Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Muthukoya T. v. CIT (2022) 445 ITR 450 (Ker.)(HC)

S. 131 : Power-Discovery-Production of evidence-Survey-Impounding of documents-Retention beyond fifteen days without approval of higher Authority is not valid-Decision of approval must be communicated to the assessee. [S. 131(3), 133A]

Nagindas Kasturchand and Bros. v. PCIT (2022) 445 ITR 50/ 288 Taxman 66 / 214 DTR 29/ 326 CTR 716 (Guj.) (HC)

S. 127 : Power to transfer cases-Opportunity of hearing should be provided-Reason for transfer should be recorded-Transfer of case without notice and reasons for transfer is not valid. [Art. 226]

Harman Connected Services Corporation India P. Ltd. v. Jt. Secretary (Foreign Tax and Tax Research-I) (2022) 445 ITR 346 / 215 DTR 177/ 327 CTR 241 (Karn.)(HC)

S. 90 : Double taxation relief-Mutual agreement procedure-DTAA has precedence over provisions of Act where beneficial to assessee-Respondents are directed to take necessary measures within a reasonable time-DTAA-India-USA. [S. 90(2), IT Rule, 44F, 44G 44H, Art. 27(2)]

West Palm Developments LLP v. ACIT (2022) 445 ITR 511 (Karn.)(HC)

S. 57 : Income from other sources-Deductions-Advance towards purchase of properties-Not necessary that expenses should have resulted in income-Sufficient if nexus is established between expenses and income-Question Before Tribunal regarding extent of deduction allowable-Tribunal does not have power to disallow entire Deduction [S. 36(1)(iii), 57(iii), 254(1)]

CIT v. Bharat Fritz Werner Ltd. (2022) 445 ITR 667 / 214 DTR 97/326 CTR 689(Karn.)(HC)

S. 43B: Deductions on actual payment-Property taxes paid-Deductible. [S. 145]

CIT v. South Indian Bank Ltd. (No.1) (2022)445 ITR 480 (Ker.)(HC) CIT v. South Indian Bank Ltd. (No.2) (2022)445 ITR 530 / 289 Taxman 643 (Ker.)(HC)

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-Entitled to benefit of write off of irrecoverable debts under section 36(1)(vii) in addition to deduction of provision for bad and doubtful debts-Rural Branch-Matter remitted to Assessing Officer. [S. 36(1)(vii)]

SRC Aviation Pvt. Ltd. v. ACIT (2022) 445 ITR 40/ 288 Taxman 159 (Delhi)(HC)Editorial: Special leave to appeal to the Supreme Court , dismissed , SRC Aviation P. Ltd. v .ACIT (2022)449 ITR 169/ (2023) 290 Taxman 3 (SC)

S. 36(1)(ii) : Bonus or commission-Bonus paid to directors to avoid dividend distribution tax-Services not rendered-Disallowance is held to be justified. [S. 37(1)]

CIT v. International Institute of Bio-Technology and Toxicology (2022) 445 ITR 499 (Mad.)(HC)

S. 10(21) : Scientific research association Agricultural research Registered under Tamil Nadu Societies Registration Act-Entitle to exemption. [Tamil Nadu Societies Registration Act, 1975]

CIT(IT) v. Microsoft Corporation (2022) 445 ITR 6/ 288 Taxman 32 (Delhi)(HC) , Editorial , SLP of Revenue dismissed , CIT (IT) v. Microsoft Corporation (Ms Corp) (2023)453 ITR 746/293 Taxman 508 (SC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Transferee authorised to use licensed software-No transfer of Copyright-Amount received is not royalty-DTAA-India-USA. [S. 90(2) Art. 12]

Sushiladevi R Somani v. ACIT (2022) 197 ITD 316 ( Mum) ( Trib) www.itatonline .org

S. 48 : Capital gains -Computation – Sale of shares – Fair market value as on 1-4 -1981 – Capital asset- Valuation based on valuation report – Department is not justified in rejecting the valuation adopted on the basis of approved valuer -On the peculiar facts of this case the Tribunal uphold the plea of the assessee, and direct the Assessing Officer to adopt the valuation of Rs 3,833 computed by the assessee on the basis of the fair market value of the net assets [ S. 2(22B) 45, 49, 55 ]