Updates
Guj HC holds no 14A disallowance in absence of any tax free income
No disallowance u/s 14A & Rule 8D can be made if the assessee does not have tax-free income & no claim for exemption is sought In AY 2009-10, the assessee had investments in tax-free securities on which it had earned no income. It claimed that as there was no tax-free income, no disallowance u/s 14A…
Read MoreNo 14A disallowance if no tax free income – All HC
No s. 14A & Rule 8D disallowance if there is no tax-free income In AY 2008-09, the assessee claimed that no s. 14A & Rule 8D disallowance could be made on the ground that (i) the assessee had not earned any tax-free income during the year and (ii) the assessee had sufficient surplus fund and…
Read MoreDel HC says rectification u/s 154 of intimation u/s 143(1) possible even after scrutiny assessment
The Hon’ble Delhi High Court in a decision dated 06.05.2014 has held that rectification u/s 154 of an intimation u/s 143(1) is possible even after scrutiny assessment has been concluded. The Court held as under : “It is apparent from the bare reading of the above provision that the power of rectification extends to amendment…
Read MoreP&H HC applies Sec. 55(3) for computation of cost, in absence of same from previous owner
HC upholds application of Sec. 55(3) for computation of cost of acquisition, in absence of its ascertainment in hands of previous owner; Rejects assessee’s plea for non-taxability of capital gains since cost of acquisition not ascertainable; Approves AO’s action in adopting fair market value as on April 1, 1981 as cost of acquisition u/s 55(3);…
Read MoreGujarat HC allows interest u/s 36(1)(iii) following SA Builders
The Hon’ble Gujarat High Court has allowed the claim of Interest u/s 36(1)(iii) following the judgement of Hon’ble Supreme Court in the case of S.A. Builders 288 ITR 1. For complete text of judgement, click here 36(1)(iii)-Gujarat HC
Read MoreBom HC holds courtyard can’t be included for 1500 Ft. defined in 80-IB(10)
In a recent decision dated 11.03.2014 rendered by Hon’ble Bombay High Court (Goa Bench) in the case of Commonwealth Developers has held that the area of Rear Courtyard which is open to sky but has only a boundary wall can not be included in built area limit of 1500 Sq. Ft. provided in Sec 80-IB(10)…
Read MoreDel HC confirms 271(1)(c) on estimated income
The Hon’ble Delhi High Court in decision dated 15.04.2014 in the case of kalindi Rail Nirman Engg Ltd. has reversed the decisions of CIT(A) as well as ITAT and has confirmed the levy of penalty u/s 271(1)(c) by holding that said penalty can be levied even in cases where income is estimated by AO. The…
Read MoreCalcutta HC holds 40(a)(ia) applies on WIP
In a recent decision dated 09.04.2014 rendered by Hon’ble Calcutta High Court in the case of CIT vs. FAIRLAND DEVELOPMENT PVT LTD, the Hon’ble Court has held that “when an expenditure of a revenue nature was incurred and shown as work in progress, it could not be said that the provisions of section 40(a)(ia) were…
Read MoreBombay HC holds over priced selling of shares valid tax planning
In a recent judgement, the Hon’ble Bombay High Court (Goa Bench) has held that over priced selling of shares of group company to off set capital losses is valid tax planning and is not tax evasion. To view complete text of judgement, click here Goa HC on sale of shares
Read MoreP&H HC holds that short term selling by investment company is business income
The Hon’ble P&H HC in a recent decision 11.04.2014 has held that short term selling by investment company is nothing but business income and the same can not be held as short term capital gain. Interestingly, the ITAT as well as CIT(A) had held the same as STCG. The HC reversed the said findings by…
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