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INCOME TAX APPELLATE TRIBUNAL ORDER

2015-TIOL-1749-ITAT-PUNE

Endress + Hauser Flowtec India Pvt Ltd Vs ACIT (Dated: September 11, 2015)

Whether benefit of proviso to section 92C(2) of the Act, can be allowed only if variation between price charged/paid in respect of international transaction and arm's length price determined by taking results of comparables cases does not exceed 5% - YES: ITAT

Whether Excise duty paid / payable is not a part of the total turnover while computing deduction under section 10B of the Act - YES: ITAT

2015-TIOL-1748-ITAT-DEL

Shri Haripal Singh Vs ACIT (Dated: October 7, 2015)

Whether disputed interest, on enhanced compensation is taxable income - NO: ITAT


ACIT Vs Shri Jawaharlal Premraj Mehta (Dated: Febuary 20, 2015)

Whether when the assessee has been held to be an investor in the shares and not a trader in shares the gain on shares held for more than 12 can be assessed as a LTCG.

2015-TIOL-1746-ITAT-HYD

L&T Infocity Ltd Vs DCIT (Dated: September 4, 2015)

Whether the CIT(A) is justified in allowing expenditure 100% of direct expenditure and 70% of indirect expenditure claimed by Assessee when AO disallowed without any reason direct expenses of advertisement and publicity and travelling and conveyance and indirect expenditure was disallowed stating that no amount can be apportioned towards consultancy charges.


M/s Bhageria Finance And Investment Pvt Ltd Vs DCIT (Dated: January 16, 2015)

Whether notice under sec. 148 can be considered to be justified when the AO while issuing the notice under sec. 148 had not made proper inquiries and also not applied his mind, he simply acted on the information received from the investigation wing.

2015-TIOL-1744-ITAT-AHM

Green Associates Vs ITO (Dated: January 5, 2015)

Whether the CIT(A) is justified in disallowing the claim of the Assessee under sec. 801B(10) on the ground that Assessee had entered into two agreements namely "sale deed" for the sale of land and "construction agreement" for the construction of the unit and therefore a contractor not eligible for deduction under sec. 801B(10).


Natubhai Gomanbhai Patel Vs ACIT(Dated: September 16, 2015) Whether no penalty should be levied u/s 271(1)(c), when assessee's income as shown in the revised return was accepted by the AO and no other addition was made - YES:ITAT

2015-TIOL-1742-ITAT-KOL

DCIT Vs M/s Natural Products (Dated: September 28, 2015)

Whether it is the date of commencement of the commercial production, which is immportant to determine the eligibility for the deduction u/s 10B and not date of registration as SIA - YES:ITAT


Next Wave India (AOP) Vs ITO (Dated: September 23, 2015) Whether when the assessee has discharged the initial onus by explaining the credit entries before the A.O., then it is for the A.O. to verify and decide the genuineness and creditworthiness of the person who had transferred the sum in question into the account of the assessee - YES: ITAT

Whether it would be proper in the interest of justice to restore the matter back to the file of A.O. for making afresh assessment - YES: ITAT


M/s PLY Palace Vs ITO (Dated: September 16, 2015) Whether addition made on account of bogus sundry debtor is justified when sales made to the debtor is duly accounted in books of accounts and the difference in the balance arise as a result of any payment made by the debtor but not accounted for by the assessee - NO : ITAT


M/s Pragati Vanijya Ltd Vs ACIT (Dated: January 16, 2015) Whether the reusable artwork expenses is to be treated as capital expenses – Whether the direction of the CIT(A) for capitalizing art work expenses which is incurred on art work which is reusable for the more than one year was justified – Whether the foreign travel expenditure incurred by the assessee on the tour undertaken for meeting held outside India for prospective business opportunity is to be disallowed – Whether the market research expenditure incurred by the assessee which are regularly undertaken for sustaining the market and to push the sales is to be held to be in capital field and hence not allowable.


Shree Kishorbhai D Shah Vs ACIT (Dated: January 9, 2015) Whether disallowance of the expenditure on account of bogus purchases is justified when the CIT(A) confirmed the action of the AO without giving any finding on the evidences produced by the assessee ?Whether when the AO has not doubted the correctness of the accounts of the assessee, the adhoc disallowance can be sustained.


ITO Vs M/s Gurudayal Sontosh Kumar (Dated: February 4, 2015)

Whether Instruction No. 5/2014 issued by CBDT on 10.07.2014 revising monetary limits for filing of appeal before ITAT will apply to pending appeals also.


M/s A T Kearney India Pvt Ltd Vs ITO (Dated: October 16, 2015) Whether interest earned from parking the funds in the fixed deposits is not eligible for exemption u/s 10A of the Act - YES : ITAT


GE Capital Business Process Management Services Pvt Ltd Vs ACIT (Dated: October 16, 2015) Whether License fees paid by assessee is Revenue Expenditure when assessee has received the right to use the software internally including its group entities for its business and it does not have any right to commercially exploit the software -YES : ITAT

Whether printers, switches, networking equipments, UPS and pen drives are integral part of the computer system and hence eligible for depreciation @ 60% - YES: ITAT


Goverdhan Financial Services Ltd Vs ACIT (Dated: September 30, 2015) Whether an assessee is allowed to file an appeal before the Tribunal against the order passed u/s 127 as it is a trite law that no appeal is maintainable, unless statute specifically provides for it - NO: ITAT

Whether w ithout going into the issue whether the service of this notice is valid or not, since the original notice issued was valid in law, the subsequent notice fixing the case for very next date without giving any reasonable time to respond the notice, is valid in law - NO: ITAT


DCIT Vs M/s Hindusthan Paper Corporation Ltd (Dated: September 21, 2015)

Whether appeal of Revenue be dismissed on the ground that it is filed in a cavalier manner by mentioning grounds of appeal 'as proposed grounds of appeal'; getting the grounds of appeal signed by new Assessing Officer as against the officer who preferred the appeal and not adhering to the CBDT instructions fixing the timelines for preferring appeals to the Tribunal - YES : ITAT

2015-TIOL-1732-ITAT-MUM

DCIT Vs M/s Mangalam Infra Development Pvt Ltd (Dated: July 22, 2015) Whether when the assessee is a builder and its consumption of goods has not been doubted, then the whole turnover cannot be held to be unaccounted income or investment without supporting evidences - YES: ITAT


DCIT Vs M/s 3I Infotech Ltd (Dated: September 14, 2015) Whether penalty cannot survive for concealment or furnishing inaccurate particulars when quantum addition has been deleted - YES : ITAT


Berlia Plastochem Pvt Ltd Vs DCIT (Dated: September 30, 2015) Whether reopening of assessment is jusified for accommodation entries when no nexus of it is found with the application money received by the assessee - NO: ITAT


Shri Devaram M Dharmavat Vs ITO (Dated: August 28, 2015)

Whether reopening of assessment is justified where the non-issuance of completion certificate for the project and the letter issued by Pune Municipal Corporation directing the assessee to stop construction work came to the notice of the AO only during the completion of assessment proceedings of later years and these details were not before the AO while completing the assessment for earlier year when deduction u/s 80IB(10) was granted to assessee - Whether assessee can be denied deduction u/s 80IB(10) on the ground of non-production of completion certificate for one building wh ere the project was approved prior to 01-04-2005 and the assessee had admittedly completed construction of all the buildings.

2015-TIOL-1728-ITAT-CHD

ACIT Vs Sjvn Ltd (Dated: August 4, 2015) Whether advance against depreciation is a component of Electricity Tariff, meant to facilitate repayment of loan taken by power companies, has to be excluded from the income earned by treating it as income received in advance, on which clause(b) of Explanation-I to section 115JB is not applicable - YES: ITAT

Whether merely because the expenditure incurred by the assessee results in enduring benefit, the same is enough to categorize it as capital in nature, even if the expense incurred has not resulted into creation of any tangible or intangible asset - NO: ITAT


DCIT Vs M/s Multi Screen Media Pvt Ltd (Dated: October 9, 2015) Whether advertisement and sales promotion expenses be allowed when these expenses are incurred to increase the subscription revenue - YES : ITAT


ITO Vs M/s Murlidhar Ice-Cream And Sweet Parlour (Dated: August 20, 2015) Whether addition u/s 68 is justified where the cash withdrawn by the assessee from the bank account was used for the purpose of re-depositing in the same in the bank account but the assessee had deposited more than what it had withdrawn and there was a negative cash - Whether made addition on account of disallowance of bank loan interest is justified where the assessee had given a part of the amount to its partners for which there was no purpose of business.


Shri Parag M Sanghvi Vs ACIT/DCIT (Dated: September 23, 2015)

Whether addition on account of gifts from the Non-Resident individuals u/s 68 be made when their is absence of any incriminating material having been found during the course of search -NO: ITAT


DDIT Vs Antwerp Diamond Bank Nv (Dated: September 23, 2015)

Whether disallowance of any claim does not and should not result in automatic levy of penalty - YES: ITAT

Whether when there is a possibility to understand the provision in different ways and the assessee had chosen one, then occasion to invoke section 271 did not arise - YES: TAT


Venus Financial Services Ltd Vs ACIT (Dated: September 28, 2015) Whether the expression "full value of consideration" used in section 48 have any reference to market value and the AO has power to replace the value of the consideration agreed between the parties with any fair market value or estimation


ACIT Vs Greater Hyderabad Municipal Corporation (Dated: September 24, 2015)

Whether when allotment of work by assessee to Self Help Groups is not by way of contract but is engagement of workers for a fixed period, workers are being paid as per the agreed terms and conditions and the aggregate amount is paid to the group and not to any particular person, no contractor-contractee relationship can be established - YES: ITAT


DCIT Vs Group M Media India Pvt Ltd (Dated: September 4, 2015)

Whether provision of section 194I can apply when there is no contract between the assessee and the two payee firms for providing any space/land/building & machinery?


ACIT Vs M/s Zenon (India) Pvt Ltd (Dated: June 29, 2015)

Whether when loan has been taken as a consequence of any further consideration, which is beneficial to the company received from such a shareholder, in such a case can such advance or loan can be said to be a deemed dividend within the meaning of section 2(22)(e).


ITO Vs Shri Yunus Haji Ibrahim Fazalwala (Dated: July 17, 2015)

Whether addition made by the AO by disallowing 25% of the total purchases was justified when the assessee miserably failed to establish a reconciliation between the payments made by him towards purchases vis-a-vis the ultimate recipient of the amounts being his vendor.


ACIT Vs M/s Ganesh Builders (Dated: February 25, 2015)

Whether the Circulars issued by the CBDT fixing the monetary limits are not only applicable to the new cases but would also applicable to the pending appeals.

2015-TIOL-1717-ITAT-BANG

ACIT Vs M/s Syndicate Bank (Dated: June 30, 2015)

Whether if the bad debt or doubtful debt is reduced from the loss and advances from the debtors on the assets side of the balance sheet, the Explanation to section 115JA or 115JB of the Act is not at all attracted - Whether the words or the phrase "any amount" under section 244A would include the amount refundable plus the interest due and payable on the tax amount refunded.

2015-TIOL-1716-ITAT-RAJKOT

M/s Ganga Glazed Tiles Vs ACIT (Dated: February 27, 2015)

Whether re -opening of the Assessment was justified when the AO merely on the information contained in the show cause notice of the Excise Department issued notice to the Assessee without verifying the relevant particulars declared in the income-tax return of the Assessee.


M/s Fleurette Hatam Vs ITO (Dated: March 3, 2015)

Whether levy of concealment penalty under sec. 271(1)(c) can be held to be justified when there was a bonafide inadvertent mistake on the part of the assessee.


ACIT Vs M/s Bharti Airtel Ltd (Dated: July 15, 2015)

Whether the first proviso to S.201(1) which has been inserted with effect from 1.7.2012 is clarificatory in nature and is applicable with retrospective effect


Deep Industries Ltd Vs CIT (Dated: March 20, 2015)

Whether the CIT can assume jurisdiction u/s 263 on the issues which has been examined by the A.O when the Revenue has no material on record to demonstrate that the view taken by the A.O was an impressible view, was contrary to law or was upon wrong application of legal principles.


M/s Breitling Properties Pvt Ltd Vs DCIT (Dated: June 17, 2015)

Whether the Assessee was justified in debiting sale in books of account and reducing the sale consideration for providing access road to the land when neither there is an agreement for bearing the part of the cost of the approach road nor anything mentioned in the sale deed about incurring of any expenditure towards the approach road and the sale was on as is where is basis without any specific provision for providing the access road.


DCIT Vs J K Tyre & Industries Ltd (Dated: October 6, 2015)

Whether the Tribunal has the power to entertain a claim de hors revised return of income – Whether deduction u/s 35(1)(ii) has to be allowed whether the expenditure incurred towards scientific research is in connection with the Assessee's business or not – Whether the notification dated 10.12.1973 notifying IIT, Madras as an approved institution for the purpose of Sec.35(1)(ii) was valid a t all point of time when erstwhile Sec. 35 was deleted by Sec. 10 of the Direct Tax Laws (Amendment) Act, 1987 and the notification dated 10.12.1973 approving of IIT, Madras for the purpose of Sec.35(1)(ii) was issued under the erstwhile Section 35(1)(ii) and there was no other notification after 1973 notifying IIT, Madras as an approved institution for the purpose of Sec.35(1)(ii) and by Sec. 95(2)(e) of the Direct Tax Laws (Amendment) Act, 1989, erstwhile Sec.35 which was deleted by Sec.10 of the Direct Tax Laws (Amendment Act, 1987 (Act 4 of 1988) was restored.


DCIT Vs Reliance Life Science Pvt Ltd (Dated: October 9, 2015) Whether expenditure incurred by the assessee is allowable as revenue expenditure where the invoice issued showed that payment was made to other company under the head "Clinical Trial Fees" and complete details have been given with respect to time spent by the employees of that company giving particulars of the studies done by these employees and names of these employees was given along with their rates per

hour.


Reliance Wellness Ltd Vs DCIT (Dated: September 9, 2015) Whether the treatment given in the books of account is determinative or conclusive or the claim of the assessee should be examined on the touchstone of provisions contained in the Act - Whether 'Project Development Expenditure' can be allowed as Revenue Expenditure when the expenditures incurred by the assessee are for the purposes of expansion of its business and those expenditure being mostly paid to employees and the expenditures did not create any asset and also did not provide enduring benefit to the business of the assessee.


Rollatainers Ltd Vs ACIT (Dated: August 6, 2015) Whether there can be said to be change of opinion on the part of AO in initiating reassessment proceedings where there was no discussion worth the name in the original assessment order about the deductibility of interest out of unpaid interest which was transferred to a wholly owned subsidiary company u/s 43B and AO had not formed opinion on this issue during the course of original assessment proceedings - Whether the audit objection constitutes information about the escapement of income to the AO thereby justifying the initiation of reassessment where the audit party simply suggested that the interest was not actually paid, but, only transferred to a subsidiary company and the same should have been disallowed and this omission on the part of the AO resulted in over assessment of loss and the AO was simply informed about the fact which had escaped his attention during the course of assessment proceedings - Whether deduction of interest u/s 43B can be allo wed where interest had not been actually paid by the assessee to the banks/financial institutions but there was transfer of interest liability by the assessee to its subsidiary company.

2015-TIOL-1707-ITAT-PANAJI

DCIT Vs Dempo Industries Pvt Ltd (Dated: October 7, 2015) Whether business expenditure is allowable when there is a temporary suspension of business and there is nothing to show that the business had been abandoned permanently and expenditure is incurred just to keep the business alive in the hope of reviving the same - YES: ITAT 2015-TIOL-1706-ITAT-MUM

Dharma Productions Pvt Ltd Vs ACIT (Dated: September 9, 2015) Whether assessee is entitled to advertisement expenses where the film was released for exhibition on commercia l basis at the beginning of the previous year - Whether ad hoc disallowance of expenses can be made where Assessing officer did not have any doubt with the primary documents and it is also not the case of the assessing officer that the assessee has inflated the expenses or booked bogus expenses. 2015-TIOL-1705-ITAT-MUM

Suadela Constructions Pvt Ltd Vs CIT (Dated: September 23, 2015) Whether invoking the jurisdiction u/s 263 is lawful when two views are possible and

the AO has followed one possible view. 2015-TIOL-1704-ITAT-MUM

Vip Exhibitors Vs ACIT (Dated: September 30, 2015)

Whether in case of a film distributor, general principles of accountancy cannot be applied and profit and gains of such previous year has to be computed after deducting the entire cost of acquisition from the amount received as sales consideration from sale of distribution rights - YES: ITAT


DCIT Vs Asian Heart Institute And Research Centre Pvt Ltd (Dated: September 30, 2015)

Whether the payments made to the FTCs Doctors are in the nature of professional fees liable for deduction of tax at source in terms of section 194J where FTCs Doctors are entitled to admit, investigate and provide treatment to patients and that the Doctors would be responsible for their clinical care and the Doctor is responsible for supervising the subordinate staff, whereas the facilities of the hospital staff, paramedical and nursing staff is provided by the hospital alongwith the necessary equipment to render the services to the patients and a part of the fee collected by the FTCs Doctors is deducted by the hospital as its share and the balance is paid to the Doctor after deduction of tax at source and the earnings of the Doctors are dependent on the patients coming to the hospital - Whether TDS on the annual maintenance charges has to be deducted u/s 194C - Whether pest control charges involve rendering of any technical services by the recipient and tax at source has to be deducted u/s.194C on these payments.

2015-TIOL-1702-ITAT-JAIPUR

ACIT Vs Shri Rahul Pancholi (Dated: September 30, 2015)

Whether electricity bill paid in cash by the assessee under the bona fide belief that the payment is made to the Government because of the business expediency and to avoid electricity connection is allowable as per Section 40A(3) - Whether disallowance on account of transport expenses u/s 40(a)(ia) for non-deduction of TDS is justified where the transport company has no role except to get the commission from the truck driver for issuing bilty and it is the truck owner /driver who is paid freight by the assessee and individual payment to each truck owner/ driver towards the freight is less than Rs. 20,000/- in each case and it does not exceed Rs. 50,000/- in the financial year.


JCIT Vs M/s Surya Vinayak Industries Ltd (Dated: October 6, 2015)

Whether additional ground raised by assessee is admissible where the issue raised by the assessee vide additional ground is purely a legal issue and it goes to the root of the matter and for adjudication of this ground, no fresh material outside the record is required to be considered - Whether limitation period for completion of assessment u/s 153A would start from the date on which the search was concluded and the panchnama was drawn where search took place at the residential premises of the Directors and the office premises of the assessee company and it was concluded on the next day and panchnama was drawn and on the said date a restraint order u/s 132(3) was passed which was revoked on a later date and on that date no

incriminating document or any other asset was found or seized.


M/s Yamuna Estate Pvt Ltd Vs ITO (Dated: September 9, 2015)

Whether the reopening of the assessment u/s 147 instead of 153C was justified when the documents in the case in hand belonged to the searched person and not to the assessee? Whether the additions made u/s 68 were warranted when the AO has not pointed out about any direct or material evidence against the assessee to hold that the share transactions were not genuine and the assessee was not provided opportunity to confront the person whose statement was basis of the additions.


Vraj Giriraj Co-Operative Housing Society Ltd Vs ITO (Dated: September 30, 2015)

Whether the payments received by the Assessee society in connection with transfer of flats/purchase of flat is in the nature of income taxable under the Act when they are voluntary contribution towards common amenity fund and are as per the by laws of the society, to be used for the purpose of fulfillment of objective of society.


ACIT Vs M/s Coral Clinical Systems (Dated: July 9, 2015)

Whether the CIT(A) was justified in deleting the disallowance made by the AO u/s 40(a)(ia) when the amount were reimbursement of expenses paid by the clearing and forwarding agents for freight to the airlines - Whether tax incentive is incentive profit and the same is not eligible for deduction u/s. 80IB.


DCIT Vs M/s Swan Energy Ltd (Dated: September 9, 2015)

Whether deletion of the disallowance of indirect interest expenditure was justified when no indirect interest expenses were attributable to investment activity and could not be related to earning of exempt dividend income - Whether the disallowance of interest expenditure made while computing the LTCG on account of cost of improvement was justified when enhancement of value of the property and the development rights of the said land became available to the assessee on incurring of such interest expenditure.


R K Arora And Sons (Huf) Vs ACIT (Dated: September 24, 2015)

Whether the reassessment proceedings u/s. 148 is without jurisdiction in the absence of any tangible evidence or material, in respect of any undisclosed income and recording of requisite satisfaction in respect of any such undisclosed income - YES: ITAT


DCIT Vs M/s Vmoksha Technologies Pvt Ltd (Dated: September 30, 2015)

Whether while making selection of comparables, if the financial data for relevant previous years were available in public domain, it could be considered as a good comparable - YES: ITAT


Syndicate Bank Vs ADDL CIT (Dated: August 26, 2015)

Whether penalty u/s. 272A(2)(c) can be levied when there was reasonable cause for non-compliance.


K Rajanna Vs DCIT (Dated: September 4, 2015)

Whether the scheme of the Act envisage that if a particular item of income has escaped taxation in one year, it can be brought to tax in another year solely for the reason that the time limit to reopen the assessment in that year has expired? Whether the action of the CIT (A) in disallowing the cost of improvement of Rs.5 lakhs, already allowed by the AO to the assessee without providing any opportunity to the assessee as required u/s 251(2) was justified? Whether the finding of the CIT (A), in reducing the cost of acquisition of the 11 flats sold by the assessee by unilaterally reducing the built up area from 18,939 sq. ft. to 14,338 sq. ft. is sustainable.


ITO Vs Shri Kotagiri Sridhar (Dated: September 23, 2015)

Whether the thrust of the section 54F is on the investment of the net consideration received on the sale of the original asset and start of the construction of a new residential house and does not prescribe completion of construction of the residential house within the period of three years - Whether the addition of the unexpla ined investment of Rs 22 lakhs in the hand of the Assessee was justified when admittedly the sum of Rs 22 lakhs has been advanced by Mr. I.V. Satish to the assessee's wife who is an independent assessee.


ACIT Vs Shri Johari Lal Sodhani (Dated: September 7, 2015)

Whether addition on account of difference in the amount disclosed in statement made under Section 132(4) and the amount offered for taxation in the return of income is justified where no incriminating documents were found during the course of search and there was no documentary or corroborative evidence to support the addition - Whether interest under section 234B is chargeable for the period when assessee's cash was lying with the department in P.D. account and the assessee had made request to adjust the advance tax from the cash seized and lying in P.D. Account from time to time.


M/s Hind Globe Links Vs ITO (Dated: September 30, 2015)

Whether addition u/s 68 can be made where the amount in question was on account of outstanding balance of the creditors and the purchases from the said creditors had been accepted by the AO and there was no cessation of the liability and even the

payment made to the creditors in the subsequent year was not doubted.


ACIT Vs M/s Shri Mahalaxmi Bidi Trading Company (Dated: January 9, 2015)

Whether the addition made on the ground that the Assessee could not establish nexus between borrowed funds and business purposes was justified when the assessee has placed all his cards and balance sheets which do not indicate any asset which is not for the purpose of business and in respect of bank charges and commission, the assessee has explained the nature of expenses.


ACIT Vs M/s Navratna Organizers And Developers Pvt Ltd (Dated: April 10, 2015)

Whether on the facts and in the circumstances of the case, the CIT(A) was justified in deleting the various additions made by the AO and directing the AO to verify the fresh details to be submitted by the assessee and pass a speaking appeal effect order.


Manan Movers Pvt Ltd Vs DCIT (Dated: March 27, 2015)

Whether the CIT(A) was justified in not deciding the issue regarding disallowance under sec.40(a)(ia) on merits, and in dismissing it as infructuous for technical reasons? Whether the CIT(A) was justified in not dealing with the plea raised by the Assessee to quash reassessment proceedings due to failure of AO to pass separate speaking order disposing of the objections raised by the Assessee against notice issued under sec. 148.


Empire & Single Tea Ltd Vs DCIT (Dated: September 29, 2015)

Whether EPF paid before the due date of filing the return of income is allowable as deduction - Whether Notional Exchange Loss incurred on restatement of loan is allowable u/s 37(1) where the loan was utilized for general corporate purposes and not for acquisition of any fixed assets.


M/s Dutta Automobiles Pvt Ltd Vs ACIT (Dated: October 5, 2015)

Whether addition u/s 68 can be made on the advances received from customers on account of sale of motor cycle on the ground that the creditworthiness and the genuineness in respect of advance remained unproved when the liability credited under the head "advance from customer account" is squared up the moment motor cycle is delivered to the customer and the assessee is consistently following this practice for years.


M/s Dharni Developers Vs ACIT (Dated: January 7, 2015)

Whether penalty proceeding having been initiate under one default or limb of sec.

271(1)(c), but levied for another default or limb of that section is justified.


Goldfilled Mercantile Company Vs DCIT (Dated: September 16, 2015) Whether penalty u/s 271(1)(c) is leviable where the assessee had no intention to evade the taxes by claiming the deduction of the amount given to the legal heirs and complying with the terms of he Will and family arrangement had bonafidely paid the amount to the legal heirs of the partners and the assessee had paid more taxes though on behalf legal heirs. 2015-TIOL-1682-ITAT-DEL

Gondwana Enterprises Vs ITO (Dated: June 30, 2015) Whether trading addition is justified where the AO only doubted the sales figure which was worked out by him by adding the Gross Profit in the figure of the sales shown by the assessee without rejecting the books of accounts and AO also accepted all other components of the Trading Account.


ACIT Vs Cosmos Carrying Pvt Ltd (Dated: September 18, 2015)

Whether there is no loss to the Revenue, when the assessee has remitted the TDS from its own sources and the payees have also not claimed the credit for the same - YES: ITAT

Whether no penalty shall be leviable under the sections mentioned therein, if the assessee proves that there was a reasonable cause for the failure under the said provisions - YES: ITAT


D K Modi Securities Pvt Ltd Vs ITO (Dated: May 27, 2015)

Whether disallowance of interest is justified where assessee, though, had surplus funds but had used the overdraft funds for settlement of accounts of the persons specified under section 40A(2)(b) - Whether assessee is entitled to depreciation on stock exchange card where the membership ceased to exist and in lieu of the card, new asset i.e., Ownership rights of shares in lieu of the BSE Card and Trading rights came into existence.


DCIT Vs Vilas Ramchandra Bagad (Dated: September 11, 2015) Whether penalty u/s 158BFA(2) is leviable where the assessee had entered into a transaction and incriminating documents in connection with such transaction were found from the premises of the other party which established cash payments over and above the amount declared in the Development Agreement, which has been admitted by the searched person to have been paid to the assessee and during the course of assessment proceedings itself, the assessee had declared the said additional income

as undisclosed income to be assessed in its hands consequent to which, the assessment was completed after making addition to that extent. 2015-TIOL-1678-ITAT-MUM ACIT Vs Delta Enterprises (Dated: October 9, 2015) Whether the electricity generated by the assessee amounts to production of an "article or thing" within the meaning of section 32(1)(iia) and therefore, the assessee would be entitled for additional depreciation @ 20% - YES: ITAT Also see analysis of the order


Syntel Ltd Vs JCIT (Dated: August 31, 2015) Whether deduction u/s 10A in respect of reimbursement of cost of underutilized dedicated human resources is allowable where assessee had entered into an agreement with some companies and as per the clauses of the agreement, certain expenses and other establishment expenses were to be reimbursed by these companies and the expenses incurred by the assessee on account of export of computer software were much higher than the amount received by the assessee from these parties and these receipts were directly linked with the business of the assessee - Whether provisions of Section 10A(7) are applicable where the assessee is having 100% export turnover and it has no interest cost and its depreciation cost is also low and assessee had justified its better margin of profit by making comparison to some of the companies in the same field who are 100% exporters - Whether deduction u/s 10A/10B in respect of interest income is allowable where interest income had direct nexus with the business and development of export of software - Whether deduction u/s 10A is allowable in respect of recovery where the time spent for the respective entity was fair and there was no profit or markup on the recoveries. 2015-TIOL-1676-ITAT-DEL

ACIT Vs Utkal Investments Ltd (Dated: September 4, 2015) Whether in respect of section 74, the A.O was entitled to reduce the loss, from the income exempt u/s 10(38).


ACIT Vs Vikas Wsp Ltd (Dated: October 5, 2015) Whether imposition of penalty @ 10% of the outstanding demand instead of 50% is justified, when assessee has paid the entire demand along with interest - YES : ITAT 2015-TIOL-1674-ITAT-MAD

Premier Tobacco Packers Pvt Ltd Vs ACIT (Dated: September 29, 2015) Whether in case the amount incurred by assessee in respect of semi finished goods is to be considered as capital nature expense, the same would inflate the profits of assessee company superficially - YES: ITAT


ACIT Vs Turbocam India Pvt Ltd (Dated: September 7, 2015)

Whether expenditure can be termed as a capital expenditure when no repair has been done but an already running equipment is replaced with another higher efficiency equipment - YES : HC


Rgv Film Factory Ltd Vs DCIT (Dated: September 23, 2015) Whether the expenditure incurred on films which are abandoned half way is revenue expenditure and has to be allowed as such - Whether when there is no claim, there can be any disallowance of the same.

2015-TIOL-1671-ITAT-MAD

ACIT Vs M/s Best And Crompton Engg Ltd (Dated: September 16, 2015)

Whether any penalty can be imposed when it is not proven that the assessee has furnished any inaccurate particulars.


ITO Vs Amita Batra (Dated: February 27, 2015)

Whether penalty u/s 271(1)(c) can be levied when the computation of income the assessee had clearly stated the fact and the computation of capital gains in the hands of assessee has been done by AO on the basis of these particulars only.


M/s Metropolitan Media Company Ltd Vs ACIT (Dated: February 6, 2015)

Whether when the assessee has purchased the advertisement space for itself and not on behalf of any specific clients in the capacity of an advertising agency, the assessee was liable to deduct tax at source on it - Whether the provisions of section 40(a)(ia) of the Act can be invoked only to disallow expenditure wh ich remains payable / outstanding as on the date of the Balance Sheet.


Sri Syed Afsar Hasan Vs ITO (Dated: January 14, 2015)

Whether the amount paid out of sale proceeds of the capital assets to clear mortgage debt cannot be treated as cost of acquisition or cost of improvement so as to reduce the same from sale consideration while computing capital gain u/s 48 of the Act - Whether loan repayment is not one of the modes which can entitle assessee to claim deduction from chargeability of capital gain.


M/s Vasant Chemicals Ltd Vs DCIT (Dated: May 1, 2015)

Whether a debatable issue is beyond the scope of rectification permissible under S 154 - YES: ITAT


Shri Vijay Bhargava Vs ACIT (Dated: February 18, 2015)

Whether AO is duty bound to refer the matter to the Valuation Officer under provisions of section 50C (2) of the Act when the assessee is disputing the value of considera tion.


Bright Construction Vs ITO (Dated: September 24, 2015)

Whether in case the AO as well as CIT(A) has not considered the specific plea of of the assessee at the time of making assessment, an adjustment has been made internally by the department against the assessee, levy of penalty for concealment, in that case is justified - NO: ITAT


M/s A R Housing Pvt Ltd Vs ITO (Dated: September 11, 2015)

Whether Commissioner of Income Tax (Appeals) can enhance the assessment by considering a new source of income which was not before the Assessing Officer - Whether provisions of Section 50C are applicable where the sale of the property was treated as the business income and not as a capital gain - Whether addition on account of gain on transfer of capital asset can be made in the hands of the assessee where this has already suffered tax in the hands of the previous owner of the property.


DCIT Vs Swani Corporation (Dated: September 9, 2015)

Whether the assessee's claim for depreciation can be denied when the assessee’s claim for purchasing a Wind Mill, erecting the same and generating electricity are fully substantiated.

Whether the claim of the assessee for depreciation can be denied merely because the assessee is not the owner of the land and the land is a leasehold land - Whether merely on the basis of an unsubstantiated submission can lead to the addition u/s. 69C - Whether the generation of electricity by windmill amounts to production of an article or thing and therefore the pre -amended provision is applicable.


ACIT Vs Verizon Data Services India Pvt Ltd (Dated: September 4, 2015) Whether the expenses incurred by the assessee towards delivery of computer software outside India has to be excluded from the export turnover, though it is not separately stated in the invoice and what is excluded from the export turnover has to be also deducted from the total turnover while computing deduction u/s 10A - Whether disallowance of the contribution made to unapproved Gratuity Fund was

justified - Whether Disallowance of the 1/3rd of expenditure incurred towards mediclaim for dependent family members of employees was justified.


Shimoga Housing Society Ltd Vs CIT (Dated: February 20, 2015) Whether jurisdiction u/s. 263 can be invoked when the status of the assessee is a co -operative society and not a co -operative bank and the AO extending the benefit of exemption from payment of tax 80P(2)(a)(i)


Adani Wilmar Ltd Vs DCIT (Dated: September 24, 2015) Whether Commssioner is justified in invoking jurisdiction u/s 263 where AO had applied his mind on the claim of depreciation made by the assessee and the view taken by the AO with regard to the admissibility of depreciation on UPS, scanner etc. was one of the possible views - Whether assessment order can be said to be erroneous and prejudicial to interest of revenue where the issue in question was a debatable issue and the AO had taken one of the possible views on the issue.

2015-TIOL-1659-ITAT-LKW

DCIT Vs M/s Ansh Intermediate Services Pvt Ltd (Dated: September 22, 2015) Whether addition u/s 68 treating the share application money as bogus is justified where during the course of assessment proceeding, complete details were not available with the Assessing Officer but before the CIT(A) in response to remand report when fresh commission was issued to ADIT(Inv.) Kolkata who in turn issued notice u/s 131 to all shareholders companies and in response thereto replies were filed by all the companies and all the shareholders companies have filed the copy of confirmation, copy of bank statements, copy of audited balance sheet and profit and loss account along with reply to the notice u/s 136.

2015-TIOL-1658-ITAT-DEL-SB

National Agricultural Cooperative Marketing Federation Of India Ltd Vs JCIT (Dated: October 16, 2015) Whether deduction for interest on damages can be claimed as contractual liability even as the appeal against such a liability continues to be sub-judice - NO: ITAT

Whether it is necessary for the assessee to claim contractual laibility only after legal obligation to pay is fixed - YES: ITAT

Whether deduction for such expenses can be claimed only after the claimant enforces the decree awarding damages - YES: ITAT

Whether deduction for interest on such decreed damages is to be claimed only in the year when the decreee is enforced - YES: ITAT

Whether when the assessee in its annual report claims such expenses as contingent liability, the same can be claimed as legitimate legal liability - NO: ITAT

Also see analysis of the order


DCIT Vs Tread Stone Ltd (Date: March 25, 2015) Whether disallowance of interest paid on borrowed funds is justified where the funds were borrowed for making investment by the assessee in land/plot for the purpose of business exigency to take up the activities of development of project on the land and the investment was made for the business purposes - Whether addition cane be made for violation of provisions of Section 269T where no cash transaction was involved in the payment and the payment was made through account payee cheque by the assessee to bank in respect of insurance premium - Whether disallowance can be made where the Revenue has accepted the order of the CIT(A) deleting the addition made on account of disallowance in the immediately preceding year - Whether addition can be made where instead of claiming bad debt and income under section 41(1) of the Act, the assessee adjusted the amount outstanding to be paid, but not paid against the bad debt - Whether addition is permissible under section 269T of the Act on account of violation of the provisions of the Section.


Universal Precision Screws Vs ACIT (Dated: January 7, 2015) Whether gain arising on account of fluctuation in foreign exchange rate, is required to be included in total turnover - YES: ITAT

Whether income from scrap sale is eligible for inclusion in total turnover - NO: ITAT

Whether assessee can claim entitlement to deduction u/s 10B on interest income arising from FDRs, made for availing credit facility from bank - YES: ITAT

Whether assessee is entitled to deduction on festive and other ad-hoc expenses made in the course of business - YES: ITAT

Whether disallowance can be made on late deposit of employee’s share of ESI - NO: ITAT


Yodeva Plastics Pvt Ltd Vs DCIT (Dated: June 17, 2015) Whether foreign exchange gains/loss post receipt of sale is income for the unit to be allowed deduction u/s 10B – Whether the amount not received in India is to be excluded from the export turnover – Whether assessee is entitled to deduction in respect of the interest on the fixed deposits with the bank – Whether assessee is entitled to deduction u/s 80IC in respect of the amount derived by sale of scrap – Whether assessee is eligible for exemption u/s 10B on the profit from the sale of plastic moulds where the cost of the moulds is not separately billed and the payments have not been separately made – Whether adjustment to the deduction u/s 10B on account of amortization and development charges is justified where the amortization is actually cost of mould apportioned on number of pieces likely to be produced from a

particular mould and development charges also pertain to mould development only – Whether receipts towards freight and insurance charges can be deducted from turnover where the receipts do not form part of the export turnover.


Ranjit Kumar Saha Vs ACIT (Dated: September 14, 2015) Whether addition as unexplained income is justified when a person received a gift from his mother who in turn has received gift on her birthday from 28 persons, whose identity and creditworthiness is proved - NO : ITAT


ACIT Vs Shri Rahul J Jain (Dated: September 28, 2015) Whether Best judgement assessment of income be made, ignoring the loss claimed when Books of Accounts could not produced for a reason beyond the control of assessee who however gave justification for incurring loss - NO: ITAT


ITO Vs M/s Pat Commodity Services Pvt Ltd (Dated: August 7, 2015)

Whether the profit arising out of the transactions, whose client code was modified later, should be considered as the profit of the assessee when the AO could not bring anything on record which can prove that because of such shifting of profit from assessee to client, the assessee has received back the money either in cash or in other form as money's worth and further the AO could not point out that the client to whom profits were transferred has not accounted for such profits as their income.


ITO Vs M/s Pirna Urban Cooperative Credit Society Ltd (Dated: September 7, 2015) Whether no interference is required by the Tribunal, when Revenue could not point out any specific error in the order of the CIT(A) who had followed the decision of the HC dealing with the same facts - YES: ITAT


M/s Apcom Exports Pvt Ltd Vs DCIT (Dated: August 12, 2015) Whether loss on sale of shares to related party can be considered as capital loss where the assessee had purchased shares from outside and also from company directly, when the net worth of the company was in negative and later the same was sold to the wife of the Managing Director of the assessee company for a meagre amount and assessee had not brought on record any evidence to establish that the loss was incurred by the assessee on genuine reason - Whether non recovery of money advanced to its sister concern by the assessee can be treated as bad debt written off where Assessee was not able to establish that the loan was advanced during the normal course of business carried on by it and there was no evidence to show that the assessee was carrying on money lending business.


ITO Vs AVH Resources India Pvt Ltd (Dated: August 19, 2015) Whether the CIT(A) has rightly deleted the addition of Rs. 20,41,412/- on account of Difference on a/c of arms length price when AO While working out the arm length price has not taken into account the MOU which indicate to the fact that the assessee was carrying on the business activity other than as per service agreement with the principle? Whether the AO was justified in disallowing the expenditure of Rs.37,12,429/- which is more than the dividend income of Rs. 20,32,762/-; and has taken the same expenditure twice, once for working out the arms length price and again for working out disallowance u/s 14A.


The Continental Enterprise Vs ITO (Dated: September 11, 2015) Whether the expenditure incurred on construction of superstructure on leasehold land can be considered as capital expenditure in light of Explanation 1 of section 32(1) 2015-TIOL-1647-ITAT-PANAJI

ITO Vs Pisces Properties Developers (Dated: September 8, 2015)

Whether merely because no actual cultivation could be done by the assessee will change the character of the land from agricultural to non-agricultural when it is not in dispute that the land in question was classified as agricultural land in government records, both at the time of purchase by the assessee as well as at the time of its sale by the assessee and there is no material to show that the land was used for any non-agricultural activity.


ITO Vs Shubhashri Panicker (Dated: June 26, 2015) Whether quashing the notice of reassessment on the ground that there was no valid service of notice u/s 148 is justified where the first notice that was transmitted by AO through speed post was not disputed by the assessee after inspection and the Assessee's AR in the initial hearings never indicated that notice u/s 148 was not properly served - Whether sufficiency of reasons can be gone into by the court at the time of recording of reasons.


Shri Deepak Damji Poldiya Vs DCIT (Dated: September 11, 2015)

Whether in the interest of justice, another opportunity should be granted to the assessee to furnish documentary evidence in support of the contentions and to comply with the directions of the AO to produce the creditors - YES: ITAT

Whether disallowance of payments u/s. 40A(3) is justified, when assessee has not been able to show as to how the payment made to the persons, to whom the alleged payments are made are covered under the exceptions given in Rule 6DD - YES: ITAT


DCIT Vs Designco (Dated: September 2, 2015) Whether assessee is entitled for benefit u/s 80HHC in respect of DEPB license where DEPB licenses directly arose out of export business.

2015-TIOL-1643-ITAT-VIZAG

M/s United Breweries Ltd Vs ITO (Dated: August 10, 2015) Whether payment made by the assessee would constitute sales promotion expenses and it would not fall under the category of commission falling within the scope of section 194 H where the assessee has sold goods to a Government undertaking and the retail dealers have purchased goods from that undertaking and the sale between the assessee and the undertaking and the sale between the undertaking and retail dealers was on "Principal to Principal" basis and the assessee had paid incentives under its sales promotion scheme to the retail dealers through its del-credere agents – Whether the payment of 'brand fee' has to treated as payment of royalty falling within the scope of sec. 194J where assessee has declared itself to be the manufacturer of beer and has sold the products under its invoice only by using the brand name of main line companies.


ACIT Vs M/s Washington Software Ltd (Dated: July 20, 2015) Whether instruction No.5/2014 dated 10-7-2014 revising the monetary limit to Rs. 4 lakh for filing appeal before ITAT on income tax matters, will apply to pending appeals.


Addl CIT Vs Canara Bank (Dated: August 7, 2015) Whether the payment of interest by banks to the State Industrial Development Authorities requires any deduction of tax at source in terms of section 194A(3)(iii)(f). Also see analysis of the order


ITO Vs M/s Transport & Handling Equipments Mfg Co Pvt Ltd (Dated: January 29, 2015)

Whether addition in respect of rental income is justified when the AO was under mistaken belief that the assessee has not disclosed the rental income whereas actually the assessee has disclosed the same under the head licence fee


ITO Vs Totla Wires Pvt Ltd (Dated: March 27, 2015)

Whether addition on lumpsum basis by rejecting the books of accounts is justified - Whether disallowance on account of commission expenses is justified where the assessee had given complete details mentioning the Address, PAN and the amount of commission paid and AO in his remand report had not given any comments on the information submitted by the assesssee.


Beautex (India) Pvt Ltd Vs ITO (Dated: July 15, 2015) Whether penalty u/s 271(1)(c) was wrongly imposed when there was consistent findings of 3 separate forums upheld by the categoric findings of the High Court that the claim was "bogus".


Sri Balaji Educational And Charitable Public Trust Vs ACIT (Dated: July 24, 2015) Whether penalty u/s 271(1)(c) is leviable where assessee had submitted a detailed explanation before the Assessing Officer and had neither concealed the income nor filed inaccurate particulars.


DCIT Vs Spanco Ltd (Dated: September 9, 2015) Whether forefeiture of application money on warrants is not business income and not chargeable to tax u/s. 28(iv) of the Act - YES : ITAT

Whether disallowance of expenses u/s 14A, on certain percentage of the average value of investment would meet the ends of justice when assessee claimed that it has not received any dividend during the year under consideration - YES: ITAT


Srm Energy Ltd Vs DCIT (Dated: August 31, 2015) Whether capital gain on transfer undertaking is computed on 'All assets minus All liabilities' of the undertaking by considering the full value of consideration and also net worth with the same composition of assets and liabilities of the undertaking. 2015-TIOL-1634-ITAT-DEL

ITO Vs Shakti Securities Pvt Ltd (Dated: September 10, 2015) Whether addition u/s 68 can be made where AO had no evidence to prove that the various payments received were in the nature of accommodation entry and the assessee submitted various documents in support of the transactions and all the transactions were carried out through account payee cheque and confirmations, share applica tion forms, written acknowledgement of these parties were filed and the

concerned parties were assessed to tax and their return acknowledgements were submitted and assessee had furnished sufficient documents to prove the identity of the parties - Whether reopening of assessment on the basis of information received from investigation wing is justified where scrutiny assessment was completed u/s. 143(3) and four years had elapsed on date of reopening and there was no tangible material for reopening of assessment and AO had not applied his mind on amount of income escaping assessment. 2015-TIOL-1633-ITAT-HYD

Spandana Sphoorty Financial Ltd Vs Addl CIT (Dated: September 18, 2015) Whether the order of AO can be said to be erroneous and prejudicial to interest of revenue where the issue was examined n detail by the AO in the course of scrutiny and AO had come to certain conclusions on the basis of the facts – Whether CIT is justified in invoking revision proceedings u/s 263 where the issue was examined by the AO in scrutiny assessment and in appeal, the disallowance was deleted by CIT(A) and the order of CIT(A) in deleting the disallowance per se was prior to the proceedings u/s. 263. 2015-TIOL-1632-ITAT-LKW

Rimjhim Ispat Ltd Vs ACIT (Dated: July 30, 2015) Whether disallowance on account of commission expenses is justified where no basis was indicated by the Assessing Officer in the assessment order for making this disallowance and the same was made by making a general observation that complete supporting evidence was not brought on record without indicating even one particular evidence, which was asked for by the Assessing Officer and could not be produced by the assessee - Whether disallowance on account of telephone expenses in the hands of the assessee on the ground that there may be personal use by the Directors/employees of the assessee company is justified - Whether disallowance on account of freight & cartage is justified where the increase in expenditure as compared to previous year is very much abnormal and such increased expenses are incurred in cash and the assessee could not explain this abnormal increase in the expenses - Whether disallowance of depreciation is justified where the assessee could not produce the bill for the cost of new addition to plant & machinery.


Sun Pharmaceutical Industries Ltd Vs DCIT (Dated: August 21, 2015) Whether reopening of assessment is justified where in the course of the original assessment proceedings the claim for deductions were discussed in length and on those issue the matter was carried in appeal before the CIT(A) who had partly allowed the appeal and the order of the A.O. stood merged with the order of the CIT(A).


DCIT Vs Amalgamations Ltd (Dated: September 29, 2015) Whether the appeal is treated as decided, when issue raised in the appeal is identical to the issue decided by this Bench of the Tribunal in the assessee’s own case for previous AY -YES: ITAT


Babubhai Jesangbhai Desai Vs CIT (Dated: August 7, 2015) Whether order passed by the CIT u/s 263 was justified when the assessee wa s not granted sufficient opportunity to defend his case.


ITO Vs M/s KPTC & Hescom Employees Co-Op Credit Society Ltd (Dated: October 1, 2015) Whether deduction u/s 80P(2)(a)(i) on the interest earned can be allowed to a Credit Cooperative Society when out of substantial sum received as deposits from the members, only small portion is given by assessee as loans to its members and major part of the funds are parked in FDs, in order not to keep the funds idle and for earning interest income - YES: ITAT


Lodhi Property Company Ltd Vs ACIT (Dated: August 26, 2015) Whether any penalty can be imposed on account of furnishing of inaccurate particulars of income, when penalty in dispute is leviable or not, is debatable because the matter is admitted in the Delhi High Court and pending for adjudication - NO: ITAT


ITO Vs Narmada Processors Pvt Ltd (Dated: September 4, 2015) Whether an appeal which has a tax effect of less than Rs.3 lakhs, is not mantainable before the Tribunal - YES: ITAT


ITO Vs Athani Cooperative Credit Society Ltd (Dated: July 28, 2015) Whether the assessee a Cooperative Society carrying on the business of banking or providing credit facilities to its members is entitled for deduction u/s 80P.


M/s Abhilash Garments & Estates Pvt Ltd Vs ACIT (Dated: July 17, 2015) Whether assessee is liable to deduct TDS u/s 194C for the payment made for supply of the windmill turbine and other equipments where a separate consideration and value of the supply of goods/windmill turbine converte r and other equipments is separately given in the invoices and separate invoices are placed by the supplier and predominant part of the agreement is supply of windmill equipments and only a small part of payment is in respect of civil and industrial construction work and commissioning work.


Arvind Mills Ltd Vs ACIT (Dated: July 23, 2015) Whether when the reopening of the assessment is made on the basis of change of opinion only as the assessee has demonstrated from the records that all information/details were available with the AO, order under appeal is correctly set aside and assessment framed u/s 143(3) read with section 147 is quashed being invalid.


Shri Ashokkumar Bhailal Chokshi Vs ITO (Dated: June 12, 2015) Whether reopening of assessment is justified in law where information provided by DCIT is specific and clear from which Assessing Officer can reasonably harbour a belief that income belonging to the assessee has escaped from taxation - Whether addition made by AO on the basis of a diary found during search at premises of some other group is sustainable where assessee was not given an opportunity to examine the author of the diary and there wa s no corroborative evidence with the department to establish the nexus or link between the assessee and that group - Whether penalty u/s 271(1)(C) can be levied where the quantum additions have been deleted by appellate authority.


Illakshi Synthetics Pvt Ltd Vs DCIT (Dated: August 14, 2015) Whether penalty can be imposed u/s 271(1)(c) when the entire addition is purely made on the basis of estimation.


M/s Airen Metals Pvt Ltd Vs ACIT (Dated: September 17, 2015) Whether deduction u/s 80IB can be disallowed on interest received on FDR by treating the said income under the head "Income from other sources" instead of "income from business and profession when doing so is contrary to the provision of law as well as the facts - NO: ITAT


Scorpios Apparels Pvt Ltd Vs ACIT (Dated: January 9, 2015) Whether TDS u/s 195 is liable to be deducted on commission paid to overseas agents.


Satyanarayan Kunnaram Vs CIT (Dated: January 9, 2015) Whether the CIT cannot pass an order under sec. 263 without controverting the submissions of the assessee made before him.


Royal Ralf Hotels Pvt Ltd Vs DCIT (Dated: March 23, 2015) Whether addition made without making proper enquiries and verification of facts is justified.


ACIT Vs Rajsthan Liquors Pvt Ltd (Dated: January 16, 2015) Whether the assessee is under obligation to furnish complete details if asked by the AO to furnish the details of a particular expense debited to the profit and loss account even if the assessee is not under any obligation to prepare separate balance sheet and profit and loss account for each and every unit.


M/s Siraigo Pharma Pvt Ltd Vs DCIT (Dated: June 26, 2015)

Whether penalty u/s 271(1)(c) can be imposed when Except non production of books, no reason or basis whatsoever has been assigned by authorities below in disallowing the entire loss which was the basis of penalty and there is no justifiable basis to disbelieve the assessee's contention that the books of accounts could not be produced.


Wilima Wadhwa Vs ITO (Dated: September 30, 2015)

Whether it can be said that there is malafide intention of the assessee to either conceal any income or to furnish inaccurate particulars, in case the foreign honorarium received by her is disclosed by herself and due taxes is paid when it was pointed out that the said foreign remittance is taxable in India - NO: ITAT

Whether penalty u/s 271(1)(c) can be invoked by assuming the above mentioned malafide intenion on the part of assessee - NO: ITAT


ACIT Vs M/s Sahara Investments Pvt Ltd (Dated: June 30, 2015)

Whether in respect of section 14A the disallowance of expenditure can go beyond the total expenditure claimed by the assessee in the P & L account.


ACIT Vs M/s A P Gas Power Corporation Ltd (Dated: September 18, 2015)

Whether payment made for works contract given for carrying out entire operation and maintenance of power plant can not be treated as fees for professional/technical

services on which, liability of TDS is u/s 194C and not u/s. 194J of the Act - YES: ITAT

Whether interest u/s. 201(1A) of Act should not be levied when TDS is correctly deducted u/s 194C - YES: ITAT


ITO Vs M/s DTC Securities Ltd (Dated: June 30, 2015) Whether disallowance u/s 14A can be made when the entire loan has a direct nexus with the taxable income and the assessee does have sufficient funds for investment and loan amount have not been invested in the investment - Whether there is justification for the disallowance in respect of commission expenses when the payments were made through banking channel, and, tax was also deducted at source and the books of accounts, bank statements, and, other relevant documents were produced, and, the AO has not found any defects in such books or documents.


Smt Aravapalli Bindhu Vs ITO (Dated: September 24, 2015) Whether it c an be said that the issue of computation of ALV in respect of the property is decided in favour of the assessee, when Tribunal in the case of the assessee's wife has set aside the order of AO after considering the property tax record filed by the assessee - YES: ITAT


ITO Vs Prashanth Sai Builders (Dated: March 11, 2015) Whether the AO can reject the claim for deduction under sec. 80IB(10) merely on the ground that the assessee had not furnished the completion certificate.


DCIT Vs Panem Coal Mines Ltd (Dated: January 15, 2015) Whether it is justified to sustain such addition u/s 153A when the same issue of addition on account of interest, the assessee has got relief from the appellate authorities upto the level of High Court in the proceedings u/s 143(3) for the same A.Y. - Whether when assessment already stood completed and nothing incriminating was found on account of search on requisition, then the question of reassessment on the completed assessment can be done.


Minda Acoustic Ltd Vs ADD CIT (Dated: January 16, 2015) Whether when the goodwill that has been recognized represents various assets in the nature of goodwill, depreciation is allowable on it - Whether the technicality of an asset being registered in the name of the asset cannot come in the way of an assessee's eligibility for depreciation as long as such an asset is de facto owned by the

assessee and is used for the purposes of the business - Whether unless there is a clear finding that the market value of the services taken from the sister-concern is less than the price at which the services are obtained, there cannot be an occasion to apply the disabling provisions of sec. 40A(2).


ACIT Vs Kusum K Jain (Dated: June 30, 2015) Whether penalty u/s 271(1)(c) is leviable on the basis of confirmation of addition made by the AO in quantum order where in the quantum appeal, it had been found by the Tribunal that the confirmation of the addition by the CIT(A) was based on incorrect facts and the quantum order was set aside to the file of the AO and assessee had filed ample evidence in respect of each person from whom she had received her amount back.


New Delhi Television Ltd Vs ACIT (Dated: September 30, 2015)

Whether when at the time of making initial assessment, AO has not applied his mind to the computation of income furnished along with the return of income, it is possible for him to take a divergent view at a later stage of time in case of no change in circumstance - NO: ITAT

Whether for the purpose of reassessment to be made u/s 147, t he duty of the assessee can extend beyond the disclosure of all material facts necessary for his assessment - NO: ITAT

Whether income derived from foreign exchange fluctuation gain can be classified as 'any other receipts of similar nature' so as to justify exclusion while computing deduction u/s 80HHF - NO: ITAT

Whether if initiation of proceedings u/s 147 itself stood vitiated being without jurisdiction, can the CIT still invoke jurisdiction u/s 263 against such void or non-est order - NO: ITAT

Whether the mere claim of CIT that assessee has inflated export turnover and has not submitted FIRC before the authorities, can become the basis for jurisdiction u/s 263 - NO: ITAT



Edelweiss Securities Ltd Vs ADDLCIT (Dated: September 11, 2015)

Whether when it is clear that the Lease Line charges paid by the assessee to Stock Exchange were merely reimbursement of the charges paid or payable by the Stock Exchange to the Department of Telecommunication and they do not have any element of income, deduction of tax while making such payments is an impediment - NO: ITAT

Whether if the amount paid as penalty was on account of irregularities committed by the assessee's clients, the same was not on account of any infraction of law, the amount so paid can still be disallowed from the amount allowable as business

expenditure - NO: ITAT

Whether when it is apparent that prior to a High Court decis ion, Tribunal held that TDS is not applicable on the transaction charges paid to Stock exchanges, after that decision of High Court, assessee has himself started deducting TDS on such payments, can the assessee be held liable for the period before the High Court decision - NO: ITAT


Punjab Sind Diary Products Pvt Ltd Vs DCIT (Dated: June 11, 2105)

Whether simply relying upon the statements at the time of survey and non-production of registers at that time cannot be the conclusive finding of fact, albeit can be the starting point of show cause and inquiry and then onus is heavily upon the assessee to controvert such information or material - Whether when the assessee has separately maintained purchase register, sale register, cash book, ledger & journal account for recording the entire transaction and no defect in these books of accounts and record have been pointed out either by the AO or by the CIT(A), the books of account cannot be rejected merely on the basis of statement of some of the employees.


M/s Majestic Exports Vs JCIT (Dated: July 24, 2015)

Whether when trading in futures and options is no longer speculative transactions as per proviso (d) to Sec.43(5) inserted by the Finance Act, 2005 w.e.f. 01.04.2006 and the loss incurred out of such trading is not to be considered as speculation loss.


ITO Vs BSNL (Dated: June 5, 2015)

Whether Section 194H is applicable on the sale having been made to the franchisees at a concessional price.


ACIT Vs M/s Supersonic Turner Pvt Ltd (Dated: September 10, 2015)

Whether addition on account of difference in job work receipts is justified where the assessee company was following mercantile system of accounting and job receipts were accounted for in the books of account on accrual basis and the the assessee company declared the job receipts in the year of billing however the deductor/principal company accounted for part of job receipts in the subsequent year when the goods were removed from the premises of the assessee company and TDS was also deducted by the principal company in that year and credit for the same appeared in Form No. 26-AS - Whether addition on account of concealed sale of scrap is justified where the scrap generated out of manufacturing was retained by the vendors and not returned back to the assessee company and the assessee company had paid excise duty on nonreturnable scrap retained by the vendors by taking its notional value or assessable value by the Excise authorities - Whether the PF and/or EPF, CPF, GPF etc., if paid after the due date under respective Act but before filing of the return of income under Section 139(1), can be disallowed under Section 43B or

under Section 36(1)(va).


DCIT Vs Tapi Prestressed Products Ltd (Dated: July 31, 2015)

Whether the Assessee can be denied deduction u/s 80IA(4) on the ground that the assessee is only a contractor and not a developer of any infrastructure project when the assessee being such contractor, developed the designs for this project, which were approved by the authorities of the principal, and thereafter, the project was undertaken and completed.


M/s Vinayaka Agencies Vs ITO (Dated: September 4, 2015)

Whether CIT is justified in assuming his powers under Section 263 where A.O. has not only conducted enquiry on the various issues pointed out by the CIT in his impugned order but has also applied his mind to the information and evidence furnished by the assessee. 2015-TIOL-1597-ITAT-HYD

Shri Upendra Kumar (HUF) Vs DCIT (Dated: September 4, 2015)

Whether in the interest of justice one more opportunity should be given to the assessee to offer his explanation for the non-compliance of notices under section 153C as well as 142(1) and 143(2), before confirming the penalty levied - YES: ITAT 2015-TIOL-1596-ITAT-MUM

ITO Vs Nrb Developers (Dated: May 29, 2015)

Whether addition can be made on account of interest on loans and advances where there is no material or evidence which has been brought out to establish that the assessee had earned interest income from such loans and advances and no material was found during the course of survey which would show receipt of interest income or any understanding between the assessee and other concerns whereby assessee was entitled to receive interest income on the impugned advances.


Mary Immaculate Society Vs DDIT (Dated: June 23, 2015) Whether depreciation can be claimed by a charitable institution in determining percentage of funds applied for the purpose of charitable objects and claim for depreciation will not amount to double benefit - Whether for the purpose of computing accumulation of income of 15% u/s 11(1)((a) one has to take the gross receipts or gross receipts after expenditure for charitable purpose i.e., the net receipts.


Shri K K Shukla Vs ACIT (Dated: January 16, 2015)

Whether ownership of ancestral land in the hands of the parents cannot be equated with the ownership of agricultural land in the hands of the assessee and income arising from same can be held as agricultural income in the hands of the assessee in his individual capacity - Whether benefit of CBDT Circular No. 1916 dated 11th May 1994 is allowable to assessee who is married man in respect of 100 gms of gold jewellery which was owned by him out of explained sources - Whether benefit should be allowed to the assessee in respect of ownership of jewellery by his wife to the extent of entire jewellery.


ITO Vs M/s Yash Creation (Dated: August 21, 2015)

Whether activity of embroidery work on the sarees constitutes manufacturing activity as the character of saree changes and it does not remain the original grey synthetic cloth - YES: ITAT



Effluent Channel Projects Ltd Vs DCIT (Dated: July 24, 2015)

Whether the receipt received by the assessee as contribution from the members for life -time membership to avail effluent disposal facility offered by the assessee during the accounting period relevant for this A.Y is to be spread over a period of five years.


ITO Vs Biotech Ophthalmic Pvt Ltd (Dated: August 31, 2015)

Whether an amount cannot be taxed in the hands of the Assessee as deemed dividend u/s 2(22)(e) unless the assessee is a shareholder in the company from which the amounts are received.

Whether the direction given by the CIT(A), for taxability of the deemed dividend in the hands of some other person can constitute "an express direction necessary for disposal of a case".


ACIT Vs Smt Usha Rani Talla (Dated: June 30, 2015)

Whether AO is justified in making a reference to the DVO u/s 142A where the assessee had made the investment in the properties through her bank accounts and no material was brought on record by the Assessing Officer to show that the assessee had made any excess investments in the property over and above the value recorded in the sale deed and the Assessing Officer had not given any comment or even rejected the books of accounts before making a reference to the DVO for ascertaining the actual investment in the property and the Assessing Officer has not even recorded any reason for referring the matter to the DVO for the estimation of the value of property.

Whether Assessig Officer violated the principles of natural justice where after the receipt of the valuation report from the DVO, the Assessing Officer had given only one

day time to the assessee to explain the difference in the value of the property as estimated by the DVO and the value shown in the purchase deed.

Whether assessee is entitled to exemption u/s 54 where during the relevant assessment year, the assessee had sold a property and the sale proceed of the aforesaid property was invested in the purchase of another property in the same assessment year.


Dbh International Pvt Ltd Vs ITO (Dated: August 28, 2015)

Whether the AO is justified in invoked provisions of section 14A r/w Rule 8D and has disallowed the expenses relating to earning exempt income when the AO has neither recorded his satisfaction nor given reasons as to how the claim of expenditure in relation to tax free income has not been correctly made by the assessee as envisaged u/s 14A(2) and has mechanically invoked Rule 8D.


DCIT Vs M/s Sutlej Textiles And Industries Ltd (Dated: July 3, 2015)

Whether subsidies received under various schemes to assist in setting up of industry / expansion of industrial units can be treated as capital subsidy which is not liable to tax.


Lupin International Vs ITO (Dated: June 1, 2015)

Whether the CIT (A) was justified in disallowing the Assessee's claim of discounting charges when the borrowed funds were utilized for the purpose of appellant's business.


Matrix Laboratories Ltd Vs ADDL CIT (Dated: August 26, 2015)

Whether the CIT(A) was justified in confirming the order of the AO in excluding patent infringement income received in convertible foreign exchange from the export turnover of the eligible 100% EOU for the purpose of computing deduction u/s10B when the income was from settlement of patent infringement income received in a suit relating to patent.

Whether the CIT(A)was justified in rejecting the basis adopted by the Assessee for appointment of Common Corporate overheads to all the units of the Assessee including the 100% EOU when allocation of expenditure as was done by the assessee is more rationale and is in tune with the principles laid down by the ICA and also for the purpose of Company Law.

Whether the CIT(A) was justified in rejecting that Superannuation contribution of Rs. 25,65,000/- in respect of a promoter Managing Director is deductible u/s 37.


Deccan Education Society Vs ADDL CIT (Dated: July 13, 2015)

Whether income received by any person on behalf of an educational institution existing solely for education purpose and not for purpose of profit and which is wholly or substantially financed by the Government, is exempt from tax - YES: ITAT

Whether exemption u/s 10(23C)(iiiab) is allowable to a society, if it is substantially financed by the Government and is also a public charitable trust existing solely for educational purposes - YES: ITAT

Whether exemption u/s 10(23C)(iiiab) can be denied to a society on ground that it is not a 'trust' and merely a 'society' - NO: ITAT

Whether in the absence of any evidence to contrary, the duly accounted voluntary donations received towards corpus fund can be termed as capitation fees collected for profit motive so as to disentitle the society from exemption u/s 10(23C)(iiiab) and (iiiac) - NO: ITAT

Whether where no donation is demanded for giving admission to any student, no offence is committed under Maharashtra Educational Institution (Prohibition of Capitation Fee) Act, 1987 - YES: ITAT

Whether merely because some of the donors stated that they have given the donation for admission, it would disentitle the society from getting exemption - NO: ITAT

Whether where trust's main object is imparting education, the benefit of provisions of section 10(23C)(iiiab) and section (iiiac) can be denied to the same, merely on the basis of contradictory statements of a few donors - NO: ITAT


ACIT Vs M/s Modern Threads India Ltd (Dated: August 11, 2015)

Whether penalty u/s 271(1)(c) is leviable on the basis of addition made on account of change in method of valuation of closing stock where the assessee had submitted its explanation before the AO at the time of assessment proceedings as well as penalty proceedings and duly disclosed complete particulars regarding change in the method of valuation of stock in process from cost plus expenses to estimated realizable value and the valuation of work in process had been done as per AS-2 issued by Institute of Chartered Accountant of India.


ACIT Vs M/s Maharashtra State Electricity Distribution Co Ltd (Dated: August 12, 2015) Whether admission of additional evidences by the CIT(A) was justified in terms of Rule 46A if there were valid reasons due to which some of the evidences could not be submitted by the assessee before the AO during the course assessment proceedings – Whether an expenditure can be allowed against the business income only if the expense has been incurred for the purpose of the business and has been incurred during the year under consideration – Whether on the facts of the case, the electricity duty being not a sum payable by the assessee as a primary liability by way of tax, duty cess or fee, section 43B cannot be said to be attracted to the assessee in respect of electricity duty collected by it for being passed on the State Govt.


ITO Vs Shri Manmohan Anand Singh Rajput (Dated: June 19, 2015) Whether penalty cannot be imposed, when there is no concrete material on the record to demonstrate that particulars of income have been deliberately concealed or inaccurate particulars are furnished - YES: ITAT


HDFC Bank Ltd Vs DCIT (Dated: September 23, 2015) Whether the provision of section 14A r/w Rule 8D can be invoked, where one composite indivisible business gives rise to more than one stream of income, of which at least one does not form part of the total income - YES: ITAT

Whether share trading or banking activity can be said to have an inherent quality of producing both regular banking income as well as dividend income, to qualify as a condition for apportionment of expenses u/s 14A - YES: ITAT

Whether the taxability of a particular income is independent of its classification, which, rather, is required to be only for the income forming part of the total income, for the purpose of its computation u/s 14 - YES: ITAT

Whether tax-exempt expenses are required to be apportioned in respect of such tax-exempt incomes - YES: ITAT

Whether mere fact that the assessee has utilized its own funds in making the investments would be dispositive of the question as to whether the assessee has incurred expenditure in relation to earning of such income - NO: ITAT

Whether an expenditure incurred in earning of an income can be disallowed, even if the assessee had utilized its own funds for making investments which have resulted in such income which does not form part of the total income under the Act - YES: ITAT

Whether it is the difference between the issue price of the shares to the two segments, i.e., to the general public and company's employees, which would signify the extent of the value foregone or the discount allowed by the assessee on the latter issue - YES: ITAT

Whether an assessee is entitled for allowance of the discount given by it on the shares issued to its employees - YES: ITAT



ACIT Vs Ebiz Com (P) Ltd (Dated: August 19, 2015)

Whether deletion of addition made in respect of commission paid to 10 persons was justified when the major commission payment out of these 8 people has been paid in whose case PAN details were made available and in the case of the remaining 5 people the confirmations along with their telephone numbers and address details were provided - Whether the CIT(A) was justified in deleting addition on account of excess payment u/s 40A(2)(b) when the AO has not expressed any doubt on the genuineness of the agreement executed between the company and the husband of the Director and also on the system of payment of commission and the service rendered by him.


ITO Vs Tinna Finex Ltd (Dated: June 26, 2015) Whether whenever, an amount is borrowed towards capital account and the loan is waived off, the same can be brought to tax net either in terms of Ss 41(1) or 28(iv)


Sunvik Steels Pvt Ltd Vs DCIT (Dated: June 22, 2015) Whether rejection of books of account on the ground of purchase of large quantity of coal and maintenance of iron ore stock is justified where the purchases were duly reflected in the books and the stock register and the assessee was not a simple producer of sponge iron but was doing many other activities and there was no defects or lacuna noted by the sales-tax authorities and no specific defect in the books was pointed out by the AO.


Wegmans Financial Services Ltd Vs ITO (Dated: August 12, 2015)

Whether penalty u/s 271(1)(c) can be levied when it is not that the AO made a disallowance based on the detection of any concealment nor the AO found any particulars furnished by the assessee to be inaccurate.


Wegmans Financial Services Ltd Vs ITO (Dated: August 12, 2015)

Whether penalty u/s 271(1)(c) can be levied when it is not that the AO made a disallowance based on the detection of any concealment nor the AO found any particulars furnished by the assessee to be inaccurate.


ACIT Vs Haryana Kshetriya Gramin Bank (Dated: August 20, 2015) Whether Instruction no.5 of 2014 dt. 10th July,2014 issued by the CBDT is applicable for the pending cases also.


DCIT Vs Reliance Broadcast Network Ltd (Dated: May 27, 2015)

Whether the CIT(A) was justified in deleting the addition made by the AO in respect of provision made for various types of expenditure for non deduction of TDS when the CIT(A) has passed the impugned order without verification of the details submitted by the assessee - Whether the addition can be made solely on the basis of AIR information, especially, when the assessee denies any such receipt.


ACIT Vs Ricoh India Ltd (Dated: May 29, 2015) Whether the deposits made by the assessee with MSEB and Sales Tax Department can be treated as non-recoverable amount and, consequently, the same can be allowed as business loss u/s 28 or 37(1) when the assessee has transferred the factory premises along with the electricity connection - Whether section 50C can be invoked where leasehold rights in land or building are transferred - Whether the tender amount due from the Government, can be treated as either bad debt or irrecoverable amount - Whether deduction claimed on account of advance written-off in respect of old / ex-employees balance is justified.


ACIT Vs Rpg Credit & Capital Ltd (Dated: August 7, 2015)

Whether the AO can claim to be a ggrieved by the findings arrived at by relying upon his own Remand Report where the claim has been given up in the Remand Report by the AO himself and CIT(A) had accepted the assessee's claim based on the strength of the Remand Report. 2015-TIOL-1572-ITAT-MUM

Wockhardt Hospital Ltd Vs ADCIT (Dated: July 10, 2015)

Whether club expenditure can be disallowed? Whether disallowance of interest paid on borrowings utilized for purpose of acquisition of 100% share capital is justified when on such investment, neither during the year nor in the future years assessee has earned any dividend income? Whether advance of interest free loans to sister concern on account of commercial expediency can be disallowed? Whether the CIT(A) was justified in deleting disallowance of only incremental provision of leave encashment instead of full amount of provision when the AO has made disallowance of closing balance of leave encashment amounting to Rs.22,80,086/- whereas the provision made during the year amounting to Rs.5,11,625/?Whether the CIT(A) was justified in deleting disallowance of provision for leave encashment and provision for gratuity when the liabilities pertaining to the years under consideration and these liabilities were crystalised during the year and were pertaining to the year under consideration? Whether disallowance of interest expenditure u/s 14A is justified when the assessee's owned funds are more than the investment made during the year? Whether provision for fringe benefit tax is an allowable deduction while computing book profit u/s.115JB. 2015-TIOL-1571-ITAT-HYD

P Bhagya Lakshmi Vs DCIT (Dated: July 17, 2015) Whether commission income can be taxed in the relevant year under consideration on the ground that the transaction ultimately fructified in the impugned year where the commission amount was received by the assessee long back and that too for a different transaction.


ITO Vs Santosh Electronics Ltd (Dated: June 4, 2015) Whether Instruction No.5/2014 FNo279/Misc.142/2007-ITJ(Pt) dated 10th July, 2014 will apply to pending appeals.


Ansr Source India Pvt Ltd Vs ITO (Dated: September 18, 2015) Whether the issue can be said to have been decided, when such ground is covered in favour of the assessee by the decision of the Tribunal in the own case of the assessee for the earlier assessment years - YES: ITAT


GE Capital Transportation Financial Services Ltd Vs DCIT (Dated: September 23, 2015) Whether the loss on re-sale of re -possessed vehicles is a revenue loss, in case assessee's business is not only restricted to financing, but involves re-sale of re -possessed vehicle as its regular business activity and such re -possessed vehicles are treated as stock-in-trade throughout the year - YES: ITAT

Whether an assessee is entitled to claim loss on account of investment in securities, where such investment constitutes its regular business activity - YES: ITAT



Clc Textile Park Pvt Ltd Vs ITO (Dated: June 24, 2015) Whether interest earned on fixed deposits can be treated as income from other sources in the hands of the assessee - NO: ITAT

Whether where genuineness of sales transaction as well as purchase transaction remains unproved, the addition made u/s 68 on grounds of unexplained cash credits is justified - YES: ITAT


DCIT Vs Cement Corporation Of India Ltd (Dated: August 12, 2015) Whether Quarry Development Expenses can be treated as revenue expense - Whether when some of the units are closed and some of the units are working, then, the depreciation on the entire block of assets can be claimed - YES: ITAT

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