1.     CIT Vs STANDING CONFERENCE OF PUBLIC ENTERPRISES  – Delhi High Court- Principle of mutuality- The following two important question of law are decided

i) Whether the assessee society is a mutual concern so as to claim exemption on principle of mutuality?   

ii) Whether the ITAT was correct in law in holding that only rental income received by the assessee from non-  members is chargeable to tax?  

(Click here for judgment) 

2. CIT Vs Tony Electronics Limited- DELHI High Court- Section   154(7) of the Act. The issue is: from which date the period of   limitation provided under Section 154 of the Act is to be reckoned.   Hon’ble High Court has held that “once we opine that the assessment order had merged with the order of CIT(A) passed on 28.6.2004, the limitation for the purpose of sub-section (7) of Section 154 is to be counted from this date. Interestingly, even the learned counsel for the   assessee agreed to the extent that when the order is passed during the re-assessment of proceedings”.

(Click here for analysis)

(Click here for judgment)

3.     CIT Vs Trevani Engg- Delhi- High Court- Nature of pre-commencement expenses- It has been held that expenses incurred on trial run, insurance interest paid on loan are revenue expenditure and hence allowable as deduction. And further held that   when the assessee submitted justification as to the excessiveness of the fuel expenses the expenses are allowable.