Tax
Taxpayer Is Entitled To Deduction On Capital Gains U/s 54 Once It Satisfies Conditions Prescribed By Said Provision: Mumbai ITAT
While overturning the findings of CIT(A) that the assessee does not satisfy the condition laid down u/s 54 of the Income tax Act, 1961 for claiming deduction, the Mumbai ITAT directed the AO to re-compute the capital gains, if any, after allowing deduction u/s 54 as claimed by the assessee.The Bench of the ITAT comprising of Rahul Chaudhary (Judicial Member) and Om Prakash Kant...
Tested Party Normally Should Be Least Complex Party To Controlled Transaction, Reiterates Calcutta High Court
The Calcutta High Court reiterated that the selection of the tested party is to further the object of the comparability analysis by making it less complex and requiring fewer adjustment.The Division Bench comprising Justice T.S Sivagnanam and Justice Supratim Bhattacharya observed that “the tested party normally should be the least complex party to the controlled transaction and there is no...
Customs Act | “Reason To Believe” For Confiscation Of Goods Must Be Based On Credible Material: Allahabad High Court
The Allahabad High Court has held that for natural products that are also grown inside India, presumption cannot arise that they have been smuggled. The Court held for assuming jurisdiction in such cases, the custom authorities must show that credible material exists to give rise to “reason to believe” to empower them to confiscate the goods under the Customs Act, 1962.“Curtailment of...
Hyderabad ITAT Dismisses Assessee's MA Qua Interest On Receivables Since Invoice-Wise Details Were Not Filed Earlier
The Hyderabad ITAT dismissed the Miscellaneous Application filed by assessee for modifying Tribunal's order on TP adjustment qua interest on trade receivables for AY 2015-16.Referring to the decision of Supreme Court in the case of MCorp Global Pvt. Ltd. Vs. CIT [(2009) 309 ITR 434/178 Taxmann 347 (SC)], the Bench comprising R.K. Panda (Vice President) and Laliet Kumar (Accountant...
Benefit Test Must Be Considered For Determining ALP Adjustment Qua Notional Interest On Outstanding Receivables: Bangalore ITAT
Emphasizing on the necessity of credit period, the Bangalore ITAT remitted the matter of ALP adjustment made towards notional interest on outstanding receivables in case of assessee company engaged in software development and IT enabled services.Referring to the judgment of ITAT Delhi in ITA NO.1248/Del/2012, the Bench comprising Goerge Goerge K (Vice President) and Laxmi Prasad Sahu...
Once Working Capital Adjustments Is Factored In Pricing, No Separate Adjustment On Outstanding Receivables Is Required: Visakhapatnam ITAT
The Visakhapatnam ITAT directed the TPO to consider the impact of working capital adjustments of the assessee company and appropriate material differences with that of the comparable companies.The ITAT ruled on comparables selection, treatment of expenses as operating/non-operating, and notional interest on outstanding receivables in case of assessee company engaged in providing...
Upward Adjustments Of Income As Proposed By TPO Stands Withdrawn: Delhi High Court Applies Rule Of Consistency To Adopt TNMM
Finding that the matter has been resolved and Modicare Limited has been excluded from the list of comparable to determine the ALP, the Delhi High Court dismisses Revenue's appeal against ITAT's decision in case of assessee engaged in sale of a wide variety of skin care and cosmetic products.The Division Bench comprising Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav observed...
ITAT Must Recall Its Order U/s 254 To Correct Manifest Error Apparent On Record: Delhi High Court
While condoning the delay of 86 days by Revenue in filing the appeal, the Delhi High Court dismisses Revenue's appeal filed against the Tribunal's order in miscellaneous application filed by assessee to review its earlier order u/s. 254(2) of the Income tax Act.The Division Bench comprising Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav observed that “the ITAT had clearly...
Interest Paid On Borrowed Funds For Investment In Shares Is Hit By Sec 14A If Dividend Received On Shares Was Not Part Of Total Income: Bombay HC
The Bombay High Court recently held that the interest paid on borrowed funds in respect of investment in shares of two companies was hit by Section 14A of the Act inasmuch as the dividend received on such shares did not form part of the total incomeThe Division Bench comprising Justice K.R. Shriram and Justice Dr. Neela Gokhale observed that “the fact remains that the dividend income from...
Harshad Mehta Scam: AO Can't Assess Additions Again If Deleted By CIT(A) In First Round Of Proceedings; Bombay High Court
The Bombay High Court in the Harshad Mehta Scam case, while upholding the ITAT's ruling, held that the Assessing Officer could not have assessed additions again since the CIT (A) had deleted the same in the first round of proceedings and the concerned matters have attained finality. The bench of Justice K. R. Shriram and Justice Dr. Neela Gokhale has observed that various types of...
Himachal Pradesh High Court Declares Water Cess Levied By State Government On Hydropower Generation As Unconstitutional
The Himachal Pradesh High Court has declared the levy of water cess by the state government on hydropower generation unconstitutional.The bench of Justice Tarlok Singh Chauhan and Justice Satyen Vaidya has observed that even the Statement of Objects and Reasons as well as the preamble of the Himachal Pradesh Water Cess on Hydropower Generation Act, 2023, do not lend any guidance to the...
Explanation 3 To Sec 147 Can't Be Resorted To Make Addition On Any Other Issue Which Is Not Included In Reasons For Reopening: New Delhi ITAT
On finding that no addition is made based on the reasons to believe recorded by the AO for reopening the assessment, the New Delhi ITAT quashed the order passed by the AO u/s 147 of the Income tax Act, 1961The Bench of the ITAT comprising of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) observed while referring to the decision of Jurisdictional High Court in the case...