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II. Direct Tax Case laws:
1. CIT Vs. Ashok Mittal, ITA No. 26/2013, Date of Decision: 07.02.2013, Delhi High Court
Decision : In favor of assesse, Assessment Year : 2000- 01, Section : 73 of I.T. Act, 1961
Cases referred:
1. CIT v. New India Investment Corpn. Ltd. [1994] 205 ITR 618 (Cal.) (para 6)
2. CIT v. Pradeep Kumar Todi [2009] 181 Taxman 29 (Cal.) (para 6)
3. Navnitlal Ambalal v. CIT [1976] 105 ITR 735 (para 6)
4. Navnit Lal C. Zaveri v. K.K. Sen, Appellate Asstt. CIT [1965] 56 ITR 198 (SC) (para 8).
Whether
the assessee is correct in adjusting the brought forward speculation
losses from the current year speculation profits before adjusting
current year’s losses?
Held- Yes.
The
assessee adjusted the brought forward speculation losses as against
current year speculation profits by relying on the Circular No. 23D,
dated 12-9-1960 issued by CBDT (not withdrawn by CBDT), which is binding
on the AO, which conceded that the brought forward speculation losses
may first be set off against the CY speculation profits before adjusting
any other profits. The ITAT affirmed the decision of CIT (A). The
appeal was dismissed by the Hon’ble High Court.
(Please click here for judgment)
2. CIT Vs M/S Groz Beckert Asia Ltd., ITA No.366 of 2008, Date of Decision: 24.01.2013 (P & H High Court)
Decision: In favor of Assessee
Section: 37(1) of Income Tax Act 1961
Cases Referred:
1) OTIS Elevator Company (India) Limited Vs. Commissioner of Income Tax (1992)195 ITR 682
2) Assam Bengal Cement Co. Ltd. Vs. Commissioner of Income Tax, West Bengal (1955) 27 ITR 34
3) Empire Jute Co. Ltd. Vs. Commissioner of Income Tax 124 ITR 1
Whether
on the facts and in the circumstances of the case, the ITAT was right
in law in not sustaining the addition ofRs.616945/- on account of
corporate membership fee paid to Golf club as a capital expenditure?
The
corporate membership was obtained for running the business with a view
to produce profit. Such membership does not bring into existence an
asset or an advantage for the enduring benefit of the business. It is
expenditure incurred for the period of membership and is not long
lasting. By subscribing to the membership of a club, no capital asset is
created or comes into existence. By such membership, a privilege to use
facilities of a club alone, are conferred on the assessee and that too
for a limited period. Such expenses are for running the business with a
view to produce the benefits to the assessee. Consequently, it cannot be
treated as capital asset as such club membership is an advantage in the
commercial sense and not in nature of capital field. The High Court
held the decision in favor of assessee and thus the case got dismissed.
(Please click here for judgment)
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