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INCOME TAX APPELLATE TRIBUNAL ORDER

2016-TIOL-1556-ITAT-VIZAG

Srinivasa Ferro Alloys Ltd Vs JCIT (Dated: July 15, 2016)

Whether addition u/s 41(1), towards remission of liability on account of OTS by SBI was justified for the A.Y 2005-06 when OTS scheme approved by the SBI, is not a finally mutually accepted proposal. The operation of which is subjected to the outcome of OTS proposal of IDBI Bank. The OTS proposal of IDBI bank has been finally approved in the F.Y 2005-06 relevant to A.Y 2006-07 - Whether disallowance of transportation charges under the provisions of sec. 40A(3) and 40(a)(ia) is justified when the assessee has furnished complete list of payments along with vouchers and explained that in no case single payment in any day were in excess of Rs. 20,000/- - Whether the payments are outside the scope of provisions of sec. 40(a)(ia), when the amount incurred under the head transportation charges is paid within the F.Y - Whether the assessee needs to prove that bad debts were shown as income in the earlier years for the purpose of taking benefit of section 36(1)(vii).

2016-TIOL-1555-ITAT-KOL

ACIT Vs Sitalamata Oil Mill Pvt Ltd (Dated: July 8, 2016)

Whether adoption of preceding year's gross profit is justified when the situation prevalent in the preceding year is thoroughly distinguishable as the turnover in the impugned assessment year is seven times more than that recorded in that year and higher quantum of gross profit in comparison to earlier assessment year.

2016-TIOL-1554-ITAT-MUM

Sbi Dfhi Ltd Vs ACIT (Dated: June 30, 2016)

Whether the AO is justified in levying penalty u/s. 271(1)(c) of the Act on the assessee's claim for unabsorbed depreciation in the computation of its' book profit u/s. 115 JB - YES: ITAT


Iti Securities Ltd Vs ACIT (Dated: February 17, 2016)

Whether if own funds are sufficient to cover up the value of investments, interest income is more than interest expenditure, no disallowance of interest can be made u/s 14A - YES: ITAT

2016-TIOL-1552-ITAT-LKW

Etawah Safari Parks Samiti Vs CIT (Dated: April 13, 2016)

Whether when the assessee has filed all the relevant evidence on record, wherefrom it is established that it is engaged in charitable activities, can the CIT(Exemption) deny grant of registration u/s 12AA to such assessee without considering these evidences - NO: ITAT


ITO Vs Dollex Industries Ltd (Dated: April 6, 2016)

Whether non-availability of independent verifiable vouchers cannot be the subject

matter of a concealment penalty order, mere making of a claim, which is not sustainable in law by itself cannot lead to furnishing of inaccurate particulars of income - YES: ITAT 2016-TIOL-1550-ITAT-COCHIN

Kannur Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangam Ltd Vs ACIT (Dated: August 24, 2016) Whether the item 'toddy' which is tapped from coconut trees, is an agricultural produce - YES: ITAT

Whether where such agricultural produce 'Toddy' is tapped from coconut trees grown by the members of a cooperative society and marketed therein to earn pro fit from the same, is entitled for exemption u/s 80P(2)(a)(iii) - YES: ITAT

Whether where a Co-operative Society earns income from the marketing of agricultural produce of its members, then the profits and gains of business attributable to that marketing activity, would be available as a deduction u/s. 80P(2)(a)(iii) - YES: ITAT

Also see analysis of the order


Abbot India Ltd Vs ACIT (Dated: August 24, 2016) Whether a concluded assessment which was accepted after detailed scrutiny, can be reopened, in the absence of any tangible material which has live nexus with the formation of belief that income chargeable to tax has escaped assessment - NO: ITAT

Whether a claim of buyback expenses on shares, can be denied to the assessee, without verifying the claim and on mere ground that it was claimed only in the revised return and not in the original return - NO: ITAT


Major Metals Ltd Vs ACIT (Dated: May 13, 2016) Whether where the assessments are reopened after the expiry of four years from the end of the relevant A/Y, the AO is required to show that there was failure on the part of assessee to disclose fully and truly all material facts necessary for assessment - YES: ITAT

Whether where the reasons recorded by the AO does not indicate even a remote nexus between the application money received by the assessee with the alleged accommodation entries provided by alleged beneficiary of the accommodation entries, then reopening of assessment is bad in law - YES: ITAT

Whether where it is impossible for any prudent person to form a belief on the basis of evidence or reasons recorded by ITO, that income chargeable to tax has escaped assessment within the meaning of Section 147, then the reopening the assessment is bad in law - YES: ITAT

2016-TIOL-1547-ITAT-AHM

Shiv Krupa Tin Vs ITO (Dated: June 9, 2016) Whether disallowance u/s 40A(3) can be made where the payment was made by the assessee for the purpose of business and the payee to whom the assessee has made

the payment has not been doubted by the AO - No: ITAT


Industrial Perforation India Pvt Ltd Vs ITO (Dated: May 27, 2016) Whether mere statement of assessee that it has appointed persons as commission agents to follow-up its affairs, without any sufficient evidence in this regard, is sufficient to draw a conclusion that the said payments made to various persons are self made and non-verifiable - YES: ITAT

Whether where the assessee got guarantee on some terms from banks and other financial institutions for financial assistance against their bills, without making any payment to the bank, the same does not mandates TDS deduction u/s 194H - YES: ITAT

2016-TIOL-1545-ITAT-MAD

DCIT Vs General Optics (Asia) Ltd (Dated: January 29, 2016) Whether depreciation and research & development expenses incurred can be allowed u/s 35(1)(iv) & 35(1)(i) of the Act respectively, when no approval from the prescribed authority is warranted - YES: ITAT


ACIT Vs Godrej Sara Lee Ltd (Dated: August 22, 2016) Whether for the purpose of counting limitation period, the date to be reckoned with is the date on which the original assessment is passed - YES: ITAT

Whether the order u/s 154 is to be passed within four years from the end of the AY in which the original assessment order is completed - YES: ITAT


Late Shri D Shrihari Rao Vs ACIT (Dated: April 6, 2016)

Whether the penalty levied on the basis of non-reliability of books of account is justified - Whether penalty levied u/s 271(1)(c) is justified when the AO has not brought material to suggest that the claim of the assessee in respect of agricultural income is false and the assessee has concealed the income.


Northern Tannery Vs ACIT (Dated: June 8, 2016)

Whether when the assessee has simply procured export orders through commission agent for which commission was paid, the assessee was not required to deduct tax at source on the commission paid to the foreign agent - Whether when the amount has been received in the course of the business, there is no existing liability to repay the amount, the amount will become as trading receipt.


Gujarat Gas Company Ltd Vs JCIT (Dated: May 17, 2016)

Whether the disallowance made by the AO on account of depreciation on plant and machinery covered under sale lease back transaction with RSEB, is warranted - NO:

ITAT

Whether an expenditure for acquiring licence to use software applications is to be treated as revenue expenditure - YES: ITAT

Whether where regular books are being maintained by the assessee and accounting policies and standards are consistently followed, then no disallowance is warranted on the same - YES: ITAT

Whether unutilized CENVAT/MODVAT credit constitutes income - NO: ITAT


Gruh Finance Ltd Vs ACIT (Dated: July 11, 2016)

Whether expenditure incurred on issue of convertible debenture which is directly related to the expansion of capital base of the company is a capital expenditure – No: ITAT

Whether the amount of bad debts recovered by the assessee has to be excluded while calculating the claim under section 36(1)(viii) of the Act where the income derived by the assessee from long term finance was reduced by virtue of written off of certain debts which had direct nexus with the income derived by the assessee and these entries were reversed by recovery of this bad debt – No: ITAT

Whether income from EMI residual which represents difference of interest charged by the assessee for the services rendered by it for collecting EMI etc. on behalf of the bank not linked with long te rm finance will form part of the eligible profit derived from long term finance for the purpose of calculating 40% of the amount to claim deduction under section 36(1)(viii) - No: ITAT


Ge Global Sourcing India Pvt Ltd Vs ITO (Dated: June 13, 2016)

Whether pre-operative and preparatory expenses which are incurred prior to setting up of business and prior to coming into an existence altogether new source of income can be allowed as revenue expenditure - No: ITAT


Enfield Gems And Jewellery Ltd Vs CIT (Dated: June 29, 2016)

Whether the CIT is justified in initiating proceeding u/s 263 on the ground that penalty proceedings u/s. 271AAA had not been initiated in the assessment order when the AO for not initiating the penalty proceedings had taken a possible view i.e. the penalty is not leviable in the case in hand - NO: ITAT


DCIT Vs Doongursee Salt Works Pvt Ltd (Dated: July 22, 2016)

Whether disallowance of repairs and maintenance expenditure to the tune of Rs 1,56,82,543/-against claim of Rs. 2,27,01,717/- was justified on the ground that it being excessive compared to preceding F.Y when the profits of the assessee have increased substantially compared to earlier years and secondly, the nature of expenditure is such that it has to be incurred in cash considering the status of the recipients - Whether when the assessee has paid a lesser rate of interest to its related parties compared to banks and unrelated parties the provisions of Section 40A(2)(b) will apply - Whether the disallowances u/s. 14A was justified when there is no exempt income earned by the assessee during the current year - Whether disallowance of car expenses on the ground that the cars are not owned by the assessee company is justified when the cars were used for the purposes of the business of the assessee.


ACIT Vs Dattani Development (Dated: July 27, 2016)

Whether section 50C of the Act is applicable even to the sale of development rights in the land.

2016-TIOL-1535-ITAT-DEL

Crown Corporation Pvt Ltd Vs ACIT (Dated: June 27, 2016)

Whether disallowance u/s 14A can be made when there is no finding by the AO that he is not satisfied with the claim of the assessee with regard to incurring the amount of the expenditure as specified by the assessee for earning of exempt income.

2016-TIOL-1534-ITAT-PUNE

ACIT Vs The Cosmos Co-op Bank Ltd (Dated: July 22, 2016)

Whether the provision created by the assessee towards advances to suppliers not recovered, Demat charges receivable, locker rent charges, HP charges & minimum balance charges not received in compliance of RBI guidelines, is allowable as deduction from the computation of total income.


DCIT Vs Cncs Facility Solutions Pvt Ltd (Dated: March 22, 2016)

Whether interest income from NPA is not taxable on accrual basis - Whether the deduction u/s 36(1)(vii) and 36(1)(viia) are distinct and separately allowed.

2016-TIOL-1532-ITAT-NAGPUR

Chikhali Urban Coop Bank Ltd Vs DCIT (Dated: May 31, 2016)

Whether interest income from NPA is not taxable on accrual basis - Whether the deduction u/s 36(1)(vii) and 36(1)(viia) are distinct and separately allowed.


ITO Vs Chanakya Stock Broking Services Ltd (Dated: July 5, 2016)

Whether provisions of section 40(a)(ia) are applicable with regard to computer software expenses where these expenses have been incurred towards the purchase of software and as such no service was involved – No: ITAT

Whether expense incurred on the purchase of software for maintenance of computer and software is capital expenditure – No: ITAT

2016-TIOL-1530-ITAT-COCHIN

Calicut City Service Coop Bank Ltd Vs ACIT (Dated: June 9, 2016)

Whether the primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969 is entitled to the benefit of deduction u/s 80P(2) - YES: ITAT


Bansi Dairy Pvt Ltd Vs DCIT (Dated: May 31, 2016)

Whether depreciation on machinery can be allowed where there are serious doubts about the genuineness of the purchase of the machinery - NO: ITAT

Whether depreciation on machinery can be disallowed where the invoice contained the complete description of the machineries as well as the details of the despatch and that the genuineness of the payments made through demand draft have not been doubted by the Revenue Department and the cost of the machinery was duly reflected in the

books of accounts in the past year and there was no objection in that year and that the use of the machinery in the production of the milk has not been doubted – NO: ITAT

2016-TIOL-1528-ITAT-JAIPUR

Arvind Singh Vs ITO (Dated: June 7, 2016)

Whether the income of the Assessee can be said to be from salary when the assessee is provided lump sum receipts on the basis of contract for providing the services to the institution. The TDS deducted treated these payments as professional and given TDS certificate in form No. 16A. The assessee is free to do work with other institutions also.


ITO Vs Amiya Corporation (India) Pvt Ltd (Dated: May 11, 2016)

Whether the purchase expenses claimed under the wrong head "labour Charges" attract the provision of TDS.

Whether disallowance of certain portion of the labour charges paid out of Rs.43,18,532/-can be made when the AO has not pointed out any specific defect for the expenses claimed by the assessee but proposed to make the disallowance on ad hoc basis - Whether the Assessee was liable to deduct TDS u/s 194C when the advertisement expenses claimed by the assessee were mostly in the nature of purchases of gift articles which were duly verified with the available records.


DCIT Vs Ikea Trading (India) Pvt Ltd (Dated: June 2, 2016) Whether expenditure incurred can be held to be Capital Expenditure when the expenditure was purely routine & miscellaneous in nature such as rent charges, cleaning charges and repairs on computer & other equipments and the assessee obtains no advantage of enduring nature - NO: ITAT


ITO Vs Indian Youth Centre Trust (Dated: May 23, 2016) Whether merely because somebody here and there obtained a service because of the lack of control would mean that the trust has become commercial and as such lost its charitable character where all these activities were part of the objects of the trust and for the cause of the youth only – No: ITAT

Whether income has to be computed after allowing depreciation on the assets where the charitable income is used for purchasing of assets and in the subsequent years the asset is used to generate income - YES: ITAT


Lord Chloro Alkali Ltd Vs ACIT (Dated: August 19, 2016)

Whether in case there is no change in the rate of tax, an assessee can be held as a defaulter in case it has offered a certain income for taxation in the next assessment year instead of current fiscal - NO: ITAT

Whether an expenditure incurred in connection with conducting a study to make the plant technological better, can be considered as a capital expenditure by the Revenue on no basis - NO: ITAT

Whether routine business expenditure which has been incurred to provide basic hospitality to the technicians, guests who have visited the office and factory premises,

can be disallowed to be claimed as revenue expenses - NO: ITAT

Whether when the foreign visits have been undertaken by assessee, corresponding expenditure have been incurred for the purpose of acquiring the capital assets, the same has to be treated as capital expenditure - YES: ITAT

Whether in case the assessee company was going through the financial and liquidity crunch, in order to meet the statutory liabilities and dues towards salary of employees, it had taken loan , the interest of which cannot be disallowed as the expenses incurred on account of interest has satisfied the test of commercial expediency - YES: ITAT

Whether where the person to whom payment is made is genuine and cash is paid in exceptional circumstances in business expediency, the same cannot be disallowed u/s 40A(3) - YES: ITAT

2016-TIOL-1523-ITAT-BANG

R Srinivas Raju Vs ACIT (Dated: June 17, 2016) Whether when the assessee has claimed amount of Rs.4.5 Crores as an expenditure laid out for earning the business income then the contention of the assessee that this transaction is out of books of accounts and therefore cannot be disallowed under the provisions of Section 40A(3) is justified - Whether when the AO prima facie accepted the payment while making the disallowance u/s 40A(3) then for making a disallowance of the said amount u/s 37(1) a detailed and proper enquiry is required.

2016-TIOL-1522-ITAT-HYD

R K Township Promoters Pvt Ltd Vs DCIT (Dated: April 29, 2016) Whether assessee's income has to be estimated by applying the presumptive rate available in the section 44AD where the books of the assessee cannot be accepted due to the complexity of the nature of business and maintenance of books of account at the same time the recasted profits & loss computed by the special auditor also has reliability issue, which were computed based on presumptions – Yes: ITAT


Prabhat Jhunjhunwala Vs ACIT (Dated: June 10,2016) Whether estimation of income is justified where the assessee's books of account were neither correct nor complete and, consequently, not reliable for the computation of its business and assessee had admitted to the unaccounted expenditure being not to the same extent as the unaccounted receipt - YES: ITAT


Percept Engineers Pvt Ltd Vs JCIT (Dated: February 5, 2016) Whether the provision of section 40A(2) is applicable when the comparative difference in the purchase price for the same commodity purchased from own concern vis -à-vis from the outside firm, the difference in such prices is excessive and without any reason.


Padmavathi Oil Vs DCIT (Dated: May 13, 2016) Whether the transactions which are recorded in the books of account or disclosed to the department by way of returns or taxes paid can be considered as undisclosed.


Ongc Employees Co-op Credit And Thrift Society Ltd Vs ITO (Dated: May 10, 2016) Whether the interest income is eligible for deduction u/s. 80P(2)(a)(i)if the same was arising from the business of the assessee.


Om Shree International Vs ACIT (Dated: June 17, 2016) Whether disallowance u/s 40(a)(ia) for non deduction of TDS is justified in respect of the expenses in the nature of reimbursement -

Whether addition u/s 69C on account of unconfirmed/unproved purchases is justified when the quantitative purchase and sales were shown by the assessee in the books of account, the commodities were actually exported and the sales were accepted by the lower authorities and payments were made through banking channel to the agents who further made the payments to the farmers and most of the farmers have confirmed the sales made to the assessee.


Kolkata Port Trust Vs ACIT (Dated: July 8, 2016)

Whether when the assessee port has not claimed the status of a local authority to claim exemption u/s 10(20), even then the Explanation inserted w.e.f AY 2003-04 would apply to determine its status for assessment and the tax rate applicable to it - NO: ITAT

Whether the assessee port trust could be assessed in the status of a 'local authority' - YES: ITAT

Whether reassessment u/s 147 can be initiated when all the information required for the purpose of assessment was provided in the course of assessment u/s 143(3) of the Act and there was no failure on the part of the assessee to disclose any information - NO: ITAT



Infibeam Incorporation Ltd Vs ITO (Dated: July 8, 2016)

Whether adjustment of ‘book profit' under section 115JB of the Act on account of revaluation reserve is justified where the assessee in the garb of issue of bonus shares had distributed the unrealised gains and the assessee had passed the resolution for issue of bonus shares, which was the basis of the revaluation, issuance of bonus shares to its shareholders, even before the receipt of the report of Chartered Accountant – Yes: ITAT


Bar Council Of Tamil Nadu Vs DDIT (Dated: July 15, 2016)

Whether the registration obtained by the Bar Council of Tamil Nadu u/s 12AA can be a basis for claiming exemption u/s 11 for 'Advocates Welfare Fund' merely because the 'Said Fund' was established by the Bar Council, when both the entities are creation of different statutes - NO: ITAT 2016-TIOL-1513-ITAT-VIZAG

Deepak Mittal Vs ACIT (Dated: July 15, 2016)

Whether recognition of a political party by the Election Commission of India, is a necessary condition in order to claim deduction u/s 80GGC in respect of donation given - NO: ITAT

Whether sundry creditors brought forward from previous year, can be treated as unexplained creditors - NO: ITAT

Whether an addition can be made in assessee's income on account of unexplained cash deposits, even if the assessee has no bank account in the disputed bank alleged by the AO - NO: ITAT

Whether when the assessee, in the capacity of proprietor, has proved that it had incurred expenditure being interest on loan and depreciation on motor car used for the purpose of business, is it still possible for the AO to disallow the expense incurred - NO: ITAT


ACIT Vs Ashok Sharma (Dated: May 30, 2016)

Whether the CIT(A) is justified in restricting the addition to Rs. 3,44,166/- instead of Rs. 56,24,288/- made by the A.O. on account of un explained deposits in the bank accounts of the assessee when the CIT(A) has considered the peak for both the years and accordingly determined the income of the assessee.


ITO Vs Mahajan Industries Pvt Ltd (Dated: March 18, 2016) Whether income from sale of property is taxable as capital gains where the assessee since the beginning had shown the property as investment in fixed assets and in the proceedings under Wealth Tax Act, AO held that the land in question was a mere invest of assessee in the property and the same was held as an investment - Yes: ITAT.

Whether claim of bad debts can be disallowed on the ground that the debt has not been generated as part of the money lending activity of the assessee where the assessee advanced interest bearing loan under normal course of business which was actually inter corporate deposits and the interest income earned from said transaction of loan was also offered by the assessee for taxation and the same was taxed as business income of the assessee – Yes: ITAT


ITO Vs Krishna Kumar Sethi (Dated: July 8, 2016) Whether addition u/s 68 is justified when the assessee has failed to discharge its onus with respect of the genuineness of the transaction as well as creditworthiness of the creditors - YES: ITAT


Orient Blackswan Pvt Ltd Vs ACIT (Dated: July 6, 2016) Whether when a trade mark is registered in the name of 'ORIENT LONGMAN', the word 'ORIENT' which is integral part of the trademark continues to be available to the Assessee for its commercial exploitation as a going concern, the question of sharing of

trade mark or otherwise does not arise at all - YES: ITAT

Whether in case the settlement agreement has not been entered into in the ordinary course of business, compensation received under a negative covenant for impairment of right to use the word 'LONGMAN' is in the nature of capital receipt - YES: ITAT


ITO Vs Khaitan Consultants Ltd (Dated: July 8, 2016) Whether the deduction towards expenditure incurred by the assessee in connection with the transfer of shares can be denied by the AO merely on the ground that there was a mistake in description of services in the bill for which such expenditure was incurred - NO: ITAT 2016-TIOL-1507-ITAT-AHM

Jaykumar Chhaganlal Shah Vs DCIT (Dated: June 6, 2016) Whether investment through Portfolio Management Service, which may deal with the shares of the assessee so as to derive maximum profits can be termed as business of the assessee - YES: ITAT 2016-TIOL-1506-ITAT-DEL

New Okhla Industrial Development Vs CIT (Dated: July 22, 2016) Whether order passed by CIT(E) in denying registration to assessee u/s 12A is sustainable in law where CIT(E) without looking into the source and basis of creation of the Assessee authority and without looking into its objects and financial resources, its utilization and application of surplus and incidental profits proceeded to verify the document and evidences pertaining to the activities conducted by the assessee - No: ITAT

Whether assessee is entitled to registration u/s 12 A where it has been created by a special act of the state for the purpose of the development of infrastructure of a specified industrial area with a predominant purpose of creating and developing facility for development of industries in the state and its legal existence is akin to a municipal corporation for development of facilities in the specified area and there is no prime object or aliment of earning profit as private developer or builder and activities acquiring of land and selling developed property is an incidental and profit earned therefrom has to be used towards objects of the Assessee - Yes: ITAT


MG Mohan Kumar Vs DCIT (Dated: July 22, 2016) Whether the payment received by the assessee as non-compete fees is a profit in lieu of salary in terms of section 17(3)(iii) when the payment is clearly not in the nature of compensation for loss of the employment of the assessee but it is all about the future engagement of the assessee to provide its services of knowledge in the airlines business to third party and particularly to the competitor or prospective competitor - NO: ITAT 2016-TIOL-1504-ITAT-DEL

Opus Reality Development Ltd Vs ACIT (Dated: June 9, 2016)

Whether as per section 71(2) the option is available to an assessee for set-off of any head of loss against any head of income including the capital gain assessable for that

A.Y - YES: ITAT - Assessee's appeal allowed : DELHI ITAT 2016-TIOL-1503-ITAT-MUM

Oracle Financial Services Software Ltd Vs ITO: (Dated: August 17, 2016) Whether interest computed u/s 201(1A) on outstanding amount of TDS can only be charged till the date on which such tax was actually paid by the assessee - YES: ITAT 2016-TIOL-1502-ITAT-BANG

Subex Ltd Vs DCIT: (Dated: August 12, 2016) Whether if in the purchase order itself, software and hardware are treated differently, in that case if the assessee contends that software was sold along with hardware and software cannot be used without the hardware specified in the order, the onus is upon the assessee to establish these facts - YES: ITAT

Whether when the order was placed for the supply of software as well as hardware, nothing has been established on record that the said software cannot be used without hardware, such sale of hardware cannot become a part of software exported by the assessee, cannot be included in export turnover - YES: ITAT


Om Developers Vs Pr.CIT (Dated: May 31, 2016) Whether the CIT is correct in invoking its jurisdiction u/s 263 when there is no application of mind whatsoever by the AO in passing the assessment order - YES: ITAT


RRB Energy Ltd Vs ITO (Dated: January 28, 2016) Whether reopening of assessment is justified where the issue as to the admissibility of exemption available to the assessee u/s 80-IA is squarely decided by the Assessing Officer in original assessment - NO: ITAT


Shri Vijay M Haria Vs ITO (Dated: May 25, 2016) Whether addition u/s 69 on account of unexplained investment is sustainable where the assessee fails to satisfactorily explain the source of cash deposits in his undisclosed bank account - YES: ITAT

Whether business loss can be set off against the income chargeable under section 69 of the Income Tax Act - NO: ITAT


Indian Medical Association Vs Addl. DIT (Dated: June 23, 2016) Whether assessee is eligible for exemption/s 11 where the assessee in the advancement of its aims and objects to promoting by improving public health if on research and analysis it propounds that there are significant health benefits to the uses of Oats or drinking fruit based, fortified health drinks as opposed to aerated drinks having no health benefits – YES: ITAT


DCIT Vs Shilpa Gravures Ltd (Dated: June 14, 2016) Whether the Assessee is entitled to the claim deduction u/s. 80IA on the income derived from wind mill project without notional setting off of losses of earlier years - YES: ITAT

Whether when the quantity discount was given during the year under consideration but were on account of sales made in earlier years it can be considered as a prior period expenditure - YES: ITAT


S R Batliboi And Associates Llp Vs DCIT (Dated: August 3, 2016) Whether it is open to the Revenue authorities to directly embark upon Rule 8D(2) for computing disallowance in respect of exempt income, by resorting to conjectures, in absence of recording any satisfaction as per section 14A or examining the the claims made by assessee - NO: ITAT 2016-TIOL-1495-ITAT-AHM

Shreeji Enterprises Vs ACIT (Dated: June 29, 2016) Whether disallowance of remuneration paid to non-individual working partner is justified, when remuneration is only allowed if paid to a working partner who is an individual - YES : ITAT

Whether penalty on the claim of remuneration paid to the working partner is justified, if the assessee has neither concealed nor furnished any inaccurate particulars of income -NO :ITAT


DCIT Vs Unique Mercantile India Pvt Ltd (Dated: June 21, 2016) Whether FBT is leviable on resort expenditure which is for free holiday packages provided to members of Assessee company against membership fees collected from them which is no way connected to providing any benefits to employees - No: ITAT

Whether FBT is leviable on leased telephone line - No: ITAT

Whether Assessee is liable to FBT on expenditure of gifts provided to its agents for

achieving the prescribed targets given by the Company - No: ITAT


Upkar International (P) Ltd Vs DCIT (Dated: June 2, 2016) Whether reopening of assessment made to disallow the same deduction which had already been disallowed in the original assessment and without any fresh or tangible material is sustainable in law - NO: ITAT


Prayag Polytech Pvt Ltd Vs DCIT (Dated: June 30, 2016) Whether a case can be remanded for the verification of expenses claimed before the credit of it is given to the assessee in case genuiness of transaction is in doubt - YES : ITAT


The Payyannur Service Coop Bank Ltd Vs ITO (Dated: June 23, 2016)

Whether the benefit of deduction u/s 80P(2) is to be denied, if the society is registered under the Kerala Cooperative Societies Act - NO :ITAT


Laveti Chinasimhachalam Vs ITO (Dated: April 29, 2016)

Whether requirement of audit u/s 44AB is satisfied when the threshold turnover for the same being Rs. 40 Lakhs is not reached - No: ITAT

Whether the aforesaid threshold is achieved, when the unaccounted turnover exceeds Rs.40 lakhs but out of the such turnover some part has not been recorded in the books of accounts in the absence of necessary sales bills causing the total turnover to fall below Rs.40 lakhs - No: ITAT

Whether the charge of concealment of income and corresponding levy of penalty u/s 271(1)(c) for the same is justified, when the AO had made additions on estimation basis - No: ITAT


Kiri Industries Ltd Vs Addl CIT (Dated: January 1, 2016) Whether penalty u/s 272A(2)(k) for delay in filing the TDS return is maintainable, when reason for late payment of taxes was financial crunch and full amount of TDS along with interest has been paid by the assessee subsequently - No: ITAT


DCIT Vs Keyaram Hotel Pvt Ltd (Dated: June 1, 2016) Whether income derived from renting of commercial complex can be bifurcated as partly towards rental income and partly towards house property, as the assessee is also responsible for the day-to-day maintenance of amenities of such complex - Yes: ITAT


Ise Securities And Services Ltd Vs DCIT (Dated: April 27, 2016) Whether the claim of bad debts u/s.36(1)(vii) read with section 36(2) can be allowed as a deduction, where the assessee has written off debts in its books of account and deducted the same in its profit and loss account - YES :ITAT

Whether mere claim of provision for bad debts in the profit and loss account will be sufficient for allowing claim of bad debts u/s.36(1)(vii) - NO :ITAT

Whether the principle of consistency shall be followed, if nothing contrary has been proved that warranted deviation - YES :ITAT


ITO Vs Indian Leasing And Trading Pvt Ltd (Dated: May 4, 2016) Whether the provision of section 194H would be applicable, if the payments made does not come within the ambit of commission or brokerage - NO :ITAT


DCIT Vs I G Builders And Promoters Pvt Ltd (Dated: April 28, 2016) Whether an addition on account of income from undisclosed sources can be made , if the amount is duly reflected in the books of accounts of the assessee - NO :ITAT


ITO Vs Hotel Leela Venture Ltd (Dated: June 1, 2016) Whether there is TDS liability in respect of payments made to banks for using credit card swiping machines - NO :ITAT

2016-TIOL-1483-ITAT-PANJI

ACIT Vs Heritage Princes Real Estate Developers (Dated: May 11, 2016) Whether order of the lower authority can be set aside, when nothing contrary could be proved against the same - NO :ITAT


Citicorp Finance (I) Ltd Vs Addl CIT (Dated: July 13, 2016) Whether any disallowance of interest portion could be made in the hands of the assessee if the assessee had sufficient own fund to make investments – NO: ITAT

Whether for the purpose of disallowing managerial and administrative expenditure incurred for earning exempt income, the provisions of Rule 8D of the Rules cannot be applied in AY 2004-05 - YES: ITAT


ITO Vs Shri Chandru T Vazirani (Dated: June 21, 2016) Whether if such investment falls under two financial years, the benefit claimed by the assessee cannot be denied as per section 54EC(1) - YES: ITAT


Asian Advertising Vs ITO (Dated: March 23, 2016) Whether the hoarding structures is to be classified as building and not the plant under the Act and accordingly, depreciation to be allowed @ 10% as against 15% claimed by the assessee - Whether the hoarding Expenses incurred by the assessee in respect of Hoardings were to be treated as Capital Expenditure.


All India Federation of Cooperative Spinning Mills Ltd Vs ACIT (Dated: July 13, 2016) Whether in case the value adopted by DVO exceeds the value as determined by stamp duty valuation authorities then in that case, the value as adopted by stamp duty authorities shall be deemed to be the full value of consideration for the purposes of Section 48 under the provisions as stipulated u/s 50C(3).


Chhotabhai Jethabhai Patel Tobacco Products Co Ltd Vs ACIT (Dated: July 14, 2016) Whether when the assessee purchases a motor vehicle in the last month of the FY and puts the same to use, it is entitled to depreciation under block rate 50% - YES: ITAT 2016-TIOL-1477-ITAT-MAD

ITO Vs Govind Kumar Chordia (Dated: June 17, 2016) Whether the different loan source constitutes concealment of income or inaccurate

particulars of income within the meaning of Sec. 271(1)(c) - NO: ITAT


Alidhra Texspin Engineers Vs ACIT (Dated: May 3, 2016) Whether interest on capital of partners and remuneration, stipulated in the partnership deed, if not paid to partners, can be included in the profits of firm for purpose of deduction u/s 80IB - YES: ITAT 2016-TIOL-1475-ITAT-KOL

Bhalgo Drillings Pvt Ltd Vs ITO (Dated: June 29, 2016) Whether addition u/s 68 can be made when the creditworthiness and genuineness of the transactions could not be proved - YES: ITAT

Whether the expenditure that is incurred in connection with issuing of shares to increase the authorized capital has to be treated as Capital expenditure - YES: ITAT


Piedade Perinchery Vs ACIT (Dated: May 25, 2016) Whether the income declared u/s 153A includes the return of income originally filed u/s 139(1) - YES : ITAT

Whether the Assessee can be said to have satisfied the conditions prescribed in sec. 271AAA with regard to the payment of taxes when the assessee has filed an application with the AO, requesting him to encash the Kisan Vikas Patras and to adjust the proceeds thereof against the tax payable by the assessee on the disclosed income - YES: ITAT


Hooghly Mills Co Ltd Vs DCIT (Dated: July 15, 2016) Whether the loan account differs from current account and the provisions of section 2(22)(e) of the Act, being a deeming section, cannot be applied to current account - YES: ITAT

Whether the commissioner of income tax can exercise his jurisdiction u/s 263 of the Act only in cases where no enquiry is made by the AO - YES: ITAT


Damodar Valley Corporation Vs DCIT (Dated: July 15, 2016) Whether the AO's order allowing additional depreciation u/s 32(1)(iia) to the Assessee was erroneous and amenable for revision u/s 263 when the AO granting allowance of additional depreciation u/s 32(1)(iia) had followed one of the courses permissible in law - NO: ITAT


ITO Vs Laxman Industrial Resources Ltd (Dated: June 20, 2016) Whether addition u/s 68 can be made where the identity, creditworthiness of the shareholders and genuineness of the transactions is proved by furnishing all particulars of the share applicants alongwith other documentary evidences – No: ITAT

Whether penalty u/s 271(1)(c) is leviable where the quantum additions in respect of which the penalty was imposed were deleted – No: ITAT


Hamdaan Exports Vs DCIT (Dated: January 4, 2016) Whether in absence of any inaccurate particulars regarding the income of the assessee , penalty u/s 271(1)(c) is sustainable - NO :ITAT

Whether a mere making a claim, which is not sustainable in law, by itself, will amount of furnishing inaccurate particulars regarding the income of the assessee - NO :ITAT


ADIT Vs ONGC Ltd (Dated: May 16, 2016) Whether pending appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000 needs to be withdrawn in view of the CBDT Circular - YES:ITAT

Whether the CBDT Circular has retrospective operation - YES:ITAT


ITO Vs ONGC Ltd (Dated: January 1, 2016) Whether the appeals filed by the Department ought to be dismissed when the tax effect in all the instant cases is less than the amount prescribed for not filing the appeal - YES:ITAT


N J Metal Screen Manufacturing Pvt Ltd Vs ITO (Dated: January 6, 2016) Whether penalty can be levied u/s 271B in a case where an assessee could not comply with the provisions of Section 44AB of the Act since there was no audit of preceding assessment years - NO:ITAT

2016-TIOL-1465-ITAT-AMRITSAR

Hoshiarpur Dist Coop Milk Producer Union Ltd Vs ACIT (Dated: August 09,

2016) Whether 'rehabilitation grant' provided to a co-operative society by the State government, is liable to be treated as capital receipt, if the same was utilized either for reviving the sick co -operative units or for making repayment of term loans - YES: ITAT

Whether addition can be made to the income of such society on account of the grants received, when it is established that no benefit has been derived out of such grant - NO : ITAT

Whether penalty can be imposed for concealment, merely on the basis that the nature of subsidy is under dispute, when the receipt of subsidy is clearly reflected in the books of account - NO : ITAT


Employees Provident Fund Organization Vs DCIT (Dated: August 03, 2016) Whether if in case an employee has included the accumulated balance of provident fund contribution in its total income, the same has to be excluded from income of assessee while making computation of TDS - YES: ITAT


DCIT Vs MPC Securities Ltd (Dated: July 8, 2016) Whether loss incurred by the assessee in derivative transaction is liable to be assessed as loss of deemed speculation business even though for the purpose of section 43(5) the transactions in derivatives were not 'speculative transactions' - NO: ITAT Also see analysis of the order


ITO Vs Life Insurance Corpn Ltd (Dated: June 15, 2016) Whether dismissal of Revenue's appeal on technical ground and in compliance to Circular No. 21/2015 of CBDT should not be considered as estoppel for the Revenue to take up the issue involved in appeal before the Tribunal on merits if later it realises that the Circular is not applicable in view of exceptions culled out in the Circular - YES : ITAT


DCIT Vs Siegwerk India Pvt Ltd (Dated: May 31, 2016) Whether payment made by an entity to its group concerns for work done can be treated as deemed dividend u/s 2(22)(e), when the said payment was neither on account of dividend nor advancement of loan - NO: ITAT


JCIT Vs Vijaya Bank (Dated: July 22, 2016) Whether the deduction u/s 36(1)(viia) should be restricted to the extent of the amount of provision created in the books of account during the previous year relevant to assessment year under consideration - YES: ITAT

Whether for the purpose of deduction u/s 36(1)(vii), debiting P&L Account by provision for bad debts and reducing the same from the sundry debtors in the balance sheet amounts to write off - NO: ITAT


Nirma Credit & Capital Ltd Vs ACIT (Dated: June 27, 2016) Whether the AO is mandated to decide separately the objection to the notice u/s 148 and supply / communicate it to the assessee so that the assessee gets an opportunity to challenge the order in the writ petition - YES: ITAT


State Bank Of India Supervising Official's Co Operative Credit Society Ltd Vs ITO (Dated: June 10, 2016) Whether the assessee is entitled to deduction u/s 80P(2)(a)(i) on interest earned on FDs when the funds are the surplus and not the liability of the bank but its own surplus funds - YES: ITAT


ACIT Vs Zydus Intrastructure Pvt Ltd (Dated: July 21, 2016) Whether provisions of Section 41(1) are applicable only where it is established by the AO that the liability has ceased to exist and has ceased with no chance of revival - YES: ITATWhether Software application which are having validity for long term period and are basically system software on which computer hardware runs and it is impossible to use computer without having such software installed on it is eligible for depreciation @ 60% - YES: ITATWhether a developer of SEZ is eligible for deduction u/s 80IAB for income earned from operation and maintenance of SEZ - Yes: ITAT

Whether income from sale of scrap and professional fees which forms part of regular business activities of assessee and cannot be treated separately are eligible for deduction u/s 80IAB - Yes: ITAT


Shri A Satyanarayana Vs ITO (Dated: June 17, 2016) Whether the purchase made by the assessee can be held as bogus if the books of account of the assessee are not reliable and the assessee fails to prove the purchases as genuine - YES :ITAT


ACIT Vs Accura Bikes Pvt Ltd (Dated: July 4, 2016) Whether assembling of parts for bringing into existence an electric bike amounts to manufacturing - YES: ITAT


Agarwal Metals & Alloys Vs Addl.CIT (Dated: June 10, 2016) Whether rejection of books is warranted when the AO has adopted the G.P. ratio of 7.07% declared in AY 2005-06 as against 5.36% reported by the assessee for the current year, without analysing the facts and circumstances of each of the year - Whether the addition made u/s 69C is justified when the AO has not made any independent enquiry to confirm the allegation of underinvoicing - Whether the interest income should be netted off against the interest expenditure and accordingly the deduciton u/s 80IB should be worked out.


ACIT Vs Autolite India Ltd (Dated: July 13, 2016) Whether when assessee borrows funds from financial institutions, it should not waste good money by giving interest-free advances to sister concern for discharging regular obligations - YES: ITAT

Whether before claiming interest u/s 36(1)(iii), assessee is under obligation to prove the 'business connection' with sister concern and also availability of own funds in account in case of interest-free advances being made - YES: ITAT



Mahavir Vinimay Pvt Ltd Vs CIT (Dated: June 1, 2016) Whether the law requires the service of notice u/s 263 strictly as per the terms of section 282 - NO: ITAT


ITO Vs Masterminds Realtors (Dated: July 27, 2016) Whether it is open to the AO to direct a partnership firm to explain the source of income of its partners regarding the amount contributed by them towards capital of the firm, and make addition treating the said contribution as undisclosed capital - NO: ITAT


ITO Vs Santogen Silk Mills Ltd (Dated: June 22, 2016) Whether waiver of a term loan for the purchase of machinery, if not for carrying out

business activity of the assessee can be excluded from the taxable income - YES: ITAT


Santosh Ahluwalia Vs ACIT (Dated: June 13, 2016)

Whether is it open to the revenue to make addition of the amount which has been shown in the balance sheet of the company and has been assessed separately and cash amount shown in the return of income was accepted by the department -NO: ITAT


Smt Pushpa Gupta Vs ACIT (Dated: March 31, 2016) Whether if the assessee has not maintained the stock register as to production of the items being manufacured by the assessee, the provision of section 143(3) can be invoked - YES: ITAT

2016-TIOL-1447-ITAT-RAJKOT

Rajnikant Associates Vs ITO (Dated: June 30, 2016) Whether a penalty can be levied, if the assessee is under bona fide belief for not getting his accounts audited as the turnover was less than the prescribed limit u/s 44AB - NO: ITAT


ACIT Vs Srinar Communication Pvt Ltd (Dated: April 27, 2016) Whether capital gains is taxable in the year in which the transaction of transfer is entered into – YES: ITAT


Sunita Jain Vs ITO (Dated: May 30, 2016) Whether while computing the exemption u/s 54 actual sale consideration is to be taken and not as per stamp duty valuation u/s 50C - Whether when the assessee has shown more value as on 01/4/1981, therefore, no reference can be made to the DVO for FMV as on 01/4/1981 - Whether deduction is allowable on even two flats, which can be a complete unit or even can be on different floors of the apartment.


DCIT Vs Super Plastic Coats (P) Ltd (Dated: June 14, 2016) Whether an addition on account of amount treated as unexplained receipts is justified

when the cheques are duly accounted for in the books of the assessee against sales made by the assessee - Whether deletion of addition of Rs.2,65,577/- made by the AO on account of the credit card expenses is justified when the expenses having been incurred through credit card and assessee having failed to establish that these expenses were incurred wholly and exclusively for the purposes of business - Whether the a ddition made by AO, on account of the un-reconciled purchases by the assessee company is justified when the differences are arising mainly on account of the discounts.


ACIT Vs Vishwachetan Foundation Ibmr (Dated: May 20, 2016)

Whether when the assessee has already claimed exemption u/s 11 at the time of acquisition of asset being application of income then the claim of depreciation would amount to double deduction - NO: ITAT


DCIT Vs Sky Lite Electro Fixtures Pvt Ltd (Dated: June 24, 2016) Whether the penalty can be imposed when assessee has not furnished inaccurate particulars or not concealed any income - NO: ITAT


Geeta Agarwal Vs DCIT (Dated: June 16, 2016) Whether additions can be made to the income already assessed even if no incriminating material was unearthed during the search - NO: ITAT


DCIT Vs Alhind Tours And Travels Pvt Ltd (Dated: March 1, 2016) Whether the income of Hajj firms has to be assessed in the hands of assessee where the hajj firms were floated by the assessee company and they had no infrastructure of their own and they did not even had their own bank accounts - Yes: ITAT

Whether addition on account of undisclosed income can be made in the hands of assessee where the assessee company had produced the details of all the transactions pertaining to the accounts maintained by it and had further filed the detailed analysis of the bank transactions, details of sales of Air ticket and expenses pertaining to Hajj and Umrah Services for relevant assessment year along with the statement of cash flow - No: ITAT


Smt Aruna Kommuri Vs Addl CIT (Dated: July 15, 2016) Whether provisions of section 50C can be invoked, if the assessee neither objected to

valuation before the SRO or before the Revenue - YES: ITAT

Whether the TDS credit can be allowed, if the AO has not properly examined the ownership of the property and assess only that part of the rental income which is to be assessed in assessee's hands - NO: ITAT


Sri Chaitanya Educational Society Vs ITO (Dated: June 17, 2016)

Whether if the A.O. without examining the applicability of the provisions of Section 194C, merely on the basis of admission, held the assessee in default, then the said mistake can be said to be the mistake apparent from the record which needs to be rectified u/s. 154 -YES: ITAT


Bhanwarlal G Sharma Vs ACIT (Dated: June 10, 2016) Whether the CIT(A) was justified in dismissing the appeal of the assessee by not entertaining additional evidences filed by the assessee when the assessee has submitted the necessary documents to prove the genuineness of income post assessment proceedings u/s 143(3) r.w.s. 254 but much before the date of hearing before the CIT(A) in the second round


ACIT Vs Balwant Singh (Dated: June 21, 2016) Whether in case the Authorized Officer while recording the statement during search, has not asked the manner in which undisclosed income was earned or did not put any a question to substantiate the manner in which such income was earned, the penalty proceedings can be initiated in such a case - NO: ITAT

2016-TIOL-1427-ITAT-DEL Intertec Vs DCIT (Dated: August 3, 2016)

Whether a wrong claim for deduction u/s 80IC would lead to imposition of penalty u/s 271(1)(c), in case the assessee has disclosed the materials for computing its income and has proved such claim to be bonafide - NO: ITAT

2016-TIOL-1426-ITAT-CHD

Indican Software Vs ITO (Dated: August 9, 2016)

Whether if the assessee has not explained even the basic process for development of software, explaining the capability of its staff, even such assessee can be considered eligible for exemption u/s 80IA - NO: ITAT

Whether when the assessee has failed miserably to substantiate its claim that it manufactures software, profit from which is eligible for deduction u/s 80IA, its books

of accounts can be rejected applying the provisions of section 145 rws 144 and only 5% of the income of Assessee can be treated as business income - YES: ITAT


Haldia Petrochemicals Ltd Vs DCIT (Dated: August 3, 2016)

Whether mere failure to obtain section 197(1) certificate by the payee would automatically cast a TDS obligation on the payer and make the payer 'assessee in default', even if it is certain from the assessment order of payee that there is no resultant tax liability - NO: ITAT

Whether when there is no tax payable at all at any point in time, then the assessee deductor cannot be treated as 'assessee in default' for any period whatsoever and consequently interest u/s 201(1A) cannot be computed on the assessee - YES: ITAT



Rajnish Dilipbhai Thakker Vs ITO (Dated: June 3, 2016)

Whether assessee is eligible for deduction u/s 54F where assessee is trying to take benefit of section 54F of the Act by one way or the other without placing on record any satisfactory evidence to prove that investment has been made in residential house – No: ITAT

Whether assessee is entitled to deduction incurred towards cost of construction to be reduced from the sale consideration where the same was not claimed in the return of income – No: ITAT



ITO Vs Amar Corporation (Dated: May 31, 2016) Whether the deductions as to section 80IB can be claimed if the assessee had developed the housing project but may not have owned the land - YES: ITAT


Accel Ltd Vs DCIT (Dated: May 20, 2016) Whether mere pendency of appeal before High Court cannot be a reason to take a different view and the order of Tribunal is binding on all the authorities in the State - YES: ITAT

Whether where debts are written off u/s 36(i)(vii), then it is to be considered as business loss, and where the investment is written off, it should be treated as Capital loss - YES: ITAT


Bombay Aluminium Pvt Ltd Vs ITO (Dated: June 24, 2016) Whether Revenue can reopen the assessment, merely on the basis of the statement of the witness, who was not cross-examined by the assessee - NO : ITAT


CMS Info Systems Pvt Ltd Vs Addl.CIT (Dated: June 24, 2016) Whether the transaction can be called as "non genuine transaction" ,when the assessee has submitted documentary evidence of its purchase, consumption and sale - NO :ITAT


Gandhi Parekh Investment Corpn Ltd Vs ACIT (Dated: June 22, 2016) Whether penalty for concealment or furnishing of inaccurate particulars, should not be imposed when two legal interpretations of any issue are possible and there is an honest and bona fide difference of opinion - YES: ITAT


ITO Vs Bisco Metal & Power Pvt Ltd (Dated: June 17, 2016) Whether the onus is on the Revenue to prove that expenditure is an unexplained one before making addition u/s 69 of Act - YES :ITAT

Whether the addition of expenses incurred towards fees, subscription and taxes can be made when evidences are available that the same are paid to the Government for the purposes of assessee's business - NO :ITAT

Whether the question of deducting TDS at the transportation charges arises ,when all the raw goods were purchased on FOR basis and assessee had not claimed any transportation charges - NO : ITAT


Deva Lease & Finance Pvt Ltd Vs CIT (Dated: June 1, 2016) Whether in order to make disallowance u/s 14A, read with rule 8D, the assessee has to make a claim including a claim that no expenditure was incurred with regard to earning of income which is not chargeable to tax - YES: ITAT


DCIT Vs A P State Housing Corpn Ltd (Dated: June 17, 2016) Whether if the payments made by commercial banks or financial institutions to the assessee were treated as loan, the interest payment made on the same can be treated as expenditure in the hands of the assessee - YES: ITAT


Association for Awareness on Rural & Tribal Health Institute Vs CIT (Dated: June 17, 2016) Whether recognition u/s 80G can be rejected on the ground that the Memorandum of Association of the assessee society and winding up clause is missing - NO: ITAT

Whether the recognition u/s 80G can be denied on the ground that the assessee society is not maintaining the addresses of the donors - YES: ITAT


Blue Scope Steel India Pvt Ltd Vs DCIT (Dated: July 8, 2016) Income Tax - Whether when there was no receipt from the sources of business during the year in a case of lull phase of business, the normal business expenses incurred by the Assessee to keep the status of company as a going concern can be allowed.


Bloom Dekor Ltd Vs DCIT (Dated: June 8, 2016) Whether ninety per cent, of not the gross interest but only the net interest which has been included in the profits of business of the assessee as computed under the head "Profits and gains of business or profession", is to be deducted under clause (1) of Explanation (baa) to section 80HHC, for determining the profits of the business - Whether deduction can be allowed on the deposit of employees' contribution to Provident Fund after the prescribed due date.


Bhedasgaon Nagari Sahakari Vs ITO (Dated: June 17, 2016) Whether the assessee is entitled to deduction u/s 80P(2)(a)(i) on an interest on FDs when the investments made in fixed deposits with above referred banks were made in the course of the assessee's business and it is not the case of the Department that the amount invested by the assessee was out of any liabilities due by the assessee.


DCIT Vs Hindustan Antibiotics Ltd (Dated: April 15, 2016) Whether when the realization of the interest income in question is highly suspect then can it be said that any real income accrued to the Assessee - Whether disallowance of expenditure in the hands of assesse is justified when the expenditure relatable to residential quarters is to be recovered from the employees or is to be included as perk in the hands of employees of the assessee company, but no such exercise was carried on.

2016-TIOL-1410 -ITAT -HYD

DCIT Vs BA Continuum India Pvt Ltd (Dated: April 29, 2016) Whether communication charges attributable directly to the export of article or thing outside India has to be excluded both from export turnover as well as total turnover while computing exemption u/s 10A - Whether foreign exchange fluctuation gain is a part of export turnover and also eligible for deduction u/s 10A.

2016-TIOL-1409 -ITAT -AHM

Axis Bank Ltd Vs Addl CIT (Dated: March 15, 2016) Whether disallowance u/s 14A is sustainable where AO had presumed that the assessee might have incurred expenditure to earn the exempt income and he had not given any finding of incurring of expenditure - No: ITAT

Whether assessee is entitled for the interest u/s. 244A of the Act as per the provisions of the law if the refund was not delayed for reasons attributable to the assessee – Yes: ITAT


Avinash Kumar Setia Vs DCIT (Dated: April 28, 2016) Whether addition made on the basis of the statement recorded u/s. 133A is sustainable in the eyes of law – No: ITAT


ITO Vs Ajesh Kumar Agarwal (Dated: May 30, 2016) Whether exemption u/s 10(37) can be given to the Assessee when the Assessee was not able to demonstrate that he really cultivated the land and there was no evidence with him or with assessee that there was an irrigation facility available on that land and incurred expenditure for cultivating the agricultural activities on it.


ITO Vs Abode Construction Ltd (Dated: July 8, 2016) Whether penalty u/s 271(1)(c) can be levied on a highly debatable issue and when the assessee has not furnished any inaccurate particulars of income - NO: ITAT


ACIT Vs Director of Technical Education (Dated: May 20, 2016) Whether when the services rendered by the assessee are of technical and managerial nature, the payment made by the assessee to any company can be considered in the nature of consideration paid for works contract - NO: ITAT


Noble Cloth Stores Vs ITO (Dated: June 7, 2016) Whether penalty u/s 271(1)(c) is leviable where the assessee concealed income arising on unaccounted sales and furnished inaccurate particulars of sales – Yes: ITAT


S Malla Reddy Vs ITO (Dated: June 29, 2016) Whether the goodwill receipt which is an advance is chargeable to tax as part of the total sale consideration, when the ownership gets transferred -YES: ITAT 2016-TIOL-1402-ITAT-KOL

ACIT Vs Stadmed Pvt Ltd (Dated: July 5, 2016) Whether the data of cost audit report can be relied for the purpose of making the addition, when there is no flaw in the audited financial data of assessee - NO: ITAT

Whether the addition can be made on the account of interest free loan given to Directors , considering it to be the money advanced out of interest bearing borrowed fund , when the assessee's own funds are sufficient enough to advance the interest free loan to the directors - NO: ITAT


G L Constructions Pvt Ltd Vs DCIT (Dated: June 22, 2016) Whether addition on account of discrepancies in purchases can be made merely on the ground that supplier was found to be bogus by the sales tax department or not available at the given address in respect of certain purchases where the assessee has filed detailed statement of consumption of quantity of material so purchased vis -a-vis requirement as per Government formula and also filed material details giving quantities of purchase and sales, summary of monthly purchases, quantitative details of daily purchases for 12 months and all other relevant details – NO: ITAT


ITO Vs Dharmendra J Pandya (Dated: June 16, 2016) Whether the CIT(A) was justified in considering the commission income received by the assessee on issue of bogus bills at 1% when no incriminating material was found even after the conduct of the search operation at the premises of the assessee in the form of bills or bank account, or property documents or investment in movable and immovable properties, either on his own name or in the name of any his family members


Dhanekula Rama Rao Vs DCIT (Dated: May 27, 2016)

Whether working of branch wise peak credit without allowing telescoping of inter branch transfers is correct where the assessee is one individual and there are a number of inter branch transactions and all the branches are located in a same place though the accounts are held in the names of different persons - No: ITAT

Whether interest u/s 234B has to be charged up to the date of filing return of income in response to notice u/s 153A after adjusting the seized cash - Yes: ITAT


ACIT Vs G2 Corporate Services Ltd (Dated: July 15, 2016)

Whether for the purpose of section 48 of the Act, the 'full value of consideration' can be substituted by the 'fair market value' - NO: ITAT Whether, for the purpose of section 48, the fair market value cannot be substituted for full value of consideration since there is no charging mechanism to tax the difference of fair value and full value - YES: ITAT


DCIT Vs Epcos India Pvt Ltd (Dated: May 11, 2016)

Whether unabsorbed depreciation can be carried forwarded and set off against income of subsequent years without any limit of years - YES: ITAT


ACIT Vs Ganga Singh (Dated: May 30, 2016)

Whether reopening u/s 147 can be done by the AO, even when the assessee has disclosed all the particulars of income in the return as well as audit report - NO: ITAT


Marg Ltd Vs DCIT (Dated: May 20, 2016)

Whether provisions of Section 14A r.w. rule 8D are applicable where the assessee diverted the interest bearing funds to subsidiaries in the absence of commercial expediency - YES: ITAT


Silicon Interfaces Pvt Ltd Vs ACIT (Dated: June 13, 2016)

Whether the disallowance on account of excess provisions written back can be made on the basic document available without verifying the facts from the available records - NO :ITAT

Whether disallowance on the account of the late payment of PF can be made,if the payments were made before the due date of filing of return of income - NO :ITAT


ACIT Vs Bharat Export (Dated: May 18, 2016) Whether where the assessee is made aware of the proposed enhancement after duly considering the explanation obtained during the course of hearing, no statutory notice u/s 251(2) is mandated for such enhancement - YES: ITAT

Whether substitution of estimate by the assessing authorities of the income computed on the basis of books of accounts prepared by assessee, without even rejecting the books of accounts or invoking the provisions of section 145(3), is permitted - YES: ITAT


Siemens Building Technologies Pvt Ltd Vs CIT (Dated: June 29, 2016) Whether the CIT is justified in exercising his revisional powers where the AO passed the order without discussing the nature of the transaction and materials on record - YES:ITAT


ITO Vs Ashok Kumar Rathi (Dated: June 24, 2016)

Whether the sale of land by the assessee cannot be said to be a capital asset, chargeable to capital gains and it is to be treated as an agricultural land in term of section 2(14)(iii) of the Act - YES: ITAT


ITO Vs Transport Development Corporation (Dated: May 11, 2016) Whether truck running expenses disallowed to the extent of 10% was justified when the truck running expenses claimed is commensurate with the turn -over of the assessee compared to earlier A.Y’S -

Whether "Godown expenses" can be disallowed when the expenditure in question was for the business of the Assessee - NO: ITAT

Whether the CIT(A) was justified in deleting the disallowance made in respect of retainer fee paid by the assessee when the nature of this fee is wages and not any retainer fee paid in the process of transportation - YES: ITAT


ITO Vs Vraj Construction (Dated: July 1, 2016) Whether the assessee can be said to be a developer, even if it has not worked in the capacity of a contractor but has acquired dominant control over the land and has also borne the entire risk and responsibility of the project - YES: ITAT


New India Assurance Co Ltd Vs ADDL CIT (Dated: May 25, 2016) Whether the credit should be given in the year in which the concerned income is offered to tax in India - YES: ITAT

Whether provisions of Section 115JB shall not be applicable to assessees engaged in general insurance business - YES: ITAT


Andhra Sugars Ltd Vs ADDL. CIT (Dated: May 20, 2016) Whether once there is exempt income, the relatable indirect expenditure should be disallowed in proportion to the exempt income - YES: ITAT

Whether the AO is right in disallowing certain expenditure under the head repairs and maintenance as capital expenditure by depending upon the functions and characteristics of each item of machinery - YES: ITAT


Emaai Pharma Ltd Vs ITO (Dated: January 6, 2016) Whether bank interest earned on oversubscribed share application money can be set off against share issue expenses - YES : ITAT

Whether amount which is never claimed as a deduction is not liable for disallowance - YES : ITAT


Garden Silk Mills Ltd Vs DCIT (Dated: May 31, 2016) Whether assesee is right in reducing the value of motor car by 20% of the insurance value for computing wealth tax - YES: ITAT


Hemendra Sanghani Vs ITO (Dated: June 24, 2016)

Whether addition for unexplained cash credit is justified when the sufficient documents to prove identity of creditors including their PAN are provided to the Revenue - NO: ITAT

Whether addition for unexplained cash credit is justified when notice u/s 133(3) could not be served to all the creditors and few of them fails to respond to said notice - NO: ITAT


Haresh Shantilal Avlani Vs DCIT (Dated: May 27, 2016) Whether the CIT(A) was justified in confirming the addition made u/s 68 in respect of the creditors who have stated their sources to be salary income, but no document substantiating the said claim was filed? Whether the protective addition can be sustained when there is no doubt about the ownership of investments? Whether the addition in respect of unexplained investments and profit on sale of shares was justified when the back ground of the assessee would show that the assessee cannot be considered to be a man of great means and surrounding circumstances and transactions show that he himself was acting as benamidar of other persons 2016-TIOL-1382-ITAT-MAD

Chemplast Sanmar Ltd Vs ACIT (Dated: June 13, 2016) Whether 'non compete fee' and 'surrender of right' to not manufacture, are one and same and are capital gain - YES: ITAT

Whether section 40A(7)(a) which disallows deduction of any provision of gratuity to employees on their retirement, is itself made subject to section 40A(7)(b) which allows such deduction as long as it is made towards an approved gratuity fund - YES: ITAT

Whether where provision made is towards contribution to an approved gratu ity fund, then claim of deduction is to be allowed - YES: ITAT

Whether expenditure incurred on ERP is of revenue in nature -YES: ITAT

Whether expenses towards upfront fees and guarantee commission is to be allowed as revenue expenses - YES: ITAT

Whether captive consumption of power generated by the assessee from its own power plants would enable the assessee to derive profits and gains by working out the cost of such consumption of power inasmuch as the assessee is able to save to that extent and deduction u/s 80IA(1), is allowable to assessee - YES: ITAT

Whether the provision for gratuity made on actuarial valuation is an ascertained liability and the same could not be added back to the book profits - YES: ITAT

Whether where the payment is in respect of the performing of the business of the assessee, then the expenditure is only on revenue account and not on capital account - YES: ITAT

Whether where the expenditure incurred on fixed asset includes costs that are aimed at 'maintaining' rather than enhancing the earning capacity of the assets/building then same is to allowed as revenue expenditure u/s 37 -YES: ITAT

Whether in the absence of material to show that any part of the royalty is to be treated as premium the payment of royalty for mining lease of acquiring leasehold right for extracting salts from the mineral bearing land is to be treated as revenue expenditure cannot be disallowed - YES: ITAT

Whether Tsunami relief expense incurred by the assessee is to be treated as revenue

deduction and not 80G deduction - YES: ITAT


Sri Koundinya Educational Society Vs Addl.CIT (Dated: June 17, 2016) Whether assessee can be said to have diverted the funds in violation of the provisions Whether assessee can be said to have diverted the funds in violation of the provisions of section 13(1)(d) where assessee has advanced loans out of the funds borrowed from founder members of the society to other societies under the same management having similar objects and also registered under the provisions of section 12A and charged interest - No: ITAT

Whether A.O. can borrow the findings of the Chief Commissioner of Income Tax in the order cancelling the registration u/s 10(23C) to deny the benefit of exemption u/s 11 to assessee without specifically pointing out that the activities carried out by the assessee are not in accordance with the objects of the trust – No: ITAT

Whether disallowance u/s 40(a)(ia) is applicable, when income is computed under the provisions of section 11 – No: ITAT - Assessee's appeal allowed : VISAKHAPATNAM ITAT


H J Siwani Vs ACIT (Dated: June 24, 2016) Whether when the assessee is disclosing income as business income and showing the closing stock as business stock/ business asset, it can be inferred that each and every property owned by the assessee is a business asset and therefore, the property in question is a capital asset because, the Revenue could not bring any material on record to establish that this property is also a business asset - Assessee's appeal partly allowed : BANGALORE ITAT


Sivasundram & Co Vs ITO (Dated: June 29, 2016)

Whether penalty for concealment of income can be imposed, when the difference in stock is calculated by applying the GP rate, which is not constant - NO: ITAT


Sukhbir Singh Dhupia Vs ACIT (Dated: July 1, 2016)

Whether penalty can be levied even if the explanation offered by the assessee is bonafide - NO: ITAT

Whether a mere disallowance of claim made by the assessee can lead to automatic levy of penalty - NO: ITAT


Vardhman Agro Agencies Vs ITO (Dated: October 9, 2015) Whether free service camp expenses should be allowed when expenditure incurred in this regard is not reimbured by any distributor - YES : SC

Whether cash discount on purchase of tractors is allowable as business expenditure - YES : SC


Ys Vidya Reddy Vs DCIT (Dated: June 15, 2016) Whether a case can be remanded when the Assessing Officer utilised the material gathered as a result of investigation/enquiry adverse to the assessee without either supplying the same to him or allowing an opportunity to the assessee to cross examine - YES: ITAT


SRP Publications India Pvt Ltd Vs ACIT (Dated: July 5, 2016) Whether the exparte order u/s. 144 can be passed if the AO has not given the assessee reasonable opportunity to substantiate it's claim - NO: ITAT

Whether the assessee is entitled to claim expenditure, when TDS has been remitted into Government account - YES: ITAT


The State Fisheries Development Corporation Ltd Vs ACIT (Dated: April 19, 2016) Whether grant-in-aid was provided to assessee by the Government not as per the scheme design for the promotion of some class of industries but it was given by the Government being a sole shareholder of the assessee company and the purpose of the grant was to utilize towards the payment for salary and PF of the employees – Yes: ITAT

Whether interest paid on the late deposit of PF is compensatory in nature and is entitled for deduction while computing the profit under the business head - Yes: ITAT


ACIT Vs Nagar Urban Co-Op Bank Ltd (Dated: June 10, 2016)

Whether any unclaimed dividend can be charged as an income under the Act - NO: ITAT


Sandeep Ramniwas Agrawal Vs ITO (Dated: June 17, 2016)

Whether the penalty can be levied , when the assessee has reasonable cause to substantiate its claim for non-compliance of the notices served - NO: ITAT


Til Ltd Vs DCIT (Dated: July 5, 2016) Whether taking expenditure at 1% of dividend income earned is justified if the assessee does not show any expenditure incurred for the purpose of earning said exempted income - YES :HC


Vilas Transport Company Vs ITO (Dated: June 3, 2016) Whether order of CIT(A) enhancing the disallowance made by AO, without putting the assessee on notice to show cause why the said enhancement should not be made in its hands, is sustainable in law - No: ITAT

Whether disallowance of a part of cash expenditure incurred for clearing and forwarding activities of the employees/ labourers of the assessee only supported by self made vouchers is sustainable in law - Yes: ITAT


Vinati Organics Ltd Vs ACIT (Dated: May 31, 2016) Whether acceptance of accounting entries as it is without causing any enquiry would render the assessment order erroneous and prejudicial to the interest of Revenue - YES: ITAT


Chartered Capital And Investment Ltd Vs ACIT (Dated: July 12, 2016) Whether case be remanded on issue of disallowance of investment when assessee has himself made such disallowance, in order to workout correct amount of disallowance- YES: ITAT


DCIT Vs Harinagar Sugar Mills Ltd (Dated: June 22, 2016) Whether the capital subsidy received under the Bihar Incentive Package 2006 is required to be deducted from WDV of plant and machinery - NO: ITAT

Whether subsidy received by the way of reimbursement of commercial Tax (VAT) is Capital receipt - YES: ITAT

Whether the AO was entitled to add capital subsidy and reimbursement of commercial taxes(VAT) to the book profit u/s 115JB - NO: ITAT


Harsh Deep Construction Vs DCIT (Dated: May 11, 2016) Whether search conducted under warrant of authorization, prepared in name of AOP but executed against member of AOP, can be said to be a valid search u/s 132 to invoke jurisdiction u/s 153A - NO: ITAT

2016-TIOL-1365-ITAT-ALL

Allahabad Development Authority Vs ACIT (Dated: March 11, 2016) Whether the onus is on the assessee to prove that the case has been selected for scrutiny wrongly on the basis of the directions of the higher authorities without application of mind - YES : ITAT

Whether Development Authority created under the statute of the State Government is entitled for exemption from taxation under the Constitution of India - NO : ITAT

Whether the assessee is not entitled for exemption of income after the amendment of Section 2(15) of the Act w.e.f. 1.4.2009 - YES : ITAT

Whether assessee is not engaged in activites charitable in nature - YES : ITAT



A Godwin Maria Visuvasam Vs ITO (Dated: July 6, 2016) Whether agricultural income can be termed as the ' income from other sources', when the assessee does not own any agricultural land - NO: ITAT

Whether penalty can be imposed if the contention of the assessee with regard to the genuineness of the income is not denied by Revenue- NO: ITAT


ITO Vs Uttar Pradesh Financial Corpn (Dated: May 25, 2016)

Whether the order passed u/s 201(1)/201(1A) for non-deduction of tax at source is barred by limitation when according to section 201(3), the Revenue can pass the order at any time on or before the 31st March 2011 for financial year commencing on or before 01/04/2007 and Revenue has acted within permissible time-frame - NO: ITAT


Sri Seetharamachandra Swamy Temple Vs CIT (Dated: June 17, 2016) Whether registration u/s 12AA can be denied, when the trust is registered under section 6(c)(ii) of the Endowments Act - NO: ITAT


ITO Vs Prem Lakhotia (Dated: June 13, 2016) Whether short-term capital gain can be adjusted, if the loss incurred on F& O transactions is carried on recognised stock exchange - YES: ITAT 2016-TIOL-1360-ITAT-PUNE

ACIT Vs Anukool Mukund Purandare (Dated: July 8, 2016) Whether the appeal is maintainable before Tribunal if amount of tax involved is below the revised monetary limit as per the CBDT circular which has a retrospective effect also : NO : ITAT

Whether the surcharge will be applicable to block assessments pertaining to period prior to time when charge of surcharge very first came in to existence by the insertion of the proviso to section 113 of the Act, by the Finance Act, 2002 - NO : ITAT


Akshar Infrastructure Pvt Ltd Vs JCIT (Dated: July 19, 2016) Whether the addition as per section 69 can be made, if no cogent material evidences other than the stamp duty valuation is brought on record by the Revenue - NO :ITAT

Whether addition made in violation of principle of natural justice can sustain - NO :ITAT

Whether addition u/s 68 is justified when assessee successfully explained the cash credits, establish the identity, genuineness of the transaction and the capacity of the lender with corroborative documentary evidences - NO : ITAT


Bhupendra Singh Hakam Singh Luhar Vs DCIT (Dated: June 13, 2016) Whether disallowance u/s. 40(a)(ia) can be made where the amount that have been paid by the assessee has already been considered as income by the respective payees – No: ITAT 2016-TIOL-1357-ITAT-AHM

Meghmani Organics Ltd Vs ACIT (Dated: May 30, 2016) Whether once the retrospective amendment itself stands quashed by jurisdictional High Court and the matter has reached finality, such matter cannot be remanded to the AO for fresh consideration in the light of the said amendment - YES: ITAT 2016-TIOL-1356-ITAT-DEL

Kisan Gramin Bhandaran Vs ITO (Dated: June 27, 2016)

Whether rental income received from business assets is a business income and not income from house property - YES: ITAT Also see analysis of the order

2016-TIOL-1355-ITAT-RAJKOT

ITO Vs Shri Khimabhai (Dated: May 30, 2016) Whether addition made by AO by estimating net profit @5% is valid, when assessment order for succeeding AY shows net profit @1.03% and there has been no change in the business pattern of assessee - NO: ITAT


Samtel Color Ltd Vs ACIT (Dated: May 20, 2016) Whether expenses incurred towards gifts & present for employees fairwell, education subsidy for employees kids and presents to customers, are genuine business expenditure, and cannot be doubted on ground of justification of incurring these expenses - YES: ITAT

Whether the aforesaid expenditure can be disallowed in the current year, when similar expenses incurred by assessee in earlier years were allowed as deduction - NO: ITAT

Whether with regard to claiming deduction in respect of an expenditure, is it for the AO or the CIT(A) to decide the justification or requirement of incurring such expenditure - NO: ITAT

Whether deduction for obsolete inventory of the assessee deserves to be allowed, when Revenue does not dispute the fact that the inventory has become obsolete, but only disputes the year of allowability - YES: ITAT

Whether disallowance u/s 14A can be made if the assessee has not earned any income which is not chargeable to tax - NO: ITAT


Gopal Glass Works Ltd Vs ITO (Dated: May 6, 2016) Whether once the books of accounts are rejected, income of the assessee has been estimated by applying a net profit rate, then, there is no question to make the disallowance of expenses separately


DCIT Vs Spice Distribution Ltd (Dated: July 1, 2016) Whether expenditure will be considered as capital in nature if expenses are incurred wholly and exclusively for promotion of business of the Company - NO : ITAT

Whether the advertisement expenditure can be said to be capital in nature when there is direct nexus between advertisement expenditure and the business of the assessee -

NO : ITAT


ACIT Vs Sandeep Yadav (Dated: June 21, 2016)

Whether the assessee can be said to have honoured the disclosure and no penalty to be imposed, if it pay taxes on such undisclosed income and Revenue assessed such income as business income without making any additions - YES : ITAT 2016-TIOL-1350-ITAT-MUM

DCIT Vs Indorigin Electric Ltd (Dated: June 24, 2016) Whether within a composite housing project, where there are eligible and ineligible units, assessee can claim deduction in respect of eligible units in the project and even within the block, assessee is entitled to claim proportionate relief in the units satisfying the extent of built-up area 2016-TIOL-1349-ITAT-MAD

ITO Vs International Maritime Academy (Dated: June 24, 2016) Whether the first appellate authority has wide powers over the order of assessment appealed against before him and in the course of exercise of such power it can direct the assessee to produce any evidence, information or material that was not produced before or considered by the AO - Whether there is applicability of provisions of section 13(1)(c) r.w.s. 13(2)(g) and 13(3) when the benefit derived by the assessee is by taking the properties are more than the benefit derived by the trustees - Whether when the assessee claimed exemption u/s 11 can it claim depreciation u/s 32 2016-TIOL-1348-ITAT-MAD

Sify Technologies Ltd Vs ITO (Dated: June 17, 2016) Whether the order passed by the AO u/s 201(1) will be considered time barred if the same is passed after two years from the end of the relevant financial year - YES: ITAT 2016-TIOL-1347-ITAT-KOL

ITO Vs Sosha Credit Pvt Ltd

Whether penalty paid to the NSE on violation on account of 'unfair trading practice, is allowable under income tax act - YES: ITAT 2016-TIOL-1346-ITAT-KOL

Prabir Kumar Mullick Vs ITO (Dated: June 1, 2016) Whether disallowance u/s 40A(3) can be made where the expenditure was made for business expediency and there was no doubt about the genuineness of the transaction and the identity of the party – No: ITAT


Indian Rice Mills Stores Vs ITO (Dated: June 1, 2016) Whether addition of the sum received as advance from customer as unexplained cash credit u/s 68 is justified when there was complete failure on the part of the assessee to furnish any evidence to prove the genuineness of the transaction, identity and creditworthiness of the persons who have claimed to have paid advance either before AO or before CIT(A) and even before the Tribunal


DCIT Vs Pricewaterhouse Coopers Pvt Ltd (Dated: July 13, 2016)

Whether a subsidy given by the State government to an industrial undertaking to offset the cost of an asset, can be considered as payments made specifically to meet a portion of the cost incurred by such undertaking in relation to an approved project - YES: ITAT

Whether incentive in the form of a subsidy granted under a State Government Scheme intended to accelerate industrial development of such State and for setting up of industries in the State, cannot be considered as payments for meeting cost of asset and hence falls outside the purview of Explanation 10 to Section 43(1) - YES: ITAT

Whether such subsidy amount can be reduced from the cost of the capital asset, for the purpose of computing depreciation - NO: ITAT

Whether the said interest subsidy is liable to be treated as capital receipt - YES: ITAT

Whether expenditure incurred towards licence fees paid on an annual basis/quarterly basis for specific usage of a specific software for a certain period of time, which renders no enduring benefit to an assessee, warrants capitalization of the same by treating it as capital expenditure - NO: ITAT

Whether recruitment expenses paid by an entity to a recruitment agency for appointing two persons for the senior position in the entity, can be treated as capital expenditure - NO: ITAT


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