Recent Important Income tax caselaws / judgements

SECTION 2(22)

Loans or advances to share holders : Where assessee-company received share application money from another company, in view of fact that assessee was not a registered shareholder of said company, amount in question could not be taxed as deemed dividend in its hands - Commissioner of Income-tax, Jaipur v. Suram Holding (P.) Ltd (2014) 41 taxmann.com 32 (Rajasthan)

SECTION 12AA

Cancellation of registration : Where assessee cricket board arranged international matches and received share in broadcasting right and advertisement sales from its apex body BCCI, under section 12AA(3) Commissioner could not cancel its registration by invoking first proviso to section 2(15) - Saurashtra Cricket Association v. Commissioner of Income-tax (2013) 40 taxmann.com 527 (Rajkot - Trib.)

 

 

SECTION 32

User of assets : Where relevant lease agreements, bills for purchase of assets, inspection reports, insurance papers, etc., were produced, sale and lease back transactions could not be treated as sham so as to deny depreciation thereon - Development Credit Bank Ltd. v. Deputy Commissioner of Income-tax (2013) 40 taxmann.com 532 (Mumbai - Trib.)

 

 

SECTION 37(1)

Corporate membership : Fees for corporate membership of club is revenue expenditure - Development Credit Bank Ltd. v. Deputy Commissioner of Income-tax (2013) 40 taxmann.com 532 (Mumbai - Trib.)

 

 

SECTION 143

Land dealings : Where shops sold by assessee were registered with Sub-Registrar and sale deeds were executed for them, Assessing Officer without examining those sale deeds or even making inquiries about circle rates fixed by Sub-Registrar for purpose of stamp duty valuation, could not make addition to assessee's income by merely taking a view that shops were sold below their cost of construction in terms of square feet area - Commissioner of Income-tax v. Shanti Enterprise (2013) 40 taxmann.com 484 (Gujarat)

 

 

SECTION 158BD

BLOCK ASSESSMENT IN SEARCH CASES - UNDISCLOSED INCOME OF ANY OTHER PERSON

Scope of provision : Assessment of a person, other than searched person, based on materials recovered during search is authorised only under section 158BD and not under section 158BC - Commissioner of Income-taxv.Ram Singh* (2013) 40 taxmann.com 479 (Punjab & Haryana)