HIGH COURT RULING (INCOME TAX)taxindiaonline.com/RC2/pdfdocs/headnotes_index/... · CIT Vs Morarjee...

HIGH COURT RULING (INCOME TAX)

2017-TIOL-287-HC-AHM-IT

Pr. CIT Vs IDMC Ltd (Dated: January 25, 2017)

Whether an assessee manufacturer can be denied additional depreciation u/s32(1)(iia) on machineries acquired by it, merely because they were installed belatedlyand that too on account of replacement of damaged parts - NO: HC

Also see analysis of the order


Parimal Sureshbhai Patel Vs DCIT (Dated: January 18, 2017)

Whether when there is no failure on part of assessee in disclosing true facts, theconditions precedent to initiate reassessment u/s 147 are not satisfied, and hencesuch action deserves to be set aside - YES: HC


Pr.CIT Vs Pragati Industries (Dated: January 23, 2017)

Whether when at the time of making addition on account of undisclosed net profit ,there is no other material available with AO except provisional P&L account, which toowas subsequently explained by assessee, no such addition is mandated - YES: HC

Whether for purpose of valuation of stock, the AO is justified in ignoring thetransactions in between the date of survey and commencement of financial year -YES: HC


CIT Vs Mahavir Inductomelt Pvt Ltd (Dated: January 13, 2017)

Whether the concept of deeming fiction as mentioned for deemed dividend u/s2(22)(e), can be extended to the shareholders by way of legal fiction - NO: HC

2017-TIOL-283-HC-MUM-IT

Maharashtra State Cooperative Tribal Development Corporation Ltd Vs CIT(Dated: January 11, 2017)

Whether assessee can challenge the applicability of TCS provisions on him, even aftercollecting such tax at source at a lesser rate than what has been specified in thestatute - NO: HC

2017-TIOL-282-HC-DEL-IT

Pr.CIT Vs Praveen Saxena (Dated: January 25, 2017)

Whether the amounts payable by an assessee pursuant to the order of High Court,which were compensatory in nature, is liable to deduction u/s 37 - YES: HC

2017-TIOL-281-HC-ALL-IT

CIT Vs PVR Ltd (Dated: January 18, 2017)

Whether penalty u/s 271C can be levied against default of delayed payment of TDS, ifthe interest u/s 201(1A) for delay has already been paid by Assessee - NO: HC


Pr. CIT Vs Jatin Investment Pvt Ltd (Dated: January 18, 2017)

Whether mere absence of the entry of 'investment in shares' in the books of accountwhich was earlier present, is sufficient ground for addition u/s 68 - NO: HC


Pr.CIT Vs Aasia Business Ventures Pvt Ltd (Dated: January 24, 2017)

Whether the liability of assessee ceases to operate, till the time assesseeacknowledges such liability in its books of accounts - NO: HC


Pr. CIT Vs Mehul Pratap Asnani (Dated: January 24, 2016)

Whether the provisions of deemed dividend u/s 2(22)(e) can be attracted merely onthe basis of common shareholding of an assessee in two distinct companies - NO: HC

2017-TIOL-273-HC-KAR-IT

CIT Vs Arihant Transport (Dated: January 13, 2017)

Whether submission of Form 15J before incorrect authority due to inadvertent humanerror, would not render the income tax return as invalid - YES: HC

Whether such cases of ommission are covered by the provision of Section 292B - YES:HC

Whether a contractor is required to deduct TDS, if the sub-contractors producesnecessary declaration in the prescribed Form and they does not own more than twogoods carriages during the previous year - NO: HC



Pr.CIT Vs Lakshmi Singh (Dated: January 13, 2017)

Whether the AO is justified in invoking his power u/s 153C in absence of anyincriminating evidence - NO: HC

Whether a mere passing observation made by ITAT that power u/s 153C cannot beinvoked for regular assessment that had already been completed u/s 143(1), can besaid to give rise to a substantial question of law - NO: HC


Pr.CIT Vs Sunita Bai (Dated: January 12, 2017)

Whether the AO is justified in invoking his power u/s 153C in absence of anyincriminating evidence - NO: HC

Whether a mere passing observation made by ITAT that power u/s 153C cannot beinvoked for regular assessment that had already been completed u/s 143(1), can besaid to give rise to a substantial question of law - NO: HC


CIT Vs Virat Investment And Mercantile Company (Dated: January 19, 2017)

Whether an investment company is entitled to deduction of interest/service chargespaid on funds raised to subscribe to the rights issue and for retaining control of itsexisting shareholding - YES: HC

Whether when service charges paid by assessee were debited to interest expenditureaccount after reducing interest/dividend received from debentures/shares, they areentitled for deduction u/s 57(iii) - YES: HC


CIT Vs Shakti Insulated Wires Pvt Ltd (Dated: February 1, 2017)

Whether the reasonable belief of AO that income chargeable to tax has escapedassessment, can be based on mere change of opinion - NO: HC

Whether the power to reopen an assessment can be equated with the power to reviewan order - NO: HC

2017-TIOL-266-HC-RAJ-IT

Kalindee Rail Nirman (Engineers) Ltd Vs CIT (Dated: January 24, 2017)

Whether after completion of scrutiny, if an assessee is entitled for other benefitswhich he has not claimed, the same deserves to be refunded to him if it is found thatassessee is entitled for refund - YES: HC

Whether the Government / Revenue Department can recover the excess amount oftax than the sum what was due to them - NO: HC


Pr.CIT Vs Atul Ltd (Dated: January 23, 2017)

Whether it can be presumed that interest earned on late payment of saleconsideration would be the amount derived from business, merely because somespecial provision is made by the assessee - NO: HC

Whether interest charged by assessee on delayed payment of sale consideration isrequired to be excluded for purpose of computation of deduction u/s 80HHC - NO: HC



Malay N Sanghvi Vs ITO (Dated: January 31, 2017)

Whether mere presence of common customers by itself in absence of anyarrangement between the parties, would indicate transfer of profits from one unit toanother - NO: HC


Pr.CIT Vs Allah Dada Tannery (Dated: November 9, 2016)

Whether when there is no failure on the part of assessee to disclose complete facts,no penalty for concealment can be levied on assessee - YES: HC

2017-TIOL-258-HC-P&H-IT

Pr.CIT Vs State Bank of Patiala (Dated: December 22, 2016)

Whether section 14A would be applicable only to income arising from the investmentportfolio and not from stock-in-trade - YES: HC

Whether object of trading in securities does not constitute the activity of investmentwhere the object is to earn dividend or interest - YES: HC

Whether a financial decision of an assessee that trades in securities, may factor in thedividend or interest that the securities it acquires as its stock-in-trade yields or islikely to yield - YES: HC


Arvind Kumar Jain Vs CIT (Dated: December 22, 2016)

Whether adoption of average gross profit along with comparision of profits of othersimilar concerns, is justified for determining turnover of an open commodity - YES: HC


Pr.CIT Vs Chintan H Sampat (Dated: January 23, 2017)

Whether findings recorded by CIT and confirmed by ITAT after minutely examining thedocuments impounded during survey, cannot be said to be perverse, in absence of the

contrary - YES: HC


CIT Vs Axis Pvt Equity Ltd (Dated: January 30, 2017)

Whether all expenses incurred during the interregnum between setting up of businessand commencement of business would be permissible deductions - YES: HC



CIT Vs Brahma Builders (Dated: January 16, 2017)

Whether any writ interference is warranted, when the appellant against the order ofITAT itself accepts that impugned issue is covered against him by the decision of theconcerned writ court - NO: HC


CIT Vs V-Raj Enterprises (Dated: January 31, 2017)

Whether the exercise of revisional powers u/s 263 can be sustained, when the basicfacts have been misunderstood by the CIT - NO: HC


Rajesh Kumar Aggarwal Vs CIT (Dated: January 3, 2017)

Whether in the absence of assessee’s claiming relief u/s 54F either in the originalreturn or even in the revised return, the same can be granted in revision - YES: HC


Micro Inks Pvt Ltd Vs ACIT (Dated: January 31, 2017)

Whether notice u/s 148 can be issued by the subsequent AO on basis of materialswhich was already considered by the previous AO during assessment at that time -NO: HC


PR CIT Vs Atul Ltd (Dated: December 22, 2016)

Whether the ITAT is justified in recalling its judgment relying on the subsequentdecision of the writ court - NO: HC


CIT Vs Kwality Restaurant And Ice Cream (Datad: January 2, 2017)

Whether compensation received for permanent departure from ongoing business,would clearly render such compensatory non-compete fee as capital receipts - YES:HC



CIT Vs Mohan Vallabhdas Bhatiya (Dated: January 24, 2017)

Whether income earned on investment portfolio is chargeable under the head capitalgains and not under the head 'profits from trading of shares' - YES: HC


CIT Vs Morarjee Textiles Ltd (Dated: January 24, 2017)

Whether it is open to the AO to substitute the 'full value of consideration' received onsale of shares by its 'fair market value' in the subject A.Y - YES: HC

Whether power u/s 50D is only to be exercised if the AO comes to a finding that theconsideration received is not ascertainable - YES: HC


Jayant D Sanghavi Vs ITAT (Dated: February 1, 2017)

Whether unconditional withdrawal of appeal by the assessee himself, can be claimedas an apparent error, requiring exercise of jurisdiction u/s 254(2) - NO: HC

2017-TIOL-226-HC-KERALA-IT

R Ramachandran Nair Vs DCIT (Dated: January 10, 2017)

Whether the fact that a protective assessment has been completed against theassessee's wife, would ipso facto mean that assessment of such items of assets at thehands of her husband is not warranted - NO: HC

Whether when there are communications sufficient to suspect bonafides of dealsentered into by an assessee, then the same could be a basis to saddle such assesseewith tax liability, which requires proof of undisclosed income in the hands of assessee- NO: HC



Agarwal Yuva Mandal (Kerala) Vs UoI (Dated: January 10, 2017)

Whether an intimation sent to assessee u/s 143(1)(a) can be deemed to be an orderfor the purpose of Section 264 - YES: HC


Jivraj Tea Company Vs DCIT (Dated: January 9, 2017)

Whether when certain issue has already gone into detail by the AO, then subsequentre-opening on the very same ground can be said to be a mere change of opinion bythe succesor AO - YES: HC


Botad Peoples Coop Bank Ltd Vs ACIT (Dated: January 17, 2017)

Whether an assessee can claim loss in respect of diminution in value of securities forearlier years, merely because he was not granted benefit u/s 80P during such period -NO: HC


PR. CIT Vs Phonenix Datatech Services Pvt Ltd (Dated: January 6, 2017)

Whether when appreciation of circumstances and facts is manifestly perverse orcontrary to the record, the High Court in exercise of its appellate powers as the thirdforum of review, could intervene in the orders of Tribunal - NO: HC


CIT Vs Upcom Cables Ltd (Dated: January 9, 2017)

Whether when the assessee is to return the technical knowhow to the foreigncollaborator after termination of the agreement after five years, the royalty paid ascertain percentage of the sale price of the product is to be treated as revenueexpenditure - YES: HC



CIT Vs Sri Sai Darbar Trust (Dated: January 16, 2017)

Whether the eligibility of a trust for claiming exemption u/s 11, requires satisfaction ofthe conditions stipulated u/s 13 of I-T Act - YES: HC

Whether provision of Section 13(1)(b) gets attracted at the time of granting ofregistration to a trust u/s 12A and 12AA - NO: HC


Rashmi Infrastructure Developers Ltd Vs Income Tax Settlement Commission(Dated: January 20, 2017)

Whether where non-disclosure was done by assessee with deliberate intention topresent a frivolus facts from what existed before SETCOM, no writ jurisdiction is iswarranted in such case - YES: HC


Orient News Prints Ltd Vs DCIT (Dated: January 9, 2017)

Whether when it has been found that reasons on which an assessment is sought to bereopened were already gone into in detail by AO, a reassessment proceeding onsimilar grounds would be construed as a mere 'change of opinion' - YES: HC


Pr.CIT Vs U P State Bridge Corporation Ltd (Dated: January 12, 2017)

Whether when it is found that the statute permitting depreciation at a particular rateitself has been amended, the question as to whether such amendment is applicable todisputed period of assessment or not, is a substantial question of law - YES: HC


Pr.CIT Vs Mahavir Inducto melt Pvt Ltd (Dated: January 12, 2017)

Whether advances made to an assessee can be added as deemed dividend u/s2(22)(e) in his hand, if he is not a shareholder having substantial voting rights in thelender company - NO: HC



Pr.CIT Vs Gujarat State Investment Ltd (Dated: January 17, 2017)

Whether provision of Rule 8D can be made applicable with respect to earlierassessment years before A.Y 2008-09 - NO: HC


CIT Vs Institute Management Committee Of Industrial Training Institute(Dated: January 17, 2017)

Whether CIT can withdraw the registration granted to a trust u/s 12AA(1), in absenceof breach of the conditions specified for cancellation u/s 12AA(3) - NO: HC


CIT Vs Kanpur Educational Centre, Kalyanpur (Dated: January 12, 2017)

Whether an issue as to determination of actual percentage of accumulated incomeused for purpose of donations, being a factual issue requires no writ interference -YES: HC


CIT Vs Ambe Finleases Ltd (Dated: January 12, 2017)

Whether the provision of Section 269T can be applied towards payment of loan/sharecapital debenture - NO: HC


Star India Pvt Ltd Vs UoI (Dated: January 23, 2017)

Whether a writ would survive for adjudication, if the assessee has withdrawn thepetition for seeking appropriate interim relief before ITAT - NO: HC


Pebble Investment And Finance Ltd Vs ITO (Dated: January 17, 2017)

Whether statement made u/s 133A can be relied upon for purposes of assessment, inabsence of any contrary evidence or explanation as to why such statement made isnot credible - YES: HC


Pr. CIT Vs Totagars Co-Operative Sale Society (Dated: January 5, 2017)

Whether interest earned from a Cooperative Society Bank would be deductable fromthe gross income of co-operative society in order to assess its total income - YES: HC


CIT Vs Century Textiles And Industries Ltd (Dated: January 16, 2017)

Whether AO is permitted to tinker with the profit declared under audited A/cmaintained in terms of Schedule VI of Companies Act - NO: HC


CIT Vs Panther Fincap And Management Services Ltd (Dated: January 16,2017)

Whether decision taken by ITAT after properly examining factual findings, does not

warrant writ interference - YES: HC


Applewood Estate Pvt Ltd Vs DCIT (Dated: December 28, 2016)

Whether in absence of tangible material available with the AO to form an opinion thatincome chargeable to tax has escaped assessment, no reassessment is warranted -YES: HC


Lalitkumar Kishorbhai Patel Vs ITO (Dated: December 28, 2016)

Whether the successor AO can reopen an assessment merely on basis of change ofopinion, when there is no change in set of facts & circumstances - NO: HC


PR CIT Vs Quark Media House India Pvt Ltd (Dated: January 24, 2017)

Whether the price bargained for by the parties to sale, and not the price reflected inthe document, is to be considered for determining capital gain u/s 48 - YES: HC

Whether reference to DVO u/s 55A for determining fair market value is justified, whenit is clear that no excess consideration was received than the amount mentioned inthe sale deed – NO: HC


PR.CIT Vs Rajeshbhai Jivraj Desai (Dated: January 12, 2017)

Whether an addition can be made on account of investment in property, merely onbasis of statement of the original owners, when there is no evidence to show transferof any sale consideration - NO: HC



CIT Vs Parth Laboratories Pvt Ltd (Dated: January 17, 2017)

Whether additions can be made on account of suppressed sales, without examiningthe justification for decline in gross profits during subject A.Y - NO: HC


Arvind Kumar Vs DCIT (Dated: January 12, 2017)

Whether no transfer of property can be declared as void u/s 281, if the transferee hasproven that such transfer was made for adequate consideration and without notice ofthe pendency of any proceedings under the Act, or without notice of any tax payable

by the assessee - YES: HC


Sopan Infrastructure Pvt Ltd Vs ITO (Dated: January 18, 2017)

Whether the AO can reopen an assessment solely on basis of presumption thatassessee had received on-money with respect to sale of flats and it had escapedassessment - YES: HC

2017-TIOL-175-HC-KOL-IT

Amber Tie Up Ltd Vs ITO (Dated: January 16, 2017)

Whether the reasons formed by AO as to undisclosed source of income for initiating areopening, can be claimed by assessee as mere surmises, if it is apparent that AO isnot required to have conclusive proof of the same at that stage - NO: HC

2017-TIOL-170-HC-MAD-IT

CIT Vs Vinzas Solutions India Pvt Ltd (Dated: January 4, 2017)

Whether when the assessee is a mere reseller of computer software, the sum paid forpurchase is to be construed as royalty - NO: HC

Whether the provisions of Sec 9(1)(vi) come into play only where a share of profit isreserved for the title-holder of the copyrighted software - YES: HC

Whether for a payment to qualify as royalty it is necessary that there is an element ofexclusivity of rights in relation to the thing or product - YES: HC


Sports Infratech Pvt Ltd Vs DCIT (Dated: January 3, 2017)

Whether a company deserves fair opportunity to deposit the TDS collected in relationto contractual services, if the same was delayed due to reasons beyond the control ofcompany - YES: HC

Whether an application for compounding of offences u/s 279(2) initiated due to non-deposit of TDS by the assessee as per Section 276B, can be refused, if such failurewas on account of ongoing CBI investigations & seizure of books - NO: HC



Bdr Builders And Developers Pvt Ltd Vs ACIT (Dated: January 9, 2017)

Whether a reassessment notice issued in respect of an entity which ceases to exist byvirtue of amalgamation, is to be considered as unsustainable as per law - YES: HC


CIT Vs Kunal Shelters Pvt Ltd (Dated: January 9, 2017)

Whether when additional amenities or parking area constructed by assessee, wasregularised by the competent authorities, he cannot be denied from claimingdeduction u/s 80IB(10) in respect of the same - YES: HC


Cyrus Kersi Vandrevala Vs ITO (Dated: January 16, 2017)

Whether non-filing of return of the interest earned by a non-resident in India from hisNRO account, is no reason for reopening his assessment, if deposits are sourced fromabroad - NO: HC



CIT Vs Mala R Chadha (Dated: January 16, 2017)

Whether income earned from share trading can be treated as 'business income', whenthe investment by assessee was accepted as in the nature of 'short term capital gain'- NO: HC


Ancy John Vs ITO DCIT (Dated: December 21, 2016)

Whether when necessary particulars had already been given to the assessee showingreasons to believe, then such notices cannot be claimed by assessee as invalid - YES:HC


Pr.CIT Vs Dr Suman Gupta (Dated: January 9, 2017)

Whether invokation of Section 153(2A) for ascertaining the limitation period forconsequential order passed by AO is justified, when the AO pursuent to the directionissued by the ITAT, has made fresh assessment - YES: HC


CIT Vs Samson Perinchery (Dated: December 6, 2016)

Whether satisfaction of AO with regard to only one of the two breaches mentioned u/s271(1)(c) for initiation of penalty proceedings, permits him for imposition of penaltyfor the other breach - NO: HC

Whether order imposing penalty has to be made only on the ground of which penaltyproceedings has been initiated, and it cannot be on a fresh ground of which the

Assessee has no notice - YES: HC


Principal.CIT Vs Applitech Solutions Ltd (Dated: January 17, 2017)

Whether the AO is justified in making disallowances during remand proceedings onthe issues which were not approved by the ITAT, in absence of additional materialcollected during remand - NO: HC



BDR Builders And Developers Pvt Ltd Vs ITO (Dated: January 9, 2017)

Whether notice for reopening issued after six years of completition of assessment,against an original assessee which is not in existence due to compulsoryamalgamation, is void ab initio - YES: HC


HB Stockholdings Ltd Vs ACIT (Dated: January 4, 2017)

Whether the AO is permitted to revisit an assessment which was duly completed onlyafter carrying out search & seizure proceedings - NO: HC


CIT Vs Smt Brinda Arneja (Dated: January 6, 2017)

Whether when the books maintained by assessee were not rejected by the AO, it isnot open to the AO to make reference to DVO for determining the value of concernedproperty invested in by assessee - YES: HC

Whether the AO under such circumstances, is permitted to make addition on accountof unexplained investment u/s 69 - NO: HC


Principal.CIT Vs Axis Bank Ltd (Dated: January 16, 2017)

Whether ITAT can straightway remand a matter to the AO without examining themerits of the same, by merely reying upon he decision of Apex Court, in case theapplicability of such decision was not determined with regard to current proceedings -NO: HC


Principal.CIT Vs Gopal Glass Works Ltd (Dated: January 16, 2017)

Whether any addition can be made to total income of a company on account of

undisclosed income, by solely relying upon the statement of managing director of suchcompany obtained during survey which was subsequently retracted - NO: HC


Otters Club Vs DIT, Exemptions (Dated: January 12, 2017)

Whether the ITAT can claim 'administrative clearance' as a ground for its delayedorder u/s 254 for rejection of rectification application, beyond the period of 90 daysfrom the date of conclusion of its hearing - NO: HC


Anand Shukla Vs ITO (Dated: January 4, 2017)

Whether re-assessment based on additional information received from NOIDAAuthority is valid, when the explanation already given by assessee during assessmentwas sufficient and reasonable enough to drop the entire reopening process - NO: HC


Bankim Mohanlal Desai Vs ITO (Dated: December 29, 2016)

Whether reopening is justified, where the assessee has failed to disclose completetransaction of purchase of property and also failed to produce proof with respect tothe payment of sale consideration – YES: HC


Ankit Financial Services Ltd Vs DCIT (Dated: December 29, 2016)

Whether reopening on basis of subsequent information received from InvestigationWing, is sustainable, when there was tangible material available with the AO to primafacie form an opinion that income chargeable to tax has escaped assessment - YES:HC


Takshashila Gruh Nirman Vs DCIT (Dated: December 5, 2016)

Whether reopening deserves to be sustained, in case there is failure on the part ofassessee to disclose fully and truly all material facts necessary for assessment for theyear under consideration – YES: HC


Rasiklal M Parikh Vs ACIT (Dated: January 12, 2017)

Whether arbitral award passed subsequent to the appellate order for denial ofexemption benefit u/s 54F by ITAT, can be claimed as continuation of originalproceedings before ITAT for seeking amendment of application for additionalevidences so as to claim eligibility u/s 54F - NO: HC



Dindayal Commodities Pvt Ltd Vs DCIT (Dated: January 11, 2017)

Whether an AO is permitted to improvise the reasons recorded for reopening, bymerely filing an affidavit in reply or otherwise - NO: HC

Whether when the assessee has opportunity to raise objections in appellateproceedings against the additions made by AO, he cannot directly approach the HighCourt by way of writ - YES: HC


Ashish Gandhi Builders and Developers Pvt Ltd Vs ITAT (Dated: January 12,2017)

Whether mere filing of paperbook is indicative of the fact that case laws referredtherein has been relied upon by the assessee and submissions have been made withregard to the same - NO: HC


Pr.CIT Vs NC Cables Ltd (Dated: January 11, 2017)

Whether the AO for his own failure to investigate into the records submitted byassessee, for examining the genunity of transactions, can blame assessee whileinvoking additions u/s 68 - NO: HC

2017-TIOL-135-HC-ORISSA-IT

Swayamstuti Pattanayak Vs Pr.CCIT (Dated: December 2, 2016)

Whether mere absence of opportunity of being heard, can be a ground to claim thatdecision taken by Revenue authority was illegal - NO: HC

Whether well reasoned order passed for transfer of assessment due to policy decisionof re-structuring, but without providing opportunity of hearing to assessees, can betreated as invalid - NO: HC

Whether where the Revenue authorities have given protection to the rights ofassessee while passing an order, can such order be considered as illegal per se - NO:HC


CIT Vs BKN Rajaram (Dated: September 8, 2016)

Whether the Department can have any legal impediment to comply with the order ofCourt requiring it handover the gold jewellery to the Court, when Department is onlygarnishee in entire proceedings - NO: HC


CIT Vs Ganga Developers (Dated: January 10, 2017)

Whether rejection of books due to change in method of computation of Income is bad,when this change does not amount to inappropriate determination of income - YES :HC

Whether business expenditure which are not claimed to be bogus and/or not incurredfor the purpose of business by Revenue, should be allowed - YES : HC

Whether once the accepted Books of Accounts have been admittedly subjected toaudit, then the expenses claimed therein deserves to be allowed - YES: HC


CIT Vs A A Estate Pvt Ltd (Dated: January 9, 2017)

Whether reassessment process based on presumption that income has escapedassessment is invalid, when presumption itself is based on documents recoveredduring a search made on third party - NO : HC


Sree Narayana Guru Smaraka Sangam Upper Primary School Vs UoI (Dated:December 14, 2016)

Whether Section 234E which prescribes levy of fee on account of delay in filing of TDSstatements, is unreasonable and hence violative of Articles 14 & 19 (1)(g) of theConstitution of India - No: HC


CIT Vs Ayurvedic Beach Resort Pvt Ltd (Dated: January 10, 2017)

Whether additions proposed by CIT to be made in the assessment, can be rejectedafter finalization of the same by Settlement Commission in absence of any specificreasons - NO: HC


CIT Vs C Subba Reddy (Dated: December 19, 2016)

Whether advances paid to a closely held company on account of contractualobligation, can be treated as deemed dividend u/s 2(22)(e), merely because the payerwas a shareholder having substantial voting rights in the said company - NO: HC



Guwahati Metropolitan Development Authority Vs CIT (Dated: November 22,2016)

Whether income earned by an owner by providing parking facilities in the areasappurtenant to his building, can be attributed to such building merely because restingfacilities were available for the drivers in the aforesaid buildings - NO: HC

Whether Gotanagar Truck Terminus is a plant and not building, for the purpose ofclaiming depreciation u/s 32 r/w/s 43, and hence the owner of such terminus is

entitled to depreciation at the rate of 25% on the same - YES: HC

Whether High Court has jurisdiction to frame substantial questions, which has arisenout of the proceeding before it, in addition to the question already formulated at thetime of admission of appeals - YES: HC


CIT Vs Subhash S Shah (Dated: November 10, 2016)

Whether any addition on account of undisclosed income is warranted, where theSettlement Commission in its order passed u/s 245 had come to a conclusion thatthere cannot be any addition more particularly with respect to the transactions ofundisclosed shares, and such orders have attained finality – NO: HC

Whether addition can be made solely on the basis of statements of a party which weresubsequently retracted and there is no other material whatsoever on basis of whichaforesaid addition was made – NO: HC

Whether consideration of 60 days' rotation period while making addition onunaccounted investment in unexplained bank account peak balance is justified, if theundisclosed bank accounts were duly examined in such process – YES: HC

Whether telescoping principle would be applicable in case of cash payments generatedout of undisclosed bank account, once the amount deposited in uaccounted bankaccounts were considered by making addition on undisclosed income by taking peakcredit - YES: HC


Ajanta Pvt Ltd Vs ACIT (Dated: December 29, 2016)

Whether reopening is justified on the basis that while claiming deduction u/s 80IA, theassessee had not debited any financial charges and administrative expenses to theWindmill Division while computing profits from Windmill Division, thereby failing todisclose true facts necessary for assessment – YES: HC


CIT Vs Leela Ghosh (Dated: January 10, 2017)

Whether Section 194-I would apply to contractual payments in case of 'outsourcing ofspecialized job' to recording studios, if the job is performed by the personnel of thosestudios - NO: HC



PR CIT Vs Agilent Technologies International Pvt Ltd (Dated: January 10,2017)

Whether when an appeal was not decided by ITAT due to pressure of pendency ofcases and the delay in disposal was not attributable to assessee in any manner, then

the interim protection can continue beyond 365 days in deserving cases - YES: HC


PR CIT Vs Prime Infoways Pvt Ltd (Dated: January 6, 2017)

Whether any addition deserves to be made u/s 68 on basis of the material seized inrespect of a third party, where neither its evidentiary value is apparent nor the sameare subjected to investigation - NO: HC


Bombay Dyeing Manufacturing Company Ltd Vs ACIT (Dated: Janaury 13,2017)

Whether the AO can ignore the objections of assessee while finalizing any order onreassessment and dispose of the matter by passing a cryptic speaking order - NO: HC


E Infochips Ltd Vs DCIT (Dated: January 10, 2017)

Whether the AO can ignore the objections of assessee while finalizing any order onreassessment and dispose of the matter by passing a cryptic speaking order - NO: HC


PR CIT Vs Adani Gas Ltd (Dated: January 11, 2017)

Whether when the claim for preliminary expenditure stand accepted in preceding A.Ys,it will not be open for the Department in subsequent years to disallow the veryexpenditure u/s 35D - YES: HC


PR. CIT Vs Earth Stone Group (Dated: October 25, 2016)

Whether an exporter to qualify for deduction u/s 10B is required to substantiate theactual receipts pertaining to exports - YES: HC


Laxmi Shelters Vs DCIT (Dated: December 19, 2016)

Whether in absence of any failure on the part of assessee to disclose neccesary factsnecessary for assessment, the assumption of jurisdiction u/s 147 to reopenassessment beyond period of four years is contrary to law - YES: HC


Palakkad Dist. Co-operative Bank Ltd Vs Addl.CIT (Dated: December 7, 2016)

Whether in case of reassessment, right of assessee to challenge the reason to believewould cease, in case a composite order had been passed by the AO - NO: HC

Whether an act of non disclosure by assessee on basis of which it has derived abenefit which would not be otherwise available, warrants initiation of reassessment -YES: HC

Whether where an alternate statutory remedy exists, it is not viable for the assesseeto directly approach High Court for deciding validity of a reassessment proceeding -YES: HC


CIT Vs Jitendra Agrawal (Dated: December 22, 2016)

Whether any addition u/s 68 is warranted, in case the department is unable todischarge its burden of proving that transactions made by assessee were in anymanner bogus or fictitious - NO: HC


CIT Vs Many Enterprises (Dated: January 2, 2017)

Whether an order of appellate authority passed in absence of any findings beingrecorded with regard to the verification of details submitted during assessment, isinvalid order - YES: HC


CIT Vs Likproof India Pvt Ltd (Dated: December 23, 2016)

Whether the entry made in bank pay-in-slips will prevail over the entry made inassessee's books of account, for determining the nature of income unearthed duringthe course of search proceedings - NO: HC



CIT Vs Maharashtra Industrial Development Corporation (Dated: January 6,2017)

Whether an order can be reveiwed in case there is no mistake apparent from recordsor no new evidence is discovered after passing of such order - NO: HC

Whether administrative difficulties can be a reason for filing a defective appeal - NO:HC


Mobility Solutions Ltd Vs ACIT (Dated: December 23, 2016)

Whether order passed by ITAT placing reliance on the decision of Single Bench HC andthat too with inadequate consideration of the factual aspects, would be rendered ascryptic - YES: HC


Principal.CIT Vs Sanjay Hiralal Thakkar (Dated: December 22, 2016)

Whether rejection of assessee's books of account is a sine qua non for the AO forpurpose of making reference to the DVO u/s 142A - YES: HC


Devi Electronics Pvt Ltd Vs ITO (Dated: December 23, 2016)

Whether the likelihood of a different view when materials exist of forming areasonable belief of escaped income, will not debar the AO from exercising hisjurisdiction to assess the assessee on reopening notice - YES: HC


CIT Vs Harinagar Sugar Mills Ltd (Dated: January 4, 2017)

Whether subsidy received by State government as Excise Duty reimbursement, is arevenue receipt - NO: HC

Whether the subsidy received from State government can be added to arrive at bookprofits u/s 115J - NO: HC

Whether the AO while computing book profit u/s 115J has only power to examinewhether the books of account were maintained in accordance with the provisions ofCompanies Act or not - YES: HC


Ingram Micro India Exports Pte Ltd Vs DCIT (Dated: January 4, 2017)

Whether the income chargeable to tax which is deemed to have escaped assessmentdoes not arise simplicitor on not filing of return - YES: HC

Whether the reasons recorded for reopening can be supplemented by further reasonsor by filing an affidavit and/or making oral submission - NO: HC


Dinesh Mohan Vs CIT (Dated: December 7, 2016)

Whether the AO can refer a matter to the DVO for valuation only when the books ofaccount of assessee have been rejected - YES: HC


Sri Jaswant Singh Vs ACIT (Dated: December 21, 2016)

Whether the matter regarding determination of undisclosed income warrants properexamination, once the assessee had rebutted the presumption which had been drawnagainst him - YES: HC


Shri C P Gangadhareshwara Vs Income Tax Department (Dated: January 4,2017)

Whether an assessee can be prosecuted u/s 276CC merely on basis of belated filing ofhis return, in case those returns were accepted and the assessment were carried out -NO: HC



CIT Vs Central Bank Of India (Dated: January 5, 2017)

Whether reopening notice u/s 148 can be invoked, without complying with theprovisions of Section 147 - NO: HC


CIT Vs Industrial Credit And Investment Corporation Of India Ltd (Dated:January 9, 2017)

Whether when finance company leases out its machinery to third parties who uses thesame for manufacture in accordance with Section 32A(2)(b)(iii), the former is entitledto investment allowance in respect of such machinery u/s 32A - YES: HC


CIT Vs Aroni Commercial Ltd (Dated: January 6, 2017)

Whether non-consideration of reply filed by the assessee in answer to the queriesraised by the AO in the assessment order, can be treated as a ground by the AO fornot being satisfied with answers, for the purpose of invoking Section 148 - NO: HC

Whether 'oversight of the claim' can be urged as a ground by the AO to reopen anassessment, if the AO has ignored the relevant material in regular assessmentproceedings - NO: HC


CIT Vs Dr Virendra Swaroop Educational Foundation (Dated: January 3,

2017)

Whether renewal of certificate u/s 80G(5) can be denied to an educational society,merely because the society has earned surpluses while imparting education, when theterm 'education' u/s 2(15) itself provides for wider interpretation - NO: HC



Amar Hotchand Nagpal Vs ACIT (Dated: December 21, 2016)

Whether reassessment made on basis of mere re-examination of existing facts, wouldbe construed as change of opinion, and hence the AO is not permitted for the sameunder I-T Act - YES: HC

2017-TIOL-69-HC-GUW-IT

Shiv Shakti Flour Mills Pvt Ltd Vs CIT (Dated: November 29, 2016)

Whether subsidy/incentive received by government for the benefit of public at large ,can be considered as revenue receipt in the hands of assessee - NO: HC

2017-TIOL-68-HC-GAW-IT

Modi Revlon Pvt Ltd Vs CIT (Dated: November 24, 2016)

Whether tax liability for an accounting period can be ignored under mercantile systemof accounting, if such liability is disputed in a legal forum - NO: HC

Whether a provision created for central excise duty in the books of account, can bedisallowed on the basis that such precise amount of duty payable was pendinglitigation before the highest forum - NO: HC


CIT Vs Shriram Transport Finance Company Ltd (Dated: December 23, 2016)

Whether creation of a provision for bad debts in the corporate accounts, would impactthe claim of bad debt u/s 36(1)(vii) in the regular computation of income - NO: HC

Whether the allowability of a bad debt claim for Income Tax computation purposescan be affected by mere fact that such assessee maintains two separate sets of books- NO: HC

Whether an issue consistently decided in the assesse's favour for several years neednot be disturbed, unless there are sufficient convincing reasons for doing the same -YES: HC



Sabarkantha District Central Cooperative Bank Ltd Vs DCIT (Dated: December13, 2016)

Whether an assessment once finalised can be reopened beyond the period of 4 years,even in case AO has inadvertently allowed a double benefit & assessee is not guilty -NO: HC


Anar Retail Pvt Ltd Vs DCIT (Dated: December 27, 2016)

Whether AO can pass assessment order without disposing of the objections raised byassessee or without giving reasonable opportunity to raise objections - NO: HC


Redington India Ltd Vs ADDL CIT (Dated: December 23, 2016)

Whether a disallowance in terms of section 14A r/w Rule 8D can be contemplatedeven in a situation where no exempt income has been earned - NO: HC


Kamleshkumar Gandalal Shah Vs ITO (Dated: October 4, 2016)

Income Tax - Writ Petition - Whether when the AO had examined the claim ofdeduction u/s. 80IB(10) in the original scrutiny assessment without there beinganything further, would it be open for him to contend that since a particular aspect ofthe deduction was not examined , he should be permitted to reopen the assessmentu/s 147/148.


Skin Institute And Public Services Charitable Trust Vs CIT (Dated: January 2,2017)

Whether I-T Authorities are permitted to import disqualifications applicable tocategories of income that may otherwise be eligible to exemption, into amounts whichare per se entitled to be treated as not forming part of the total income - NO: HC

Whether receipt of significant amounts by the owner of a hospital, would undermineits entire charitable nature by reason of Section 13 - NO: HC


CIT Vs Jet Airways India Ltd (Dated: January 4, 2017)

Whether the passenger security fees which is not for use of land or building but forproviding security services and facilities to the embarking passengers of the airline,attracts the provision of Section 194-I - NO: HC


CIT Vs Bholey Baba Milk Food Industries (Dated: December 16, 2016)

Whether an assessee can claim 100% depreciation on certain components of amachinary, in case such components are to be considered as an integral part of thatmachinary - YES: HC

Whether if the business expenses incurred were in excess of the loan receipts, it canbe claimed that no funds taken out from the loan receipts were diverted towards anynon business purpose - YES: HC


Ajanta Pvt Ltd Vs DCIT (Dated: December 19, 2016)

Whether the AO is permitted to reopen an assessment on the ground that deductionu/s 80IA during previous years were allowed without obtaining separate P&L A/c andbalance sheet from assessee - NO: HC


Everest Advertising Pvt Ltd Vs CIT (Dated: December 23, 2016)

Whether the provision of section 37(5) would have any application when the guesthouse is being used as holiday home i.e. for exclusive use of employees on leave -NO: HC


CIT Vs Chemech Laboratories Ltd (Dated: December 23, 2016)

Whether entire consideration paid for tansfer of business under three seperateagreements for Brand Acquisition, Consultancy and Non-compete, would be taxable as'business income' - NO: HC



VGP Housing Pvt Ltd Vs ACIT (Dated: December 23, 2016)

Whether the fact finding exercise regarding giving reference to clause (i) of theExplanation to section 115JA & computation of book profits is entrusted only upon AO- YES: HC


Raghunath Devchand Patil Vs ACIT (Dated: December 28, 2016)

Whether reassessment proceedings can be initiated on basis of CIT(A)'s directions,which too have been subsequently set aside by Tribunal, without according approvalof appropriate authority u/s 151 - NO: HC


Sujag Fine Chemicals Pvt Ltd Vs ITO (Dated: December 29, 2016)

Whether when an assesee has duly replied to the questionnaires sent by AO, anysubsequent reopening of similar issue would amount to a mere change of opinion -YES: HC


CIT Vs Shree Raghunath Cold Storage (Dated: July 21, 2016)

Whether reopening of assessment u/s 148 is valid on the ground which has alreadybeen disclosed by the assessee - NO : HC


CIT Vs Kumar Auto Sales (Dated: October 24, 2016)

Whether when both CIT(A) as well as ITAT on application of the principle laid down bySC concluded that the processes adopted by assessee to obtain front guard, luggagecarrier & rear gear were manufacturing processes, such assessee cannot be denieddeduction u/s 80IA - YES: HC


Mookambika Associates Vs ACIT (Dated: November 23, 2016)

Whether coercive exercise of statutory power by AO for enforcement of recoveryproceedings under law, can be viewed as hardship, when the assessee hascontinuously defaulted in payment of demand resulted out of search proceedings -NO: HC


2017-TIOL-38-HC-UKHAND-IT

Maruti Nandan Sah Vs ITO (Dated: December 26, 2016)

Whether an assessee deserves writ remedy in absence of any evidence to showdefiance of his fundamental rights or denial of hearing opportunity during proceedingsbefore subordinate forums - NO: HC


Kothi Steel Ltd Vs DCIT (Dated: December 27, 2016)

Whether AO is permitted to reopen an assessment, if the material on basis of whichAO has placed reliance for issuing notice u/s 148 was not sufficient for formingrequisite belief that income chargeable to tax has escaped assessment - NO: HC

2017-TIOL-34-HC-HP-IT

Virbhadra Singh Vs Deputy Commissioner (Dated: December 26, 2016)

Whether reopening is sustainable, when there is existence of reasonable groundenabling the AO to form a belief with regard to non-disclosure/escapement of income- YES: HC


CIT Vs Kuwer Fibres Pvt Ltd (Dated: October 20, 2016)

Whether adoption of estimated valuation is justified, when the purchases were madeoutside the books of account and proper accounting or reconciliation was not made bythe assessee – Yes: HC

Whether rejection of valuer's report is sustainable, where neither the valuer's reportwas produced within the stipulated time nor was it unverified – Yes: HC

Whether addition made on basis of director's statement recorded during the course ofsearch proceedings is sustainable, where the statements recorded are dulycorroborated by evidences on record – Yes: HC


Harikishan Sunderlal Virmani Vs DCIT (Dated: December 20, 2016)

Whether reopening beyond period of four years is sustainable, where the material onbasis of which AO has assumed jurisdiction u/s 147 is the information received fromexternal source and he himself has no independent opinion to record that income hasescaped assessment – NO: HC


CIT Vs Society of Indian Automobile Manufacturers (Dated: December 14,2016)

Whether mere circumstance of collection of seminar fees would not result in the trustlosing its essential character of being established for charitable purposes - YES: HC


Rasiklal Kantilal And Co Vs CIT (Dated: November 24, 2016)

Whether any writ remedy is allowable to an assessee, when the alternative efficaciousremedy available with the appellate authorities are yet not exhausted - NO: HC

2017-TIOL-25-HC-PATNA -IT

Rakesh Kumar Vs Principal CCIT (Dated: December 6, 2016)

Whether an assessee deserves grant of stay on demand made by I-T Authorities tilldisposal of first appeal, if the same is shown to have been proposed under the Board'sCircular - YES: HC


CIT Vs Punjab Infrastructure Dev Board (Dated: December 20, 2016)

Whether the amendment in Sec 201(1A) vide FA, 2010 nullifies the liability to payinterest for TDS default - NO: HC


Maruti Sah And Brothers Vs ITO (Dated: December 26, 2016)

Whether the option of writ remedy can be exercised even if there is no violation ofprinciples of judicial procedure and the assessee being given hearing opportunity -NO: HC


Bhartiben Bakuleshbhai Mehta Vs ITO (Dated: December 6, 2016)

Whether a wrong grant of benefit or exemption by the AO during assessment, can bethe sole basis to reopen such assessment beyond the period of four years - NO: HC



PR CIT Vs Mahagun Realtors Pvt Ltd (Dated: December 21, 2016)

Whether when both the parties to litigation are ad idem to the question that forspecific A.Ys the question of absence of materials had not been urged, the matterdeserves consideration afresh - YES: HC


Mahalaxmi Bullions Pvt Ltd Vs CIT (Dated: December 14, 2016)

Whether when the assessee has neither appeared himself nor caused any appearanceon his behalf on the additional dates of hearing, he cannot complain that its right toadduce additional evidence was not properly appreciated - YES: HC


Namco Industries Pvt Ltd Vs UoI (Dated: December 5, 2016)

Whether an assessee is obligated to respond to a show cause notice, which is issuedby the Authority in excess of jurisdiction granted to him under the Statute - NO: HC

Whether even if the assessee has acted upon such notice, he is permitted to seekappellate remedy against the show cause notices issued subsequently - YES: HC

Whether issuance of a show cause notice, can by itself form the basis for imposition ofpenalty - NO: HC


DIT Vs Aditya Vikram Birla Memorial Trust (Dated: November 22, 2016)

Whether it is open to the I-T Authority to appeal against an issue which standsconcluded by the Apex Court, without even explaining reasons for the same - NO: HC


Dr Atul Magan Vs DCIT (Dated: December 7, 2016)

Whether when the assessee has alternative remedy to challenge the applicability ofsection 179, it is open to him to directly approach the High Court under writjurisdiction - NO: HC


ACIT Vs Apollo Hospital Enterprises Ltd (Dated: December 5, 2016)

Whether dispatch register can be construed as sufficient evidence for proving deemedservice of notice u/s 148 by the AO, in absence of any authenticated signature of AOon the same - NO: HC

Whether 'affixation of signature' on the reopening notice itself would amount to'issuance of notice' without setting the same in motion - NO: HC



CIT Vs Mirc Electronics Ltd (Dated: December 9, 2016)

Whether non-allocation of expenses commonly incurred towards HO, can beconsidered as furnishing of inaccurate particulars, for proposing levy of penalty - NO:HC


CIT Vs Nahar Export Ltd (Dated: October 19, 2016)

Whether the monetary limit stipulated in CBDT circular for computing tax effect, mustbe determined on the basis of the whole appeal and not in respect of any individualissue raised in the appeal - YES: HC

Whether when CIT(A) has confirmed that on the basis of assessee's books ofaccounts, there is a loss in respect of trading activities while dealing with the case u/s80HHC, could he come to a contrary conclusion while dealing with claim u/s 80IA -NO: HC


Zuari Management Services Ltd Vs CIT (Dated: December 23, 2016)

Whether when a notional tax effect is directly attributable to the error in theassessment order, then such order requires revisional interference u/s 263 - YES: HC


Jeevan Investment And Finance Pvt Ltd Vs ITO (Dated: December 13, 2016)


Techprocess Payment Services Ltd Vs ITO (Dated: December 8, 2016)

Whether when certain facts are subject to inquiry in the regular assessmentproceedings, then the same cannot be re-agitated before High Court in reassessmentproceedings if no fresh evidence is produced in that regard - YES: HC


CIT Vs Uttar Pradesh Financial Corporation (Dated: December 8, 2016)

Whether an assessee can be held liable for payment of interest tax as a result of anamendment, for the period when such assessee was not actually liable to pay that tax- NO: HC


CIT Vs Weizmann Ltd (Dated: December 9, 2016)

Whether an issue which was never the subject matter of consideration in an orderpassed u/s 143(3) r/w/s 254, can be sought for rectification u/s 154 - NO: HC



CIT Vs Tip Top Typography (Dated: December 9, 2016)

Whether when an issue arising in circumstances at present stand governed by thedecision of HC, then such dispute is required to be settled in accordance with theprinciples laid down under said decision - YES: HC


Torrent Power Sec Ltd Vs ACIT (Dated: December 2, 2016)

Whether an assessment can be reopened merely on basis of objections raised by theAudit Party - NO: HC


Principal.CIT Vs Todays Writing Products Ltd (Dated: December 15, 2016)

Whether estimation of profits is the only alternative available, in case of loss of booksof account due to fire in assessee's premises - YES: HC


Raza Hussain Vs CIT (Dated: December 13, 2016)

Whether in case the CIT(A) has simply confirmed the orders of AO without recordingany reasons in respect thereof, such issues requires reconsideration - YES: HC

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