Gist of Important tax caselaws / judgements

SECTION 2(14)

CAPITAL GAINS - CAPITAL ASSETS

Agricultural land : Profit earned on sale of a land wherein agricultural operations were carried out and which was also classified as agricultural land in revenue records, is agricultural income of assessee - Harniks Park (P.) Ltd. v. Income-tax Officer (2014) 41 taxmann.com 109 (Hyderabad - Trib.)

SECTION 2(15)

CHARITABLE OR RELIGIOUS PURPOSE

Education : Where assessee-trust made application for grant of registration under section 12AA claiming itself as an educational trust, since predominant object of trust was to promote Christian religious faith and no educational activity within meaning of section 2(15) was carried out, it was not entitled for registration - Win Publication Trust v. Commissioner of Income-tax (2014) 41 taxmann.com 119 (Cochin - Trib.)     SECTION 32 DEPRECIATION - ALLOWANCE/RATE OF Non-compete fee : Where assessee carrying on business in software development, etc. entered into an agreement with one 'P' for hiving off and transfer of software development and training divisions from 'P' and paid certain amount to 'P' towards acquisition of intellectual property rights and non compete fee, since agreement between parties was a composite agreement, assessee was entitled to depreciation on intellectual property rights as well as on non compete fee - Pentasoft Technologies Ltd. v. Deputy Commissioner of Income-tax (2014) 41 taxmann.com 120 (Madras)     SECTION 37(1) BUSINESS EXPENDITURE - ALLOWABILITY OF Disallowance on estimate basis : Where assessee, a financial advisor in field of mutual fund, had earned commission income and Assessing Officer on estimate basis had allowed only 30 per cent of expenditure claimed by assessee, considering nature of assessee's business 50 per cent of expenditure was to be allowed - Prakash Vasantbhai Golwala v. Assistant Commissioner of Income-tax (2014) 41 taxmann.com 122 (Ahmedabad - Trib.) Travelling expenses : No disallowance was called for where expenditure incurred on foreign travelling was as per terms of employment and visits were undertaken relating to work of trust and relevant documentary evidences were duly filed before lower authorities - Smt. Vidyawanti Laburam Foundation for Science Research & Social Welfare v. Income-tax Officer (2014) 41 taxmann.com 106 (Jodhpur - Trib.)     SECTION 217 ADVANCE TAX - INTEREST PAYABLE BY ASSESSEE WHEN NO ESTIMATE MADE Scope of provisions : When there is a difference between returned income and assessed income due to ITO making estimation under section 145(2), levy of interest for failure to send estimate of advance tax would not be permissible - Deputy Commissioner of Income-tax (Asstt.)v.Amol Dicalite Ltd. (2014) 41 taxmann.com 434 (Gujarat)