Mutual Funds as Investment, Not Business – The Tribunal and CIT(A) held that transactions in mutual funds were investments, not stock-in-trade, based on factors like quantum, frequency, holding period, purpose, and disclosure in financial records. Gain on mutual fund redemption deemed as capital gain, not business income. [Paras 11-15]
Capital Contribution and Deemed Dividend &n...
Income Tax – Delay in Filing Form 10 – Condonation of Delay – Petitioner sought quashing of order by Commissioner of Income Tax (Exemption) and for directions to accept Form No.10 with condoned delay. Amendments in Income Tax Act and rules leading to inadvertent delay acknowledged. Comparison with similar condonation in AY 2017-18 and AY 2018-19 highlighted. [Para 1, 2, 3]
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Income Tax Appeal – Assessment under Section 153A – Validity of initiating proceedings under Section 153A – Appellant challenges the order of the Income Tax Appellate Tribunal – Questions raised regarding the scope of assessment under Section 153A and applicability of CIT Vs Kabul Chawla and Dr. A.V. Sreekumar judgments – Appellant did not press question No. 2.1 &ndas...
Income Tax Act – Deduction under Section 80 IA – Market value of electricity – Distinction between market value and contracted price – Assessee’s right to claim higher deduction based on market value as against contracted sale rate to State Electricity Board – Tribunal and High Court’s view upheld. [Para 15-34]
Depreciation on Assets – Written Dow...
Taxation Law - Tax Demand – Setting Aside of Arbitrary Tax Demand: Petitioner challenged tax demand of Rs. 21,50,150/- for AY 2012-13 raised by respondent – Employer deducted tax but failed to deposit with revenue – Reliance on Section 205 of the Income Tax Act and pertinent judgments – Held, demand set aside as petitioner cannot be penalized for employer’s non-compli...
Input Tax Credit & Special Rebate under KVAT Act – Assessment Years 2009-10 to 2012-13 – Petitioners, rubber dealers, entitled to input tax credit and special rebate under Sections 11 and 12 of KVAT Act for tax paid on local rubber purchases. [Para 2]
Exemption Notifications and Inter-State Sales – Notification under Section 8(5) of CST Act exempting natural rubber from CS...
Income Tax – Gains from Foreign Exchange Fluctuations – Non-inclusion under Section 80HHC Deduction – Gains from foreign exchange fluctuations in EEFC account not considered as income derived from export business – EEFC account gains not directly related to the business of export of goods, hence cannot be included in deduction under Section 80HHC of Income Tax Act. [Paras 2...
Income Tax – Reassessment proceedings under Section 148 – Challenge against issuance of notice for reassessment – Impugned notice based on ‘reason to believe’ that income had escaped assessment – Writ petition filed against proceedings. [Paras 1-6]
Income Tax Return – Filing and processing of return – Return for Assessment Year 2011-12 p...
Income Tax – Reassessment Notices – Applicability of Limitation Period – Assessment Years 2016-17 and 2017-18 – Notices issued under Section 148 of the Income Tax Act, 1961, post-enactment of Finance Act, 2021, treated as issued under Section 148A(b) – Validity of reassessment actions including orders under Section 148A(d) and consequent notices under Section 148 &nda...
Value Added Tax – Input Tax Credit – Entitlement to full Input Tax Credit (ITC) by the assessee on goods purchased for manufacturing final products – Whether the assessee is entitled to claim full ITC on raw Rice Bran used for manufacturing Rice Bran Oil (RBO), a taxable product, and De-Oiled Rice Bran (DORB), an exempted by-product – Supreme Court allows full ITC. [Para 3-...