Tax recovery couldn't be initiated until matter is heard and outcome of stay application is decided by ITAT
IT : ITO being a quasi judicial authority should not act as a mere tax gatherer but also as an authority vested with power of mitigating hardships to assessee and should at least delay recovery till outcome of stay application
Income from sale of shares was taxable as capital gain when transactions of sale/purchase were sporadic
IT : Where assessee was not regularly purchasing and selling shares in a systematic manner and no borrowed fund had been used by him for such purpose, gain on purchase and sale of shares would be treated as short-term capital gain
IT : Where in earlier assessment years Assessing Officer treated interest income of assessee as business income, in relevant year he could not tax same under head 'Income from other sources' without showing any reason for changing his stand
IT : In case of investment in shares, disallowance under section 14A is to be restricted to one per cent of dividend income
Sum paid by an electricity Co. for transmission of electricity won't attract sec. 194-I TDS
November 11, 2014[2014] 51 taxmann.com 151 (Mumbai - Trib.)
IT : Section 194-I could not be invoked in respect of payments made only for transmission of electricity rather than for the use of transmission lines per se.
Facts:
• The issue that arose for consideration of Tribunal was:
• Whether transmission charges paid by an electricity company for the transmission of electricity via transmission lines would attract TDS under section 194-I?
The Tribunal held in favour of assessee as under:
| (1) | Explanation (i) to section 194-I defines rent as any payment, by whatever name called, under any lease, sub-lease, or tenancy or any other agreement or arrangement for the use of land, building, plant, machinery or equipment, etc. | |
| (2) | It was evident from the Explanation (supra) that any payment, by whatever name called, would be considered as rent if it was made for the use of land, building, plant, machinery or equipment, etc. In the instant case, payment was made for the services of transmission of electricity and not for the use of transmission wires per se. | |
| (3) | If payment was made for use of an asset simpliciter, whether with control and possession in its legal sense or not, the payment could be said to be for use of an asset. However, if payment was made only for the purpose of specific act, i.e., power transmission in the instant case, and even if an asset was used in the said process, the payment could not be said to be for the use of an asset. | |
| (4) | Hence, section 194-I could not be invoked in the instant case, as the payments were made only for transmission of electricity rather than for the use of transmission lines per se. |
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| Welcome to the final special edition of The Latest, highlighting topics that will be under discussion at the World Congress of Accountants 2014, now underway in Rome, Italy. Today's Viewpoint previews the session titled Promoting Fairness and Growth through Global Cooperation on Taxation (Session 2.8). Couldn't make it to Rome this year? Watch the live stream. | | ||||||||||||||||||||||||
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Income Tax Department to remain open on 15th November, 2014
F.No.225/298/20114/ITA.II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 11th of November, 2014
Order under Section 119(1) of the Income-tax Act, 1961
The Income-tax Offices throughout the country shall remain open on 15th November (Saturday), during normal office hours, for conducting the administrative work related to implementation of the restructuring of jurisdictions across the country which is coming into effect from 15th November, 2014.
This direction is issued for administrative convenience by the Central Board of Direct Taxes and the same may be brought to the notice of all concerned.
(Rohit Garg)
Deputy Secretary to the Government of India
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