Director of Income-tax v. Travelport Inc. – [2023] 149 taxmann.com 470 (SC) Facts: The taxpayers are engaged in the business of providing electronic global distribution services to Airlines through “Computerized Reservation System” (CRS). The taxpayers maintain and operate a Master Computer System consisting of several main frame computers and servers located in other countries, including […]
The Bangalore ITAT held that Order u/s 263 without DIN is invalid.
Dilip Kothari v PCIT (Central) ITA Nos.403 to 405/Bang/2022 In this case there is no dispute about the fact that the impugned order u/s. 263 of the Act has been issued manually and DIN for the order is generated through two separate intimations one bearing the same date as the date of the order u/s.263 […]
PRECEDENT VALUE OF NON-JURISDICTIONAL HC RULING
In the case of Luxora Infrastructure Pvt Ltd [TS-842-ITAT-2022(Mum)], the ITAT explains that “Unlike the decisions of the Hon’ble jurisdictional High Court, which bind us in letter and in spirit on account of the binding force of law, the decisions of the Hon’ble non-jurisdictional High Court are followed by the lower authorities, only in the […]
Abbasbhai A. Upletawala v. ITO – [2022] 143 taxmann.com 384 (Mumbai – Trib.)
The Assessee was a director and had given his personal guarantee to the SBI in respect of his company’s commercial borrowings. Later, SBI invoked the personal guarantee given by the assessee. SBI entered into an assignment agreement with Asset Reconstruction Co India Ltd (ARCIL). The land, which was offered as collateral security, was assigned to […]
ANALYSIS OF TDS PROVISIONS UNDER SECTION 194R
Background Section 28(iv) provides that the value of any ‘benefit’ or ‘perquisite’ received, whether convertible into money or not, arising from business or the exercise of a profession, would be assessable as income under the head “Profits and gains from business or profession”. However, at practical level, the taxpayers do not report the receipt of […]
Sunil Kumar Sharma v DCIT TS-677-HC-2022 (KAR HC)
The Karnataka High Court has laid down certain important legal principles. These are as follows: Action based on the Material contained in material contained in Diaries and loose sheets is contrary to the decision of the Supreme Court and therefore the assessment orders are void and illegal. Recording of reasons is hallmark of a valid […]
Section 206AB of Income Tax Act – The Story So Far
The Revenue’s love for TDS provisions is ‘boundless’ and ‘infinite’. The evidence of this is their tinkering of TDS provisions in every Finance Bill. They cannot ‘live’ without amending the TDS provisions in every Finance Bill. Finance Act, 2021 had inserted a new provision with an objective of to ensure filing of return of income […]
PCIT vs. Saravana Selvarathnam Trading and Manufacturing Pvt. Ltd.; [2019] 415 ITR 146 (Madras HC)
The High Court held that embezzlement of cash by director of assessee is allowable as Business loss and recovery of amount or outcome of pending criminal prosecution against director before Magistrate Court is not relevant. Facts The assessee claimed as bad debt u/s 36 of the Income-tax Act, 1961 the amount embezzled by a director, […]
ACIT v Hirapanna Jewellers [2021] 128 taxmann.com 291 (Visakhapatnam – Trib.)
The ITAT deleted the addition made for cash deposited by assessee-jeweller in its bank account post demonetization, since assessee had explained source of said cash deposits as sales of jewellery, produced sale bills and admitted same as revenue receipt as well as offered it to tax and assessee also represented outgo of stocks, which was […]
CHHEDA HOUSING DEVELOPMENT CORPORATION VS. AD.CIT ITA No.: 86/Mum./2017 (ITAT Mumbai)
The Tribunal held that compensation received in lieu of extinction of right to sue is capital receipt not chargeable to tax. FACTS The assessee, a partnership firm, was engaged in the business of construction and development of property. During FY 2004-05, the assessee had entered into a MOU with landowner for the development of his […]