The Big Picture of Vivad Se Vishwas: A Legal Analytics Case Study

The genesis of all lawsuits lies in a cost-benefit analysis. Fighting a case would rationally only make sense if the end result was to result in a net benefit to the litigant. Usually, said determination is made on the basis of opinions formulated using traditional tools of research. Legal research, as we know it today, … Continue reading The Big Picture of Vivad Se Vishwas: A Legal Analytics Case Study

ITAT Cochin Decides: Can Repairs to Improve an Asset be Classified as Capital Expenditure?

Case name: Kovilakam Hotels Pvt. Ltd. v. ACITForum: Cochin ITATMember: George George KLawyers (Assessee): K. Kittu Background The assessee is a private limited company running a 3-star bar attached hotel. The hotel was to be re-evaluated for re-classification as a 3-star hotel, and hence, the assessee spent INR 60.25 lakhs on repair and renovationThe return … Continue reading ITAT Cochin Decides: Can Repairs to Improve an Asset be Classified as Capital Expenditure?

Gujarat High court decides: Date considerations for eligibility of deduction u/s 80IB(10)?

Case Name: Sheetal Infrastructure Private Limited vs Asst. Commissioner of Income Tax, Circle 4(1)(1) Forum: Gujarat HC Judges: Sangeeta K. Vishen, Harsha Devani Lawyers (Assessee): B S Soparkar Background The assessee was granted approval (Raja Chitthi) for its office construction project Vedika-I by the Kudsan Gram Panchayat on 16-Mar-2005.Gandhinagar Urban Development Authority (GUDA) approved the … Continue reading Gujarat High court decides: Date considerations for eligibility of deduction u/s 80IB(10)?

OECD Transfer Pricing Guidance on Financial Transactions: Need to Introspect Arm’s Length Financial Arrangements

On 3 July 2018, the Organisation for Economic Co-operation and Development (‘OECD’) released the first public discussion draft on the transfer pricing aspects of financial transactions (‘the Discussion Draft’). What was in the Discussion Draft? Clarification on the application of the principles covering the accurate delineation of financial transactions Address specific issues related to the pricing of … Continue reading OECD Transfer Pricing Guidance on Financial Transactions: Need to Introspect Arm’s Length Financial Arrangements

ITAT Ahmedabad Decides: Can an assessment proceeding be initiated against a company which has ceased to exist?

Case Name: Amit Inter-trade Pvt. Ltd. v. DCIT Forum: ITAT Ahemdabad Members: Rajpal Yadav, Wasim Ahmed Background Assessee is a private limited company which filed its return declaring NIL income. The assessee company (Amit inter-trade Pvt. Ltd.) got merged with J.P. Iscon Ltd. with effect from April 1, 2014. The AO issued a notice under … Continue reading ITAT Ahmedabad Decides: Can an assessment proceeding be initiated against a company which has ceased to exist?

ITAT Ahmedabad Decides: Can approval granted u/s 151 without mentioning the date on which approval granted reckoned to be valid?

Case Name: AMRUTBHAI G PRAJAPATI vs ITO, WARD-1 Forum: Ahmedabad ITAT Background AO issued notice u/s 148 of the Act on 27.03.2015 followed by notice u/s 142(1) on 22.06.2015.The assessee filed the return of income on 05.01.2016 in response to notice under section 148 of the Act.On obtaining approval and memo u/s 151 it is … Continue reading ITAT Ahmedabad Decides: Can approval granted u/s 151 without mentioning the date on which approval granted reckoned to be valid?

ITAT Chennai decides: Can expenses related to dividend earned from strategic investments be disallowed? + 2 more issues

Case Name: Lakshmi Machine Works v. Addl. CIT Forum: Chennai ITAT Members: Ramit Kochhar, N.R.S. Ganesan About Lakshmi Machine Works: The assessee is engaged in the business of manufacturing of textile machinery and had made investments in various corporate entities amounting to INR 154 Crores as at 31 Mar 2012. Issue 1  Under the provisions … Continue reading ITAT Chennai decides: Can expenses related to dividend earned from strategic investments be disallowed? + 2 more issues

ITAT Surat decides: Can negotiated-compensation given in lieu of acquisition, turn compulsory acquisition u/s 10(37) to a voluntary sale transaction?

Issue: Whether CIT(A) erred in confirming the AO’s decision of levying Long term capital gain tax? Case name: Ishwarbhai Patel v. ITO-Ward Background The assessee along with other co-owners sold the immovable property on 29.09.2008 for INR 3,80,40,000 in which assessee`s share was 1/3rd which worked out to INR 1,26,80,000. AO considered long term capital … Continue reading ITAT Surat decides: Can negotiated-compensation given in lieu of acquisition, turn compulsory acquisition u/s 10(37) to a voluntary sale transaction?

ITAT Kolkata Decides: Can Disallowance Under Section 14A be Made if the Interest Earned is More than the Interest Paid in the Relevant AY?

Issue: Whether CIT(A) erred in confirming the addition of INR 21,74,843 by the AO? Case name: Salarpuria Investments Pvt. Ltd. v. DCIT Background The assessee is an NBFC Company. The AO made an addition to the tune of INR 21,74, 843 to the income of the assessee, by disallowing the same under Section 14A read … Continue reading ITAT Kolkata Decides: Can Disallowance Under Section 14A be Made if the Interest Earned is More than the Interest Paid in the Relevant AY?

ITAT Mumbai Decides: Can amount provided in lieu of re-development of a property be treated as capital gains in the hands of the assessee?

Issue: Whether CIT(A) erred in confirming the addition of INR 53,50,500 by the AO? Case name: Pradyot B. Borkar v. ACIT Background The assessee filed his return of income declaring a total income of INR 32,30,000. While assessment, the AO noticed that the assessee has offered a long term capital gain of INR 31,12,638 arising … Continue reading ITAT Mumbai Decides: Can amount provided in lieu of re-development of a property be treated as capital gains in the hands of the assessee?