Monday, May 2, 2016

Principal of unjust enrichment couldn't be applied to deny refund even if tax amount was written off in P&L account

Merely because amount of tax paid is shown as expenditure, it cannot be concluded that incidence of duty was passed onto buyers; hence, doctrine of unjust enrichment would not apply to deny refunds merely because tax amount was written off in Profit & Loss Account

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Demand stayed by ITAT as huge sum was locked up with dept. in relation to disputed tax liability of earlier years

IT/ILT: Where demand was raised on account of transfer pricing adjustment, disallowance of claim u/s 80-IA and disallowance of long term capital loss, in view of fact Tribunal had already granted stay with reference to similar demand raised for earlier assessment years and that huge sums of assessee stood lock up in disputed tax liability of earlier years, stay was to be granted.

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No exemption under sec. 13A to a political party if it fails to maintain books of account


a) The assessee (the then ‘Janata Party’) was a political party registered under the Representation of the People Act, 1951 ('RP Act'). It claimed exemption under Section 13A in respect of voluntary contribution received from members.

b) Assessing Officer (AO) taking a view that assessee did not maintain proper books of account, rejected its claim for exemption.

c) The CIT(A) confirmed the order of the AO. However, on further appeal by assessee, the tribunal reversed the order of the AO.

d) Aggrieved by the order of the tribunal, revenue filed the instant appeal before the High Court.

The High Court held in favour of revenue as under-