Gist of important tax caselaws

Below are the recent important tax caselaws related to Income tax, Service tax, Excise in brief. The citation is made available for your benefit :

INCOME TAX

SECTION 2(24)

INCOME - DEFINITION OF

Value of benefit or perquisites : Where assessee was director of a company and said company had undertaken work of procuring land for 'DLF' and in this process assessee also acquired certain land in his individual capacity, it could not be said that assessee had derived any benefit from above company so as to attract provisions of section 2(24)(iv) - S. Narayan Reddy v. Deputy Commissioner of Income-tax, Central Circle -6, Hyderabad (2014) 42 taxmann.com 127 (Hyderabad - Trib.)     SECTION 5 INCOME - ACCRUAL OF Post dated cheque : Where assessee as per memorandum of understanding entered into with one 'S' on 27-6-2007 had invested an amount of Rs. 2 crores in real estate business of 'S' and on completion of venture he would be eligible for a profit of Rs. 5 crores and as a security he received from 'S' post dated cheques for Rs. 7 crores, Assessing Officer was wrong in taxing profit of Rs. 5 crores in hands of assessee - S. Narayan Reddy v. Deputy Commissioner of Income-tax, Central Circle -6, Hyderabad (2014) 42 taxmann.com 127 (Hyderabad - Trib.)       SECTION 69B UNDISCLOSED INVESTMENTS Immovable property : Where Assessing Officer on basis of a letter seized from premises of one 'C' made certain addition in income of assessee, since 'C' clarified position that said letter had no relation whatsoever with assessee, there was no scope for making any addition in hands of assessee - S. Narayan Reddy v. Deputy Commissioner of Income-tax, Central Circle -6, Hyderabad (2014) 42 taxmann.com 127 (Hyderabad - Trib.)     SECTION 158BB BLOCK ASSESSMENT IN SEARCH CASES - UNDISCLOSED INCOME, COMPUTATION OF Material collected prior to search : In course of block assessment proceedings, Assessing Officer could not make addition to assessee's taxable income on basis of material collected during a survey conducted prior to search proceedings - Deputy Commissioner of Income-tax, Lucknow v. Dr. Lalit Verma (2014) 42 taxmann.com 136 (Allahabad)       CUSTOMS ACT SECTION 114A PENALTY - FOR EVASION OF DUTY/TAX Interest and penalty can be levied even if assessee has paid duty prior to issuance of show-cause notice - Commissioner of Customs v. American Power Conversion (India) (P.) Ltd. (2014) 42 taxmann.com 238 (Karnataka)