [ S. 264 ]

CIT v. Deepak Vegpro Pvt. Ltd. (2018) 401 ITR 89 /164 DTR 226/ 302 CTR 269 (Raj) (HC)

S. 4 : Charge of income-tax -VAT subsidy -Refund of value added tax was held to be capital receipt and not chargeable to tax . [ S. 2(24)(xviii) , 43(1) ]

CIT v. Godrej Reality ( P) Ltd ( 2018) 161 DTR 417 / 300 CTR 257( Bom) (HC)

S. 4 : Charge of income-tax -Accrual – Interest on project advance –Development agreement has not taken place as the interest has not accrued, income cannot be assessed on hypothetical basis [ S.145 ]

CIT v. Reliance Industries Ltd ( 2018) 161 DTR 420 /( 2019) 410 ITR 468 ( Bom) (HC)

S. 4 : Charge of income-tax – Capital or revenue- Notional sales tax – Question of law [ S. 260A ]

CIT v. Parle Soft Drinks (Bangalore Pvt. Ltd. (2018) 400 ITR 108/ 161 DTR 86/ 252 Taxman 147 / 300 CTR 415 (Bom) (HC) CIT v. Parle Bottling Pvt Ltd (2018) 400 ITR 108/ 161 DTR 86 / 252 Taxman 147 / 300 CTR 415 /(2017) 88 Taxmann.com 24 (Bom) (HC) Editorial ; Order in Parle Soft Drinks P. Ltd. v. JCIT ( 2013) 27 ITR 663 ( Mum) (Trib) is affirmed. Editorial: SLP of revenue is dismissed CIT v. Parle Soft Drinks (Bangalore Pvt. Ltd. (2018) 258 Taxman 6 (SC)

S. 4 : Charge of income-tax –Capital or revenue – Causal and non –recurring- Capital gains- Compensation paid for breach of contract was held to be capital in nature [ S. 2(24), 10(33) 45. 55(2)(a) ]

ITO v. Gymkhana Club. (2018) 168 ITD 64/ 167 DTR 113/ 192 TTJ 571 (Chd) (Trib.)

S. 4 : Charge of income-tax -Mutual concerns –Surplus earned was spent for common benefit of members of for carrying on objects of the Club – Principle of mutuality is applicable and surplus cannot be brought to tax .

DCIT v. Narayani Ispat Pvt. Ltd. (2018) 61 ITR 371 (Kolk) (Trib)

S. 4 : Charge of income-tax – Interest on amount of sundry debtors outstanding cannot be charged on accrual basis [ S. 145 ]

ITO v. Venkatesh Premises Co -operative Society Ltd ( 2018) 402 ITR 670/ 163 DTR 465/301 CTR 514/ 254 Taxman 313 ( SC) Editorial: From the judgement of Bombay High Court in ITO v. Venkatesh Premises Co -operative Society Ltd (ITA No 680 of 2009 dt 11-1-2010) Mittal Court Premises Co -operative Society Ltd v. ITO ( 2010) 320 ITR 414 ( Bom) (HC) , and CIT v. Shree Parleshwar Co -op- Housing Society Ltd ( 2017) 10 ITR-OL 202 ( Bom) (HC) is affirmed

S. 4 : Charge of income-tax – Mutuality- Receipts by Co -operative society form its members ie. Non-occupancy charges , transfer charges common amenity fund charges and other charges , are exempt from income -tax Act based on the principle of mutuality [S. 2(24), Maharashtra Co -operative Societies Act , 1960 , S. 79A ]

Shailesh Gangaram Ramani. v. ITO (2018) 168 ITD 446 (Rajkot) (Trib.)

S.2(14)(iii) : Capital asset – Agricultural land -Capital gains- Business income- Sale of agricultural land purchased on good price and purchasing the land of higher volumes at different places cannot be regarded as trader- Entitle to exemption. [ S. 2(14) , 28(i)]