Category: Judgments

Same transaction cannot be subject matter of assessment under Section 147 twice; one by the ITO and the other by the DCIT – High Court  In a recent judgment High Court quashed notice passed u/s 148 holding that same transaction cannot be subject matter of assessment under Section …

When property purchased and sold within same year both sale and purchase price has to be adopted by applying same guideline value u/s 50C – ITAT If AO adopts a deemed price u/s 50C, then where property was purchased within same year both sale and purchase price has …

Addition deleted as it was made on the basis of letter of District Magistrate which not recovered during the search In a recent judgment, Allahabad ITAT has deleted addition made on the basis of letter of District Magistrate which had not been recovered during the search and therefore, …

Allegations of delay in TDS deposit, role of person responsible are disputed factual matters which must be tested at trial through evidence and cross examination. In a recent judgment, Hon’ble Supreme Court has dismissed assessee’s SLP against High Court order that allegations regarding deduction of TDS, delay in …

Penalty u/s 270A deleted as AO failed to mention under which clause the case of the assessee fall. In a recent judgment, ITAT Delhi deleted penalty u/s 270A as the Assessing Officer (AO) directly applied the higher penalty percentage provided in Section 270A(9) without mentioning under which clause …

Income of section 25 company by deploying ex-servicemen as security guards was not business activity. In a recent judgment, Kerala High Court has held that income by deploying ex-servicemen as security guards was not business activity for section 25 company established for assistance to the Ex-Servicemen. ABCAUS Case …

In absence of a valid final assessment order passed within statutory time frame, draft assessment order cannot give rise to any enforceable demand  In a recent judgment, Calcutta High Court has held that in the absence of a valid final assessment order passed within the statutory time frame …

No disallowance u/s 43B can be made if expenditure has not been not claimed by the assessee in Profit and Loss Account In a recent judgment, ITAT Hyderabad has held that if the assessee has not claimed any expenditure in its Profit and Loss Account, then no disallowance …

Whether an assessee developing an infrastructure facility of Government is a contractor and ineligible for claim of deduction under Section 80-IA? In a recent case, the issue whether  an assessee developing an infrastructure facility of Government is merely a contractor and thus ineligible for claim of deduction under …

AO was not justified in making addition by adopting method of extrapolation without bringing any material evidence in support – ITAT In a recent judgment, ITAT Delhi has held that AO was not justified in making addition by adopting the method of extrapolation without bringing any material evidence …