Saturday, 24 June 2023

RECENT JUDGEMENTS –DIRECT TAX

 DIRECT TAX

q  ITAT Bangalore Holds Expenditure Incurred By Flipkart Towards ESOP Is Eligible For Deduction Under S. 37 Of ITA. Further, Mumbai ITAT in the case of Uniliver India Exports Limited deleted the additions made towards ESOP

q  Mumbai Tribunal (Tribunal) decision in case of Reliance Industries Investment and Holdings Ltd.  wherein issue arose whether under minimum alternate tax (MAT) provisions of the Indian Tax Laws (ITL), reclassification of optionally/compulsorily convertible debentures on convergence to Ind-AS[2] as “Other Equity”, was includible in “transition amount” and hence, taxable under MAT over five years.  

q   Pune ITAT in the judgement of  Mahadev Vasanth Dhanekar held that Voluntary payment to Employees treated as capital receipt. 

q  Patna High court in the case of Hindustan Media set aside the assessment order as opportunity of personal hearing not provided through VC in faceless assessment.

q  Chennai ITAT in the case of Brio bliss life science held that DCF valuation method cannot be rejected only on a ground that projected & actual financials are different 

q  In the case of loss, company can claim CSR expense as an allowable deduction  

q  Delhi ITAT in the case of HT mobile held for TDS on year-end Expenditure Provisions: "In the absence of an ascertainable amount and identifiable payee, the machinery provisions of recovering tax deducted at source falls flat because in either way, it does not aid the charge of tax u/s 4 of the Act, but takes a form of separate levy independent of other provisions of the Act..... In view of the aforesaid observations and respectfully following the jurisdictional precedents relied upon hereinafter, we hold that the assessee can't be treated as an 'assessee in default' for mere book entries passed, u/s 201(1)/201(1A) of the Act.“ 

q   ITAT Jaipur in the case of Girnar software held that Interest on income-tax refund u/s 244A is to be granted upto the date of signing of refund voucher/ receipt of refund amount in bank account of Assessee, not to be restricted upto the date of signing of assessment order or issue of intimation 

q  The Delhi ITAT has ruled that the Administrative services, Financial Support Services, Sales Support Services and Legal Support Services are essentially managerial in nature and outside the scope of FTS under article 13(4) of India UK DTAA. Further, these services are continuously provided, are not enduring and therefore can not be considered to be falling in the definition of "make available" and hence can not be taxed as FTS under the DTAA    

q   Dept. Failed To Prove Sundry Creditors To Be Bogus: Delhi ITAT Deletes Addition Against Buffalo Meat Trade

 

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