Category Archives: Judgements

Government authorisations (or approvals) are not eligible for depreciation

By | June 7, 2017

Government authorisations (or approvals) are not eligible for depreciation The Delhi Bench of the Income-tax Appellate Tribunal held that government authorisations or approvals are not licenses or rights having a business or commercial nature that, in turn, could be transferred to the taxpayer. Therefore, depreciation is not allowed on the value assigned such government authorisations. The tribunal also… Read More »

Search and Seizure of undisclosed income deposited into account of Third party

By | May 30, 2017

Held A person could be in possession of undisclosed income not only in his or her own account but in someone else’s account. In the context of the present petitions, therefore, when pursuant to the search warrant, the Department proceeded to search and seize not only valuable things etc. found in the premises of Mr.… Read More »

Expense reimbursements not taxable as transfer pricing study showed no profit element

By | May 26, 2017

The Mumbai Bench of the Income-tax Appellate Tribunal held that amounts received by the taxpayer as reimbursements of training-related travel expenses, group health insurance, and other incidental expenses under a technical service agreement were not taxable as fees for technical services. Relying in part on the transfer pricing study and transfer pricing order, the tribunal… Read More »

Gift received from HUF would be exempt from tax u/s 56(2)(vi) of Income Tax

By | May 21, 2017

ITAT Mumbai DCIT Vs Ateev V. Gala  Appeal Number : ITA NO.1906/Mum/2014 Date of Judgement/Order : 19/04/2017 Related Assessment Year : 2010-11 Issue Whether gift received from HUF by a member of HUF falls under the definition of “relative” as provided in the Explanation to clause (vi) of sub section (2) of section 56 of… Read More »

Unrealised foreign exchange loss on a loan obtained for Asset purchases in India

By | May 20, 2017

Unrealised foreign exchange loss, loan to purchase of assets in India The Chennai Bench of the Income Tax Appellate Tribunal held that an unrealised foreign exchange loss on a loan obtained for the purpose of asset purchases was a “revenue loss” and therefore was allowable as deduction. The case is: Hyundai Motor India Ltd. Read a May… Read More »

Income from sub-licensing of property is not business income

By | May 20, 2017

Income from sub-licensing of property, held not business income The Supreme Court of India addressed the character of income from the sub-lisensing of retail property, and held that such income was taxable as “house property” income and not business income. The case is: Raj Dadarkar and Associates. Read a May 2017 report [PDF 368 KB] of KPMG

Interest on Fixed Deposits from unutilized funds of Power Plant Taxable – income from other source

By | May 18, 2017

Held The Hon’ble jurisdictional High Court in the case of CIT v. Rasi Cement Ltd. [1998] 232 ITR 554 (AP) has answered similar questions involved in favour of the Revenue. The question before the Hon’ble High Court was whether the interest earned on surplus funds deposited in the banks during the installation of the company,… Read More »

No Section 68 addition on cash credited in Swiss Bank if information not supplied by Swiss Bank Authority

By | May 17, 2017

Held Documents relied by the AO are the copies of the copies which did not have any signature of bank official or name of the bank or the place or the country were the branch was situated. The AO himself admitted in para 6 of the assessment order that the requisite information from the Swiss… Read More »

Benefit of 2016 Income declaration scheme not available even if search proceedings under section 132 initiated after launching of scheme

By | May 16, 2017

Held In the taxing statutes, the Court has to be very slow in interpreting the statutes where intention of the legislature is to curb the evasion of tax. This is a peculiar case where the Government has granted the benefit under the scheme only to the persons who are not covered under Section 132 of… Read More »

Notice not served due to change of Address , Reassessment Valid u/s 148 of Income Tax

By | May 15, 2017

HIGH COURT OF KERALA Smt. Rajee Rajkumar v. Assistant Commissioner of Income-tax, Non-corporate Circle(1), Ernakulam A.M. SHAFFIQUE, J. W.P. (C.) NOS. 17509 & 17571 OF 2016 APRIL  5, 2017 Anil D. Nair, R. Sreejith, Kum. Soumya Prakash and Kum. Mekhala M. Benny, Advs. for the Petitioner. Christopher Abraham and K.M.V. Pandalai, Advs, for the Respondent.… Read More »