Diect Tax Case Laws

DIRECT TAX

Investment in hundis did not belong to assessee but to family members, no addition could be made in hands of assessee in respect of said investment under section 69 - [2011] 11 taxmann.com 292 (Chhattisgarh)

In view of provisions of section 73, assessee could not be allowed to set off speculation loss arising from sale and purchase of shares against its income from house property - [2011] 11 taxmann.com 291 (Punj. & Har.)

In an appeal filed under section 260A beyond period of limitation, High Court has power to condone delay - [2011] 11 taxmann.com 288 (Cal.)

Where Commissioner (TDS) had stayed enforcement of demand of tax along with interest, garnishee notices issued for payment of amount of tax betrayed a lack of application of mind and, thus, said notices were to be set aside - [2011] 11 taxmann.com 285 (Bom.)

Where assessee claimed deduction in respect of provision for warranty obligation, in view of fact that actual expenditure incurred was more than provision made, it could be concluded that provision made by assessee was capable of being estimated with reasonable certainty and, hence, assessee's claim was to be allowed - [2011] 11 taxmann.com 284 (Guj.)

Interest on deposits cannot be allowed deduction under section 80-IB - [2011] 11 taxmann.com 281 (Bom.)

Where assessee used part of borrowed funds in making investment in shares of other companies, proportionate disallowance of interest on borrowed funds was justified - [2011] 11 taxmann.com 280 (Delhi)

Expression 'proceeding' as appearing in sub-section (2) of section 244A includes within its ambit an appeal proceeding consequent to which refund may have become due - [2011] 11 taxmann.com 279 (Gau.)

Where assessee running a hospital, entered into an agreement with 'J' for conducting accreditation service, under which, in addition to amount payable for such service, understanding between parties was to reimburse expenses of officials of payee with respect of their boarding and lodging and also travel expenses, since assessee had merely reimbursed expenditure which had been actually incurred by payee, there could be no withholding of tax under section 195 - [2011] 11 taxmann.com 290 (Chd. - ITAT)

Where assessee-company had entered into international transactions with its foreign holding company by way of providing certain services with regard to software and for pricing said services assessee adopted formula of cost plus profit and profit factor was taken at 10 per cent, since assessee had not placed any cost model and market potential of products, profit factor of 10 per cent adopted by assessee could not be accepted - [2011] 11 taxmann.com 287 (Bang. - ITAT)

For purpose of determining eligibility of a project for deduction under section 80-IB(10), it is total area of plot that has to be taken into consideration and not built up area - [2011] 11 taxmann.com 286 (Mum. - ITAT)

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