HIGH COURT RULING (INCOME TAX)€¦ · 2016 -TIOL-205 -HC -MAD-IT Premier Distilleries Pvt Ltd Vs PR CIT (Dated: December 18, 2015) Whether when self assessment tax u/s 140A remained

HIGH COURT RULING (INCOME TAX)

2016-TIOL-221-HC-KOL-IT

CIT Vs Moran Tea Co Ltd (Dated: February 2, 2016)

Whether the deduction on cess paid on green tea leaves has to be allowed on 100% of the composite income under the Income-tax Act, and not on 60% of the agricultural income - YES: HC

2016-TIOL-220-HC-RAJ-IT

Girraj Mehta Vs CIT (Dated: January 7, 2016)

Whether where as a finding of fact it was established on record that the assessee has shown a bogus liability in its books and had issued bearer cheques as "self cheques" so that the amount could be withdrawn by self, then no perversity in such findings can be alleged - YES: HC

Also see analysis of the order

2016-TIOL-219-HC-DEL-IT

B P Jain And Assoc Vs CIT (Dated: February 1, 2016)

Whether instructions issued by the Ministry of Finance can modify a scheme which is statutory in character - NO: HC

Whether the instructions of the Ministry of Finance regarding applicability of a marginal rate to the unpaid tax for determining the disputed income can apply where the taxable income arises only from capital gains and to which a uniform rate of 33.6% applies - NO: HC

2016-TIOL-217-HC-KAR-IT

Shubhankar Estates Pvt Ltd Vs Senior Sub-registrar (Dated: June 3, 2015) Whether in case, an assessee being an auction purchaser had paid the entire sale consideration much earlier to the provision relating to TDS coming into force, the endorsement requiring the assessee to deduct the income tax and indicating that the registration would be made thereafter can be sustained - NO: HC

2016-TIOL-216-HC-MUM-WT

Ramkrishna Bajaj (HUF) Vs CWT (Dated: January 29, 2016) Whether when previous year of respective firms had not ended and was scheduled to end on a later date, interest of partners in such firms could have been subjected to valuation in terms of Section 7(1) of the Wealthtax Act read with Rule 2 of the

Wealthtax Rules - YES: HC


PR CIT Vs Gillette Diversified Operations Pvt Ltd (Dated: January 13, 2016) Whether a case can be remanded for verification of Inventory written off when whole data is produced before CIT(A), who after detailed analysis took the decision - NO : HC

2016-TIOL-211-HC-MUM-IT

CIT Vs Sai Shraddha Construction (Dated: January 27, 2016)

Whether when the assessee has fulfilled all conditions laid down in Section 80 IB(10) for housing project, the entire profits from the housing project would be entitled to deduction u/s 80IB(10) without any restriction - YES: HC 2016-TIOL-210-HC-MUM-IT

CIT Vs Russan Pharma Ltd (Dated: January 19, 2016)

Whether while computing deduction u/s 10A, the loss of another unit of the assessee company can be set off against the profit of the unit eligible for deduction u/s 10A - NO: HC


Vinod R Jadhav Vs Income Tax Settlement Commission (Dated: January 20, 2016)

Whether an application for rectification of orders passed by the Settlement Commission can be disposed of by the Secretary of the Commission who would have no role to play in passing of the concerned orders, which was sought to be rectified - NO: HC

Whether it is for the Commission to consider the applications which are filed before it seeking the modification or rectification of the orders passed by it and same cannot be outsourced by the Commission to its Secretary - YES: HC



Punit Construction Co Vs UoI (Dated: January 27, 2016)

Whether when the assessee has not filed any appeal against the order of AO, sub-section (4) of section 264 of the Act can have any application to raise the case of assessee suo moto by the Revenue - NO: HC


Al Barr Finance House Ltd Vs ITO (Dated: January 27, 2016)

Whether when an order passed does not deal with assessee's case of genuine hardship and rejects the same merely on the ground that the assessee was unable to substantiate its claim for genuine hardship, the order so passed is valid as per law - NO: HC

2016-TIOL-205-HC-MAD-IT

Premier Distilleries Pvt Ltd Vs PR CIT (Dated: December 18, 2015)

Whether when self assessment tax u/s 140A remained payable, it triggered proceedings u/s 221(1) on the issuance of a show cause notice, the penalty for non payment of outstanding tax be levied without granting adjournment - NO: HC 2016-TIOL-204-HC-DEL-IT

PR CIT Vs R L Allied Industries (Dated: January 28, 2016)

Whether in case of search in relation to the date of search qua the 'other person', in terms of the first proviso to Section 153C(1), search gets postponed to the date on which documents are handed over to the AO of the 'other person' - YES: HC 2016-TIOL-203-HC-DEL-IT

CIT Vs Gallium Industries Ltd (Dated: January 27, 2016)

Whether when the procedure that has to be adopted u/s 144 for rejection of the books of accounts was not adopted by the AO, can the books of accounts be rejected even if there was sufficient basis for the AO to reject the books of accounts of the assessee - NO: HC 2016-TIOL-202-HC-KAR-IT

CIT Vs Rns Infrastructure Ltd (Dated: January 18, 2016) Whether if the report submitted in the first instance by the CIT is primarily on the nature of the case and the complexities of the investigation, the manner in which such income had been derived are treated as confidential and are not supplied to the CIT', the question of 'adjudication' on the said report by Revenue can arise at that stage - NO: HC


Ayesha Abbas Vs ITO (Dated: January 19, 2016)

Whether order passed by ITAT in favour of Revenue, after treating the assessee as ex-parte, and without affording opportunity to the legal representatives of the deceased assessee who had pleaded time on medical grounds, is sustainable - NO: HC


Suresh Sharma Vs ACIT (Dated: January 21, 2016)

Whether any discretionary power is vested with the AO to waive off the interest on the self assessment tax paid prior to the filing of the return - NO: HC


CIT Vs Saravana Developers (Dated: January 21, 2016)

Whether initiation of proceedings u/s 263 only on ground that the AO has not assigned any reasons for accepting the valuation of work-in-progress declared by the assessee, can be sustained, when the ITAT has recorded a finding that AO has duly applied his mind before accepting the figure shown by assessee - NO: HC

Whether further inquiry ordered by the CIT under such circumstances, would amount to fishing/rowing inquiry in the matter already concluded - YES: HC



Futureindtech Hotels & Resorts (India) Pvt Ltd Vs UoI (Dated : January 22, 2016)

Whether when the assessee company has shifted its registered office from one state to another, can the Revenue officers intervene in the process of change in registered office which has been duly approved in EOGM - NO: HC


CIT Vs Behr India Ltd (Dated: January 25, 2016)

Whether the Tribunal can consider an additional ground filed before it, considering the grounds on the basis of which the additional question of law framed, was pure legal question of law - YES: HC

Whether no substantial question of law arises, when question as framed by the Revenue stands concluded against the Revenue by the decision of this Court, in case of similar facts - YES: HC


CIT Vs Western Coalfields Ltd (Dated: January 13, 2016)

Whether overloading charges can be allowed as expenditure deductable u/s 37 of the Act - YES : HC

Whether subsistence allowance is Revenue in nature whose liability arose once the land has been acquired - YES : HC


S Vinodkumar Diamonds Pvt Ltd Vs ADDL CIT (Dated: January 13, 2016)

Whether petition is to be dismissed when the assessee has opportunity to raise all contentions which are raised in the Writ Petition at the time of final hearing of the Appeal - YES: HC 2016-TIOL-191-HC-MUM-IT

Cenzer Industries Ltd Vs ITO (Dated: January 15, 2016)

Whether the right of appeal granted to an assessee on the issue of reopening of assessment could arise as a consequence of the order of the Tribunal allowing the Revenue's application for rectification, in case there is no explanation as to what prevented assessee from filing an application for rectification - NO: HC 2016-TIOL-190-HC-P&H-IT

CIT Vs Liberty Shoes Ltd (Dated: December 3, 2015)

Whether a case can be remanded on the issue of netting of interest and deduction u/s 80HHC, when in the order of lower authorities no definite finding has been recorded - YES : HC 2016-TIOL-189-HC-MAD-IT

Tiruvengadam Investments Pvt Ltd Vs ACIT (Dated: January 5, 2016)

Whether if assessee had made no claim of Film Production Expenses, as Revenue Expenditure in any of the previous or subsequent years, will it then be allowed to make such claim in the present AY - YES: HC


CIT Vs Central Warehousing Corporation Ltd (Dated: January 8, 2016)

Whether when the AO has elaborately discussed Section 14A and disallowed certain amount, a challenge by the AO before the CIT(A) is to be considered as intention to reopen the assessment and review his earlier order - YES: HC Also see analysis of the order


Safina Hotels Pvt Ltd Vs CIT (Dated: January 25, 2016)

Whether the AO has jurisdiction to pass the penalty order u/s 271(1)(c) without issuing a proper notice as required under law and moreover, when the particulars are disclosed in the return of income - NO: HC

Whether the levy of penalty is not automatic concomitant of the assessment and the standard proforma without speaking of the relevant clauses lead to an inference to non-application of mind - YES: HC


Tube Investments Of India Ltd Vs JCIT (Dated: January 11, 2016) Whether deduction u/s 35D in respect of successive units over a period of time can be allowed, when there is no proof to show that such units were used for the capital expansion over a period of many years - NO: HC

Whether bad debts can include loans made to one's own employee or moneys overdrawn by an employee on commission account - NO: HC


CIT Vs M/s Rittal India Pvt Ltd (Dated: January 4, 2016)

Whether the issue is said to have been decided, when such ground is covered in favour of the assessee by the decision of the HC in the own case of the assessee for the earlier assessment years - YES: HC

2016-TIOL-174-HC-RAJ-IT

Vikas Bhawan Nirman Sahkari Samiti Ltd Vs CIT (Dated: January 06, 2016)

Whether a pending appeal having tax effect of an amount much less than the stipulated monetary limit prescribed by the CBDT, deserves continuance by the jurisdictional High Court - NO: HC


Sham Sunder Vs CIT (Dated: January 14, 2016)

Whether addition to the income of assessee can be made by presuming income from undisclosed jewellery, where the same was duly accounted for in the assessee's books of account - NO: HC


CIT Vs Sai Shraddha Construction (Dated: January 18, 2016)

Whether where project completion method is one of accepted methods of accounting and the same was regularly followed by the assessee in computing it's taxable income, no defect can be pointed out to discard such method - YES: HC


CIT Vs Radio Today Broadcasting Ltd (Dated: December 9, 2015)

Whether radio programmes produced by the assessee can be construed as 'thing', if not an 'article' as defined u/s 32(1)(iia) for the purpose of additional depreciation -

YES: HC

Whether the assessee is entitled to depreciation on One Time Entry Fee (licence fee) paid for the FM channels where the stations were not put to use during the relevant previous year but were kept ready for use and the airing was postponed - YES: HC



CIT Vs New Mangalore Port Trust (Dated: January 12, 2016)

Whether if the Revenue has filed cross objections u/s 253(4) in an appeal preferred by the assesee against the order of the revisional authority exercising the powers u/s 263, any such cross objections are maintainable in an appeal filed against the order of revision in terms of Section 253(4) - NO: HC


M Sathyanarayana Vs ITO (Dated: January 21, 2016)

Whether when only on the basis of rent agreement, the departmental authorities have proceeded to treat the assessee in the status of an individual instead of treating him as HUF, such a different stand taken only for one AY is appreciable, which warrants interference of High Court - NO: HC


CIT Vs Kshema Technologies Ltd (Dated: January 8, 2016)

Whether the profits and gains derived from on site development of computer software including services for the development of such software outside India is deemed to be the profits and gains derived from the export of computer software outside India - YES: HC

Whether in order to compute deduction u/s 10A, the term total turnover includes export turnover also, as the purpose of section 10A is to bring more foreign exchange and to encourage export - YES: HC


CIT Vs First Data (india) Pvt Ltd (Dated: January 18, 2016)

Whether the fact that the assessee had in the subsequent A.Y not claimed carry forward loss, is evidence of the fact that there was no intent to furnish inaccurate particulars of income or conceal income - YES: HC

Whether the question of validity of penalty for tax evasion requires interference by

jurisdictional High Court, where both CIT(A) as well as the ITAT had concurrently reached a finding of fact that there was no intent on the part of assessee to evade tax - NO: HC


CIT Vs Emgee Foils Pvt Ltd (Dated: January 12, 2016)

Whether addition u/s 68 of the Act can be made even if assessee sucessfully proves the purchase transactions as genuine and not paper transactions - NO : HC


Cenzer Industries Ltd Vs ITO (Dated: January 13, 2016)

Whether the assessee is entitled to grant of stay on the order for attachment of his bank accounts, in case the Revenue Department has taken post dated cheques and the assessee has deposited half of the amount as demanded by the Revenue on grounds of alleged recovery - YES: HC


CIT Vs Wipro Ge Medical System Ltd (Dated: January 19, 2016)

Whether the provision in respect of a percentage of sale, to account for various expenses, transferred to a separate account is to be treated as an allowable expenditure even though the same is a co ntingent liability which has actually not accrued - NO: HC

Whether allocation of expenditure as worked out by the assessee on account of consumables or salary on the basis of sales based on percentage can be accepted without taking into account the fact that a huge part of sales were made through franchisers which did not require the sale percentage of expenditure as worked out by AO - NO: HC

Whether deduction claimed u/s.10A in respect of a unit which has commenced business prior to 01.04.1993 in respect of one floor and after 01.04.1993 in respect of two floors which were later on shifted to another location, would amount to reconstruction of business - NO: HC


Nirmal Bang Securities Pvt Ltd Vs ACIT (Dated: January 18, 2016)

Whether the reasons recorded by the AO for re-opening the assessment are the only reasons which could be considered for the formation of the belief for the purpose of issuing a notice u/s 148 - YES: HC

Whether when the assessment order was passed by the AO after due application of mind, after considering that dividend income earned from the mutual funds are exempt from tax u/s 10(33), subsequent initiation of reassessment proceedings would be considered merely on the basis of a change of opinion - YES: HC

Whether when it is apparent that the assessee has earned dividend income by way of holding share capital, which is exempt from tax, AO could have reasons to believe that the dividend income earned by such assessee from the mutual funds held had escaped assessment - NO: HC

2016-TIOL-154-HC-AHM-IT

Olwin Tiles (India) Pvt Ltd Vs DCIT (Dated: January 5, 2016)

Whether assessment can be reopened in cases where the original assessments were accepted under Section 143(1) of the Act without scrutiny – YES: HC


Piyush Ranchhodbhai Patel Vs Pr CIT (Dated: January 18, 2016)

Whether stay of demand can be allowed on balance amount on payment of 50% of the tax demanded - YES: HC


M/s Aggarwal And Modi Enterprises (Cinema Project) Co Pvt Ltd Vs CIT (Dated: January 21, 2016)

Whether Assessee is precluded from claiming the licence fee, the head office fee and the interest on arrears payable in terms of the renewed licence deed as a liability for the AYs concerned where the Assessee had chosen to challenge in Court the enhancement of the licence fee – NO: HC Whether during the pendency of the suit against enhancement of licence fee, assessee's claim of the payment towards licence fee and interest on the arrears of licence fee is an ascertained liability – YES: HC



Zaveri And Co Pvt Ltd Vs DCIT (Dated: January 11, 2016) Whether beyond the period of four years, AO could simply pass a revisional order for another AY in service and seek to reopen the assessment on the ground that the assessee ought to have applied rate declared by the RBI, thus income chargeable to tax has escaped assessment - NO: HC


PR CIT Vs Xeros India Ltd (Dated: January 18, 2016) Whether it is a case of escapment of income when the de-capitalized assets subseqently sold at the profit, which is accounted for in the profit and loss account - NO : HC

2016-TIOL-146-HC-P&H-IT

PR CIT Vs Sushila Rani (Dated: December 11, 2015) Whether an appeal could be filed against the levy of interest under Sections 234A, 234B and 234C before the CIT(A), considering the same as a maintainable appeal - YES: HC

2016-TIOL-145-HC-ALL-IT

PR CIT Vs Rimjhim Ispat Ltd (Dated: January 05, 2016) Whether the remuneration given to the Directors which includes any expenditure incurred in providing benefit free of charge under the Companies Act can be disallo wed as an expense - NO: HC

Whether the expenditure claimed under the head manufacturing expenses, which forms part of the "profit and loss account", showing expenses made by the assessee are required to be proved by production of bills and vouchers, to some extent - YES: HC


Mastek Ltd Vs ACIT (Dated: January 11, 2016) Whether an error on the part of the AO to grant larger relief than what was justified under the legal provisions, would not be a ground for reopening an assessment beyond four years - YES: HC


Manishkumar Pravinbhai Kiri Vs ACIT (Dated: January 11, 2016) Whether when the ground of non-filing of the return disappears, there was fully disclosure about the income & the reasons recorded by AO become completely invalid, its attempt to rope in the question of deemed dividend can be permitted even if the validity must be judged on the basis of reasons recorded and not on the basis of extraneous material - NO: HC


PR CIT Vs Jal Vidyut Nigam Ltd (Dated: January 18, 2016)

Whether penalty for concealment can be levied for non-furnishing of explanation u/s 271(1)(c), unless there is any adverse evidence to indicate that the concealment was deliberate or incorrectly depicted in the return with a view to evade any liability - NO: HC


Sun Pharmaceutical Industries Ltd Vs DCIT (Dated: January 14, 2016)

Whether reassessment proceedings initiated u/s 148, on the basis of audit objection, is legally sustainable - NO: HC

Whether Instruction No 9 of 2006 issued by the CBDT, directing AOs to initiate reassessment in case of an audit objection overrides the statutory powers vested in AOs u/s 147 - YES: HC



Nadim Dilipbhai Panjvani Vs ITO (Dated: January 11, 2016)

Whether whereupon the concerned person applies to the AO and satisfies him about the source of acquisition of the asset, the same is required to be released after adjustment towards existing liabilities, without waiting for the outcome of the assessment proceedings u/s 153A - YES: HC

Whether where the person concerned has made an application for release of asset within the prescribed time, the authority can refuse such request on the ground of not being satisfied about the source of its acquisition - YES: HC

Whether where no such decision regarding satisfaction of AO is taken within the time envisaged in the Act, releasing of the seized asset becomes imminent - YES: HC



Mundra International Container Terminal Pvt Ltd Vs DCIT (Dated: January 11, 2016)

Whether for issuance of notice for reopening, the AO herself ought to have recorded the satisfaction that income chargeable to tax had escaped assessment, and even the revenue's audit party cannot prevail over such opinion of the AO - YES: HC


CIT Vs Dr R S Sangwan (Dated: December 3, 2015)

Whether if all the co -owners have signed on the sale deed, they had been showing rental income arising thereof in their respective returns of income and the respective shares have also been shown by the co -owners in their respective returns of wealth, the assessee has only 1/6th share in the sale consideration which has to be taxed in his hands - YES: HC


Harbans Singh Vs CIT (Dated: December 2, 2015)

Whether the computation of benefit of gratuity and leave encashment u/s 10(10) and 10(10AA) are to be governed by the definition of 'salary' as per Rule 2(h) Part A, Fourth Schedule of the Act - YES: HC

2016-TIOL-123-HC-HP-IT

CIT Vs M/s Purewal and Associates Ltd (Dated: November 30, 2015)

Whether waiver of interest received by assessee has to be excluded from the profits under clause (1) of Explanation (baa) to Section 80 HHC - No: HC

Whether while computing the interest under clause (baa) of the Explanation, the net interest i.e. gross interest as reduced by expenditure incurred for earning such interest is to be taken into consideration - Yes: HC


Vaish Associates Advocates Vs ACIT (Dated: January 14, 2016)

Whether re -opening of assessment for the concerned A.Ys can be sustained, where the very basis for re-opening for the said AYs has been rendered non-existent as a result of the order of jurisdictional High Court interpreting clause 6 (a) of the partnership deed in question - NO: HC


CIT Vs M/s Air India Ltd (Dated: January 6, 2016)

Whether the period from the date of rejection of the memorandum of appeal till the date of representation after amending the memorandum of appeal cannot be excluded while computing the period of limitation as provided under the Act for the purposes of filing an appeal before the ITAT - YES: HC


CIT Vs M/s Dena Bank (Dated: January 7, 2016)

Whether jurisdiction u/s 263 can be exercised only within the period of two years from the end of the F.Y in which the order of the AO was passed dealing with the issue which is being subjected to exercise of powers by Revenue u/s 263 - YES: HC


CIT Vs M/s Vikabh Securities Pvt Ltd (Dated: November 23, 2015)

Whether when the Revenue is unable to point out as to why and how the method of allocation of expenses made by the assessee is incorrect, can the assessee be denied the claim for rebate u/s 88E, which was allowed in previous years in similar factual situation - NO: HC


CIT Vs M/s Textile Dye Chem Corporation (Dated: December 7, 2015)

Whether the onus to prove allowability of commission expenditure u/s 37 paid to agents would still lie on the assessee, even if he proves authenticity of such

expenditure by furnishing requiste documents - YES: HC

Whether the Revenue Department can trace the identity of such commission agents u/s 131, in case the assessee has furnished the PANs of those agents - YES: HC



CIT Vs DAV College (Dated: December 3, 2015)

Whether the question as to existence of an employer employee relationship between the guest faculty teachers and the concerned college and the liability of assessee-college to make deduction of TDS u/s 194J, is a pure question of fact and requires examination as to the appointing authority, right to dismissal, extent of control and supervision and the nature of job - YES: HC


Mohinder Singh Rana Vs State of Haryana (Dated: December 17, 2015)

Whether a non-speaking order relating to licence fees for continuation of liquor vends on Highways, passed without examining every vendor's case seperately, requires restoration of the same - YES: HC


M/s Shiv Shakti Rice Mills Vs ACIT (Dated: November 30, 2015)

Whether where FDRs are used as security to obtain various loans from the banks, it cannot be construed to have direct nexus with the profits and gains of the industrial undertaking derived from export business activity which can be taken into account for calculating admissible deduction u/s 80HHC - YES: HC

Whether the interest on FDRs which did not have an immediate nexus with the export business, can be treated as business income derived from export business activity - NO: HC


Abhishek Govil Vs CIT (Dated: January 6, 2016)

Whether contractual receipts received by an assessee being the owner of a house property after deducting TDS pursuent to a maintainance agreement, can be treated as rental income in the hands of assessee - NO: HC



CIT Vs V S Dempo And Co Pvt Ltd (Dated: January 8, 2016)

Whether interest income can be treated as business income for computing deduction u/s 80HHc of Act, if in the previous years in assessee's own case it has so been decided - YES : HC

Whether receipts on account of barge hire, transfer vessels, stevedoring, electronic data processing, travel division, professional services and dispatch has nexus with with export business - YES : HC


CIT Vs Sunny Sounds Pvt Ltd (Dated: January 8, 2016)

Whether a pending statutory appeal to the High Court is different from a pending Reference u/s 256 - NO: HC

Whether the Circular No. 21/2015 dated 10 December 2015 issued by the CBDT restricting the Revenue Department from filing an appeal to the jurisdictional High Court u/s 260 having tax effect of less than Rs. 20 lacs, would also apply to pending References u/s 256 - YES: HC



CIT Vs Shreyans Industries Ltd (Dated: December 9, 2015)

Whether review application can be dismissed when there is error in reproducing the substantial questions of law and answering a question that is no longer relevant - YES : HC


Suresh Kumar Hooda Vs CIT (Dated: December 2, 2015)

Whether contractual receipts received under a contract of service could be treated as salary, without examining the existence of employer-employee relationship - NO: HC


M/s R B Shreeram Durgaprasad Vs CIT (Dated: November 24, 2015)

Whether the order imposing penalty can be passed if the appeal against the basic order of assessment is pending before the Competent Superior Authority - NO: HC


CIT Vs Elegant Estates (Dated: December 7, 2015)

Whether the assessee will not be entitled for proportionate deduction u/s 80IB(10) in respect to the income from those flats which exceeded the limit of 1500 sq ft. when the assessee has considered all the flats as forming part of single project on interpretation of the provisions of section 80IB(10)(c) - YES : HC


CIT Vs Indusind Bank Ltd (Dated: January 6, 2016)

Whether any substantial question of law arises just becasue a case is remanded to determine the disallowance u/s 14A of the Act in the light of the earlier decided case of the High Court - NO : HC

Whether addition for accrued interest be disallowed when on similar issue in previous years the court has passed order in favour of Assessee - YES : HC


PR CIT Vs Pankaj Enka Pvt Ltd (Dated: January 5, 2016)

Whether reassessment should be allowed when AO issued notice without forming a reason to believe that the income of the assessee has escaped assessment - NO : HC


PR CIT Vs Vivek Prahladbhai Patel (Dated: November 6, 2015)

Whether addition under sec. 69 can be made where the revenue failed to establish that the assessee had paid any on-money in terms of the consideration reflected in the agreement to sale.


PR CIT Vs DR R S Sangwan (Dated: December 3, 2015)

Whether appeal of Revenue be dismissed on the ground that the Court has already passed an order cancelling the revisional order of CIT on the same issue in another appeal- YES : HC


CIT Vs Hewlett Packard Global Soft Ltd (Dated: January 6, 2016)

Whether export turnover does not include freight, telecommunication charges or insurance attributable to the delivery of computer software outside India or expenses, incurred in foreign exchange in providing the technical services outside India and cannot be confused with services rendered for development of computer software - YES: HC

Whether there is a distinction between technical services rendered in connection with export of computer software and export of technical services for the purpose of development or production of computer software outside India - YES: HC


Sutlej Industries Ltd Vs CIT (Dated: January 6, 2016)

Whether when there is a conflict brought about as a result of the two decisions which cannot be resolved except by referring it to a larger Bench, the questions need to be re-framed by the Court, are referred for decision to a larger Bench - YES: HC 2016-TIOL-82-HC-DEL-IT

PR CIT Vs Facor Power Ltd (Dated: January 7, 2016)

Whether interest accrued on FDRs can be taxed as 'income from other sources', when the assessee has clearly shown that FDRs on which such interest were placed with the bank as margin money for procurement of various capital goods for setting up of power project - NO: HC Also see analysis of the order


PR CIT Vs Gurdaspur Co-Operative Sugar Mills Ltd (Dated: December 11, 2015)

Whether when the decision of Tribunal has been challenged by the Revenue before the Apex Court who had remanded the case, a final verdict can be given on the same by any other court - NO: HC 2016-TIOL-80-HC-KOL-IT

Kafeel Ahmed Vs CIT (Dated: April 21, 2015)

Whether when the AO has to make investigation for the purpose of collecting evidence in support of the case made out by the assessee, it is the bounden duty of the assessee to prove his case - YES: HC - Assessee's appeal dismissed : CALCUTTA HIGH COURT 2016-TIOL-79-HC-ALL-IT

CIT Vs Hemkunt Timbers Ltd (Dated: January 7, 2016)

Whether reassessment proceedings after four years could only be initiated if the assessee had failed to disclose fully or truly all material facts necessary for making the assessment - YES: HC


Kuber Farms Pvt Ltd Vs DCIT (Dated: December 23, 2015)

Whether no disallowances can be made on the basis of surmises and conjectures, when there was no material before the AO to come to the conclusion that the expenses were either excessive or unreasonable - YES: HC


CIT Vs Ucal Fuel Systems Ltd (Dated: December 15, 2015)

Whether deduction under Section 80IA is allowed, even when there is no positive income from the Industrial undertaking during the initial assessment year - YES: HC


Gigabyte Technology (India) Pvt Ltd Vs ACIT (Dated: November 30, 2015)

Whether the Tribunal was justified to dismiss the appeal preferred by the assessee, without giving any opportunity of being heard and dealing with the merits of the controversy raised by the assessee on the basis of non prosecution - NO: HC


Bharat Jayantilal Patel Vs UoI (Dated: May 5, 2015)

Whether where not only the main contention and stand of the assessee has been dealt with but even the alternate contention and there is a reference to all the details which were supplied, there was therefore no reason at all for reopening the assessment - YES: HC

Whether reopening of the assessment on a mere change of opinion is permissible - NO: HC


CIT Vs Indo Tossa Pvt Ltd (Dated: December 16, 2015)

Whether the appeal is treated to be dismissed as withdrawn, when the Department has filed an appeal before the HC with the tax effect less than 20lakhs - YES: HC

2016-TIOL-59-HC-AP-IT

CIT Vs Heramec Ltd (Dated: December 07, 2015)

Whether when the amount paid by the assessee to its parent company merely reflects reimbursement of the amounts paid, the same was reflected as a loan, there can no liability to deduct TDS, as it was neither reflected as expenditure or as income in the books of accounts of the parent company - YES: HC

2016-TIOL-58-HC-HP-IT

Avantor Performance Materials India Ltd Vs CIT (Dated: January 4, 2016)

Whether the amount of compensation received by an assessee company upon termination of an agreement can be treated as capital receipt, if the same was received under a conditional clause and the said termination would not affect the assessee's business in any manner - NO: HC


Punjab State Cooperative Milk Producers Federation Ltd Vs CIT (Dated: December 14, 2015) Whether application of section 14A for the purpose of computing allowable deduction u/s 80P(2)(d), is sustainable - YES: HC 2016-TIOL-54-HC-P&H-IT

CIT Vs Banarsi Sweets (P) Ltd (Dated: December 7, 2015)

Whether the Tribunal being final fact finding authority is required to pass a well reasoned order after examining the entire evidence on record - YES: HC


CIT Vs Chironji Lal Virendra Pal Saraswati Shikha Parishad (Dated: January 5, 2016) Whether when an educational society comprises of two different insitutions, the question as to whether the receipts claimed by the society upto the level of each institution can be treated to be a separate segregated receipt and would not form part of the aggregate income which requires seperate examination - YES: HC 2016-TIOL-52-HC-P&H-IT

CIT Vs General Manager (Dated: December 5, 2015)

Whether liability to deduct TDS u/s 194C could be fastend in a case where there is no contract for carrying out any work between the concerned parties - NO: HC


CIT Vs Dharampal Satyapal (Dated: January 6, 2016) Whether deduction on allowance of depreciation is available to an Assessee at its option and the Assessee cannot be compelled to claim the same - YES: HC

Whether when the assessee has not claimed the depreciation for the year then it is unable to mitigate its tax liability and it is not possible to grant any relief to the Assessee - YES: HC

Whether there is any direct co-relation between the depreciation on a block of assets and the individual assets comprising the block of assets - NO: HC

Whether sale proceeds of assets sold would have to be reduced from written down value of remaining block of assets and sale of assets would not result in any capital gains as even after such reduction, the value of block of assets was positive - YES: HC


Agson Global Pvt Ltd Vs Income Tax Settlement Commission (Dated: January 6, 2016) Whether where an application has been made u/s 245C on or after 1st June, 2007, the Settlement Commission shall have exclusive jurisdiction from the date on which the application was made - YES: HC

Whether where an application made on or after 1st June, 2007 is rejected u/s 245D(1) or is declared invalid u/s 245D(2C), the Settlement Commission would have exclusive jurisdiction upto the date on which the application is rejected or declared invalid as the case may be - YES: HC

Whether disclosure of "full and true" particulars of undisclosed income and "the manner" in which such income had been derived are the prerequisites for a valid application u/s 245C(1) - YES: HC

Whether Section 245C(1) mandates "full and true" disclosure of the particulars of undisclosed income and "the manner" in which such income was derived and, therefore, unless the Settlement Commission records its satisfaction on this aspect, it will not have the jurisdiction to pass any order on the matter covered by the application - YES: HC

Whether the order that the settlement commission makes u/s 245D(4) is in the nature of an assessment - NO: HC

Whether once an application for settlement is made before the settlement commission, no income tax authority would have jurisdiction to deal with such case - YES: HC

Whether the powers and functions of an income tax authority which are to be exclusively exercised by the settlement commission must be in the context of and have a nexus with the settlement proceedings - YES: HC

Whether the settlement commission would have the jurisdiction to direct a special audit u/s 142(2A) - NO: HC

Whether an order of settlement u/s 245D(4), is similar to an order of regular assessment or an order passed u/s 143(1)/143(3)/144 - NO: HC


M/s Refex Refrigerants Ltd Vs DCIT (Dated: December 17, 2015)

Whether recovery proceedings initiated by Revenue Department by way of attachment of assessee's bank account, in order to enforce the demand against assessee, deserves to be stayed upon realisation of 30% of demand by assessee, if the AO on an earlier occasion has offered an opportunity to the assessee to pay the demand through installments - YES: HC


Pr.CIT Vs M/s Flucky Leasing And Finance Pvt Ltd (Dated: December 18, 2015)

Whether the assumption of jurisdiction by the AO against the assessee u/s 153C is sustainable, where the assessee was not one of the entities that was subjected to search and seizure operation u/s 132 - NO: HC



Anand Cine Service Vs ACIT (Dated: December 1, 2015)

Whether the action of the Revenue Department in rejecting assessee's representation regarding erroneous adjustment of arrears of income tax against I-T refund, warrants interference by the jurisdictional High Court directing the Revenue to consider such representation & pass appropriate orders - YES: HC


Adani Developers Pvt Ltd Vs ITO (Dated: November 30, 2015)

Whether reopening of assessment merely based on the directives of the audit party, can be sustained - NO: HC


CIT Vs Sunil R Agarwal (Dated: December 07, 2015)

Whether when on similar issue in case of another individual, assessment order was set aside by the Tribunal on a jurisdictional issue and appeal for the same has been admitted in HC, then the appeal filed on protective basis for assessee is not justified - YES: HC


Palco Metals Ltd Vs DCIT (Dated: December 23, 2015)

Whether upon issuance of notice for reopening, in case an assessee has raised objections on the reasons, the by not disposing of the objections, would deprive the assessee from an opportunity to challenge the validity of the notice itself - YES: HC


CIT Vs Karmen International Pvt Ltd (Dated: November 3, 2015)

Whether the losses and unabsorbed depreciation, which had been set off against other income during the earlier years, can be carried forward and set off against profits or income of initial years, in respect of the wind mill, in computing deduction u/s 80IA - YES: HC


CIT Vs Indo Shell Cast Pvt Ltd (Dated: December 09, 2015)

Whether the assessee is entitled to deduction u/s 80IA without setting off the losses/unabsorbed depreciation pertaining to the windmill, which were set off in the earlier year against other business income of the assessee - YES: HC


Gujarat Narmada Valley Fertilizers And Chemicals Ltd Vs DCIT (Dated: December 21, 2015)

Whether even if previously on any of the issues decided by CIT(A), no appeal was presented by the assessee, upon receipt of a notice of appeal filed by the department, the assessee has an opportunity to raise cross objections which has to be decided in the same manner as an appeal presented by the assessee - YES: HC


Geetanjali Trading & Investment Pvt Ltd Vs PR CIT (Dated: December 18, 2015)

Whether the matter concerning refusal of unconditional stay requires restoration, in case the difficulty pleaded by the assessee has not been even adverted to in the impugned order of refusal - YES: HC


CIT Vs Euro Footwear Ltd (Dated: December 08, 2015)

Whether mere fact that certain deductions were disallowed, does not mean that the assessee had furnished inaccurate particulars or had concealed the particulars of his income - YES: HC

Whether the question of imposing penalty under Section 271(1)(c) on the mere making of the claim could not arise nor such imposition of penalty would be sustainable in law - YES: HC


CIT Vs Balaha Chemicals Agencies (Dated: December 16, 2015)

Whether the assessee can be held to be liable for the sub agents, if any, nominated by the commission agents, who had received the payments of commission - NO: HC

Whether genuinity of commmission payments can be doubted, where such commission payments were made by way of cheques and there was no evidence on record, furnished by the department, to show that such commission was received back from the agents - NO: HC



Singara Nilgiri Plantation Co Vs DCIT (Dated: November 24, 2015)

Whether when the Income Tax Department itself has acted upon the return of income filed by the Manager of assessee, the Tribunal can dismiss the Appeals merely on the ground that the such Manager, having no authority to file the return of income has no authority to sign the Appeal Memos - NO: HC


PR CIT Vs Indrajeet Zandusing Tomar (Dated: December 22, 2015)

Whether when there is an undisclosed deposit to the bank account, only the peak amount in such type of case could be added as income in the hands of the assessee and not aggregate of the total credit side of the account - YES: HC


CIT Vs Shiv Dhooti Pearls And Investment Ltd (Dated: December 21, 2015) Whether the assessee is liable to disclose only the sources from where it has received the credit/loans - YES: HC

Whether such liability of the assessee can be burdened to an extent, to show the sources of his creditor or to prove the creditworthiness of the sources of the sub-creditors - NO: HC


CIT Vs Schutz Dishman Bio-Tech Pvt Ltd (Dated: December 21, 2015) Whether where owing to the fact as to a large number of adjustment entries in the accounts between two entities, the amounts are held to be not in the nature of either loan or deposit, but mere adjustments, application of section 2(22)(e) would not arise - YES: HC


PR CIT Vs Gujarat State Fertilizer And Chemicals Ltd (Dated: December 22, 2015) Whether where the issue of disallowance of any expenditure was examined by the AO in the original order of assessment and suitable disallowances were made therein, any reconsideration of the same issue for reopening of assessment would only amount to change of opinion - YES: HC

Whether non addition of fringe benefit tax while considering the book profit for purpose of section 115JB, warrants reopening, in case the CBDT has itself clarified through its circular that FBT is an allowable deduction for computation of book profit u/s 115JB - NO: HC


CIT Vs Rittal India Pvt Ltd (Dated: November 24, 2015)

Whether additional depreciation allowed u/s 32(i)(iia) of the Act is a one time benefit to encourage industrialization - YES: HC


Ram Pal Vs State Of Haryana (Dated: November 3, 2015)

Whether when it is clear that the interest component on the amount of compensation or enhanced compensation, being a revenue receipt is exigible to tax in the year of receipt irrespective of the method of accounting employed, the Revenue authority is allowed to deduct TDS on the same - YES: HC


CIT Vs Sharda Sinha (Dated: December 22, 2015) Whether the compensation received by an Indian journalist from the foreign publisher is liable to be treated as a capital receipt not chargeable to tax under I-T Act, where such compensation was paid as an ex-gratia payment upon termination of publishing contract - YES: HC Also see analysis of the order


CIT Vs Arun Kumar Khetwat (Dated: December 2, 2015) Whether imposition of penalty u/s 271(1)(c) after reopening of assessment deserves to be deleted, where a revised return for the said A.Y was filed by the assessee before issuance of notice u/s 148 - YES: HC

Documents

HIGH COURT RULING (INCOME TAX)€¦ · 2016 -TIOL-205 -HC -MAD-IT Premier Distilleries Pvt Ltd Vs PR CIT (Dated: December 18, 2015) Whether when self assessment tax u/s 140A remained