High Court Rulings

Payment for 'technical data' purchase not FTS, TDS u/s 194J not applicable 

HC upholds ITAT order, payment to Indian parent company by assessee-subsidiary (again an Indian company) towards purchase of technical data, not fees for technical services (‘FTS’), Sec 19...View More

'Joy Alukkas' ruling allowing renovation expenditure on lease-hold building requires re-consideration 

Kerala HC Division Bench opines that law laid down by co-ordinate bench in Joy Alukkas on allowability of expenditure incurred on refurbishing leasehold buildings requires reconsideration; Co-ordinate...View More

Upholds equal ownership in house-property absent individual's specific share; restricts interest deduction 

HC upholds ITAT order, restricts assessee-individual’s claim for deduction of interest expense from house property income u/s 24(b) to 1/4th share in total interest payment; Assessee alongwith 3...View More

ITAT empowered to extend stay beyond 365 days; Applies Narang Overseas ratio

HC dismisses Revenue’s writ challenging ITAT order granting stay beyond 365 days, holds that “the Tribunal has power to extend the stay even after the substituted third proviso to subsecti...View More

Differentiates trademark from goodwill, consideration for ‘trademark’ transfer not-taxable pre-2002

HC upholds ITAT order, consideration received by assessee (an Indian company) upon transfer of trademark ‘SHARP’ in favour of Sharp Corporation, Japan under settlement deed, a non-taxable ...View More

Profit share to original-owner from development agreement not business ‘adventure’ gain

HC sets-aside ITAT order, holds consideration in the form of money and residential flat received by assessee (an individual aged 94 years having no regular source of income) upon entering into agreeme...View More

No TDS on export-commission, dismisses Revenue’s retrospective application of Circular 7/2009

HC upholds ITAT order, assessee (an Indian co.) not liable to deduct TDS u/s 195 on commission payments to non-resident agents in respect of sales made outside India for AYs 2007-08 and 2008-09; Reven...View More

Re-assessment based on AO's office-note seeking ‘contingent’ adverse material from FTD invalid 

HC holds re-assessment initiated on the basis of AO's 'office-note' seeking ‘contingent’ adverse material as invalid, HC reverses ITAT order; AO during original assessment (for AY 1994-95)...View More

Upholds ITAT’s Rule 8D interpretation on ‘common’ interest expenses, acknowledges incongruity in formula

HC upholds ITAT order, no Sec 14A disallowance for interest expenditure under Rule 8D(2)(ii) (which provides methodology for allocating interest expenditure, not directly attributable to any particula...View More

Compensation received upon JV termination, a non- taxable capital receipt; Applies B C Srinivasa ratio

HC holds that compensation received by assessee (a JV-Co) pursuant to termination of the joint venture (‘JV’) agreement was a capital receipt for AY 1998-99, further deletes ‘capital...View More