Income Tax dated 04.01.2019- CA Samadhan Series

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1.     Income Tax : Charitable Activities - Exemption under Section 11 denied - AO should have restricted the denial of exemption only to that portion of the investments, which were made by the assessee in violation of Section 11(5) of the Income Tax Act - Madras High Court in case of [M/S. Vincentian Madras Society, Chennai Vs. The DCIT (Exemptions) III]



2.     Income Tax : TDS u/s 195 - Time-Writing Charges - The service provided by employees of BGIL are merely in the nature of routine support services and, therefore, cannot be termed as ‘FTS’ under Article 13 of the India UK DTAA -  ITAT Delhi in case of [M/S B.G. India Energy Solutions P Ltd. Vs. The DY. C.I.T, Circle – 1 (1) , Gurgaon]



3.      Income Tax: Valuation of Shares - Restriction as per Rule 11U(a) on the auditor’s acceptance as Accountant for the purposes of Rule 11UA (2) is well founded. - There is no merit in this argument of the assessee that only because the certificate is given by the auditor, it should not be held that the value certified by him is not acceptable - ITAT Bangalore in case of [M/S. Kottaram Agro Foods Pvt. Ltd. Vs. The ACIT (OSD) , Range – 4 (1) , Bangalore]



4.      Income Tax : Determination of Total Income - Assessment of Agricultural Income - assessee has not produced any details or evidence regarding quantity of crops sold, date on which sold, the cost of expenditure incurred, the rate at which sold etc. - Additions confirmed - ITAT Bangalore in case of [SMT. Annapurna Vs. The ITO, Ward – 1, Tumkur]

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