Rehlan constryction vs. ACIT

Possibility of personal use cannot be a reason to disallow depreciation claim

The Income Tax Appellate Tribunal’s Delhi bench has held in the case Ralhan Construction Company vs. ACIT that the mere possibility of personal use would have no role to play while granting depreciation on any vehicle under Section 32 of the Income Tax Act, 1961. Revenue’s Actions: In the present case, since the assessee had … Continue reading Possibility of personal use cannot be a reason to disallow depreciation claim

Addition made to the income of the assessee (without cross-examination) cannot be sustained

In the case of Shakuntala Agencies Pvt. Ltd. vs. ITO, search and seizure operations at the premise of a third party uncovered incriminating material related to the assessee. The AO and CIT(A) both rejected the assessee’s request to cross examine the relevant person.Tribunal holding: Addition made to the income of an assessee on the basis of … Continue reading Addition made to the income of the assessee (without cross-examination) cannot be sustained

Broadcast companies not liable to pay TDS on Channel Placement Fees

ASIANET NEWS NETWORK P.LTD MUMBAI vs ASST CIT CIR 16(1) MUMBAI The Mumbai bench of the Income Tax Appellate Tribunal has held in the case of Asianet News Network vs. ACIT that channel placement fee paid by the broadcast company would not be liable to be disallowed u/s 40(a)(ia) as there is no obligation on … Continue reading Broadcast companies not liable to pay TDS on Channel Placement Fees

Revisional Jurisdiction cannot be exercised on issues which have not been covered in Reassessment

Gulab Badgujar (HUF) Thane vs Commissioner of Income-tax (Central) The Pune bench of the Income Tax Appellate Tribunal in the case of Gulab Badjugar vs. CIT has held that an issue which was not covered in the reassessment proceedings would not be available for readjudication under revisional jurisdiction. The Tribunal noted that once the re-assessment … Continue reading Revisional Jurisdiction cannot be exercised on issues which have not been covered in Reassessment

Results for 1st Riverus Article Writing Competition on Direct Taxes

We received around 15 entries which were judged on structure, clarity, analysis and language. As per our panel's feedback, most entries scored extremely low on legal analysis while a couple of articles were disqualified as a result of plagiarism. The competition required an in-depth analysis of one (or more) issues in the given themes however the entries … Continue reading Results for 1st Riverus Article Writing Competition on Direct Taxes