- Sec 194C – Chennupati Kutumbavathi vs. DCIT
[2017] 83 taxmann.com 97 (Visakhapatnam – Trib.)
Where assessee a transporter, having entered into an agreement with Co ‘ITC’ for transport of goods, hired lorries from various parties and deployed same at disposal of Co. ‘ITC’ on payment of hire charges, since total responsibility/risk of transporting goods rested on assessee, payments made to lorry owners did not come within purview of section 194C requiring deduction of tax at source.
- Sec 244A – Engineers India Ltd vs. CIT
[2017] 84 taxmann.com 178 (SC)
SC remanded the matter to a larger bench of HC to consider grant on interest on refund of self-assessment tax.
- Sec 69C – Earthmoving Equipment Service Corporation Vs DCIT
[2017] 84 taxmann.com 51 (Mumbai – Trib.)
In the said case, certain repairs and maintenance items were purchased by assessee from five suppliers which were treated as bogus by the Assessing Officer as the supplier could not be traced, and therefore, he invoked section 69C holding the same as an unexplained expenditure.
On the said basis, the penalty imposed was dropped as all payments were made through banking channels; assessee made a claim which was bona fide and same was coupled with documentary evidence, same remained inconclusive for want of confirmation from suppliers
- Sec 271AAA – ACIT VS Emirate technologies Pvt. Ltd.
ITA 400/ 2017 Delhi High Court
Penalty u/s 271AAA cannot be levied in respect of undisclosed income found during a search u/s 132 on the ground that assessee has not specified manner in which such income has been derived if no specific query was asked to the assessee during the course of search
- Sec 145 – Marg Ltd vs. Principal Commissioner of Income-tax
[2017] 84 taxmann.com 52 (Madras)
Section 145 of the Income-tax Act, 1961 – Assessing Officer had made addition to income returned by the assessee by estimating gross profit – Tribunal held that profits of the assessee could not be estimated without rejecting its books of account and deleted addition – Whether no substantial question of law arose from Tribunal’s order.
- CIT vs. M/s. Diamond Dye Chem Ltd.
Income tax appeal no. 146 of 2015 Dated: 7th July 2017
Modvat credit is an irreversible credit offered to manufacturers upon purchase of raw materials on which duty is being paid, that would not amount to income that will be liable to be taxed. It was held that Irrespective of the method of accounting followed, the unutilized Cenvat credit does not constitute income and cannot be directly added to the closing stock.
- Sec 269SS & Sec 269T: Amendment in disclosure in Form No. 3CD
Notification No. GSR 821(E) [No.58/2017 (F.No.370142/10/2017-TPL)],
dated 3-7-2017
This notification mandates that property advance above Rs. 20,000 should be disclosed in the tax audit report under section 44AB of the Income Tax Act.
- Tata Power Solar Systems Ltd. vs. Commissioner of Income-tax-7
[2017] 84 taxmann.com 52 (Madras)
Where there was no evidence that assessee undertook the business of property development, its immovable property developed through another developer upon executing an agreement would constitute adventure in nature of trade, and profit derived from the sale of such development would be treated as a capital gain. AO action to consider business income merely because MOA provides for property development as one of objective
- Sec 69C – N. K. Proteins Ltd. Vs. DCIT
[2017] 84 taxmann.com 195 (SC)
25% of the total purchase cost rightly added to income if entire purchases were found as bogus, SC dismissed SLP
- Sec 43B – P.CIT vs. Rajasthan State Beverages Corporation Ltd
[2017] 84 taxmann.com 185 (SC)
PF and ESI deposited on or before the due date of filing of return couldn’t be disallowed, Apex court dismissed SLP
- CBDT releases final rules for valuation of unquoted equity share
Notification no. GSR 865(e) [no.61/2017 (f.no.149/136/2014-tpl)],
dated 12-7-2017
- CBDT notifies bond of ‘Indian Railway Finance Corporation Limited’ for a sec. 54EC relief
