Income tax Act 1961

9th May, 2016

Income from tips is income from other sources, received from customers and not employer; Section 192 of IT Act, does not apply #indianlaws

The amount of tip paid by the employer to the employees has no reference to the contract of employment at all. Tips are received by the employer in a fiduciary capacity as trustee for payments […]
12th Aug, 2015

The charges applicable on Landing & Parking Charges by Airport Authority Of India cannot be treated as ‘Rent’ under Section 194-I of the Income Tax Act#indianlaws

The Supreme Court has held that the charges which are fixed by the AAI for landing and take-off services as well as for parking of aircrafts are not for the ‘use of the land’. These […]
9th Jul, 2015

Agreements to pass through test of pith and substance to determine its dominant purpose and consequent tax chargeability #Indianlaws

The question before the Supreme Court was “whether the amounts paid by  ONGC to the non-resident assessees /foreign companies for providing various services in connection with prospecting, extraction or production of mineral oil is chargeable […]
21st May, 2015

Recording of reasons critical while issuing warrant under Section 132 of the Income Tax Act

Warrant of authorization under Section 132 of the Act is required to be founded on a reasonable belief of the authorized official regarding the existence of the conditions precedent to the exercise of the power […]
10th Apr, 2015

Exempiton U/s 10 (23C)(VIA) OF Income Tax Act allowable only when existance of claimant is for philanthropic purpose

A plain reading of the aforesaid provision makes it clear that the legislature has categorised for deduction income of those institutions which “exist solely” for philanthropic purpose with a further stipulation that they would exist […]
29th Mar, 2015

Deduction allowed on expenditure incurred in abandoned project in the relevant year

Expenditure made for construction/acquisition of new facility subsequently abandoned at the work-in progress stage was allowable as incurred wholly or exclusively for the purpose of assessee’s business.
29th Mar, 2015

Amendment made to Section 143(1) of Income Tax Act 1961 is merely clarificatory

The word “income” would include within it both profits as well as losses. In other words, loss is negative profit. Both positive and negative profits are of a revenue character and must enter into computation, […]
1st Dec, 2014

Search and seizure under Section 132 of the Income Tax Act 1961 is not confiscation

The provision contained in Section 132(1) of the Income Tax Act 1961 enables the competent authority to direct for issue of search and seizure on the basis of formation of an opinion which a reasonable […]
11th Nov, 2014

National Tax Tribunals Act declared unconstitutional

Sections 5, 6, 7, 8 and 13 of the NTT Act were held to be unconstitutional, they since constituting the structure of the NTT Act and without these provisions the remaining provisions becoming ineffective and […]
3rd Nov, 2014

AO must clearly indicate facts not disclosed by Assessee leading to escapement in a case covered by S.147 of the Income Tax Act

AO must clearly indicate facts not disclosed by Assessee leading to escapement in a case covered by S.147 of the Income Tax Act
3rd Nov, 2014

Assessee cannot be made to suffer in claiming refund of penalty with interest due to Revenue’s inaction

Assessee cannot be made to suffer in claiming refund of penalty with interest due to Revenue’s inaction
20th Apr, 2014

Transaction earnings in the usual course of business of trading in shares and securities and not for making static investments is stock-in-trade #indianlaws

Assessee was found to be deriving its income from dividends received from mutual funds and equity shares interest from investment of capital in partnership firm.