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

Contingency/suspense deposits

ByCA Gopal Nathani

Oct 31, 2020

The Madras High Court in 308ITR154 held that amount collected as contingency deposits for payment of possible tax liability would be a trading receipt no matter it is treated as a deposit in a suspense account. The Court however made a point that if and when the amounts collected would be refunded to the persons from whom the collection had been made, the assessee could claim a deduction in the year in which such a refund is made. The Kerala High Court in 295ITR473 also held that the mere fact that the assessee had created a head “Contingency deposit” and kept the collection as such without paying the amount to the Sales Tax Department would not change the character of the receipt