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INCOME TAX APPELLATE TRIBUNAL ORDER

2016-TIOL-224-ITAT -KOL

Bansilal Leisure Parks Ltd Vs ITO (Dated: January 20, 2016)

Whether assessee can be treated as assessee in default for non collection of TCS when the parties to whom the sales are made have furnished their respective returns of income - NO : ITAT

2016-TIOL-223-ITAT -MUM

Yes Bank Ltd Vs ADDL CIT (Dated: January 1, 2016)

Whether no disallowance u/r 8D(2)(i) and (ii) is required to be made, if the non- interest bearing funds available with the assessee are more than the amount of investment which generate tax free income - YES : ITAT


ITO Vs Umt Investment Ltd (Dated: December 30, 2015)

Income Tax - Whether when the loan has been utilized only on revenue account, the resultant foreign exchange gain arising due to restatement at the end of the year needs to be brought to tax.

2016-TIOL-221-ITAT -HYD

DCIT Vs Suven Life Sciences Ltd (Dated: December 23, 2015)

Whether interest u/s 234B and 234C should not be charged merely because there is variance between book profit computed based on retrospective amendment - YES : ITAT


Suman Kar Vs ITO (Dated: November 18, 2015)

Whether addition u/s 68 can be made where the assessee proved the identity of the creditor, genuineness of the transaction and creditworthiness of the creditor – Whether addition towards introduction of fresh capital and towards difference between the closing capital balance of earlier year and opening capital balance of the current year reflected in the audited accounts is justified where the assessee had strongly denied the fact of introduction of any fresh capital in the business during the assessment year and had stated that there were some mistakes in the audited accounts submitted before the department and assessee requested for rejection of the books of accounts to AO and requested to determine his taxable income on

presumptive taxation as a percentage of turnover but AO did not reject the books of accounts but instead proceeded to make independent addition – Whether addition on account of amount receivable from sundry debtors where assessee had already disclosed the turnover in respect of the parties in the earlier years – Whether addition on account of bogus sundry creditors can be made where the purchases have not been disputed by AO and the sundry creditors have emanated only out of purchases of the assessee.


DCIT Vs Pba Infrastructure Ltd (Dated: December 23, 2015)

Whether addition on account of cash expenses can be made where the payments were made to daily wagers and no discrepancies were found in the vouchers produced by the assessee - No: ITAT


Bothra Automotive Pvt Ltd Vs ACIT (Dated: January 20, 2016)

Whether assessee is at liberty to treat the particular assets as part of the block of assets or stock in trade - YES : ITAT

Whether travelling expenses should not be allowed when assessee fails to establish the business connection for travel - YES : ITAT

2016-TIOL-217-ITAT -PUNE

Manas Promoters And Developers Pvt Ltd Vs DCIT (Dated: December 16, 2015) Whether case be remanded and condonation of delay be allowed when first appeal could not be filed in time due to ongoing dispute between the Directors and closure of the office of the assessee company - YES: ITAT

2016-TIOL-216-ITAT -MAD

ACIT Vs Lks Gold Haven (Dated: December 31, 2015)

Whether Case be remanded when grounds raised by the assessee before Tribunal for the first time and the lower authorities has no occasion to consider the same - YES : ITAT

Whether the provisions of sec. 2(22)(e) of the Act is not applicable when the assessee is not beneficial or registered owner of the shareholdings in the company - YES : ITAT

2016-TIOL-215-ITAT -AHM

ACIT Vs Gujarat State Petroleum Corporation Ltd (Dated: January 20, 2016) Whether reopening made after expiry of four years can be sustained, where under the reasons for reopening, the AO has nowhere made allegation regarding any information

showing escapement of income from chargeability of tax, on account of failure of assessee to disclose all facts fully and truly - NO: ITAT


Lohia Securities Ltd Vs DCIT (Dated: December 9, 2015) Whether the transactions done by delivery as well as the transactions of derivatives are hit by section 43(5) of the Act - No: ITAT

Whether the aggregation of the share trading loss and profit from derivative transactions should be done before application of the Explanation to section 73 of the Act - YES: ITAT

Whether claim for set off of loss from share dealing should be allowed from the profits from F & O in share transactions where the assessee had treated the entire activity of purchase and sale of shares which comprised of both delivery based and non-delivery based trading as one composite business before the application of deeming provision contained in Explanation to Section 73 of the Act - YES: ITAT


DCIT Vs Jewel Consumer Care Pvt Ltd (Dated: December 8, 2015) Whether royalty paid on the basis of sales generated by the assessee and where no new asset was acquired by the company in the form of tangible or intangible asset would be allowable as revenue expenditure - Yes: ITAT

Whether expenditure incu rred on account of cost of replacing stamping dies logo and purchase of AC to DC Convertors would amount to a revenue expenses and would qualify for deduction as repairs and maintenance expenditure - Yes: ITAT

Whether the provisions for leave encashment a nd gratuity made on the basis of actual liability accrued to the assessee-company based on the actual period of working and wages for its employees is an ascertained liability - Yes: ITAT

Whether addition made on account of reversal of cenvat credit and the additional excise duty and service tax paid by assessee by treating them as penal in nature is sustainable where there was no specific penalty order wherein these amounts had been imposed as penalty on the assessee - No: ITAT

Whether items such as control panels & cables would form a part of plant & machinery and would be eligible for depreciation @ 25% - Yes: ITAT

Whether the amount advanced to acquire raw material which could not be recovered after the transaction could not be completed is allowable as business expenditure - Yes: ITAT

Whether addition u/s 68 is sustainable where all the conditions have been duly adhered and followed and complied with by the assessee in relation to FDI receipt from the holding company towards share application money for investment in in the subsidiary company and the identity of the holding company was also proved - No: ITAT


DCIT Vs Global Mercantiles Pvt Ltd (Dated: January 13, 2016)

Whether in order to invoke the provisions of section 69B, the burden is on the revenue to prove that the assessee has invested in property over and above what is disclosed in its balance sheet - YES: ITAT

Whether any addition could be made in the hands of the purchaser on the basis of stamp duty charged by the sub-registrar - NO: ITAT

Whether the valuation adopted by stamp valuation authority is for purpose of computation of capital gain only in case of seller of an asset, and the same cannot be extended in the case of the purchaser to estimate the undisclosed investment - YES: ITAT

Whether the only obligation of an entity receiving the share application money is, to prove the existence of its shareholders from whom it has received such application money - YES: ITAT

Also see analysis of the order

2016-TIOL-211-ITAT -DEL

Aksar Wire Products Pvt Ltd Vs ACIT (Date of Decision: December 11, 2015)

Whether addition under sec. 68 can be made in respect of the money received by the assessee by way of share application from Victory Software when the AO has not disputed the bank accounts and the payments that were made to the assessee by the applicant companies and the AO has failed to establish that the details filed by the assessee are wrong.


Bapashri Mahotsav Smruti Trust Vs DCIT (Dated: December 29, 2015)

Whether prior to 1st June 2015, there was any enabling provision therein for raising a demand in respect of levy of fees u/s 234E - NO: ITAT 2016-TIOL-209-ITAT -MUM

ITO Vs Bhimji Nanaji Patel (Dated: November 20, 2015)

Whether when the assessee borrowed money in the ordinary course of business of the company where the money lending was substantial part of the business activity and had paid interest on such borrowings, any disallowance can be made as per the provisions of section 2(22)(e) - NO: ITAT

Whether when the AO has not make out a case that the assessee deflated its profit by paying higher rate of interest on the money borrowed, it has also failed to prove that the funds were available in the market at the lower rate of interest under the similar facts and circumstances, can the slight hike in interest rate can be disallowed - NO: ITAT


DBS Bank Ltd Vs DDIT (Dated: January 8, 2016)

Whether no tax is required to be deducted tax at source from payments made by a foreign bank's Indian branch to its overseas head office - YES: ITAT

Whether the delay in making of the claim of refund by itself, without anything else, cannot lead to the conclusion that the delay is attributed to the assessee - YES: ITAT

Whether interest under section 244A can be declined on account of delayed claim under section 10(23G), when there is nothing more the fact of delayed claim - NO: ITAT


Gvg Paper Mills Pvt Ltd Vs DCIT (Dated: December 18, 2015) Whether the new industrial unit can be said to have come into existence within the meaning of sub-s. (2) of s. 80-IA, so as to be eligible for deduction under s. 80-IA where a distinct industrial undertaking was commenced for the generation of power out of fresh funds, in separately identifiable premises, under a separate license/approvals with manifold increase in capacity with new machinery and buildings without transfer of any portion of the old buildings or machinery which pre-existed - YES: ITAT 2016-TIOL-206-ITAT -DEL

Light Carts Pvt Ltd Vs ITO (Dated: December 10, 2015)

Whether re -assessment proceedings beyond a stipulated time period of four years is valid when in reasons recorded nowhere mention that any income chargeable to tax has escaped assessment due to failure/omission on the part of assessee to disclose fully and truly all material facts necessary for assessment - NO : ITAT


Limelight Towers Pvt Ltd Vs ACIT (Dated: December 11, 2015)

Whether when the notice has been issued after four years from the relevant assessment year, then approval for reopening of the case should be obtained from the CIT instead from the Joint/ Additional Commissioner - YES :ITAT

Whether under such circumstances, the reopening of the case would become infractuous - YES:ITAT


ACIT Vs Anagram Stock Broking Ltd (Dated: January 8, 2016)

Whether Revenue can file Appeal before the Tribunal if Tax effect is less than Rs 10 lacs in view of (Circular No. 21 of 2015) - Whether stock exchange card is akin to a license and therefore it is covered u/s 32(1)(ii) and depreciation is allowable - Whether disallowance on account of interest could be made u/s 14A when the interest free funds in the form of Capital and Reserves are far in excess of investments


Amrita Pankaj Talwar Vs ACIT (Dated: November 4, 2015) Whether the gains arising on sale of shares can be considered as business income of the assessee when the assessee is a medical doctor by profession, the assessee has not borrowed interest bearing funds for purchasing shares, the shares have been shown as "investments" in the Balance Sheet and the frequency of transactions cannot be considered to be very frequent.


Chaturbhuj T Batra Vs ACIT (Dated: January 6, 2016)

Whether addition to the brokerage income on estimated basis is justified where the only source of income of the assessee was being brokerage and there was no evidence on record to show that the assessee had received brokerage income on account of cash components and the unexplained deposits had been added - NO: ITAT

Whether addition made towards suppressed fee receipts is sustainable where the view taken by the tax authorities is not supported by any credible material - NO: ITAT

2016-TIOL-201-ITAT -JAIPUR

K G Petrochem Ltd Vs ACIT (Dated: December 14, 2015) Whether assessee's claim of adjustment of excise duty to the opening stock of the next year can be disallowed where the assessee by mistake had reduced an amount on account of excise duty on opening stock instead of correct amount and all the details were filed before the lower authorities at the time of appellate proceedings - No: ITAT

Whether transactions made assessee are business transactions during the ordinary course of busines which cannot be treated as deemed dividend u/s 2(22)(e) where the assessee had number of transactions related to goods purchased and sale, job work charges, paid and received rent and interest and the balance after every transaction changed the position some time it becomes credit and sometime debit - Yes: ITAT - Assessee's appeal allowed : JAIPUR ITAT

2016-TIOL-199-ITAT -BANG

Tam Tam Pedda Guruva Reddy Vs ACIT (Dated: September 23, 2015) Whether charging of interest u/s 234D on the excess refund given due to wrong computation of interest u/s 244A is justified where there was a mistake in computation of the refund to be granted to the assessee pursuant to the order of the High Court and this mistake in computing the interest u/s 244A was rectified by passing the order u/s 154.


M/s J K Promoters Vs ITO (Dated: December 3, 2015)

Whether in the matter of penalty proceedings, the onus lies heavily on the Revenue to prove that the assessee had concealed its income or has filed inaccurate particulars of its income - YES: ITAT


DCIT Vs Jay Metal Industries Pvt Ltd (Dated: December 18, 2015)

Whether the rental income of the assessee from letting out building along with wooden cabins, central air-conditioning plant supported by 2000KVA diesel generator power back up is a "composite rental income" assessable under the head "income from other sources" u/s 56(2)(iii) of the Act.

Whether the essential ventilators and electric fitting in a kitchen can be compared with the amenities of wooden cabins and empanelment, central air-conditioning facility supported by power back up which is inseparable from the letting of the building - NO: ITAT


DCIT Vs Repley And Company Ltd (Dated: December 4, 2015)

Whether when the Tribunal had held that the assessee was entitled to the benefit of circular no.652 dated 14.06.1993, which was confirmed by the HC and the department did not prefer any appeal before the Apex Court, then such judgement of the HC becomes final and binding - YES: ITAT 2016-TIOL-195-ITAT -COCHIN

ITO Vs Poonjar Service Co-Operative Bank Ltd (Dated: November 3, 2015)

Whether assessee advancing loans for purposes other than agricultural activities is hit by provisions of Section 80P(4) where assessee Society is formed mainly for providing credit facilities to its members for carrying out agricultural activities and also other agro-based activities and banking business is not its principal business. 2016-TIOL-194-ITAT -DEL

Natural Products Bio Tech Ltd Vs DCIT (Dated: November 28, 2015) Whether since no additional material is found pertaining to the assessee which it is held to be belonging to the assessee, the AO does not assume jurisdiction for framing assessment under sec. 153C read with section 153A of the I.T. Act and therefore the issuance of notice itself is null and void and therefore quashed.


Ved Prakash Lohia Vs ITO (Dated: December 4, 2015) Whether when the amount paid by an assessee is validly proved to have been

invested in the business from his personal account, which is the sale proceeds of shares which he got from WILL, the nature and source of the fund was received from the mother of the assessee is proved - YES: ITAT

Whether when CIT(A) himself has admitted that the AO has not identified any specific item of personal expenses, without going into the details of the expenses and the basis of disallowance, can a restriction be placed on the expenses incurred on ad hoc basis - NO: ITAT


Sri Manoj Murarka Vs ACIT (Dated: November 20, 2015)

Whether provisions of Section 2(22)(e) can be invoked in respect of amounts paid to parties who are not shareholders in the lending company – No: ITAT

Whether the capital gains could be included for reckoning the accumulated profits only when the said capital gains has been duly subjected to tax Yes: ITAT

Whether addition towards deemed dividend can be made where there are no accumulated profits - No: ITAT


Veljan Denison Ltd Vs ADDL CIT (Dated: December 16, 2015)

Whether a case can be remanded to verify the actual date of remittance of the employees' contribution to PF land ESI before taking final decision - YES: ITAT 2016-TIOL-190-ITAT -HYD

Vodafone South Ltd Vs DCIT (Dated: December 21, 2015)

Whether stay of demand can be allowed when assessee's case is pending for decision on merit and it has already paid 40% of the tax - YES : ITAT


M/s Mitra Guha Builders India Co Vs DCIT (Dated: December 9, 2015)

Whether when as a result of amendment, the second proviso was deleted and it also made first proviso applicable to contribution to employees welfare funds referred to in S. 43B(b), this reasoning will equally to the amendment to Sec.40(a)(ia) whereby a second proviso was inserted in sub-clause (ia) of clause (a) of Section 40 by the Finance Act, 2012 - YES: ITAT

2016-TIOL-188-ITAT-AHM

Prakashkumar Bhagchandbhai Khatri Vaibhav Tenaments Vs ACIT (Dated: November 17, 2015)

Whether an amount advanced for business transaction can fall within the definition of Section 2(22)(e)? Whether when the aggregate payment during the year was

Rs.1,96,945/- which was in excess of Rs.50,000/- being the limit prescribed under sec. 194C(5) the Assessee was liable to deduct TDS on preservation charges paid for Potato storage to a cold storage.


DCIT Vs Prem Kumar Sanghi (Dated: December 4, 2015)

Whether deduction u/s 80IB is allowable where from inception, the assessee undertook va rious activities which are fundamental and crucial for development of housing project and assessee had not transferred the land to the developer and had retained the rights of jointly supervising the development and construction of the impugned housing project - YES: ITAT

Whether assessee's claim for deduction u/s 80IB can be denied where the development plans and other approvals are in the name of assessee - No: ITAT

2016-TIOL-186-ITAT -RAJKOT

ITO Vs Monarch Foundry Pvt Ltd (Dated: December 23, 2015) Whether no departmental appeals will be filed against relief given by the CIT(A), before the Tribunal, unless the tax effect, excluding interest, exceeds Rs 10,00,000 and such appeal filed is liable to be dismissed as withdrawn - YES: ITAT


ACIT Vs Mitsui Prime Advanced Composites India Pvt Ltd (Dated: November 23, 2015) Whether there is a distinction between commencement of business and setting up of business and therefore, once it is established that business is all set up , then its all related expenditures will have to be allowed as deduction - YES : ITAT

Whether once assets have been put to use, there cannot be partial allowance of depreciation merely on ground that manufacturing activity has not yet commenced - YES: ITAT

Whether where assessee had paid salaries to sales personnel, in view of fact that products traded by assessee company were not different from products to be manufactured and sold, adhoc disallowance of salary expenses could be made on ground that manufacturing activity has not yet started - NO: ITAT


Phi Seeds Ltd Vs DCIT (Dated: December 9, 2015)

Whether legality of the orders passed u/s 142(2A) or u/s 142(2C) can be challenged before the Tribunal to demonstrate that the order of assessment has been passed beyond the period of limitation - Whether the extension of time framed by the A.O for submission of audit report u/s 142 (2C) is justified where the assessee had not made a specific application for extension or sought for the time to submit audit report.


Planman Consulting (India) Pvt Ltd Vs ACIT (Dated: November 6, 2015)

Whether in the absence of any exempt income, addition under sec. 14A can be made? Whether disallowance under sec. 40(a)(ia) can be made when the amount of TDS deducted was remitted to the account of the Government before the due date of filing of the return of income - Whether the disallowance of Rs. 6,90,324/- incurred towards gifts and awards which were distributed to the trainees for the best performance was justified when the assesee was engaged in the business of management consultancy and training and it is not in dispute that the expenditure was actually incurred.


Harbans Lal Malhotra & Sons Pvt Ltd Vs ACIT (Dated: December 4, 2015) Whether when all the income was duly shown in the relevant year by assessee and tax thereon has been duly paid as per mercantile accounting system, reason for the difference in TDS was mainly on account of interest income as per TDS certificates and income shown by assessee, any disallowance can be made - NO: ITAT


DCIT Vs Export Credit Guarantee Corporation Of India Ltd (Dated: December 11, 2015) Whether when the assessee after identifying the exporters has paid back the substantial amount which were collected on their behalf and whatever amount could not be identified, the same has been offered as an income in that year, that amount can again be considered as income of assessee - NO: ITAT

Whether if the assessee is required to make payment towards subscription in respect of Insurance Act and regulations thereof, the expenditure so incurred is an ascertained liability which is required to be paid every year, hence the same is allowable as a 'deduction' while computing the income of the assessee - YES: ITAT

Whether when the income of the assessee as well as the expenditure incurred by the assessee are governed by specific provision which have an overriding effect, in that case it is still open for the AO to invoke the other provisions of the Act for carrying out the disallowance or adjustment in the income - NO: ITAT



ACIT Vs Square One (Dated: January 4, 2016) Whether adhoc disallowance can be made on the basis of generalized technical deficiencies in the records maintained by the assessee where AO has not brought on record any cogent material that these expenses were bogus or fictitious and are not paid by the assessee and the books of accounts of the assessee were duly audited by the auditors and no defects were pointed by the auditors – NO: ITAT

Whether consideration by the CIT(A) of the replies and evidences filed with Revenue with tapal/dak counters of the Revenue till the date of finalization of the assessment orders u/s 144 could be called additional evidences filed for the first time before the

CIT(A) – NO: ITAT


ITO Vs Lcr Investment Pvt Ltd (Dated: January 4, 2016)

Whether when it is clear that the Board's instructions or directions issued to the income-tax authorities are binding on them, the Revenue still has the liberty to file an appeal which has the tax effect less than the prescribed limit - NO: ITAT


ACIT Vs Honda Motorcycle And Scooter India Pvt Ltd (Dated: December 21, 2015) Whether when as a result of the rectification proceedings the tax effect has gone below the prescribed monetary limit, it is still possible for the Revenue to contend that an appeal can be maintained - NO: ITAT


The Vellore District Central Co-Op Bank Ltd Vs ACIT (Dated: December 11, 2015) Whether the nomenclature under which the head the provision made is not important for the purpose of claiming deduction U/s 36(1)(viia)


ACIT Vs Carborandum Universal Ltd (Dated: January 1, 2016) Whether deduction allowed u/s 80HHC need not be reduced while computing deduction u/s 80IA - Whether the sale proceeds of the scrap cannot form part of the total turnover while computing the deduction u/s 80HHC - Whether once the AO excluded the freight and insurance charges from the export turnover the same shall also be excluded from the total turnover while computing the deduction u/s 80HHC - Whether exclusion of 90% of interest, agency commission, rent and miscellaneous income from the profits of business while computing deduction u/s 80HHC is justified


Narendra J Thacker Vs DCIT (Dated: December 4, 2015)

Whether penalty u/s 271(1)(c) is leviable where the assessee had made a disclosure statement u/s 132(4) of the Act after the search offering undisclosed income, explaining the manner in which such income was derived and paid taxes thereon together with interest and duly offered the said undisclosed income in the returns filed in response to notice under section 153A and assessments were completed accordingly - NO: ITAT


Forum Projects Pvt Ltd Vs DCIT (Dated: December 4, 2015) Whether assessee's claim that no expenses were incurred by it for purpose of earning exempt income in form of dividend is correct, when dividend income was earned out of auto swap funds which was done directly by the bank without any interference from the side of the assessee - YES: ITAT

2016-TIOL-173-ITAT -CHD

ITO Vs C Max Healthcare (Dated: December 10, 2015)

Whether in the absence of proper confirmations, an AO is justified in treating the alleged amount as unexplained cash credits, as the onus in that case is on the assessee to prove the genuineness of the transactions - YES: ITAT


Indian Cable Net Co Ltd Vs ACIT (Dated: December 9, 2015)

Whether in order to make disallowance of prior period expense, the AO needs to examine if liability for the expenses incurred for prior period expense was crystallized during the year under consideration - YES: ITAT


ITO Vs M/s Cancer Aid & Research Foundation (Dated: November 13, 2015)

Whether the mere purchase of the BMW car in the name of the trustee, can be considered as a sufficient ground for cancellation of registration under section 12AA(3) - NO: ITAT

Whether when the AO has not given any finding before the Higher authorities that the car purchased in trustee's name was used for non-trust purposes, can such amount be added in the income of that trust, which is otherwise exempt - NO: ITAT



Sanghavi Savla Commodity Brokers Pvt Ltd Vs ACIT (Dated: December 22, 2015)

Whether Notice under section 274 of the Act should specifically state the ground mentioned in Section 271(1)(c), i.e., whether it is for concealment of income or for furnishing of incorrect particulars of income - YES : ITAT


Jct Ltd Vs JCIT (Dated: December 4, 2015)

Whether assessee is free to utilize its own funds where there is sufficient own fund with the assessee - Yes: ITAT

Whether disallowance under Section 36(1)(iii) can be made where the loan has been provided out of assessee's own fund - Yes: ITAt

Whether assessee is entitled for allowance of interest on borrowed capital which is used for the purpose of business - Yes: ITAT


ITO Vs M/s Santhal Multicast Pvt Ltd (Dated: December 4, 2015)

Whether the CIT(A) was justified in deleting the application of section 145 when the AO has not brought sufficient reasons for rejecting the books of accounts? Whether the CIT(A) was justified in deleting the disallowance of loss of Rs.84,40,567/- when the AO has nowhere rejected the sales or purchase of assessee vis-à-vis other manufacturing expenses incurred by assessee during the year.


ACIT Vs M/s Kanchan Oil Industries Ltd (Dated: December 9, 2015)

Whether the eligibility conditions for granting deduction u/s 80IB needs to be looked into only in the initial A.Y and thereafter it is automatic and hence becomes academic in nature - YES: ITAT

Whether disallowance u/s 14A can be made in the assessment framed u/s 153A, in absence of any incriminating materials found during the course of search - NO: ITAT


ITO Vs M/s Unique Forge (Guj) Pvt Ltd (Dated: December 22, 2015)

Whether circular no. 21/2015 dated 10th December 2015 applies to pending appeals also where tax effect does not exceed Rs. 10,00,000 - YES : ITAT


Gsfs Capital And Securities Ltd Vs DCIT (Dated: December 10, 2015)

Whether the Assessee can be allowed to take somersault from the declaration made by it in the return of income unless it is pointed out that such working was based on misconception of fact or misconstruction of law.


DCIT Vs M/s Vibrant Advertising Pvt Ltd (Dated: December 8, 2015)

Whether when assessee has already deducted tax on the original amount, then it is automatic that the profit element in that amount had already been taxed - YES: ITAT


M/s Volvo India Pvt Ltd Vs CIT (Dated: January 20, 2016)

Whether non-enquiry by the AO on an issue confers jurisdiction on the CIT to revise the assessment u/s 263 - YES: ITAT


Shri Narasimha Reddy Vs DCIT (Dated: December 4, 2015)

Whether order levying penalty under sec. 271(1)(c) is maintainable where the specific grounds on which the penalty was sought to be imposed were not specified by the AO .


ITO Vs M/s Orient Builders (Dated: December 8, 2015)

Whether once the liability is shown as outstanding at the end of the year, it is not relevant for the assessee to establish the month or months to which such liability pertained - YES: ITAT

Whether the AO cannot make an assumption that the assessee had inflated the expenses by preparing bogus vouchers, without the support of concrete findings in this regard - YES: ITAT


Nathpa Jhakri JV Vs ACIT (Dated: December 18, 2015)

Whether to invoke the provision of section 263 of the Act, the order passed by the AO has to be erroneous and prejudicial to the interest of the revenue - YES : ITAT

Whether the order excluding Manglad Flash Flood Claim is not prejudicial to the interest of the revenue when assessee itself offer this amount of claim when it attained finality - YES : ITAT


Krishna Art Silk Cloth Pvt Ltd Vs DCIT (Dated: November 17, 2015)

Whether reassessment is justified when there is no allegation of the failure on the part of Assessee to fully and truly disclose the material facts for assessment – NO : ITAT


DCIT Vs Creative Processing Ltd (Dated: December 17, 2015) Whether a consensus order based on estimation does not form a precedent so as to warrant a Special Bench reference in the event, of the same being not followed by another co-ordinate bench. 2016-TIOL-157-ITAT -MAD

Apa Engineering Pvt Ltd Vs DCIT (Dated: December 18, 2015) Whether assessee engaged in manufacturing activity /assembling the product for exports and also rendering information technology enabled services is entitled to deduction under section 10A - YES: ITAT


ACIT Vs Tumkur Veerashiva Co-Operative Bank Ltd (Dated: October 16, 2015) Whether amount spent out of members benevolent fund and members death relief fund for the welfare of the members of cooperative bank, is deductible as expenditure wholly and exclusively incurred for the purpose of business - NO: ITAT 2016-TIOL-155-ITAT -VIZAG

Sayyaparaju Engineering Constructions Ltd Vs DCIT (Dated: December 4, 2015) Whether an interim receipt of arbitration award received by an assessee as per directions of the High Court would be assessable in the hands of the assessee in the year of receipt, even during the pendency of arbitral proceedings before the High Court - NO: ITAT

Whether where the AO has issued notice u/s 148 based on the information that the assessee has received arbitration amount which was not offered to tax, the said information constitutes valid reason for reopening of assessment - YES: ITAT

Whether an ad-hoc amount received by the assessee after furnishing security, can be considered as income of the assessee on receipt basis - NO: ITAT


ITO Vs Psl Ltd (Dated: December 22, 2015)

Whether appeal of the Revenue be dismissed pursuant to CBDT circular no. 21/ 2015 dt 10th December 2015, when amount involved is less than Rs. 10,00,000/- YES : ITAT

2016-TIOL-153-ITAT -CHD

ACIT Vs Nova Industries (P) Ltd (Dated: December 14, 2015) Whether profit rate can be applied against shortage of the stock when applied it would amount to double taxation because the AO in the computation of income has taken

the gross profit as calculated by applying profit rate and also added separately the surrendered income of Rs. 30 lacs.


M/s Nilesh Steel & Alloys Pvt Ltd Vs ACIT (Dated: November 30, 2015)

Whether, on the facts of the case, the books of accounts of the assessee cannot be said to be regularly maintained and audited in view of the clandestine removal of goods and the unaccounted purchases and sales admitted by the assessee - Whether on facts, the quantification of suppressed production @ 4% based on electricity units consumption basis can be said to be justified .


ITO Vs Shri Ishwarlal Gulabbhai Desai (HUF) (Dated: December 4, 2015) Whether addition on account of LTCG would sustain when Revenue has adopted inappropriate fair market value of the assest for valuation - NO: ITAT


ITO Vs Sri Kamal Kumar Jain (Dated: November 6, 2015)

Whether when assessee has shifted its business and residence and his return of income were duly filed before AO having jurisdiction over the area, where business of the assessee is situated, then the old AO had no jurisdiction to initiate proceedings u/s 147 - YES: ITAT


ACIT Vs Rajasthan State Co-operative Bank Ltd (Dated: December 14, 2015) Whether contribution to Primary Agriculture Credit Co-operative Society (PACS) Development Fund is non-business expenditure - NO : ITAT


ACIT Vs Mpl Cars Pvt Ltd (Dated: December 31, 2015) Whether case be remanded to recompute the income when capital asset is converted into Stock in Trade so as income earned is no longer a Capital Gain - YES: ITAT


DCIT Vs Martin Multi Projects Pvt Ltd (Dated: December 31, 2015) Whether a case can be remanded to consider all the documents filed by the assessee before the CIT(A), on the issue of disallowance u/s 40A(3) of the Act when cash payments are made to purchase capital asset - YES : ITAT


Adani Gas Ltd Vs ACIT (Dated: January 18, 2016) Whether section 35D deduction of amortization which was already allowed in the preceding assessment years can be disturbed in succeeding assessment years - No: ITAT Whether assessee is entitled to set off prior period income against prior period expenditure where assessee has shown prior period income and the Assessing Officer has not excluded it while working out current year taxable income - YES: ITAT Whether assessee-resulting company is entitled to pro rata adjustments of TDS, advance tax and MAT credits as per section 115JAA where the demerged distribution undertaking no more exists with effect from the appointed day and the demerger arrangement covers all assets and properties of the demerged undertaking followed by all of its debts, liabilities, duties and obligations - YES: ITAT



Meridian Infratel Pvt Ltd Vs ITO (Dated: December 8, 2015) Whether when the assessee was actually not having any motor vehicles, any expenditure incurred on account of repairs of such vehicles can be allowed as a revenue expenditure - NO: ITAT

Whether there can be a personal element in case of mobile expenses, when the assessee on whose behalf such expenses are incurred, is a company - NO: ITAT


ACIT Vs Meena T Singh (Dated: December 9, 2015) Whether penalty levied can be deleted u/s 271(1)(c), when it is eveident from the finding that the claim of deduction of inadmissible items was on account of inadvertent error - YES: ITAT

Whether such claim of assessee, can be treated as furnishing of inaccurate particulars of income - NO: ITAT


Kolkata Port Trust Vs ADIT (Dated: November 5, 2015) Whether the repayment of loan originally taken to fulfill one of the objectives of the trust will amount to an application of the income for charitable purposes. 2016-TIOL-142-ITAT -MUM

ACIT Vs Kaytee Corporation Pvt Ltd (Dated: November 20, 2015)

Whether the variation in the level of expenses, vis-a-vis an earlier year can be a ground to further investigate the matter, but the same by itself cannot be a ground to disallow any expenditure, specially, without bringing on record any infirmity or falsity in the claim made by the assessee - YES: ITAT

Whether no disallowance can be made on account of interest expenditure under section 36(1)(iii), when such loan was advanced to sister concerns for the ultimate advancement of the assessee's business operations as it facilitated timely delivery and quality of products, which was crucial for meeting the export obligations - YES: ITAT

2016-TIOL-141-ITAT -COCHIN

M/s Kairali Steels & Alloys (P) Ltd Vs JCIT (Dated: November 20, 2015)

Whether assessee is liable to deduct TDS under sec. 194C where the assessee had paid lorry hire charges to the drivers of the transporters on the transportation of the goods of the assessee and it is not a case where the assessee hires the vehicles on rent for a fixed period and the owner of the vehicle continued to have actual constructive possession over the vehicle and the assessee could not establish that any right has been transferred by the owner of the vehicle to the assessee - Whether the disallowance contemplated by section 40(a)(ia) can be applied when the payment has already been made by the assessee to the payee - Whether disallowance under sec. 14A can be made where the assessee had not earned any tax free income during the relevant assessment year.


M/s Kanak Castor Products Pvt Ltd Vs DCIT (Dated: December 8, 2015)

Whether while processing the return under section 200A of the Act, the AO cannot impose levy of fees under section 234E - YES: ITAT

2016-TIOL-139-ITAT -RANCHI

Shri Sunil Kumar Vs DCIT (Dated: November 4, 2015)

Whether an order is bad in law, when it is passed in re-assessment proceedings in absence of reasons recorded for issuing a re -opening notice under section 148 - YES: ITAT

2016-TIOL-138-ITAT -VIZAG

ITO Vs K Satish Mudinepalli (Dated: December 4, 2015)

Whether an assessee is entitled for 15% deduction towards rate variation between CPWD and State PWD and a further 10% deduction towards self-supervision charges from the value arrived by the DVO applying the CPWD rates on cost of construction of commercial complex - YES: ITAT


Shri Girish M Kothari Vs JCIT (Dated: November 6, 2015)

Whether once the interest amount has been credited to the assessee and tax has

been deducted by the payer, the assessee cannot take the plea of not offering the income on the ground that he has not actually received the same - YES: ITAT


ITC Ltd Vs DCIT (Dated: December 9, 2015)

Whether when the AO has disallowed the claim of deduction on the basis of condition laid down in section 80AB and on finding that the said condition was not fulfilled by the assessee, then it cannot be said that there is mistake in the order of the Tribunal, when it has directed the CIT(A) to verify the same - YES: ITAT

Whether there is no mistake in the order of the Tribunal, when finding has been filed that the Tribunal has given a clear-cut finding to the effect that the satisfaction on objective basis was recorded as required for making any disallowance under section 14A - YES: ITAT


DCIT Vs M/s Medpat Finace Ltd (Dated: December 4, 2015)

Whether disallowance is warranted in terms of Rule 8D(2)(ii) of the Rules when the factual findings given by the CIT(A) with regard to the availability of own funds with the assessee for the purpose of making the investments have not been controverted by the Revenue? Whether in case of NBFCs, the income recognition can only be done in conformity with revenue recognition norms laid down by RBI? Whether the CIT(A) was justified in deleting the addition of AO of Rs.8,21,143/- being accounting difference in the opening balance in the books of the assessee when difference did not arose in A.Y under question.


DCIT Vs M/s BCH Electric Ltd (Dated: December 18, 2015)

Whether the provision for warranty is an allowable expense when the provision for such warranty is being made on the basis of past experience and has been computed in a systematic and scientific manner.


ITO Vs Ahmedabad Advance Mills Ltd (Dated: December 8, 2015)

Whether business loss cannot be set off against business income beyond eight years, but the BIFR under SICA has power to allow any concession it considered appropriate for the revival of the company - YES: ITAT

Whether after BIFR order, it makes the assessee, a sick unit, entitled to set off capital gains against accumulated losses even beyond 8 years - YES: ITAT


Gujarat State Petronet Ltd Vs Addl.CIT (Dated: December 7, 2015)

Whether the amount of compensation paid to owners/government which are in the

nature of expenditure incurred in relation to putting asset to use i.e. pipeline is to be added to the cost of pipelines in view of section 43(1) of the Act and hence depreciatio n on the total cost of pipelines (including the cost incurred in relation to acquiring the 'right of user in land' and right of way and crop compensation) is to be allowed as per the provisions of the Act .


M/s Cotton Blossom India Pvt Ltd Vs JCIT (Dated: December 31, 2015)

Whether the payment of premium made to the LIC in the name of Directors is allowable u/s. 37(1) – Yes: ITAT

Whether the premium paid by the assessee company is to be considered as perquisite in the hands of the recipient - Yes: ITAT


ITO Vs Shri Gunshi Karsan Dedhia (Dated: November 6, 2015)

Whether penalty under sec. 271(1)(c) can be imposed when the assessee's claim of deduction under sec. 80IB(10) was disallowed are highly debatable issues on which more than one view is possible.


M/s Mohair Investment And Trading Company (P) Ltd Vs DCIT (Dated: November 27, 2015)

Whether penalty under sec. 271(1)(c) is leviable where the issue regarding the application of section 14A, especially in relation to shares held as trading assets was clearly a debatable issue.

2016-TIOL-128-ITAT -COCHIN

M/s Nortrans Marine Service Pvt Ltd Vs JCIT (Dated: November 19, 2015)

Whether disallowance under sec. 36(1)(iii) can be made where the assessee had surplus funds of its own to advance interest free loans to its sister concern and the assessee was involved in litigation case pending in foreign courts on account of termination of agency by its principal companies and the funds were advanced to the sister concern to take care of emergency situation arising pursuant to the litigation pending in the foreign courts against the assessee - Whether deduction of employees contribution to PF provided under section 36(1)(va) is available only if the amount so received from the employee was paid within the due date - Whether Assessing Officer can rework the capital gains computed by assessee by reducing the indexed cost of acquisition by the proportionate interest.

2016-TIOL-127-ITAT -AMRITSAR

M/s Pardeep Singh Wazir Vs DCIT (Dated: November 5, 2015)

Whether since Circular No. 1/2009 amending section 40A(3) is applicable w.e.f 1-04-2009 and the assessee made various payments in A.Y. 2007-08 to a single party

number of times in a day which were splitted in such a way that each payment was below Rs. 20,000, assessee could not be charged for violating provisions of Section 40A(3) - NO: ITAT

Whether in respect to payments made as lorry charges confirmation by payees i.e. lorry owners was sufficient evidence to establish genuiness of said payments even though AO did not call for any information under sec. 133(6) from RTO - YES: ITAT

Whether view taken by AO in one year differs from view taken by him in subsequent year on same issue cannot be said to be erroneous provided view taken by AO is a plausible view - YES : ITAT


DCIT Vs Precision Electronics Ltd (Dated: December 8, 2015)

Whether quantum of deduction under sec. 80IA is to be computed on eligible unit as if eligible unit was the only source of income of the assessee.


M/s Strides Arcolab Ltd Vs ACIT (Dated: December 16, 2015)

Whether a person is eligible for deduction u/s 35(2AB) of Act, even if the approval is granted by the competent authority subsequent to the expiry of the previous year - YES : ITAT

Whether disallowance of interest expenditure u/s 14A can be made on proportionate basis even if there is no fresh investment towards domestic companies - NO: ITAT

Whether if the amount is disallowed u/s 36(1)(iii), then appropriate relief should be given u/s 57(iii) of the Act - YES : ITAT

Whether a case can be remanded to calculate ALP where it is noted that CIT(A) has not followed the mechanism as has been provided in the jurisprudence of transfer pricing - YES : ITAT



Shri Kumarpal Mohanlal Jain Vs ITO (Dated: November 30, 2015)

Whether the provisions of section 50C are not applicable on the sale of leasehold rights - YES: ITAT

Whether the AO should tax capital gains by adopting the sale value of leasehold rights as offered by him - YES: ITAT


ADIT Vs M/s Asia Today Ltd (Dated: December 23, 2015)

Whether interest on refund due on account of excess TDS can be paid w.e.f. 1st day of assessment year and not from the date of submissions of TDS certificates by the assessee - YES : ITAT


DCIT Vs M/s Wadhwan Food Retail Pvt Ltd (Dated: January 4, 2016)

Whether additional evidence which is vital and crucial to adjudicate the claim of the assessee company is admissible in second appeal - Yes: ITAT

Whether stock write off claimed by assessee company is allowable where the assessee company deals in slow moving items which are prone to pilferage, wastage, breakage and damages etc. and write off of such stock was based on applicable accounting standards which are mandatory in nature - Yes: ITAT


Shri Suresh Verma Vs ACIT (Dated: November 27, 2015)

Whether Section 14A r/w Rule 8D could be invoked, in case the assessee was neither in receipt of any dividend income nor there was any income from the investment which was taxable under the Act - NO: ITAT


Mrs Tehmi Aspi Anklesaria Vs DCIT (Dated: August 28, 2015)

Whether the CIT was justified in invoking jurisdiction u/s 263 on the ground that the AO has not enquired in respect of 2 flats before giving benefit to the Assessee u/s 54F when the AO has not written in specific words but has allowed the claim of deduction u/s 54F in respect of 2 adjacent flats and the view taken by the AO was a possible view.


ITO Vs M/s Winsome Breweries Ltd (Dated: December 16, 2015)

Whether the contract for supply of any a rticle or thing fabricated according to the specification of the purchaser and the property in such article passes to the person only after the same is delivered would be a contract of sale - Yes: ITAT

Whether provisions of section 194C are applicable to a contract of sale of goods - No: ITAT

Whether unabsorbed depreciation could be carried forward indefinitely - Yes: ITAT


Smt Jashuben Thakorebhai Patel Vs ITO (Dated: December 4, 2015)

Whether it is the primary onus of the Revenue to first bring demonstrative evidence of any alleged unexplained gifts received by the assessee, only thereafter, the assessee

will be called upon to explain the source and the nature of the transaction.

2016-TIOL-117-ITAT -AMRITSAR

ACIT Vs M/s Jamkash Vehicleades Pvt Ltd (Dated: December 2, 2015)

Whether employees contribution deposited before the due date of filing of return along with the employers contribution be treated as income of the assessee - NO : ITAT


ACIT Vs M/s Spenta Agro Industries Pvt Ltd (Dated: September 9, 2015)

Whether it is open to the AO to treat a transaction of shares as non-genuine, soley on ground that no proof of payment of consideration for the purchase of shares has been produced - NO: ITAT

Whether long term capital gain claimed by assessee on account of sale of shares can be denied by holding the same to be not genuine, on the basis that the SEBI has proceeded against the concerned share broker in relation to some other company with whom assessee had no relation - NO: ITAT


ITO Vs M/s Trendsetter Construction Pvt Ltd (Dated: December 18, 2015)

Whether addition of income on account of professional services can be made when amount received during the year is an advance and the actual remuneration is to be quantified at the completion of the project - NO: ITAT


M/s Sajan Kumar Bansal and Sons (HUF) Vs DCIT (Dated: December 2, 2015)

Whether order imposing penalty under sec. 271(1)(c) is sustainable where the show cause notice issued under sec. 274 does not spell out the grounds on which the penalty is sought to be imposed - NO: ITAT


ACIT Vs Sri Pawan Kumar Jhunjhunwala (Dated: November 6, 2015)

Whether addition on account of advance received from clients can be made where assessee engaged in the legal profession had to receive certain advances from clients for taking care of certain expenses to be incurred for and on behalf of the client and the same is reflected in the balance sheet as a liability and the assessee has been consistently following cash system of accounting for over two decades and no addition has been made by the AO in the immediately preceding assessment years - Whether disallowance under sec. 40(a)(ia) can be made for non-deduction of tax at source in respect of amount paid towards deficit registration charges being the share of client of the assessee as directed by the Court - Whether disallowance made under sec. 14A r.w. rule 8D(2)(iii) is justified where AO had not considered the claim of the assessee at all and had straight away embarked upon computing disallowance under Rule 8D

without recording his satisfaction in terms of Rule 8D(1) - Whether the disallowance under sec. 94(7) has to be restricted to the extent of dividend received .


DCIT Vs M/s R Piyarelall International Pvt Ltd (Dated: December 4, 2015)

Whether when the assessee has indeed furnished all the details regarding legal and consultancy charges, membership & subscription before the revenue, has duly complied with the TDS provisions, any disallowance can be made on account of commercial expediency - NO: ITAT


M/s Gillette India Ltd Vs ACIT (Dated: December 14, 2015)

Whether when it is clear that assessee is a multinational company whose share -holders are not directly involved in the ordinarily business activity, the increase in sales promotion expenses necessarily has to be correlated with the turnover of the company - NO: ITAT


Thanmal Ganeshmal Parmar Vs ITO (Dated: November 4, 2015)

Whether the plots of land sold by the assessee can be considered as capital asset within the meaning of section 2(14) when there is no allegation that the assessee had ever applied for change of land use, the 7/12 extracts show the land as agricultural land and there is cultivation of crop and the land is beyond 8 km from the Municipal limits and the village is having population of less than 10,000/-.


ITO Vs Mr Venugopal Reddy (Dated: September 4, 2015)

Whether the CIT(A) was justified in deleting the addition made by the AO in respect of cash deposit made in the bank account of the Assessee when there was contradiction with respect to the stand of the Assessee in respect of bank account maintained with the Development Credit Bank.


ACIT Vs M/s Proximus Knowledge and Tech Services Pvt Ltd (Dated: December 3, 2015)

Whether ad-hoc disallowances framed u/s 144 by passing an ex-parte assessment can be sustained, if the AO while framing assessment has failed to collect the relevent details in order to determine the fair income of assessee - NO: ITAT


DCIT Vs Gujarat Borosil Ltd (Dated: December 28, 2015)

Whether when assessment is made on income computed under section 115JB and tax has been paid on income so computed, penalty under section 271(1)(c) cannot be imposed with reference to the additions made while making assessment under normal procedure - YES: ITAT


Golden Trust Financial Services Vs DCIT (Dated: December 9, 2015)

Whether when the assessee has established incurring of business promotion or sales promotion expenses, can the AO still abstain such assessee from allowing the deduction - NO: ITAT


ITO Vs M/s Intelsys Technologies Pvt Ltd (Dated: December 11, 2015)

Whether in a pure transaction of purchase of software the provision of TDS will be attracted merely on the basis of nomenclature shown in financial statement of assessee - Whether the expenses incurred by assessee attract the provision of TDS as this expense relates to up-gradation of the knowledge of its employees and for th is purpose the assessee has availed certain online facility? Whether the transaction can be said to be within the purview of the TDS provision when it was the reimbursement of cost to the concern party.


M/s Gupta Fabtex Pvt Ltd Vs DCIT (Dated: December 16, 2015)

Whether the provisions of section 194-I of the Act are applicable where development charges along with interest were paid for acquisition of rights in the lease hold property rather than use of land - No: ITAT

Whether the term "use" in the Section 194I can be extended to bring within its purview exploitation of any kind with reference to the property by changing its identity for its own benefit and thereafter selling it for profit - No: ITAT

Whether development charges can be read as rent within the purview of the section 194I where the document has used two different phrase the "Development charges" and "Economic rent", to connote different obligation - No: ITAT


West Bengal Housing Infrastructure Development Corporation Ltd Vs ITO (Dated: December 2, 2015)

Whether the nature of payment for delay in delivery of the plots is said to be in the nature of damages or in the nature of interest within the meaning of section 194A of the Act.


ACIT Vs Hicons Developers (Dated: December 30, 2015)

Whether when a request has been made for adjusting the tax against the income as disclosed and when the seized cash has finally been adjusted by the A.O against the tax demanded, then assessee cannot be penalized stating that it has not paid the tax alongwith interest in respect of the undisclosed income -YES: ITAT


Haldiram Bhujiwala Ltd Vs DCWT (Dated: November 18, 2015)

Whether the exemption for plot of land not exceeding 500 sq.mtrs has to be limited only to individuals and HUF - Whether the assessee is eligible to claim exemption for two years from the date of acquisition in respect of urban land when the assessee is setting up a travellers accommodation together with the provision of food and snacks to the travellers on the highway - Whether the building under construction on the urban land situated on the highway loses the character of being identified as an urban land and accordingly is outside the ambit of taxable assets under sec. 2(ea).


DCIT Vs Gujarat Borosil Ltd (Dated: December 07, 2015)

Whether the provision of Section 43B overrides the method of accounting consistently followed by the assessee and provides for the deduction of statutory liabilities in the year of payment irrespective of the year in which the liability is incurred - YES: ITAT

Whether the expenses for which notice of demand is received in the current year, would be considered as current year expenses as they are crystallized in the current year, even if the same were debited under the head 'prior period expenses' by the Auditor of the Company - YES: ITAT

Whether when the non resident agent operated from the outside of the country and the payment is remitted directly abroad, TDS is required to be deducted from the export commission - NO: ITAT


ITO Vs Ebay India Pvt Ltd (Dated: December 31, 2015)

Whether penalty for consealment of income can be initiated when all the particulars of the sale and the non taxability of the capital gains are fully and duly disclossssssed in the return of income and also during the assessment proceedings - NO : ITAT


ACIT Vs Dvs Steels And Alloys Pvt Ltd (Dated: December 15, 2015)

Whether when assessee company has installed induction furnace and the same was reflected in details of fixed assets and no depreciation has been claimed in the earlier year, then normal depreciation and additional deprecation can be allowed on both the items taken together - YES: ITAT


ACIT Vs Cosmo Foundations Ltd (Dated: December 31, 2015)

Whether mere production of confirmation letters from the seller is sufficient for establishing genuineness in an investment transaction, in case the buyer has given different statements at different stages of enquiry - NO: ITAT


Moradabad Zila Sehkari Bank Ltd Vs Addl.CIT (Dated: January 6, 2016)

Whether a cooperative bank is entitled to further deduction of 7.5 % of total income of the assessee over and above 10 % of aggregate of average rural advances of the bank - YES:ITAT


Madhabi Nag Vs A CIT (Dated: December 9, 2015)

Whether application u/s 154 for rectification of error is to be rejected on the ground that assessee has not given the relevant details and has not filed revised return - NO : ITAT


Manoj Kumar Johari Vs ACIT (Dated: December 4, 2015)

Whether when the claim for deduction u/s 80IB was rejected by AO in view of non fulfillment of conditions, CIT(A) allowed the appeal partly by following the ITAT's decision in assessee's own case, ITAT had decided the same issue in favour of the assessee except disallowance of 5% of such claim out of total claim U/s 80IB confirmed by the CIT(A), assessee's appeal on such ground is justified - NO: ITAT


ITO Vs M/s Ambica Overseas (Dated: December 22, 2015)

Whether no departmental appeals will be filed against relief given by the CIT(A), before this Tribunal, unless the tax effect, excluding interest, exceeds Rs 10,00,000 - YES: ITAT

Whether no interest should be levied till the time of filing of return of income by the recipient, when the receipts are included in the receipts disclosed to the department and the taxes have been paid in respect of the same - YES: ITAT


M/s Dadha Pharma Pvt Ltd Vs ACIT (Dated: December 17, 2015)

Whether the disallowance u/s 14A should not be more than the dividend earned by the assessee and the disallowance should be restricted to the amount of exempt

income -YES:ITAT

Whether expenditure incurred by the assessee for repairing and modernising the hotel and replacing the existing components of a portion of the building, furniture and fittings would fall under the category of 'revenue expenditure' and in nature to be allowed - YES: ITAT


DCIT Vs Norma India Ltd (Dated: December 8, 2015)

Whether merely because notices u/s 133(6) could not be served on the suppliers, assessee-buyer cannot be put to an inconvenience of disallowance when he has provided the correct address of those parties - YES: ITAT

Whether based on mere allegation no addition/ disallowance can be made - YES: ITAT



Puneet Kaur Dhupia Vs ACIT (Dated: December 9, 2015)

Whether the notice u/s 148 could be issued and served beyond 12 months from the date of filing of return but before expiry of time-limit for making assessment, reassessment or recomputation as specified in Sec.153(2) - YES: ITAT

Whether when it has been held that the reassessment proceedings initiated u/s 148 are valid, the AO in that case has the powers to bring to tax any income that escapes assessment - YES: ITAT


Satyanarayan Baheti Vs ITO (Dated: October 16, 2015)

Whether the AO can reopen the completed assessment simply on the basis of some direction or observation of the CIT(A), without recording his own satisfaction with regard to escapement of income - NO: ITAT

2016-TIOL-88-ITAT -LKW

Shaila Agarwal Vs ACIT (Dated: November 17, 2015)

Whether addition can be made in the proceedings under sec. 153A where the addition on the same ground was already made in the proceedings under sec. 143(3) - Whether the requirement of issue and service of notice under sec. 143(2) is applicable in the assessment made in compliance to notice under sec. 153A - Whether Assessing Officer has the power to reassess the returns of the assessee with regard to the material that was available at the time of original assessment.


Scientific Publishing Services Pvt Ltd Vs DCIT (Dated: December 31, 2015)

Whether the assessee can claim entitlement to deduction u/s 10B, in the absence of fulfillment of mandatory requirement of approval letter for 100% EOU from the Board u/s 10B - NO: ITAT

Whether loss on account of forex forward contracts are required to be considered as business loss in parlance with Section 28, where due to adverse foreign exchange movement, the bank has debited the loss to assessee's account and such loss is a realistic loss suffered by the assessee - YES: ITAT

Whether where the derivative transaction undertaken by the assessee is in excess of export turnover, the loss suffered in respect of that portion of excess transaction only can be considered as a speculative loss - YES: ITAT

2016-TIOL-86-ITAT -NAGPUR

Ashish Mukund Bajaj Vs ITO (Dated: December 4, 2015) Whether when assessee is not in a position to explain the sources of the cash deposited, then such cash deposited needs to be treated as unexplained cash deposits - YES: ITAT


Aayojan Investment Pvt Ltd Vs ACIT (Dated: December 1, 2015)

Whether the AO is justified in reopening an assessment, in case he has already verified all the material evidences before framing origional assessment and there is no material to show non-disclosure of relevant facts by the assessee - NO: ITAT


ITO Vs Fusion Informatics Pvt Ltd (Dated: December 11, 2015) Whether when the assessee has got approval as 100% export oriented undertaking, the assessing officer can still deny benefit of deduction u/s 10B - NO: ITAT


DCIT Vs Infrasoft Technologies Ltd (Dated: November 30, 2015)

Whether the Assessee was entitled for deduction under under sec. 10A when the STP unit for which deduction under sec. 10A has been claimed, was converted from the existing software unit and therefore, the business being already in existence.


Modipon Ltd Vs ACIT (Dated: December 2, 2015)

Whether where there is no exempt income there can be any disallowance under sec. 14A.

Whether the claim of the assessee for expenditure on voluntary retirement scheme is allowable under sec. 35DDA and not under sec. 37(1).

Whether the Assessee can be denied credit of TDS when the assessee has filed TDS certificates along with the return and the claim is according to the law.

Whether returns filed electronically on 30.9.2008 where the acknowledgement date is 1.10.2008, shall be treated as having filed on 30.9.2008.

Whether deletion of disallowance of Rs 2247126/- made on account of prior period expenses is justified when there is no expenses debited by the company but there is a reversal of income by the assessee.


Infomedia 18 Ltd Vs Addl.CIT (Dated: November 24, 2015) Whether AO is justified in rejecting the references adopted by the valuer as being not appropriate and reliable where AO has not brought on record any cogent material/ evidences to demolish the valuation report of the government approved registered valuer while the valuation reports submitted by the assessee company was based not only on the ready reckoner rates announced for stamp duty purposes by Government of Maharashtra in 2004 as well 1981 but is also based on the sales comparables in the vicinity for valuing at both the dates with suitable modifications and AO has not even inspected and measured the property before determining the values of the land and building separa tely and AO failed to refer the matter to DVO for obtaining his valuation report to ascertain the fair market value as per mandate of Section 55A.


DCIT Vs M/s IFGL Refractories Ltd (Dated: November 13, 2015) Whether expenditure can be considered as Revenue Expenditure when the expenditure on account of know-how was neither in pursuance of a new line of business nor did it bring into existence any asset of enduring nature.

2016-TIOL-79-ITAT -NAGPUR

ACIT Vs M/s Ballarpur Industries Ltd (Dated: December 4, 2015)

Whether disallowance u/s 14A can be invoked, in case there is no exempt income earned during previous years - NO: ITAT


Mr Arun Kumar Verma Vs DCIT (Dated: December 9, 2015) Whether any addition can be made u/s 69A on account of alleged excess cash found during the Survey operations in spite of the fact that the said excess cash was duly

explained by assessee and his son by filing proper cash-flow statements - NO: ITAT

Whether the addition can be made out of payments of Commission, simply by commenting that the recipients of commission were not found at the given addresses, the payments of commission were bogus - YES: ITAT



ITO Vs Systems Incorproate Pvt Ltd (Dated: December 9, 2015) Whether addition for undisclosed receipt be made when amounts in question has already been shown and included in the gross receipts in the earlier AY - NO : ITAT


Oberoi Hotels Pvt Ltd Vs DCIT (Dated: November 20, 2015) Whether disallowance under sec. 14A r.w. rule 8D can be made where the assessee company had already identified and disallowed interest on loan and de mat charges under the provisions of section 14A read with Rule 8D of the Rules being expenses relatable to earning of exempted income and there was no other expenditure debited in the P&L Account which had nexus with earning of exempted income and there was no fresh investment made by the assessee during the year and investments that were made were primarily made in group companies with the intention to acquire and retain controlling stakes and even dividend is received through ECS and there was no satisfaction recorded by the AO for invoking Rule 8D of the Rules - Whether legal and professional expenses incurred by assessee could be attributed to earning of management fee where the expenses were mainly incurred for worldwide trademark registration of Logos and during the year, no legal service was provided to this concern for earning of management fees - Whether ALV of the house property has to be determined by considering the actual rent received by the assessee.


Smt Jyotsna Desai Vs ACIT (Dated: November 6, 2015) Whether assessment framed under sec. 153C r.w.s 143(3) in respect of person other than the person searched is justified where no satisfaction in terms of section 153C was recorded by the Assessing Officer of the searched person under sec. 132 to reach to a conclusion that the contents in the seized documents belonged to the person other than the searched person.


Oil And Natural Gas Corporation Ltd Vs ACIT (TDS) (Dated: September 4, 2015) Whether normal clothing worn by the assessee's employees do come within the meaning of uniform for the purpose of exemption under sec. 10(14)(I) r.w.r. 2BB.


M/s Unichem Laboratories Ltd Vs Addl.CIT (Dated: December 18, 2015) Whether for the years for which Rule 8D is not applicable and in the event of that the AO is not satisfied with the explanation/working given by the assessee, disallowance under section 14A has to be made on a reasonable basis - YES: ITAT

Whether reasonable disallowance under sec. 14A has to be restricted @ 2 per cent for the years in which Rule 8D is not applicable - NO: ITAT


Monsanto India Ltd Vs Addl.CIT (Dated: December 18, 2015)

Whether the assessee is required to establish that he owns land property, in order to claim agricultural income earned from the said land - YES: ITAT


Atul Kumar Vs ITO (Dated: November 27, 2015) Whether Revenue has passed the order without issuance of proper notice and the same is bad in law when in fact there being a notice u/s.143(2) which is not denied by assessee at earlier stage - NO : ITAT

Whether unexplained credit and unexplained money represent two different aspects of the same transaction, though referable to the separate provisions of the Act and provision of section 68 apply even where one do not maintain proper books of accounts - YES : ITAT


M/s Voith Paper Technology India Ltd Vs ACIT (Dated: November 6, 2015)

Whether disallowance under sec. 14A r.w. rule 8D can be made where no satisfaction has been recorded by the Assessing Officer as to correctness of the claim of the assessee and no reasons have been given for invoking the provisions of section 14A by the Assessing Officer.


ACIT Vs Shri B Dhanasekaran (Dated: November 6, 2015) Whether deduction u/s 80IA(4) is not allowable to the assessee who is a contra ctor and not developer - Whether merely by executing the contracts relating to infrastructure projects, assessee cannot be treated as "developer" of infrastructure for the purpose of section 80IA of the Act - Whether the provisions of 80IA(4) applies to any enterprise which is "owned by a company registered in India or by a consortium or a corporation or any other body established or constituted under any Central or State Act" only and not to the assessee who is an individual having proprietary concern.


DCIT Vs M/s Asvini Fisheries Pvt Ltd (Dated: December 18, 2015) Whether where the forex derivative transaction undertaken by assessee is in excess of export turnover, the loss suffered in respect of such portion of excess transaction has to be considered as speculative loss only and that excess derivative transaction has no proximity with export turnover - YES: ITAT

Whether the forex derivative transactions which are completed can only be considered for purpose of determining business loss from these foreign exchange forward contract - YES: ITAT


Mohd Imran Baig Vs ITO (Dated: November 27, 2015) Whether the date of agreement or the date of execution of sale deed is to be considered for the purpose of adopting the SRO value u/s 50C of the Act – Whether the SRO value for commercial property cannot be applied to a residential property - Whether the guideline value as on the date of agreement to sale is to be adopted for the purpose of computation of capital gains. Also see analysis of the order


B4u Television Network India Ltd Vs DCIT (Dated: November 30, 2015) Whether the treatment given by a professional to the remuneration paid in his books of accounts, is conclusive to decide the nature of the said remuneration which has to be ascertained on the basis of relationship between the assessee and the professional - NO: ITAT

Whether where a professional is paid a fixed remuneration for his technical services, without any increase in such remuneration or other additional benefits as to regular employees, the provisions u/s 194J would only apply to such case - YES: ITAT


ACIT Vs Hi-Tech Electrotherics & Hydropower Ltd (Dated: December 11, 2015)

Whether expenses incurred for protection of assets and pursuing legal cases with the Government Departments be allowed even when the assessee is not carrying out any business activity - YES: ITAT 2016-TIOL-64-ITAT -KOL

Allahabad Bank Vs ACIT (Dated: December 9, 2015) Whether the claim for interest income which cannot be realized by the assessee as a debt, has become non performing asset can be denied to such assessee from deduction - NO: ITAT

Whether in case the payment of employer's contribution has been made by the assessee on or before the due date for filing return of income, deduction has to be allowed u/s 43B - YES: ITAT


Aflon Engineering Pvt Ltd Vs ITO (Dated: December 28, 2015) Whether where the sale proceeds of the mutual fund investments during the year has been used in making the investments, no part of the interest can be disallowed by invoking section 14A - YES: ITAT


Ecv Media (P) Ltd Vs ITO (Dated: November 30, 2015) Whether charging interest on late deposit of TDS is justified when the delay is caused by internal procedure of bank on which assessee has no control - NO: ITAT 2016-TIOL-61-ITAT -AMRITSAR

Vikramaditya Singh Vs DCIT (Dated: November 6, 2015)

Whether merely because the assessee has claimed the expenditure, which claim was not accepted or was not acceptable to the Revenue, that, by itself, would attract the penalty u/s 271(1)(c).


Binary Semantics Ltd Vs ACIT (Dated: December 11, 2015)

Whether it is open to the AO to make addition to the book profit of assessee u/s 115JB, in case the assessee has not only accrued interest in the relevent year but has also accepted the mistake of not crediting such amount in its P&L A/c - YES: ITAT


Shri Chetan C Patel Vs ACIT (Dated: November 4, 2015)

Whether when the sales are undisputed, the ends of justice shall be met if the income of the Assessee is estimated after taking into consideration the net profit rate of 1.5% - YES: ITAT


Integrated Coal Mining Ltd Vs DCIT (Dated: November 30, 2015)

Whether investments that did not yield any dividend income has to be excluded from the computation of disallowance under sec. 14A of the Act read with Rule 8D of the Rules - Yes: ITAT Whether computation of disallowance under Rule 8D can be used for book profits under sec. 115JB of the Act - No: ITAT Whether Rural Employment Cess and Primary Education cess collected from customers out of sale price can be construed as trading receipts chargeable to tax - No: ITAT Whether Rural Employment Cess and Primary Education Cess collected from customers in the sale invoices shall be chargeable to tax in the year of collection - No: ITAT Whether the assessee engaged in coal mining could be construed as production of coal and if so, the

assessee is entitled for additional depreciation - Yes: ITAT



Bharati Airtel Ltd Vs DCIT (Dated: November 27, 2015)

Whether where the ITAT after considering all relevent materials on record, had taken a conscious decision to remit a matter back to the file of AO for denovo consideration, following the ratio laid down by the Apex Court, is it open to the assessee to challenge the appropriateness of such a direction by terming it as a mistake apparent from record - NO: ITAT Whether a review of the order passed by the ITAT in the garb of rectification of mistake, can be permitted within the scope and ambit of Section 254(2) - NO: ITAT


Ashit Shipping Services Pvt Ltd Vs ACIT (Dated: December 8, 2015)

Whether case can be remanded to check the revised TDS return filed and accepted by NSDL to find out the correct amount of TDS - YES : ITAT


United Bank Of India Vs DCIT (Dated: December 30, 2015)

Whether disallowance under sec. 14A can be added to the book profits under sec. 115JB for the A.Y 2009-10 - Whether the CIT(A) was justified in holding that municipal valuation for rent is accepted to be appropriate reasonable and reliable as evidence - Whether the expenditure incurred towards debit cards to the tune of Rs. 69,23,167/- be treated as revenue expenditure - Whether disallowance under sec. 40(a)(ia) can be made for violation of provisions of section 194A on matured deposits - Whether disallowance under sec. 14A r/w Rule 8D(2)(ii) of the Rules can be made applicable to the assessee bank when the assessee bank has got sufficient own funds which is very much available for making investment.


Ishwarcharan Builders Pvt Ltd Vs DCIT (Dated: December 23, 2015)

Whether when the adjustment in respect of levy of fees u/s 234E is indeed beyond the scope of permissible adjustments contemplated under section 200A, any such levy could be effected in the course of intimation u/s 200A in absence of enabling provisions - NO: ITAT


ACIT Vs Dupen Laboratories Pvt Ltd (Dated: December 18, 2015)

Whether distribution of samples of medicines to the physicians free of cost can be parted with the business purpose, even if the object of supply of free samples of medicines is only to find out by the medical practitioners about the curative value of

the medicines - NO: ITAT


Dhoot Advisory Services Pvt Ltd Vs DCIT (Dated: December 2, 2015)

Whether when the assessee has established that commission paid to SFPL was for the purpose of services rendered by SFPL, the same has been supported with evidence on record, the same has to be allowed as deduction - YES: ITAT


Usharani Vs CIT (Dated: November 20, 2015)

Whether penalty is liable to be levied u/s 271(1)(c), in case there is no bonafide explanation from the assessee regarding incurring of certain expenses and there is furnishing of inaccurate particulars of income - YES: ITAT


Vimal Kumar MantrI Vs ACIT (Dated: October 9, 2015) Whether when the assessee maintained proper books of account duly supported by the audit report, the mistakes pointed out by AO for rejecting the books of account are untenable inasmuch as assessee's taxable profits can be ascertained on the basis of documents and records furnished by the assessee - YES: ITAT


Usharani Vs CIT (Dated: November 20, 2015) Whether penalty is liable to be levied u/s 271(1)(c), in case there is no bonafide explanation from the assessee regarding incurring of certain expenses and there is furnishing of inaccurate particulars of income - YES: ITAT


Toll India Logistics Pvt Ltd Vs ACIT (Dated: December 22, 2015) Whether provisions of Section 14A cannot be invoked, when the investments made were in sister concerns, or after such investments those companies have become the sister concerns by virtue of such investments, and further such investments were made from the non-interest bearing fund of the assessee - YES: ITAT



Tsurphu Labrang Vs DIT (Dated: September 8, 2015)

Whether, for registration under the provisions of Section 12AA/12A of the Income-tax

Act, 1961, the execution of a formal deed of trust is necessary, without which the registration could not be granted to the institution/trust - Whether, the DIT (Exemptions) could go into the issues relating to the income and expenditure account of the assessee, which were the subject-matter of assessment and whether they are relevant for the purpose of granting or otherwise of registration u/s 12AA/12A of the Act - Whether, the DIT (Exemptions)/CIT(E) while making enquiries during the course of proceedings u/s 12AA/12A of the Act for grant of registration could make enquiry only with regard to the genuineness or otherwise of the aims and objects of the trust but not regarding the application of income of the trust for charitable or religious purposes, which is a subject-matter of assessment, to be considered by the Assessing Officer at the time of assessment -Whether, the activities of the trust for the benefit of a particular caste or community and performing charitable activities for the purpose would debar the institution/trust from exemption from tax and registration u/s 12AA/12A of the Act - Whether, the supreme head of the trust taking food and clothes etc. from the funds of the trust is violative of the provisions of Section 13 of the Act, particularly when he was not drawing any salary for his services rendered to the trust. 2016-TIOL-47-ITAT -KOL

Wine Steel Pvt Ltd Vs CIT (Dated: November 3, 2015)

Whether inadequate inquiry conducted by the AO can be valid reason for CIT to revise the assessment order - YES : ITAT 2016-TIOL-46-ITAT -MAD

Cholamandalam Investment And Finance Company Ltd Vs ACIT (Dated: November 13, 2015)

Whether mere delivery of various components of boiler and windmill can be construed as the delivery of the assets, the claim of assessee that it has leased out the same and was also entitled to claim depreciation from the date of such delivery is correct - NO: ITAT 2016-TIOL-45-ITAT -MAD

Dr Deepak Lamech Vs ACIT (Dated: November 20, 2015)

Whether if the lower authorities and the Tribunal adopted different estimates in assessing the income of the assessee, could it be said that the assessee had concealed the particulars of income so as to levy penalty u/s. 271(1)(c) - NO: ITAT

Whether in case the assessee has not maintained any books of account so as to show the correct state of affairs of the assessee, the details of the income whatever within the knowledge of the assessee was not at all brought to the notice of the Department and it is a well planned and executed tax evasion so as to defraud the revenue, le vy of penalty u/s 271(1)(c) can be avoided - NO: ITAT


ITO Vs Linear Commercial Pvt Ltd (Dated: November 13, 2015)

Whether the AO has rightly disallowed the interest after taking into account the shares held as investment and stock in trade and also taking the total value of balance sheet after adjusting the current liabilities : YES:ITAT - Revenue's appeal dismissed : KOLKATA ITAT


Manatec Electronics Pvt Ltd Vs ACIT (Dated: November 20, 2015)

Whether the assessee would not be eligible for deduction for any income earned which is attributable to the business of the assessee other than manufacturing activity - YES: ITAT

Whether the income earned from freight charges cannot be allowed for deduction U/s 80-IB - YES: ITAT


ITO Vs Shilp Corporation (Dated: September 11, 2015) Whether even if the developer of a project is not owner of the land but he bears all risk and consequences relating to the property, he cannot be denied deduction u/s.80IB(10 - YES: ITAT


ITO Vs Executive Engineer (Dated: November 4, 2015) Whether penalty invoked by AO u/s 272B upon noticing invalid/missing PANs in the return filed in Form 24Q can be sustained, where it is clear that the PAN collected by assessee were those which the deductees informed and there was no failure to comply with the provisions of Section 139A - NO: ITAT


ACIT Vs M/s Tarun International Ltd (Dated: November 5, 2015) Whether reassessment framed without proper permission from the competent authority needs to be quashed - YES : ITAT


Sangamner Taluka Sahakari Vs TRO (Dated: February 20, 2015) Whether the provisions of section 40(a)(ia) of the Act are attracted only when the amount is payable at the close of the year - Whether the subsidy received by the assessee for Strengthening Infrastructure for Quality and Clean Milk Production is a capital receipt.


Shalivahana Estates Pvt Ltd Vs ACIT (Dated: November 27, 2015) Whether the mere fact that the loan was obtained by the assessee after completion of construction on the lease rentals cannot be the sole reason to come to the conclusion that the assessee has not incurred expenditure on the acquisition of property - YES:

ITAT

Whether where the assessment was completed u/s 143(3) after calling for various details and scrutiny of the same, it can be presumed that the AO has verified the details and accepted the assessee’s contentions after being satisfied about their acceptability - YES: ITAT

Whether disallowance of interest on the loan borrowed by the assessee from bank u/s 24(b), by reopening the assessment can be sustained, where it has been accepted by the AO on the same set of facts during previous years - NO: ITAT



ACIT Vs Rajhans Builders (Dated: November 27, 2015) Whether when letting out of the property is not one of the main objects of the assessee, but may be allied nature of business then income from letting out of the property, would have to be treated as Income from House property only - YES: ITAT

Whether the considerations received from the sale of such property should be assessable as capital gains only - YES: ITAT


Hamdard Laboratories India Vs ADIT (Dated: December 18, 2015) Whether where the order by the CIT(A) for withdrawal of exemption u/s 11 has been quashed by the jurisdictional High Court, the appeal of the assessee against such withdrawal becomes infructuous - YES: ITAT 2016-TIOL-35-ITAT -DEL

ITO Vs Express Towers Pvt Ltd (Dated: November 10, 2015)

Whether addition in the income can be made for selling flats of similar description and located in the same building at different prices - NO : ITAT 2016-TIOL-34-ITAT -MUM

Dharmik Exim Pvt Ltd Vs ACIT (Dated: August 19, 2015) Whether when it is apparent that genuineness of purchase can be verified only after examining the assessment records of third parties as per PAN No. details filed through affidavit before the HC, remand of case is a viable option - YES: ITAT 2016-TIOL-33-ITAT -DEL

Texaco Overseas Pvt Ltd Vs ACIT (Dated: December 4, 2015) Whether a case can be remanded to consider the additions made by Revenue under the head income from house property for some calculation which is required to be

done - YES : ITAT

Whether expenses incurred by the assessee for maintaining registered office of a company and also to comply with the statutory obligations can be allowe d to be set off against income from house property - YES: ITAT


Arihantam Infraprojects Pvt Ltd Vs JCIT (Dated: November 30, 2015) Whether, the payment of commission to the directors by the private limited company in recognition of their hard work can be questioned by the Revenue authorities merely on the basis of speculation by the Revenue that the same was to avoid payment of dividend tax - Whether where the commission has been paid to the directors and the taxes have been paid by the said directors on its income, then no disallowance is warranted in the hands of the assessee company 2016-TIOL-31-ITAT -MAD

Sicgil India Ltd Vs ACIT (Dated: December 18, 2015) Whether when the Assessing Officer has not discussed anything in the assessment order, can we presume that the Assessing Officer considered all the material available on record and allowed the claim of the assessee - NO : ITAT 2016-TIOL-30-ITAT -MAD

Cadensworth (India) Ltd Vs ACIT (Dated: November 20, 2015)

Whether when there is no clarity on the nature of the asset, on which depreciation at the rate of 100% is claimed, the copy of Invoice relied upon by the counsel for the assessee only describes the list of items of raw materials purchased by the assessee, which does not describe the nature of fixed asset, in order to know about basic facts relating to the assets, remand is justified - YES: ITAT


Susee Motor Finance Vs Addl CIT (Dated: October 9, 2015) Whether the assessment proceedings initiated by the AO u/s 153C in the absence of any material found during the course of search operation can be justified


ACIT Vs Shri Kulbhushan Gupta (Dated: September 28, 2015) Whether provisions of Section 50C are applicable where the property in question has been transferred by executing an agreement which was not registered with registering authority - Whether addition on account of car running expense and telephone expenses is justified where the assessee furnished full details of telephone bills and the addition was made on the basis of assumptions and presumptions only.


Punjab Produce Holdings Ltd Vs ACIT (Dated: November 13, 2015) Whether disallowance offered by assessee u/s 14A which is more than 1% of the exempted income, warrants interference, when it is shown that the different benches of ITAT has considered 1% of dividend income as reasonable disallowance u/s 14A prior to applicability of Rule 8D - NO: ITAT


M/s Numeric Power Systems Ltd Vs ITO (Dated: November 20, 2015) Whether when a circular giving permission in respect of inward remittances came into effect after the receipt of such amount by the assessee, such circular can have a retrospective effect - NO: ITAT

Whether if any difference in strategy of taxability or nature of payment arises, in such circumstances AO can treat the assessee as defaulter u/s.201 but can the AO also invoke the provisions u/s.40(a)(ia) - NO: ITAT

Whether when the expenditure incurred by the assessee is only to upkeep the business enterprises to maintain wear and tear but not to increase the productivity or manufacturing activity, can it be denied to be claimed as a revenue expenditure - NO: ITAT



DCIT Vs Aditya Birla Nuvo Ltd (Dated: December 9, 2015) Whether addition on account of unutilised modvat credit can be made - Whether expenditure on account of catalyst deployed in the plant is to be treated as capital expenditure where capitalization of the said expenditure in the books of accounts was done by the assessee only because of the prescription of the ICAI with regard to the change of the accounting standard and the spare parts were valued at cost and it had never changed this method - Whether C) disallowance on account of provisions made for expenses at the year end can be made where the assessee had made provisions but had not received the bills and in the subsequent year the provisions made by it were offered for taxation - Whether discount on issue of Employee Stock Options is allowable as deduction in computing the income under the head 'Profits and gains of business or profession - Whether income on sale of Certified Emission deduction is liable to be treated as capital receipt where the assessee is carrying on the business of power generation and the carbon credit is not even directly linked with power generation.


ACIT Vs M/s Raymond Ltd (Dated: December 18, 2015) Whether there should be existence of an agency among the parties for the payment of commission and brokerage to bring the parties within the ambit of section 194H - YES: ITAT


ACIT Vs M/s Rediff. Com India Ltd (Dated: November 4, 2015) Whether the assessee cannot be held to have violated the provisions of Sec. 194J , even when amendment was given a retrospective effect, but by that time the assessee has already done the transactions without deducting tax at source - YES:ITAT


ACIT Vs G4S Security Services India Ltd (Dated: November 23, 2015) Whether Royalty paid by the assessee to its associate enterprise can be treated as capital expenditure - NO : ITAT


ITO Vs Gold Mohur Profiles Ltd (Dated: November 5, 2015)

Whether addition made u/s 68 merely on basis of information obtained from Investigation wing relating to accomodation entries can be sustained, in case the AO neither carried out any independent inquiry in respect of alleged accommodation entry provider, nor brought on record the statement of alleged entry providers - NO: ITAT


DCIT Vs M/s Hindusthan Paper Corpn Ltd (Dated: November 5, 2015) Whether the value of obsolete stores and spares written off in Profit & Loss Account is a genuine claim by the assessee and hence allowable as deduction - Whether the net prior period expenses debited by the assessee in its P&L Account is not allowable as an expenditure if the assessee is following mercantile system of accounting.


DCIT Vs Patton Developers Pvt Ltd (Dated: November 24, 2015) Whether the interest paid on any fresh loan taken to repay the earlier loan is fully covered u/s 24(b) - YES: ITAT

Whether business loss consequent to the conversion of capital asset into stock -in-trade can be denied to an assessee, on the ground that there was no business activities carried on by assessee during relevant previous year - NO: ITAT


DCIT Vs M/s Ratna Constructions (Dated: December 4, 2015)

Whether the A.O. necessarily has to follow the method of accounting followed by the assessee from the earlier years, when the assessee is following a particular method, of accounting, which was accepted by the department in earlier years, can it be disputed subsequently - NO: ITAT

Whether when the assessee is following projection completion method for computation of revenue from contracts, work in progress can be included in total

turnover of current year for the purpose of determining the gross receipts for estimation of net profit - NO: ITAT


M/s Savyasachi Constructions Pvt Ltd Vs ITO (Dated: September 23, 2015) Whether merely making claim by way of a wrong method for computation of capital gains, which is not sustainable in law by itself, would amount to furnishing of inaccurate particulars of income, resulting in invokation of penalty u/s 271(1)(c) - NO: ITAT

Whether adoption of FIFO method becomes mandatory only, if the assessee has de-materialized all the shares which it was holding and has sold such shares in various phases or tranches - YES: ITAT

Whether where the AO has re-computed the computation by following FIFO method as against the average cost price method adopted by assessee, can it be stated that assessee is guilty of furnishing inaccurate particulars - NO: ITAT


DCIT Vs M/s R P G Life Sciences Ltd (Dated: November 24, 2015) Whether merely because the claim of assessee was not acceptable to the tax authorities, the disallowance made on that basis will not give rise to concealment of income or furnishing of inaccurate particulars of income - YES: ITAT


M/s Transcar India Pvt Ltd Vs DCIT (Dated: November 13, 2015)

Whether it is open to the Revenue to dictate terms to the assessee on the issue of granting customer loyalty discount and making disallowance unless the genuineness of the transactions is doubted or established to be sham - NO: ITAT


Tristar Intech Pvt Ltd Vs ACIT (Dated: September 7, 2015)

Whether penalty u/s 271(1)(c) can be levied when the AO has initiated penalty proceeding u/s 271(1)(c) on the basis that the assessee has concealed the particulars of income and the penalty ultimately levied on the assessee has been for furnishing inaccura te particulars by observing that the case of the assessee is covered by the Explanation 1 to Section 271(1)(c).


Vardai Overseas (P) Ltd Vs ITO (Dated: October 29, 2015) Whether if once reassessment proceedings are set in motion, the material on the basis of which the requisite belief was formed by the AO has to be appraised and examined, if the AO did not corroborate the information received from the investigation wing before recording his own satisfaction of escaped income and

initiating the reassessment proceedings, such a proceeding is valid - NO: ITAT


M/s Yash Papers Ltd Vs Addl.CIT (Dated: October 29, 2015) Whether where the capital of a company is fruitfully utilized instead of keeping it idle, the income thus generated will be of revenue nature and not an accretion to capital - YES: ITAT

Whether interest income from bank is taxable as income from other sources except interest income earned in course of public issue of shares - YES: ITAT

Whether such interest income should be set off against public issue expenses, in case interest earned was inextricably linked with raising of share capital and was thus adjustable towards the expenditures involved for the share issue - YES: ITAT


DCIT Vs M/s Vishal Fashion Pvt Ltd (Dated: November 6, 2015) Whether penalties imposed for non compliance of conditions stated u/s 271AAA(2) of the Act be removed when undisclosed income has been earned from business activities - YES : ITAT


ACIT Vs M/s Zeppelin Mobile Systems India Ltd (Dated: September 29, 2015) Whether if the method of accounting followed by the Assessee in respect of warranty provisions is consistent, based on definite scientific method and the provision of warranty made by the Assessee is not a contingent liability, any disallowance can be warranted - NO: ITAT


BSES Rajdhani Power Ltd Vs ACIT (Dated: October 5, 2015) Whether non-refundable 'service line deposits' received by the assessee from customers as per the provisions of the DERC and the Electricity Act for the purpose of incurring expenditure for laying service line and other related expenses for providing new connections to customers constitute capital receipt and hence not liable to tax - Whether the provisions of section 115JB of the Act shall not apply to Companies referred in proviso to sub-sections (1) and (2) of section 211 of the Companies Act, i.e. companies covered by Special Acts viz. Banking Regulation Act, 1949, Electricity Act, 2003, Insurance Regulatory Act, 1999 etc. - Whether, even though the assessee, under a misconception of law, had declared income under the deeming provisions of sec. 115JB of the Act, still the AO was under its duty bound to make correct assessment of income of the assessee in accordance with the provisions of the Act.


M/s Ajanta Handtex Pvt Ltd Vs ITO (Dated: November 26, 2015)

Whether the interest paid by the assessee at a rate of more than 12% per annum on unsecured loans of the parties attracts section 40A(2)(b) when in earlier A.Y's the assessment was completed under scrutiny under sec. 143(3) and the interest paid @ 18% was accepted by the department and the assessee is not having any immovable property.


Dashratbhai Narandas Vs ITO (Dated: October 30, 2015) Whether when the assessee has made a particular claim in its return and has also furnished all the material facts relevant thereto, the disallowance of such claim cannot automatically lead to the conclusion that there was either concealment of particulars or furnishing of inaccurate particulars by the assessee - YES: ITAT

Whether merely because the assessee has not challenged the order of assessment levying tax and interest and has paid tax and interest thereon, is by itself not sufficient for the authorities to initiate penalty proceedings - YES: ITAT


Asian Mills Pvt Ltd Vs DCIT (Dated: October 27, 2015) Whether interest paid @18% to the related parties on unsecured loan is justified when the interest paid at lesser rate to the unrelated parties, in those cases, the unsecured loan was required to be paid on demand, but in the case of related parties there was no such condition? Whether the CIT(A) was justified in confirming the disallowance of Rs.15,29,863/- made on account of business development expenses when the assessee could not establish any business purposes out of such personal expenses of the director.


Chandra Brothers Vs DCIT (Dated: November 3, 2015)

Whether the enhancement made by the CIT(A) without serving notice of enhancement upon the assessee is justified - Whether disallowance @ 10% on investment in sister concern was rightly made by the CIT(A) when no evidence to justify that this investment was made out of surplus funds - Whether disallowance of Rs.2.50 lakhs under the head "repair and maintenance expenses was justified when the bills and vouchers for repair and maintenance are self-made vouchers and are unverifiable in nature - Whether the CIT (A) was justified in treating sale of land to be a non-agricultural land and confirming an addition of Rs. 1563000/- on this account when the certificate from the Tehsildar indicate to the fact that the land is situated within 8KM of the municipal limit.


CIT Vs Derby Tea Industries Pvt Ltd (Dated: November 24, 2015)

Whether when the assessee has not claimed double deduction of interest paid to bank on account of loan taken, in earlier year and interest paid in relevant year, the disallowance can still be made on such account - NO: ITAT

Whether for the purpose of computing income tax, profit or loss arising from the sale of fixed assets should be added with loss as per account or deducted from composite

income in case of profit and effect of sale value needs to be given to the relevant block of assets - YES: ITAT

Whether when the assessee discharged its liability to pay P.F contributions with due date u/s. 139(1) but after the due date mentioned in the respective statute, the assessee can be denied deduction for such contribution made - NO: ITAT


DCIT Vs M/s Lionbridge Technologies Pvt Ltd (Dated: October 29, 2015) Whether when the present appeal on identical ground, has been already dealt with by the coordinate bench and the AO gave effect to the order, then the Tribunal is not inclined to entertain appeal filed by the Revenue, as it becomes infructuous - YES:ITAT


Merridian Promoters (P) Ltd Vs DCIT (Dated: November 6, 2015)

Whether once the initial burden of identity of the shareholder is proved then, the AO can make any additions to the alleged share application money, even it is found to be bogus u/s 68 - Whether the advances collected from customers towards flat bookings and later returned to the customers by way of account payee cheques can be at any stretch of imagination considered as assessee's income from undisclosed source. 2016-TIOL-01-ITAT -DEL

DCIT Vs Parav Builders Pvt Ltd (Dated: November 11, 2015) Whether arbitrarily restricting the brokerage charges to the extent of 2% as opposed to the claim of 2.8% paid on purchase of land is justifed without any evidence - NO: ITAT

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