Category: Tax Laws

Archive for the ‘Tax Laws’ Category

CIT v. Geo Connect Ltd. (2017) 54 ITR 481 (Delhi)(Trib.)

S.40(a)(i):Amounts not deductible deduction at source- Payments made by assessee not in nature of royalty either under domestic law or under DTAA–No disallowance can be made. [S.195]

Kamal Raheja v. ITO (2017) 162 ITD 55 / 183 TTJ 538 / 145 DTR 225 (SMC)(Luck)(Trib.)

S. 28(i) : Business loss-Chit fund business-If a subscriber incurs loss in subscribing to chit fund to raise funds to use them in his business or for business purpose, such a loss is an allowable deduction.

ITO v. Emami Paper Mills Ltd. (Kol.)(Trib.);

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Fees paid with respect to a ‘contract of work’ does not constitute “fees for technical services” and consequently the assessee is not liable to deduct TDS.[S. 195, 201]

CIT v. Anjum G. Balakhia (2017) 393 ITR 320 (Guj)( HC)

S. 4: Charge of income-tax–Capital or revenue-Non-compete fees-Receipt of non-compete fees is capital receipt and not assessable as capital gains.[S. 28(iv), 45, 55(2)]

Siemens Pub. Communication Network Ltd v. CIT (2017) 390 ITR 1 / 291 CTR 22/ 244 Taxman 188 (SC)

S. 4: Charge of income–tax -Capital or revenue- Subvention received by assessee from parent company at time when assessee making losses, payment to protect capital investment was held to be not revenue receipt. [S.2(24), 28(i)]

Shankar Dalal & Ors v. CIT ( 2017) 294 CTR 107 / 150 DTR 197 (Bom.) (HC)

S.2(14)(iii): Capital asset-Agricultural land-Sale of agricultural land to non –agriculturist cannot be the ground to deny the exemption- Capital gains cannot be chargeable to tax.[S. 45, Goa, Daman and Diu Land Revenue Code, 1968 , S. 2(1), 105]

Common Cause (A Registered Society) v. UOI ( 2017) 394 ITR 220 (SC)

S. 2(12A) : Books of accounts – Entries in loose papers/ sheets are irrelevant and inadmissible as evidence- Offences and prosecution- Settlement commission. [S. 132, 143(3), 245D, Evidence Act, S.34]

Siddharth Mehta v. UOI (2017) 393 ITR 312 / 244 Taxman 289/ 148 DTR 248/ 293 CTR 365 (SC)

S. 199A : Pradhan Mantri Garib Kalyan Yojna, 2016- Legislative powers- Judicial review – Court declined to enter into or encroach upon policy making arena and suggest a different policy on ground that it was not within domain of Court- There is a distinction between assailment of the constitutional validity of a policy and conception of framing of a better policy. [S. 199E, 199FArt. 32 ]