Section 48 Compensation paid to clear title of land was deductible

Compensation paid to clear title of land was deductible as cost of improvement on its sale

[2015] 56 taxmann.com 292 (Delhi - Trib.)

IN THE ITAT DELHI BENCH 'F'

Assistant Commissioner of Income-tax, Circle 24 (1), New Delhi

v.

Pushkar Dutt Sharma

Expenses incurred to remove impediments or encumbrances in way of transfer of capital asset has to be allowed as deduction under head 'cost of improvement' while computing taxable amount of capital gain

Where in terms of registered sale deed what assessee actually transferred was not only lesser area under his exclusive ownership, but also common area on which he had joint ownership rights, his claim for deduction as indexed cost of acquisition in respect of both areas was to be allowed

Section 69 : Case law on Black Money

[2014] 52 taxmann.com 146 (Mumbai - Trib.)

IN THE ITAT MUMBAI BENCH 'H'

Mohan Manoj Dhupelia

v.

Deputy Commissioner of Income-tax, Central Circle-1, Mumbai

 Sum deposited in account of a trust in foreign country by assessee, beneficiary of said trust, without disclosing it in his return in India, represented his black money to be assessable under section 69

No TDS from interest payable by bank to unidentified recipient

[2014] 51 taxmann.com 253 (Delhi)

HIGH COURT OF DELHI

UCO Bank

v.

Union of India

Where Registrar General of High Court was not a recipient of fixed deposit deposited by a litigant with assessee-bank as per direction of High Court, assessee was not liable to deduct tax on interest on said deposit

Section 48: Solatium is also to be taken for computing market value of land

[2015] 56 taxmann.com 320 (Delhi - Trib.)

IN THE ITAT DELHI BENCH 'A'

Income Tax Officer, Ward 1 (1), Meerut

v.

Anil Kumar

Solatium is also to be taken into account for purpose of computing fair market value of land

Section 32: Machinery used for Trial run :Depreication Allowed

[2015] 56 taxmann.com 333 (Delhi)

HIGH COURT OF DELHI

Commissioner of Income-tax, Delhi-IV

v.

Escorts Tractors Ltd

 Even though machinery was installed before end of financial year and used only for trial run and not for production, depreciation on machinery would be allowed

Senior Citizen Saving Scheme 2004

As name itself suggests, this scheme is only for the senior citizens. The account may be opened by an individual, who has attained age of 60 years or above on the date of opening of the account. The account may also be opened by those who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account or  within three months from the date of retirement. The retired personnel of Defence Services (excluding Civilian Defence Employees) will be eligible to invest irrespective of the age limits subject to the fulfillment of other specified conditions.

The account may be opened in individual capacity or jointly with spouse. Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.

1. What are the salient features of the Senior Citizens Savings Scheme, 2004?

Award Received from Trust: Capital Receipt not taxable

[2015] 56 taxmann.com 80 (Delhi)

HIGH COURT OF DELHI

Aroon Purie

v.

                                                 Commissioner of Income-tax

Rs. 1 lakh received by the appellant- assessee as an award from B.D. Goenka Trust for Excellence in Journalism would be a capital receipt and hence not income taxable under the Act, i.e. Income Tax Act, 1961