2016-TII-46-HC-MAD-TP

SELLA SYNERGY INDIA PVT LTD Vs ITO: MADRAS HIGH COURT (Dated: August 1, 2016)

Income Tax - Sections 10A, 10B, 92CA, 143(2), 147, 148, 154 & 271BA.

Keywords - re computation of losses - default by assessee - income chargeable to tax - audit report - public charitable trust - reopening - escaped assessment.

Whether the High Court is inclined to interdict the proceedings initiated by the ITO by issuing a Writ to quash the notice u/s 148, even if the assessee had been communicated with the reasons for reopening by communication and opportunity of being heard had also been given to the assessee - NO: HC

Assessee's writ dismissed

2016-TII-45-HC-MUM-TP

CIT Vs HINDUSTAN UNILEVER LTD: BOMBAY HIGH COURT (Dated: July 26, 2015)

Income tax - ALP - enduring benefit test - interest expenses - non-AE transactions - payment to supplier - revenue expenditure - termination of contract & unabsord depreciation.

Whether benchmarking for the purpose of ALP adjustment should be done only on the AE Transactions and not for the entire turnover - YES: HC

Whether a lumpsum payment made to terminate a contract, is liable to be treated as revenue expenditure as it results in removal of disability/obstruction in running the business - YES: HC

Whether the brought forward depreciation losses of amalgamating company for the period prior to amendment u/s 32(3) of the I-T Act w.e.f. 1/4/2002, is allowable for purpose of set off - YES: HC

Case disposed of

2016-TII-40-HC-AHM-NRI

LEENA JUGALKISHOR SHAH Vs ACIT: GUJARAT HIGH COURT (Dated: June 14, 2016)

Income tax - Section 54F.

Keywords - acquisition of residence outside India - investment of capital gain & sale of plot in India.

Whether benefit of Sec 54F prior to its amendment, which provides for restriction on investment of capital gain in a residential house situated in India, can be extended to a residential house purchased/constructed outside India - YES: HC

Assessee's appeal allowed