Four Important Verdicts From ITAT + Four Important Directives From CBDT

Schrader Duncan Limited vs. ACIT (ITAT Mumbai)

S. 271(1)(c): If the High Court admits the appeal u/s 260A, it means that the issue is debatable and penalty cannot survive

When the Hon’ble jurisdictional High Court has admitted substantial question of law on the addition, it becomes apparent that the addition so made has become debatable. The penalty was imposed on the basis of addition so made, therefore, when the addition on the basis of which the penalty was imposed has become doubtful/debatable, therefore, penalty imposed u/s 271(1)(c) of the Act cannot survive

 

Gera Developments Pvt. Ltd vs. JCIT (ITAT Pune)

(i) S. 40(a)(ia) disallowance cannot be made if the assessee has not claimed a deduction. (ii) S. 80-IB(10) deduction cannot be denied on the ground that the completion certificate has not been issued by the Municipality if the assessee has completed construction before the due date

Explanation (ii) to section 80IB(10)(a) of the Act prescribes that the date of completion of construction of the housing project shall be taken to be the date on which the completion certificate in respect of such housing project is issued by the local authority

 

Ashoka Education Foundation vs. CIT (ITAT Pune)

S. 12AA/80G(5): CIT, while granting registration or renewal, can only look at the nature of activities and is not concerned with violation of s. 11(5) or s. 13

While granting the exemption or renewal of exemption under section 80G(5) of the Act, the role of CIT is limited to look into the nature of activities being carried on by the institution or fund and the violation if any, of the provisions of section 13 of the Act and its various subsections are to be looked into by the Assessing Officer while deciding the issue of grant of deduction under sections 11 and 12 of the Act

 

Yahoo Software Development India P.Ltd vs. DCIT (ITAT Bangalore)

Transfer Pricing: Comparables have to be excluded by the turnover filter without a FAR analysis being required to be conducted. The AO cannot rely on information obtained u/s 133(6)

Turnover is an important filter which has to be adopted for determination of the ALP. The FAR analysis would not alter the turnover of the company. The TPO has drawn conclusions on the basis of information obtained by issue of notice u/s.133(6) of the Act. This information which was not available in public domain could not have been used by the TPO

 

CBDT Order On Transfers And Postings Of CsIT And DsIT

Vide Order No. 5 of 2015 dated 05.01.2015, the CBDT has ordered the transfer/ posting (local changes) of several officers in the grade of Commissioner of Income-tax and Director of Income-tax with immediate effect and until further orders

 

CBDT Creates Standard Operating Procedure For TDS Credit Mechanism

The CBDT has issued a document setting out the “Standard Operating Procedure” (SOP) for adminstering TDS credit by the CPC-TDS. The SOP deals with the following issues in great detail

 

CBDT Directs Holding Of ‘Public Meeting Days’ To Resolve Grievances Of Public

The CBDT has issued an Office Memorandum dated 06.01.2014 stating that as part of the Prime Minster’s ‘Good Governance Day’ promise to provide an “open and accountable administration” it has been decided to observe ‘Public Meeting Day’ during 10.00 am to 1.00 pm every Wednesday to listen to and try to resolve the grievances of […]