DIRECT TAX

1. CIT couldn't withdraw registration of trust without pointing out any commercial activity carried out by trust.
IT: Where Commissioner withdrew registration under section 12AA(3) on ground that assessee was in receipt of income arising out of activity in nature of trade, commerce or business but he had not pointed out any specific instance of any activity, income or expenditure being non-genuine order of Commissioner did not conform to specific conditions laid down in section 12AA(3).

2. No exclusion of super profit making Co. from comparable list if material differences can be eliminated by adjustments.
IT/ILT : The mere fact that an entity makes high/extremely high profits/losses does not, ipso facto, lead to its exclusion from the list of comparables for the purposes of determination of ALP. In such circumstances, an enquiry under Rule 10B(3) ought to be carried out, to determine as to whether the material differences between the assessee and the said entity can be eliminated. Unless such differences cannot be eliminated, the entity should be included as a comparable.

3. Min. of Home Affairs cancels registration of 8,975 foreign-funded NGOs for not filing their annual returns.

4. Sum paid to avoid execution of decree against assessee by way of attachment of property is allowable as business exp.
IT: Payment by assessee to satisfy decree passed by High Court against it in order to protect its property and name is allowable as business expenditure.

5. No sec. 14A disallowance if suo motu disallowance was made by assessee below the limit prescribed under rule 8D.
IT: Where assessee had maintained proper accounts, duly audited and based his claim of having incurred a lower expenditure than that as per statutory prescription of rule 8D and no inquiry was made by revenue into expenditure stood debited in account books, assessee's claim of disallowance under section 14A was to be allowed.

6. AO had rightly issued notice u/s 158BD instead of issuing it u/s 158BC as assessment was initiated of other person.
IT : Where search was conducted in premises of one HS revealing undisclosed income of assessee, notices issued to HS under section 158BC and to assessee under section 158BD assessee being 'any other person', were proper.

7. AO to examine whether listing fee wasn't recognized by Stock Exchange due to uncertainty over its collections: ITAT.
IT: Where a stock exchange following mercantile system of accounting, failed to demonstrate existence of uncertainty over collection of listing fee to justify accounting on cash basis, matter was to be restored to file of Assessing Officer to examine same.

IT: In absence of directions issued by SEBI to transfer amounts to various reserves from listing fees receipts only, such transfer would not amount to diversion of income at source.

8. TRO gets flak from ITAT for disposing for attachment proceedings pending disposal of appeal against it by CIT.
IT: Where Chief Commissioner had directed Jurisdictional Commissioner to dispose off assessee's grievance against attachment of his property as appeal under rule 86 of Schedule II to Act, TRO should not have disposed off attachment proceedings pending disposal of appeal by Jurisdictional Commissioner.

9. CIT(A) can himself make inquiry and refer the matter to DVO on failure of AO to do so.
IT : Where Assessing Officer fails to make enquiry under section 55A while passing assessment order, Commissioner (Appeals) during appellate proceedings before him can make such an enquiry either himself or direct Assessing Officer to do so in terms of section 250(4).

10. Assessee has to pay interest on demand sustained in remand proceedings if he fails to pay initial demand.
IT: Where assessee did not satisfy initial demand raised in original assessment proceedings, it was liable to pay interest under section 220(2) on tax demand sustained in remand proceedings carried out as per Tribunal's directions.

Source : taxmann