| Corporate Laws |
| From SC/HC |
 | Rakesh Kumar Gupta, In re [Decision No. CIC/LS/A/2009/000647/SG/5887, Appeal No. CIC/LS/A/2009/000647] [2010] 3 taxmann.com 23 (NEW DELHI)
Section 8(1)(h)/(j) of RTI Act, 2005 cannot be applied to claim exemption from disclosure of information, provided by an assessee to Department for purposes of income-tax assessment, to third party - If an informer is assisting the Department by bringing instances of tax evasion to its notice, and if he is using information that he has received through RTI Applications for this purpose, it cannot be considered to be misuse of information in any way, nor can it be considered to be an unwarranted invasion of privacy of the assessee; in that case, even if any of the exemption clauses of Section 8(1) were applicable it certainly serves a larger public interest, if tax evasion is curbed. Read More
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| Direct Tax Laws |
| From AAR |
| Wavefield Inseis ASA, In re [A.A.R. No.844 of 2009] [2010] 3 taxmann.com 21 (AAR - NEW DELHI)
Amounts falling under Section 44BB of I.T. Act have been excluded from the purview of the royalty definition - Once Section 44BB is attracted, it is common ground that the computation has to be made in accordance with that provision and no other special provision, viz., Section 44DA or Section 115A would come into play in view of the fact that the payment is being made by a non-resident to another non-resident Read More
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| Federation of Indian Chambers of Commerce and Industry (FICCI), In re [A.A.R. No.812 of 2009] [2010] 3 taxmann.com 20 (AAR - NEW DELHI)
Indo-US Treaty: Orientation towards business and inculcation of entrepreneurial outlook does not really amount to “making available” technical knowledge, experience or skills of experts of an American IC2 Institute - No income-tax is liable to be paid by IC2 Institute on the payments received by it from FICCI for impmentation of India Innovative Growth Programme and FICCI is not required to deduct tax at source from such payment Read More
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| Real Resourcing Ltd., In re [A. A.R. No. 828/2009] [2010] 3 taxmann.com 19 (AAR - NEW DELHI)
Indo-UK DTAA: Receipt in nature of referral fee for rendering referral services by applicant-British Company from Indian based recruitment company cannot be subjected to tax as business profits in view of provisions of Treaty - • Collecting data and analyzing it and making a data base for providing information on suitable candidates for recruitment, even if they are in the nature of consultancy services, cannot be considered to be ancillary and subsidiary to the enjoyment / application of the right or information referred to in paragraph 3(a) of Article 13 of the Indo-UK DTAA
• Taking steps to make available the experience and skill of candidates available for recruitment does not at all fall within the ambit of making available the technical knowledge and experience of the service provider Read More
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| From ITAT |
| DCIT v. Sonal Shares & Stock Brokers Pvt. Ltd. [ITA No. 744/Mum/09] [2010] 3 taxmann.com 24 (MUM.)
Payment towards VSAT/Transaction charges made by a Stock Broker to Stock Exchange is not fee for technical services u/s 194J - Stock exchanges as measure of providing infrastructure to its members provide VSAT facilities to its members to enable screen based trading in shares; fees collected in this regard is nothing but fee paid for use of facilities provided by the stock exchange, such payments cannot be said to be in nature of fees for any technical services rendered. Read More
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| DDIT (Int'l Taxation) v. Stock Engineer & Contractors B. V. [ITA No. 2169/Mum/2004] [2010] 3 taxmann.com 22 (MUM.)
It is wrong to disallow first year’s brought forward expenditure of a project in second year by branding it as ‘prior period expenditure’ because unless entire expenditure is considered at the end of project correct amount of profit cannot be finally determined - Under the percentage of completion method, the income is to be recognized on year to year basis as the contract activity progresses based on the stage of completion reached Read More
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