Wednesday, January 15, 2014

Some Latest Judgements

Section 14A: Dis allowance of expenditure incurred for earning Exempt Income The Delhi High Court has held that where no error or discrepancy was pointed out before tribunal for making dis allowance, there was no error in remitting matter to assessing officer for fresh consideration.

Section 10(23C): Exemptions to Religious and Charitable Trusts The Bangalore ITAT bench has held that exemption under section 10(23C)(iiiac) is automatic for Hospitals which are wholly or substantially funded by Government of India or a State Government.

Section 2(24): Income

The Delhi High Court has held that where the assessee company passed a resolution not to charge interest in view of financial difficulties of borrowing companies and it was found that the borrowing companies were in sound financial position, then the addition of interest was held to be justified.

Section 5: Scope of Total income

The Mumbai ITAT bench has held that the entire fee / commission accrued in this year and no part of it can be spread to next year. The CIT(A) was not justified in directing the spread over of the advisory fee over the period of loan.

Section 35: Scientific Research Expenditure

The Karnataka High Court has held that Exp. on development of acquired software is scientific research exp.; deductible under section 35

Section 194I: TDS on Rent

The Rajasthan High Court has held that amount of service tax under contract is to be paid separately and not subjected to tax deduction at source u/s 194I. Under the terms of contract, the amount of service tax was to be paid separately, and therefore, it was not subject to tax deduction at source.

Section 43B: Deduction of certain expenditure on cash basis 

The Mumbai ITAT bench has held that where employer’s and employees’ contribution to provident fund was disallowed for failure to pay same before due date of filing of return, deduction for said contribution to be allowed in year of payment. 


Post a Comment