1. The Supreme Court ruled that tips collected by employees from customers cannot be considered as salary income of the employees and are not taxable. 2. The Mumbai ITAT ruled that since a celebrity was advised by a competent CA regarding tax provisions, no penalty could be imposed for failure to deduct tax at source since there was no mala fide intention. 3. The Cochin ITAT ruled that mere proximity of land to a highway does not change the agricultural nature of the land, and appreciation in land value alone cannot be used to determine if the land is not agricultural.

1. VOLUME NO.: LLAT/1495 OF 2016-17 DATE: 7 July 2016
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Dear Client,
We have pleasure in listing below some of the recent legal landmarks.
SrNo Authority Section/Rules RATIO(S)
Citation /Subject CASE(NAME OF ASSESSEE)
1.1 SC 15 ITA
Tips collected from customers could not be taxable as salary of employees.
1.2 68TM323 Salary income
ITC Ltd. Gurgaon
2.1 MUM ITAT 9, 195, 271C, 273B ITA
Since Aishwarya being advised by a CA well acquainted with provisions of Act had
not deducted TDS; no mala-fide intention could be imputed to Aishwarya for failure to
deduct tax and; accordingly; no penalty could be imposed.
2.2 68TM324 Penalty
Smt. Aishwarya Rai Bachchan
3.1 COCH ITAT 2(1A), 2(14) ITA
Mere nearness of agricultural land to highway did not alter character of land and
appreciation in price of land could not be seen in isolation for concluding that land
was not an agricultural land.
3.2 68TM331 Definition
Kalathingal Faizal Rahiman
4.1 MUM ITAT 71, 70, 73, 80 ITA
Losses from trading in derivatives could be set-off against short-term capital gain
(STCG).
4.2 68TM332 Set-off Loss
Deepak Sogani
5.1 CHENN ITAT 92C ITA
Where comparable companies are not available; A can compute ALP on basis of its
transaction with unrelated parities.
5.2 68TM333 Transfer Pricing
Igarashi Motors India Ltd
6.1 P&H HC 145 ITA
Where A failed to furnish the vouchers of expenses; AO had correctly computed
income on estimated basis.
6.2 68TM334 Accounting method
S.P. Construction