Whether any addition is warranted on account of unsecured loans as well as advances received from customers, when assessee's stand is not proved with sufficient evidences and certain anomaly is observed in its claim - YES: ITAT - Assessee's appeal dismissed : CHENNAI ITAT

Whether a case deserves to be remanded, if additional evidences are considered by CIT(A) in passing order without its verification in violation of rule 46A - YE : ITAT - Case Remanded : KOLKATA ITAT

Invocation of Section 145 - rejecting the books of accounts - When there are audited accounts of an entity and the calculation of the GP ratios hinges upon their analysis, the AO should not lightly undertake an exercise that would amount to negating those accounts. - HC

Depreciation on boiler - CIT (A) has not committed any error in allowing depreciation at the correct rate even though the assessee had claimed depreciation at a lesser rate in the return filed.

Depreciation on expenditure incurred on the development of software as well as purchase of software is capital in nature - at the rate of 25% or at the rate of 60% - it is the substance of the matter which should be looked into rather than the form or the nomenclature.

Permanent establishment of the assessee in India - Revenue to show that notwithstanding the RBI permission continuing during the AYs in question, the Assessee’s LO should be construed to be a PE in terms of Articles 5 (1) and 5 (2) of the DTAA. - HC

Validity of assessment order - Wrong mention of section as u/s 153A instead of 143(3)/153A - non compliance of mandatory issue of notice u/s 143(2) - curable defect u/s 292B - Assessment order is not valid - HC

Best judgment assessment - Estimation of income - No court could substitute its "best judgment" for that of the assessing authority - Once the books of accounts have been rejected rightly, even though the courts may think that it is not the most appropriate basis, the assessing authority's estimate cannot be disturbed - HC

Interest earned should only go to reduce the capital cost of the project to be set up by the respondent company and it should not be brought to tax, as the interest is earned on capital account.

Set off of brought forward losses and depreciation against surrendered income - Departmental representative is only attempting to enlarge the scope of assessment by raising an issue not dealt with by the Assessing Officer which is not permissible at the stage

Generation of surplus while carrying out charitable activities would not dis entitle the assessee for registration u/s. 12A of the Act

If the loss is found to have occurred on account of error trade conducted by assessee on behalf of clients, then the claim will have to be accepted as business loss. - HC

Capital gain - revaluation of the satellite rights - The revaluation of the assets by the partnership firm would not attract any capital gain - There was no transfer - HC

Merely because telephone call register is not maintained or vehicle logbook is not available, expenses cannot be disallowed on ad hoc basis when the telephone is installed and used for the purpose of business and vehicles are also owned and used by the assessee for the purpose of business

Exemption u/s 11 and 12 eligibility - Section 2(15) - Merely because the assessee is holding conferences and seminars which are according to us in furtherance of the object of education only against payment of fees will not make the object of the trust falling into the 6th category i.e. Any other object of general public utility.

No sec. 14A disallowance if no exempt income earned; CBDT circular can’t override express provision

ITAT couldn’t remand matter back to TPO for afresh determination if details of comparables were available

Indian Co. wasn’t agency PE for sale of Star TV ad rights as it was acting as independent agent and paid at ALP

Prior to AY 2013-14, there was no need to furnish TRC to claim treaty benefits: Bombay High Court

Co. developing software for healthcare & KPO service is incomparable to Co. providing designing & ITES

PF and ESI deposited on or before due date of filing of return couldn’t be disallowed, Apex court dismissed SLP

Un-explained deposit into bank - proof of fund available with the HUF - when the particulars of the cash flow statements are accepted by the AO then the source as explained by the assessee as fund available with the HUF cannot be denied.

Reopening of assessment - unaccounted investment in the purchase of the property - There cannot be an automatic presumption that a purchaser of the property had paid consideration higher than the sale consideration reflected in the sale deed the moment the stamp valuation authority of the State Government demanded and the parties paid higher stamp duty. - HC

Penalty order passed u/s 271E - reasonable cause - cash loan from her husband and mother-in-law which has been repaid in cash - the expression reasonable cause in section 273B for non imposition of penalty u/s.271D and 271E would have to be construed liberally.

Jurisdiction assumed by the ITO - There was no valid objection filed by the assessee before the Assessing Officer and in the absence of the same the assessee cannot now challenge the jurisdiction in appellate proceedings

Treatment of the technical fees paid to M/s Mahindra & Mahindra for use of design drawing production tooling for manufacturing of independent front suspension - nature of expenditure - the decision of the Ld. CIT(A) in treating the payment as held to be revenue in nature is correct one.

Addition on account of difference in stock - Once the statement has been given making a surrender the presumption is that it has been given voluntarily without any pressure or coercion and while stating otherwise for retracting the same the onus is on the assessee to prove so

Co. carrying on business through its employees wasn’t comparable with Co. which outsourced its business operations

Waiver of loan couldn’t be held as remission u/s 41(1) if loan amount was never claimed as deduction exp.

Waiver of loan couldn’t be held as remission u/s 41(1) if loan amount was never claimed as deduction exp.

Software service provider was incomparable with co. which developed unique software deriving substantial benefits

No sec. 69A additions as AO failed to prove that sum paid to third party related to bribe payment to politicians

Reassessment by relying on info. received from investigation wing without conducting inquiry was unjustified

ITAT reduces rate of dividend distribution tax on basis of treaty provisions

Value of ESOP couldn't form part of operating cost for purpose of determining ALP

Dept. can’t deny PAN correction in TDS return for more than 4 characters: HC

Companies with less than 1/10th or more than 10 times turnover of tested party wasn't a good comparable

AO couldn't reject TNMM without any separate benchmarking if same method was followed in subsequent years

Cash deposit - Income from undisclosed sources - Purchase agricultural land.

No TP adjustment due to under-utilization of capacity when capacity utilization of comparables wasn't available

No assessment u/s 153A on AOP if no incriminating material was found during search of premises of its member

Whether when assessee has not earned any tax free income, provision of section 14A would not be applicable - YES: ITAT Whether when assessee has shown genuine reasons for delay in filing appeal, he deserves condonation of the same - YES: ITAT - Revenue's appeal dismissed: MUMBAI ITAT

Whether when a claim made by assessee did not form part of the original return / revised return, it can be considered by appellate authorities if the relevant material was available on record - YES: HC - Revenue's appeal dismissed: MADRAS HIGH COURT

Whether reassessment is permitted, when the very basis for reopening the assessment as well as the opportunity to cross-examine is not afforded to the assessee - NO: ITAT - Assessee's appeal allowed: HYDERABAD ITAT

Whether entire sales made outside the books cannot be added, but only the profit element in such sales is to be considered as unaccounted income of the assessee - YES: ITAT

Whether expenses incurred for supervision activities of previous AY, can be disallowed in for current AY - NO: ITAT Whether disallowance can be made addition on account of fall in GP rate on the basis of the preceding AY- YES: ITAT Whether travelling expenditure can be allowed as deduction, when the invoices produced by assessee do not establish any connection between the trip and the business purpose - NO: ITAT - Assessee's appeal partly allowed: DELHI ITAT

AO couldn't assume that exp. had been incurred earn tax free income to invoke sec. 14A

Opening stock to be valued by applying same method which AO applied to value closing stock of that year: HC

Fee paid to AE towards global sale & marketing activity couldn't be separately tested for determining ALP

Sec. 50C couldn't be applied by treating sale of shares of subsidiary co. as sale of immovable property