Some recent judgments in Taxation & Company Matters

1.     Commissioner of Income-tax vs. Deepak Agarwal

        Where assessee P.A. Jose vs. Assistant Commissioner of Income-tax, Circle-1, Kottayamssee was not engaged in business of investment in shares, interest bearing funds invested in shares of related company to extend financial support, could not be said to be utilization for business purposes, and proportionate interest was liable to be disallowed.

        Held: Interest on funds invested in related companies to be disallowed if it doesn't serve any business purpose -IT

2.      Commissioner of Income-tax-IV vs. Sambhav Media Ltd.

       Computation for loss suffered by a party to contract is to be allowed, if not claimed twice

      Held: Writing off a debt is enough to claim deduction; assessee not required to prove if debt has actually gone bad -IT


3.    P.A. Jose vs. Assistant Commissioner of Income-tax, Circle-1, Kottayam


      Expenditure incurred for interior decoration on leased premises, for purpose of setting up a new business is capital in nature

        Held: Sum incurred on interior decoration in a leasehold premises for a newly set-up business is a capital exp. -IT

4.     Symantec Software Solutions (P.) Ltd. vs. Assistant Commissioner of Income-tax

      Typographical mistakes in order of Tribunal are liable to be rectified on an application made by assessee

     Held: Clerical mistakes in order of Tribunal rectifiable under section 254 -IT/ILT

5.   Deputy Commissioner of Income-tax - 3(2), Mumbai vs. Kotak Mahindra Investment Ltd.

    Where derivatives were held as stock-in-trade, rules applicable to valuation of stock-in-trade were to be applied and assessee's claim for mark-to-market loss was to be allowed

       Held: Mark-to-market loss allowed as derivatives were held by assessee as stock-in-trade -IT

6.   Meenadevi N. Gupta vs. Assistant Commissioner of Income-tax, Circle -5, Surat

    Where transaction of shares of a listed company was done through Demat account as per recognized Stock Exchange quoted price, same cannot be held as non-genuine

    Held: Dealing in shares through Dmat account is a sacred route, additions under sec. 68 deleted -IT

7.  Ramshree Steels (P.) Ltd. vs. Income-tax Officer, Ward 6(2), Kanpur 

      Losses in speculation business cannot be set off against other business profits but business losses can be set off against profits in speculation 

     Held: Normal business losses can be set-off against profits of speculative as well as non-speculative business -IT