This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record –Tribunal has no power to recall order and pass an entirely different order . [ S.254(1) ]
CIT v. U. S. Srivastava Memorial Educational Society. (2018) 405 ITR 546 (All) (HC)
Constitution of India – Jurisdiction
Art.226:High Court — Territorial Jurisdiction of High Court — Company having Registered Office in Delhi —Notice to Non-Executive Chairman in Chennai — Chennai High Court has Jurisdiction to consider Writ petition by non-executive Chairman [ S.2(35) , 276B ,278AA]
Kalanithi Maran v. UOI (2018) 405 ITR 356/ 256 Taxman 260/ 304 CTR 17 / 168 DTR 385 (Mad) (HC)
S. 276B : Offences and prosecutions – Failure to pay to the credit tax deducted at source -Non-Executive Chairman is not involved In Day-To-Day affairs of company — Managing Director admitting Liability and entering into negotiations with revenue — Prosecution of Non-Executive Chairman is held to be not valid . [ S.2(35) ,278AA]
Kalanithi Maran v. UOI (2018) 405 ITR 356/ 256 Taxman 260/ 304 CTR 17 / 168 DTR 385(Mad) (HC)
S.56:Income from other sources — Business income —Setting up business — Interest on fixed deposits – Assessable as income from other sources [ S.28(i) ]
CIT v. Sangam Power Generation Co. Ltd. (2018) 405 ITR 390 (All) (HC)
S.37(1): Business expenditure — Expenditure incurred on Freebies provided to medical consultants, consultancy or honorarium fee, registration, sponsorship and training — Matter remanded to Tribunal to reconsider the issue .[ S.254(1)
Boston Scientific India P. Ltd. v. ACIT (2018) 405 ITR 412 (Delhi) (HC)
S.28(va): Business income- Non-Resident —Non-compete fee — Negative covenant for three years only and not permanently- Receipts is taxable as business income but not taxable in India in absence of any permanent establishment of non-Resident In India – There was no transfer of any capital asset hence not liable to capital gains tax – DTAA- India -United Kingdom [ S.45 2(47) Art. 7 (1) ]
HM Publishers Holdings Ltd., In Re (2018) 405 ITR 441/ 303 CTR 775/ 167 DTR 439 (AAR)
S. 32 : Depreciation – Goodwill- Intangible asset-Goodwill will fall under the expression ‘or any other business or commercial rights of similar nature’ hence depreciation is available on genuine goodwill. Whether there is transfer of goodwill and valuation done by the assessee is erroneous has to be decided by division Bench , accordingly the matter is sent back to division Bench .
CLC & Sons Pvt. Ltd. v. ACIT (2018) 168 DTR 157 / 171 ITD 139/ 194 TTJ 700 (SB) (Delhi)(Trib) www.itatonline.org