Once an application seeking for rectification is disposed of, be it the revenue or the assessee, if aggrieved, should have the recourse to the provisions of appeal before this Court and either of them cannot invoke the provisions of Section 254(2) by filing another application for rectification which, in our view, cannot be entertained under that section. We may also observe that on the facts of this case, by the subsequent order of rectification, the original order of the Tribunal itself is sought to be rectified, which resulted in the deletion of the penalty levied under Section 271(1)(c) of the Act.”

(Click here for judgment)

2.   DCIT vs Shri Gopal Ramnarayan Kasat - Bombay HIGH Court : Batch Matters: Issue of Stock In Trade versus Capital Asset Held

From the material on record, it is manifest that the lands purchased by the assesses were not purchased with an intention to hold it as a "capital asset" but were purchased with the knowledge that the said lands are being acquired with the sole intention of earning huge profit on account of their acquisition. If the lands were not purchased with the intention of holding them as "capital asset" and only with an intention of earning huge profits on the said purchases, we do not find any infirmity with the finding of the Tribunal, that the reliance placed on the provisions of Section 2(14)(iii)(a) and (b) is of no assistance to the assesses.

234B Interest : Whether Compensatory or mandatory: Hardship to Estimate Income no Escape from Non Advance Tax Payment and Resultant Interest Levy:

Since we have already upheld that the profit earned by the assessee on receipt of the compensation is an income chargeable to income tax under the head "profit from business", holding the transaction to be "adventure in the nature of trade", in view of the judgment of the Division Bench, cited supra, mere difficulty faced by the assessee in the matter of computation cannot defeat the liability for payment of advance tax. In view of the judgment of Division Bench of this court, we are unable to agree with the view taken by the Division Bench of Delhi High Court, in the case of Commissioner of Income Tax Vs. Anand Prakash (supra).
We accordingly reject the contention of the assesses, in that regard, also. 

Land Acquisition Cases: Interest Awarded Tagged under BUSINESS HEAD and Taxable on receipt basis
 
The interest which forms component of the compensation, as held by the Apex Court, in the case of Commissioner of Income Tax Vs. Ghanshyam (HUF) (supra), has to be taxed in the year of receipt under the head "profit and gains of business or profession."

(Click here for judgment)

3.   CIT vs Mool Chand Sharbati Devi Hospital Trust-All High Court : Charitable Trust Taxation: Feb 2010: Held 

The object of the assessee trust is primarily to run the hospital, nursing home etc. for medical aid to the general public. We are of the view that such object falls within the purview of charitable purposes defined under Section 2 (15) of the Act. Construction of building for running the hospital or dispensary is the basic necessity. Without the building hospital cannot run and the medical facility cannot be provided to the public at large. Therefore, any expenditure incurred for the construction of the building is the expenditure incurred for charitable purposes. For the construction of the building if the land is taken on lease from PMT Society on which hospital was constructed and is being run, it cannot be said that the amount incurred in the construction of the hospital building on the land taken on lease from PMT Society was not for charitable purposes. We are of the view that the object of the PMT Society is wholly irrelevant to judge the object of the present assessee.

(Click here for judgment)

What's New 

a.  Exposure Draft on Guidelines on Distance Marketing and Sale Process Verification of Insurance Products  (Click for detail) 

b.  Builders, brokers hoodwinking I-T dept with wrong business codes  (Click for detail)

c.  Indo-UAE Tax Treaty: Aggregation of time spent on different projects can only arise for ‘connected’ projects  (Click for detail)

d.  Nilekani to code public projects  (Click for detail)

e.   Penalty proceedings : Whenever an addition/disallowance is made, initial burden is upon assessee to prove that it is not his concealed income or he has not furnished inaccurate particulars of such income  (Click for detail)

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