Income Tax Judgements

The Hon’ble P&H in two decisions reported in July 2015 has diluted the impact of decision in case of Abhishek Industries vs. CIT 286 ITR 1 wherein the Hon’ble High Court had laid down that disallowance u/s 36(1)(iii) is warranted if interest free advance is given coupled with fact that assessee has outstanding interest bearing…

In a recent decision, Hon’ble Gujarat High Court held that: The appellant’s case is that an amount of 8.89 crores was advanced by the respondent/assessee to his son. The assessee on the other hand contends that during the AY in question 2008-2009, only about Rs. 2.14 crores was advanced by him to his son. It…

In a recent decision, Hon’ble Gujarat High Court held that: We are also of the opinion that the submissions made by the Ld. advocate is that the case would fall under the proviso of S. 69(c) of the act does not apply to the facts of the present case. It is not the case of…

In a recent decision, Hon’ble Supreme Court held that: Income from undisclosed sources – addition – unaccounted sales vis-a-vjs sales accounted for by sister concern – Partners of the assessee firm admitted excess stock in their statements recorded u/s 131 -Though the assessee explained the difference before the CIT(A) with the help of the books…

In a recent decision, Hon’ble Bombay High Court held that: “We find similar response at item Nos.13.3, 13.4, so also 13.5. The legal position has been summarised that the capital gains earned by the assessee should be assessed as such and not as business income. Thus, each of the queries which have been raised came…

In a recent decision, Hon’ble Bombay High Court held that: “Upon hearing both sides and perusing the Writ Petition and all annexures thereto so also the affidavit in reply, we fail to understand as to how the Respondents justify the issuance of the notice u/s 148 of the IT Act and by referring to such…

In a recent decision, Hon’ble Bombay High Court held that: “In our view the Transmission Charges and/or Wheeling Charges are not amount paid under any arrangement for use of land, building, plant & machinery, equipment, furniture, fitting etc. and, therefore, not rent. Equally, the amounts are not fees for technical services. In the facts and…

In a recent decision Hon’ble Delhi High Court held that: “Whilst there can be quarrel with the ITAT’s generalization that the Director of Income Tax (DIT), in order to hold that the exemption certificate u/s 12A has to be revoked, is to base himself or herself on material & cogent reasoning, at the same time,…

In a recent decision, the Hon’ble Gujarat High Court has laid down that Profit for the year till the date of giving of advance in question can not be considered for level of accumulated Profits for the purposes of taxation of deemed dividend u/s 2(22)(e). For this, the Hon’ble Gujarat HC has relied upon the…