| < 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 
|
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
|
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
|
| From ITAT |
| |
K. S. Kamalakannan v. ACIT [ITA No. 588/Mds/2009] [2010] 3 taxmann.com 18 (CHENNAI - ITAT)
Interest on loan taken for repayment of earlier loan taken for business purposes is not allowable u/s 24(1)(vi)
When the interest payable on the original loan is not allowable u/s 24(1)(vi), then the interest paid or payable on the second loan for repayment of original loan is also not allowable
|
K. K. S. K. Leather Processors (P.) Ltd. v. ITO [ITA No. 826 & 827/Mds./2009] [2010] 3 taxmann.com 17 (CHENNAI - ITAT)
Depreciation : Requirement of second proviso to rule 5(1A) of IT Rules is satisfied if option is exercised before expiry of due date of filing of return of income u/s 139(1) of IT Act, 1961
Before due date simply refers and means that not after the expiry of due date; if the requisite act is done before the last day expires then it will be simply said that before due date; when the time of filing the return is available to the assessee till the last moment of the due date then the whole of that day is available to the assessee and due date expires only when the last day is expired; as such the option exercised on the due date is nothing but before the due date as the same is not after the due date
|
ADIT (Int’l Taxation) v. Federal Express Corporation, USA [ITA Nos. 4452, 4453 & 9482/2004] [2010] 3 taxmann.com 16 (MUM. - ITAT)
Indo-US Treaty : Profits attributable to transaction of cargo, mail, etc. by aircrafts owned, chartered or leased by assessee cannot be taxed in India
The transportation of passengers, mails or cargo etc. by the assessee in the international traffic by the aircrafts as owner/charterer/lessee would fall within the scope of Article 8 of the Indo-US Tax Treaty and therefore, profits attributed to the same cannot be taxed in India; further, the profits from inland transportation directly connected with such transportation would also not be taxable in India
|