|
I. Direct Taxes Case Laws:
1. M/s. Ganapathy & Co. Vs. CIT, Civil Appeal No. 1964 of 2008, Date of Pronouncement: 18.01.2016, Supreme Court of India
Whether
hon’ble High Court has the jurisdiction to consider certain undisputed
additional facts, already on record, not considered by hon’ble ITAT
during appellate proceedings?
Held_Yes
In the
given case, the Ld. AO during the assessment proceedings recorded some
undisputed facts on the basis of which the Ld. AO disallowed the claims
of the assessee. The same was upheld by the Ld. CIT (A). However, the
Hon’ble ITAT allowed the claim of assessee considering the order passed
by them in assessee’s own case in previous assessment year where similar
facts were in question. The Hon’ble High Court disallowed the claim of
assessee, after considering the facts brought on record during the
assessment proceedings, which are independent of the facts considered by
the hon’ble ITAT.
The
Hon’ble Supreme Court upheld the order of High court stating that the
Tribunal is the final fact finding authority and it is beyond the power
of the High Court, in the exercise of its reference jurisdiction, to
reconsider such findings on a reappraisal of the evidence and materials
on record unless a specific question with regard to an issue of fact
being opposed to the weight of the materials on record is raised in the
reference before the High Court.
The appeal was dismissed.
(Please click here for judgment)
2. Pr. CIT Vs. Facor Power Ltd., I.T.A. No. 1011/2015, Date of Judgement: 07.01.2016, High Court of Delhi
Whether
the interest earned by way of temporary investment of surplus funds
inextricably linked with the setting up of a power plant, prior to
commencement of business, is revenue receipt and is taxable as “Income
from other sources”?
Held_No
The
Assessee Company was in the process of setting up a power project for
which additional share capital was raised from share holders. The amount
was invested in FDRs for a temporary period till the orders for
machineries were placed wherefrom various payments were made to the
vendors. The Ld. AO treated the interest earned on FDRs as revenue
receipt and assessed the same as income from other sources.
The
Hon’ble High court relying on the judgement of Indian Oil Panipat Power
Consortium Limited 315 ITR 255 (Delhi High Court) held that interest
income was earned in a period prior to commencement of business and the
money invested in the fixed deposit was inextricably linked with the
setting up of the power plant hence it is in the nature of capital
receipt liable to be set off against pre-operative expenses.
The appeal was dismissed.
(Please click here for judgment)
|
New User? 
Subscribe Now