Income Would Accrue Only When The Assessee Gets A Right To Receive The Income: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income would be receivable only when the income accrues to the assessee, and the income would accrue to the assessee only when the assessee gets such a right to receive the income.The bench of George George K. (Vice President) and Laxmi Prasad Sahu (Accountant Member) has observed that the assessee would get a...

Royalty Payment For Use Of Technology Is Inextricably Linked With Manufacturing Activity: Bombay High Court

The Bombay High Court has held that the transaction of payment of royalty for the use of technology is inextricably linked with manufacturing activity and should be aggregated with other international transactions in the manufacturing segment for the purposes of benchmarking it.The bench of Justice K.R. Shriram and Justice Firdosh P. Pooniwalla has observed that the Tribunal was totally...

Calcutta High Court Dismisses Income Tax Dept’s Appeal On The Ground Of Low Tax Effect

The Calcutta High Court has dismissed the appeal filed by the Income Tax Department on the ground of low tax effects.The bench of Chief Justice T.S. Sivagnanam and Justice Ajay Kumar Gupta has observed that the total tax was less than Rs. 1 crore, which is the threshold limit fixed by the Central Board of Direct Taxes (CBDT).The department/appellant has raised the issue of whether ITAT erred...

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the income tax addition in respect of immovable property, warranting revision by the PCIT.The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that AO, after making adequate inquiries, proceeded to make an addition for alleged money receipts on a protective basis in the hands of...

Writ Petitioner Concealing CESTAT’s Order Of Confiscation: Madhya Pradesh High Court Imposes Rs. 25K Cost

The Madhya Pradesh High Court has imposed a cost of Rs. 25000 on the writ petitioner seeking provisional release of goods for suppressing the fact of CESTAT’s final order of confiscation, which was well within his knowledge.The bench of Justice Vivek Rusia and Justice Pranay Verma has observed that the Tribunal has set aside the order rejecting the application for provisional release of...

Section 68 Of The Income Tax Act Is Not Applicable On Share Premium: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Section 68 of the Income Tax Act, which relates to the taxability of unexplained cash credits, is not applicable to share premiums.The bench of Narender Kumar Choudhry (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the provisions of Section 68 would be attracted when the assessee fails to...

Depreciation Allowable On Goodwill Though No Actual Cash Payment Made For Acquisition: Delhi High Court

The Delhi High Court has held that depreciation is allowable on goodwill arising in a scheme of amalgamation even though no actual cash payment was made for the acquisition of goodwill.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that sections 49 and 55(2) deal with ‘capital gains’ arising on the sale of goodwill and not with respect to depreciation...

Gujarat High Court Quashes Income Tax Reassessment Notices Against Non-Existent Entity

The Gujarat High Court has quashed the income tax reassessment notice against a non-existent entity.The bench of Justice Biren Vaishnav and Justice Devan M. Desai has observed that the erstwhile company Satyasarthi Estate Organisers Private Limited amalgamated with the petitioner Anokhi Reality Private Limited. The jurisdictional officer was informed of the amalgamation. The...

Treatment Of Shares In Books Of Accounts Determines Taxation, JM Financial’s Set-off Not Colourable Device: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the treatment of shares in books of accounts determines taxation under capital gain or business income, and the method adopted for arriving at the sale consideration does not determine the nature of the transaction.The bench of Aby T. Varkey (Judicial Member) and Padmavathy S. (Accountant Member) has observed that...

Bank Not Obliged To Deduct TDS From FDR Interest To Jammu Development Authority: Jammu & Kashmir And Ladakh High Court

The Jammu & Kashmir and Ladakh High Court has held that the assessee bank shall not be obliged to deduct TDS from the interest payments made to the Jammu Development Authority (JDA) on its amount kept in FDRs.The bench of Justice Sanjeev Kumar and Justice Javed Iqbal Wani has observed that the JDA is similar to the Agra Development Authority, constituted under the provisions of the...

CESTAT Upholds Service Tax Demand Against The Service Provider Based On ONGC’s Reply

The Kolkata Bench Of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has upheld the service tax demand against the service tax provider based on ONGC’s reply.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member), while dealing with the issue of whether the appellant has recovered service tax from ONGC or not, noted that the only evidence available...

Bill Discounting Facility Could Be Offered Not Only By Banking Company But Also By A Body Corporate: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that bill discounting facilities could be offered not only by a banking company or a financial institution but also by a body corporate.The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that service tax is payable on ‘bill discounting’ under banking...