Income Tax Case Laws

COMMISSIONER OF INCOME-TAX Versus FEDERAL BANK LTD. - 2008 TMI - 4452 - KERALA HIGH COURT
Income Tax - Assessee, banking Co. – interest on govt. securities - Merely because the assessee has declared it as amount receivable in the course of time, it does not mean that interest on income had in fact accrued to the assessee – only real income is assessable under the Act - Though interest due or receivable is assessable under the mercantile system, since the interest on securities involved in this case, was neither received nor receivable during the previous year, such interest cannot be assessed

DR. MISS CHANDRAWATI Versus COMMISSIONER OF INCOME-TAX - 2008 TMI - 4451 - ALLAHABAD HIGH COURT
Income Tax - Applicant claimed depreciation on building of nursing home @ of 20 %., the rate applicable to a hotel as nursing home is providing lodging to the patients – held that nursing home could not be treated as a hotel allowed the depreciation only @ of 10 % - Tribunal has declined to permit the applicant to raise the additional ground. The discretion exercised by the Tribunal cannot be said to be based on irrelevant material or consideration, hence question no. 1 doesn’t arise

MIDLAND RUBBER AND PRODUCE COMPANY LTD. Versus STATE OF KERALA - 2008 TMI - 4445 - KERALA HIGH COURT
Income Tax - Loss was occasioned to petitioner due to damage to the stock of rubber latex & a claim for insurance was made in Nov. 1992 – insurance amount was received during the period of A.Y. 1994-95 – in view of section 4(2)(ii), contention raised by the petitioner that the amount received as insurance claim could be related only to 1992-93 and not to the agricultural income of 1994-95 is liable to be rejected – contentions raised by the petitioner are devoid of merits & they are accordingly rejected

ALL GUJARAT FEDERATION OF TAX CONSULTANTS AND OTHERS Versus UOI AND OTHERS - 2008 TMI - 4444 - GUJARAT HIGH COURT
Income Tax - Petitioner has prayed that not.762(E) dated May 14, 2007, introducing new forms for the purpose of filing tax returns be quashed & petitioners be permitted to file returns in “Saral” form – assessee contended that new forms are complicated - about 6,77,330 taxpayers out of about 25 lakhs, have already filed their returns so it is difficult to accept the contention of petitioner – dept is directed to accept the return forms which are submitted by the taxpayers, subject to the genuine difficulty

AAN AAM PROP. Versus COMMISSIONER OF INCOME-TAX - 2008 TMI - 4388 - PUNJAB AND HARYANA HIGH COURT
Income Tax - On receipt of information that income in the form of investment in construction of building and installation of plant and machinery had escaped assessment, a notice was issued to the assessee on February 14, 1980 - filed return on November 3, 1984 – allegation of escapement of income was found correct – delay of 56 months in filing return after the notice u/s 148 – assessee even did not respond to SCN issued u/s 271(1)(a) - penalty under section 271(1) (a) is imposable