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. 44BB : Mineral oils – Computation – imparting any services in relation to exploration of mineral oil then royalties/FTS would be taxable under S. 44BB of the Act- Specific provision prevail over other provisions dealing with royalties and FTS . [ S.9(1)(vi), 9(1) (vii), 44DA, 115A ]
DIT v. RPS Energy Pty Ltd. (2018) 170 ITD 468 (Delhi) (Trib.)
S.40(a)(ia):Amounts not deductible – Deduction at source -Professional fees- Failure to deduct tax at source- Disallowance was held to be justified [ S.194J ]
Nanak Ram Jaisinghani v. ITO (2018) 170 ITD 570 (Delhi) (Trib.)
S.37(1): Business expenditure -Capital or revenue- Right to use technical know is held to be revenue expenditure .
Moser Baer India Ltd. v. DCIT (2018) 170 ITD 522 (Delhi) (Trib.)
S.28(i): Business income- Hire charges –Activity of the assessee being business activity ,hire charges received is assessable as business income and not as income from other sources [ S.56 ]
Nanak Ram Jaisinghani v. ITO (2018) 170 ITD 570 (Delhi) (Trib.)
S. 12AA : Procedure for registration –Trust or institution- Filing or non-filing of return of income or payment of tax has nothing to do with genuineness of activities of an institution- Benefit of S.11 is subject to application of income and income can also be taxed u/s 13 if there is violation- CIT ( E ) is directed to grant registration to the assessee forth with [ S. 2(15) 11, 13(1)(b)]
B.S.A. College. v. CIT (E) (2018) 170 ITD 485 (Agra) (Trib.)
S. 10B: Export oriented undertakings – Interest from fixed deposits made with Bank for obtaining letters of credit which has direct nexus with export activities is to be includable in computing the income -Matter was remanded for verification-Insurance claim which has direct nexus with industrial undertaking are eligible for deduction . Foreign exchange gain on sale of forward exchange contract arising out of eligible undertaking is entitle to deduction . Export proceeds that were unrealized, claimed that period for realization, had been extended by RBI Master Circular dated 1-7-2005 was directed to be allowed subject to verification . [ S.10A ]
Moser Baer India Ltd. v. DCIT (2018) 170 ITD 522 (Delhi) (Trib.)
S. 2(22)(e):Deemed dividend-Amount received back given in earlier years cannot be assessed as deemed dividend .
Nanak Ram Jaisinghani v. ITO (2018) 170 ITD 570 (Delhi) (Trib.)
S. 2(22)(e):Deemed dividend- Director-Advance received for blocking deal of sale and purchase on behalf of the company for business transaction cannot be assessed as deemed divided.
Dinesh Pandey. v. DCIT (2018) 170 ITD 501 (Delhi) (Trib.)
S. 273A : Penalty – Commissioner – Power to reduce or waive -Long term capital gain shown as exempt in the original was accepted by filing the revised computation as income from other sources – Genuine hardship financially or in any manner was not proved -Rejection of application was held go be justified [ S. 10(38), 45, 56, 271(1) ( c ),273A((1)(4) ]
Dayaram Khandelwal v. PCIT (2018) 405 ITR 569 / 165 DTR 425 / 302 CTR 441 (MP) (HC) Sourabh Khandelwal v. PCIT (2018) 165 DTR 425 / 302 CTR 441 (MP) (HC)
S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record –Net profit rate at 10% is applied – Followed the jurisdictional Bench decision and not the judgement cited by the assessee- Tribunal used jurisdictional discretion which cannot be rectified .
Ajay Kappor v.CIT ( 2018) 165 DTR 433 / 302 CTR 431/ 256 Taxman 20( J& K) (HC)