Direct Tax

1. Snippets of changes made in Finance Bill, 2015 as passed by the Lok Sabha.

2. Notice of amendment to Finance Bill, 2015 as passed by the Lok Sabha; no MAT on foreign co. for passive income.

3. WDV of building on leasehold land couldn’t be claimed as current repairs if assessee didn’t construct such building.
IT: Where assessee had not constructed any building or had modified existing building after taking premises on lease, assessee's claim of written down value of said building on leasehold land as current repair would not be allowed

IT: Where assessee paid tax deducted at source before due date for filing return of income, disallowance under section 40(a)(ia) is not justified.

4. HC orders regularization of temporary employee of I-T department as he had completed prescribed period of service.
Service Matters : Where services of daily wage employees of Income-tax Department who had completed 10 years of service was regularized in 2007, denial of regularisation of service of petitioner who had completed 8 years of service till then and 15 years of service till date would be violative of human right.

5. TPO gets flak from ITAT for disallowing royalty paid to AE without proving that assessee was contract manufacturer.
IT/ILT : Where assessee was a manufacturer and paid royalty for using technological know-how of foreign holding company and it was selling manufactured goods to both AEs, and third parties, assessee could not be held as contract manufacturer so as to disallow royalty payment.

6. Provision for leave salary is a contractual liability and not a statutory liability; not hit by sec. 43B disallowance.

7. Gift held as unexplained as assessee failed to prove its genuineness and that it was given out of love and affection.
IT: Where assessee could not prove genuinenes of gift claimed to have been received from an NRI and also factum that transaction was out of love and affection, a sine qua non to establish a genuine gift, amount was added to assessee's income under section 68

8.  Profit on sale of shares held as Cap Gain as purchases made out of own funds & not borrowed funds meant for business.
IT : Where assessee earned income from sale of shares, in view of fact that said shares were purchased out of assessee's own funds and kept as investment all along amount in question was to be taxed as capital gain.