Some Important Judicial Pronouncements

Some Important Judicial Pronouncements

1. CAPITAL GAINS

In favour of: Assessee
Where fair market value claimed by assessee as on 1st April, 1981 was higher than that estimated by AO, the provisions of 55A should not have been invoked. Provisions of s 55A can be invoked only in case where the valuation report was not submitted by assessee.

Bombay Tribunal
RASHMIKANT BAXI (HUF) VS INCOME TAX OFFICER : (2015) 45 CCH 0091 MumTrib
Decided On: Sep 30, 2015

2. APPEALS

In favour of: Assessee
Where Revenue and assessee had not followed any of the prescribed method envisaged in r 10B of the Income-tax Rules for determining the Arm’s Length Price as provided u/s 92C of the Act, then method of computation adapted by both was erroneous and matter was justified to be remitted so as to compute the ALP as per the provisions of the Act.

Chennai Tribunal
AUTONEUM NITTOKU SOUND PROOF PRODUCTS INDIA P LTD. VS ASSISTANT COMMISSIONER OF INCOME TAX : (2015) 45 CCH 0088 ChenTrib
Decided On: Sep 29, 2015

3. CHARITABLE TRUSTS

In favour of: Assessee
Where profits arising out of the sale of land were utilized for charitable activities of the Trust as per the provisions of s 11, 12 & 13, then benefit u/s 11 could not be denied to the Charitable Trust.

Chennai Tribunal
INCOME TAX OFFICER (OSD) VS MAGUNTA RAGHAVA REDDY CHARITABLE TRUST : (2015) 45 CCH 0090 ChenTrib
Decided On: Sep 29, 2015