1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Wrongful claim of tax holiday

ByCA Gopal Nathani

Oct 28, 2020

In 427ITR15 the assessee having deposited huge cash during the demonetization period claimed a tax holiday alleging that the cash is generated in tax holiday business of running hospitals and qualify for deduction u/s 80-IB (11C). The AO in this case assessed him u/s 115JC against which a writ is preferred by the assessee alleging that violation of principles of natural justice.

The Madras High Court brushed aside the plea of the assessee by invoking ‘useless formality’ theory vide (2000) 7SCC 529 and wondered on the fraudulent conduct of the assessee to claim tax holiday against a huge cash deposit. The Court held that tax holiday can be granted to a person who declares a truthful return.