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Case: Pure Software Pvt Ltd vs ITO, Delhi ITAT Listen to Pure Software Pvt Ltd vs ITO case summary and stay updated any time anywhere. Background: The assessee company was engaged in the business of software development, testing and training and the issue, in this case, was related to a payment made to non-resident entities. The assessee … Continue reading Will the order procurement services rendered outside India be taxable?

Case: Urmila Devi Charitable Trust vs. CIT, Delhi ITAT Background: The registration of Urmila Devi Charitable trust under Section 12AA was cancelled, nullifying the tax exemptions which it had been getting for the past 6 years. CIT alleged that the assessee received a donation of Rs. 85 lakhs in cash, on its basis, the CIT … Continue reading Can registration of Trust be retrospectively Cancelled?

Case: Ideal Education Society Ghaziabad vs Addl. CIT Ghaziabad, ITAT Delhi Listen to Ideal Education Society Ghaziabad vs Addl. CIT Ghaziabad case summary and stay updated any time anywhere: Background: The assessee was registered as a society and charitable trust. It provided the following facilities to its students: Education for various professional courses Hostel and transportation facilities … Continue reading If a trust (u/s 12 AA) offers hostel and transport facilities can it get tax exemption?

Case: AJB Developers Pvt. Ltd. vs DCIT, (ITAT Delhi) Background: Assessee company was engaged in the business building and infrastructure development. Company sold one of its land properties, held in its books as stock in trade, as a capital asset, and offered the income for taxation under long term capital gain with indexation. AO sought to … Continue reading Re-designating land from stock in trade to capital asset

The Chandigarh bench of ITAT has held in the case of Sh. Jai Pal Gaba vs ITO, W-III (2) that one-time settlement of debt by the bank cannot be treated as benefit from the business if such loan granted to assessee was a separate transaction. Brief Summary: The assessee took over a dissolved proprietorship concern … Continue reading One-time settlement of debt by the bank cannot be treated as benefit from the business if loan was a separate transaction

In the case of CIT vs Reliance Life Insurance Co. Ltd., the Bombay High Court has held that TDS is not payable on outsourcing expenses which are clerical in nature. Revenue’s Arguments: The Revenue argued that the assessee had deducted tax under Section 194C of the act which was related to payments made to contractor … Continue reading TDS not payable on outsourcing expenses which are for clerical services

In the case of DCIT vs Bhaijee Portfolio Pvt. Ltd. the Income Tax Appellate Tribunal’s Delhi bench has held that the re-opening of an assessment without the approval of designated authority is not allowable under Income Tax Act. Revenue’s Arguments: The re-assessment proceeding was initiated by the Assessing Officer against the Assessee by recording reasons … Continue reading Reassessment proceedings without approval is illegal

The Delhi bench of ITAT has held in the case of Ravi Jain vs ACIT that when an HUF’s residential house is sold, the capital gain can be invested for the purchase of more than one residential house and the benefit of exemption cannot be denied under s. 54(1) of the IT Act. Assessee’s Arguments: … Continue reading Capital gain exemption to be given to more than one house, when HUF property is sold

The Delhi bench of ITAT has held in the case of DCIT vs BMR Business Solutions Pvt. Ltd. that the remuneration paid to the Director of a company commensurate with his experience which has no bearing on his shareholding, cannot be considered ‘dividend’ under the Income Tax Act. Revenue’s Arguments: The revenue argued that as … Continue reading Remuneration paid to Director independent of shareholding cannot be considered dividend