S. 10A : Free trade zone – Export turn over- Total turnover Expenses excluded from export turnover should also be excluded from total turnover.
PCIT v. Cypress Semiconductors Technology India Pvt. Ltd. (2018) 408 ITR 531 (Karn.)(HC)S. 10A : Free trade zone – Export turn over- Total turnover Expenses excluded from export turnover should also be excluded from total turnover.
PCIT v. Cypress Semiconductors Technology India Pvt. Ltd. (2018) 408 ITR 531 (Karn.)(HC)S. 271(1)(c) : Penalty – Concealment –Estimate of income- sale of land along with building – agreement silent on consideration towards super structure – estimate made by assessee – such estimate increased by the AO and finally stood reduced to another amount by ITAT – Held, no penalty on such additions based on estimates.
Eagle Theatres v. ACIT (2018) 65 ITR 3 (Delhi)(Trib.)S 271AAB : Penalty – Search cases – commodity profits – sum entered in the other documents maintained in normal course and retrieved during search – Held, not undisclosed income – Held, no penalty can be levied.
Dy. CIT v. Subhas Chandra Agarwala and Sons (HUF) (2018) 65 ITR 18 (Kol.)(Trib.)S. 153A : Assessment – Search or requisition -Disallowance of commission expenses paid to overseas agent- in respect of completed assessments-No addition can be made which is not based on any incriminating material found in the course of search.
Dy. CIT v. Sopariwala Exports (2018) 63 ITR 658 (Mum.)(Trib.)S. 147 : Reassessment –Scientific research expenditure – original assessment completed after considering all facts – reassessment based on subsequent amendments applicable to subsequent years – Held, no new tangible material – Held, reassessment bad in law. [S. 35(2AB)]
Efftronics Systems P. Ltd. v. Dy. CIT (2018) 63 ITR 25 (SN) (Visakha.)(Trib.)S.147: Reassessment-After the expiry of four years- Concluded assessment reopened after four years on the basis of assessment of subsequent years – Held, no failure on the part of the assessee to disclose fully and truly all material facts – Held, reassessment not valid.
Dy. CIT v. Wind World (India) Limited (2018) 63 ITR 599 (Mum.)(Trib.)S. 115JB : Book profit –Provision for bad and doubtful debts – Assessee made a provision for bad and doubtful debts – It was maintaining a separate provision account – Certain bad debts were written off in such account – Provision amount lesser than the bad debts written off – Held, assessee eligible for higher deduction – Held, therefore, provision amount cannot be termed as unascertained liability and has to be allowed – Held, tribunal cannot direct AO to allow greater deduction-Prior period expose cannot be added while computing book profits-Provision for leave encashment ascertained liability and therefore, cannot be added to book profit-Provision for non-moving and obsolete stock not a provision and also not debited to P&L account and therefore, cannot be added to book profit- Provision for fringe benefit tax not similar to provision for income tax and that fringe benefit was a liability of the employer therefore, cannot be added to book profit.[S. 36(1)(vii), 36(1)(viia)]
Dy. CIT v. Southern Power Distribution Company of Andhra Pradesh Ltd. (2018) 170 ITD 1/ 166 DTR 1 / 64 ITR 257 / 193 TTJ 657 (TM) (Hyd.)(Trib.)S. 115JB : Book profit–Amount debited under P&L a/c towards debenture redemption reserve fund is a known liability and therefore, cannot be added to the book profit.
Dy. CIT v. Usha Martin Ltd. (2018) 66 ITR 18 ( SN)(Ranchi)(Trib.)S. 92C : Transfer pricing – Arms’ length price – operating profit – liabilities and doubtful debt written back as well as design income and services income form part of operating profit for computing operation profit while calculating OP/OC ratio.
Dy. CIT v. Tetra Pak India (P) Ltd. (2018) 191 TTJ 48 (UO)( (Pune) Trib.)S. 92C : Transfer pricing – Arm’s length price –Jurisdiction of TPO and AO – Held, TPO required to simply determined to the ALP irrespective of the benefits accruing to the assessee – Held, TPO cannot determine the ALP at Nil on the ground that no benefit accrued to the assessee -Held, AO to decide on deductibility of expense u/s 37(1) – Matter set aside. [ S.37(1)]
Dy. CIT v. Vodafone Essar Digilink Ltd. (2018) 193 TTJ 150 / 64 ITR 392/ 170 ITD 430/ 166 DTR 233 (Delhi)(Trib.)