INCOME TAX CASE-LAWS

INCOME TAX CASE-LAWS

SECTION 2(22)(e)

DEEMED DIVIDEND

Advances/loans received by HUF from a closely-held company is taxable as deemed dividend u/s 2(22)(e) if Karta, who is shareholder in lending company has substantial interest in the HUF even if HUF is not registered and/or shareholder - [2017] 77 taxmann.com 71 (SC)

SECTION 11

CHARITABLE OR RELIGIOUS TRUST - EXEMPTION OF INCOME FROM PROPERTY HELD UNDER

Application of income : SLP granted against High Court's ruling that merely because assessee-trust incurred expenditure in excess of income in relevant previous year for charitable purposes out of accumulated charity fund, it could not be denied benefit of exemption under section 11(1)(a) - [2017] 77 taxmann.com 2 (SC)

Depreciation: 

SLP granted against High Court's ruling that amendment made in section 11(6) is prospective in nature and it would operate with effect from 1-4-2015 - [2017] 77 taxmann.com 14 (SC)

SECTION 44BBB

FOREIGN COMPANIES, CIVIL CONSTRUCTION BUSINESS IN CERTAIN TURNKEY PROJECTS

Conditions precedent : Section 44BBB which deals with turnkey project, not applicable to assessee being engaged in providing consultancy services - [2017] 77 taxmann.com 4 (Delhi - Trib.)

SECTION 68

CASH CREDIT

Gift : SLP dismissed against High Court's ruling that where assessee failed to establish creditworthiness of donor and genuineness of transaction, addition made in terms of section 68 of gift amount was justified - [2017] 77 taxmann.com 1 (SC)

Gift : SLP dismissed against High Court's ruling that where Assessing Officer after making proper and detailed enquiries, took a view that amount received by assessee as gift from his relatives was a genuine transaction, impugned revisional order passed by Commissioner directing Assessing Officer to enquire into capacity of donors and to decide about genuineness of gift afresh, was not sustainable - [2017] 77 taxmann.com 15 (SC)

SECTION 92C

TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE

Comparables and adjustments/Comparables – Illustrations : In transfer pricing proceedings, a company performing similar functions can not be rejected as a comparable on ground that it has higher proportion of material cost in total operating cost - [2017] 77 taxmann.com 17 (Chennai - Trib.)