Not to enforce demand if intimation u/s 143(1)

CBDT – Not to enforce demand if intimation u/s 143(1) undelivered for returns processed prior to 31-03-2010 instruction no.4/2013 dated 05-07-2013 [honorable delhi high court vide judgment in case of court on its own motion v/s UOI].

For exemption under sec 54F

For exemption under sec 54F, deposit in capital gains A/c scheme by due date of filing ITR under sec 139(4). [CIT, Rohtak v/s Shri J S Chawla, HC, Punjab and Haryana].

Books of account pre-requisites to tax unexplained cash credit

Books of account pre-requisites to tax unexplained cash credit, no additions for deposit in bank account in absence of books.[ CIT(A) – ITO vs kamal kumar mishra [2013] 33 taxmann.com 610 (Lucknow - Tribunal)].

Retention money is not an income

Retention money is not an income of contractor if it has got no rights on it till satisfactory completion of work. [DIT (International taxation) vs. Ballast Nedam International [2013] 34 taxmann.com 270 (Gujarat)].

RBI has increased the bank audit fees

RBI has increased the bank audit fees payable form financial year 2012-13 as per [RBI Notification no. DBS.ARS.No.BC. 08/ 08.92.001/ 2012-13 dated 25-06- 2013].

Lower Deduction Certificate

Lower Deduction Certificate to a unit enough to cover other units of assessee even if separate TANs. [CIT Chandigarh Vs Parle Biscuits. High Court of Punjab & Haryana].

Right to collect toll is an intangible asset

Right to collect toll is an intangible asset within the purview of sec. 32(1)(ii) of the Income Tax Act and is eligible for depreciation. [ACIT Vs. Ashoka Infraways (P.) Limited, 2013] 33 taxmann.com 499 (Pune - Tribunal)].

demerger abundant

Resultant Company can file appeal after demerger abundant caution appeal by demerged Company dismissed to avoid duplicity. [Cairn Energy Gujarat BV Vs. ADIT [2013] 34 taxmann.com 281 (Ahmedabad - Tribunal)]

No violation of Sec 269SS

No violation of Sec 269SS for cash loan from relative if assessee unable to get it in cheque or DD for some valid reason. [CIT-I Vs M.Yesodha, Chennai High Court].

Stridhan of a lady

Stridhan of a lady seized from her ex-husband’s premises during search of Income Tax must be handed over to her. [High Court Of Gujarat at Ahmedabad Renuka R Modi].

Valuation loss is allowable

Valuation loss is allowable even if stock-in-trade shown as investment in compliance of RBI guidelines. [Karnataka Bank Ltd. Vs. ACIT [2013] 34 taxmann.com 150 (Karnataka).]

Addition on the basis of seized material

Addition on the basis of seized material was unjustified if assessee was able to show that the admissions made during survey were incorrect. [Acit V. Maya Trading Co.( 2013) 34 taxmann.com 144 (Agra – Trib)].

No disallowance of expenditure u/s. 40(a)(ia)

No disallowance of expenditure u/s. 40(a)(ia) for default of short-deduction of TDS under Income Tax Act.[Income Tax Appellate Tribunal Mumbai].

Rejection of Books of account

• Mere rejection of Books of account and estimation of profit cannot be ground for concealment penalty under Income Tax Act. [High Court of Gujarat Whitelene Chemicals].

SC on S. 194C TDS does not apply to contract manufacturing agreements

CIT vs. Silver Oak Laboratories P. Ltd (Supreme Court) S. 194C TDS does not apply to contract manufacturing agreements  The assessee, a manufacturer of pharmaceutical products, entered into agreements with various manufacturers who manufactured the said items according to the specifications provided by the assessee. The AO held that the transaction between the assessee and the manufacturer was in the nature of a "works contract" and fell within the purview of s. 194C and that the assessee ought to have deducted TDS thereon. The assessee was held to be in default and liable to pay the tax and interest u/s 201(1) & 201(1A). On appeal by the assessee, the Tribunal held that the transaction was one of sale simplicitor and was not in the nature of a work contract and that the assessee was not liable to deduct TDS u/s 194C. The department's appeal to the High Court was dismissed by following Reebok India 306 ITR 124 (Del). On appeal by the department to the Supreme Court, HELD dismissing the SLP:  On examining the terms and conditions, invoices, purchase orders and challans indicating payment of excise duty, there is no material on record to indicate that the transaction in question is a "contract for carrying out works". Hence, s. 194C is not attracted. S. 194C has been amended by the Finance (No.2) Act, 2009, w.e.f. 1.10.2009 to provide that "work" includes manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer. It is clarified that the definition of the word "work" will not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person other than such customer.  This impliedly approves the view taken in Glenmark Pharmaceuticals 324 ITR 199 (Bom)

E-filing of form 3CEB

E-filing of form 3CEB for specified domestic transactions mandatory besides for foreign transactions. [New Rules and Revised Form. Income Tax 6th Amendment Rules, 2013] .

Statement of the assessee in survey operations

Statement of the assessee in survey operations not conclusive piece of evidence under Section 133A of the Income Tax Act. [CIT Vs P. Bala Subramanian, 2013, 354ITR 116 (Madras)].

Penalty u/s 271 (1)(c)

Penalty u/s 271 (1)(c) of the Income Tax Act cannot be levied in respect of an addition made u/s 50C.[Commissioner of Income Tax Vs Madan Theatres Limited (Calcutta High Court)].

Home loan prepayment fee

Home loan prepayment fee/foreclosure charges are eligible for deduction under head Income from house property. [Case of Windermere Properties, ITAT Mumbai].

Transfer pricing law

Transfer pricing law not applies to share investment transactions under Income Tax Act. In the Income Tax Appellate Tribunal Hyderabad Bench M/s Vijai Electricals Limited.