|
II. Useful Case Laws:
1. CIT Vs. M/S Uberoi Sons (Machines) Ltd., ITA 166/2006, Pronounced on: 31.08.2012, High court of Delhi
Reopening of assessment u/s 147 on the basis of ‘mesne profits’ which is likely to accrue in the future is valid?
Held:
In view of judgment in R.J Wood. The Court held that receipts towards mesne profits should be taxed in the year of their receipt. The revenue had not however, re-opened the assessment in respect of the year of receipt of the amounts, in this case. As a result, this Court holds that though the amount received by the assessee was liable to tax, in accordance with the law declared by the Supreme Court – in the year of its receipt- there is no infirmity with the findings and conclusions of the Tribunal. The questions of law framed are accordingly answered against the revenue, and in favour of the asseseee, subject to the above observations and findings. The appeals are consequently dismissed.
(Please click here for judgment)
2. CIT Vs. Tei Technologies Pvt. Ltd., ITA Nos. 347/2011 & 2067/2010, Date of Decision: 27.08.2012, High court of Delhi
Issue:
“Whether the ITAT is right in holding that for the purpose of Section 10A of the IT Act, 1961 the losses suffered in the Non-EPZ Unit need not be set off from the profit/income of the EPZ Unit?”
Held:
Section 10A, even after the amendment by the Finance Act, 2000 w.e.f. 1.4.2001 is an "exemption" provision and the current years and the brought forward loss suffered by a non-EPZ unit cannot be set-off against the section 10A unit’s profits.
(Please click here for judgment)
|
New User? 
Subscribe Now