1.      LANDMARK & PATHBREAKING ORDER IN CASE OF GUJARAT MINERAL DEV CORP LTD ON JURISDICTION OF ITAT AND SCOPE OF APPEAL BEFORE ITAT.

      (Click here for Analysis)

      (Click here for Judgment)

2.      Coronation Floor Mills : In context of unreasonable/excessive expense u/s 40A(2) of the Act, Guj HC has interalia concluded that:

    "The contention raised on behalf of the appellant-assessee that the fair market value  having not been ascertained by the Assessing Officer. No disallowance could have been made therefore does not merit acceptance."

      Very respectfully, this appears to be going against the

        a.     CBDT Circular No 6-P of 1968 (reaffirmed in Circular No. 636/1992)

        b.     SC ruling in 117 ITR 569

        c.     Kar HC in 160 Taxman 244

        d.     Mad HC in 285 ITR 84

        e.     Raj HC in Udaipur Distillery

        f.       BHC in Saudi Services and Dev ji Nensi

        g.     Del ITAT in Mittal 21 SOT 186

       (Click here for Judgment)

3.      Sun Pharmaceutical Ind. Ltd.

     In this interesting case, Guj HC dismissed revenue’s appeal challenging ITAT order whereby assessee’s claim of lease rent of Rs 48 lacs (app) for 99 years has been treated as revenue expense and allowed in one go.

      (It is noteworthy that before AO it was assessee’s submission that subject claim of lease rent is just like advance rent).

     Contrary conclusion stands recorded in Ahd ITAT Special Bench ruling in FAG Bearing 118 TTJ 433. 

      It is apparent that Special Bench ruling has received a dent after Guj HC instant ruling, specially being Jurisdictional High Court.

      (Click here for Judgment)

 APPEAL