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Direct Tax Laws
  
 SC/HC
  
 [2015] 55 taxmann.com 314 (Allahabad)[2014] 369 ITR 304 (Allahabad)
Surcharge and Cess is to be computed after deducting MAT credit from tax liability -IT : 'Tax payable' is to be arrived at by deducting credit under section 115JAA from 'gross tax payable' and on this amount of 'tax payable' surcharge and cess are to be computed Read Morenew
  
 [2015] 55 taxmann.com 372 (Madras)
High Court : Additional ground raised first time which is beneficial to assessee should be considered by ITAT -IT : Tribunal should consider additional ground if same is beneficial to assessee Read Morenew
  
 [2015] 55 taxmann.com 269 (Gujarat)
Sec. 234B interest was leviable due to increase in income even when no interest was charged in assessment -IT : Interest under section 234B can be charged when income of assessee is modified under section 154 even if no interest had been so charged at time of framing regular assessment on nil income Read Morenew
  
 [2015] 55 taxmann.com 306 (Bombay)
Interest earned on FD before its maturity couldn't be taxed if assessee was maintaining books on cash system -IT: Where assessee had followed cash system of accounting and interest earned on fixed deposit was not received in relevant year, same would not be added in income of relevant year Read Morenew
  
 [2015] 55 taxmann.com 304 (SC)[2014] 368 ITR 720 (SC)
SC: Profit derived from business of captive generation of power was deductible from book profits for MAT purposes -IT: Where assessee was mainly engaged in manufacture and sale of urea and was additionally engaged in captive power generation, profits derived from captive power plants were to be reduced from book profits for determining tax payable for purposes of section 115JA Read More
  
 [2015] 55 taxmann.com 523 (Delhi)
Market interest rate applicable to currency in which loan is repayable to AE has to be used to compute ALP of interest -IT/ILT : The arm's length interest rate for loan to overseas subsidiary should be computed based on the market determined interest rate applicable to the currency concerned in which the loan has to be repaid. Interest rates should not be computed on the basis of interest payable on the currency or legal tender or the place or country of residence of either party. There is no justification or cogent reason for applying PLR which is applicable to loans in Indian rupee for outbond loan from Indian Read More
  
 [2015] 55 taxmann.com 289 (Delhi)
AO couldn’t treat exp. on launching of brand as deferred revenue exp. if it was in nature of revenue exp. -IT : Where assessee follows mercantile system of accountancy, expenses due and payable are to be allowed, as an expenditure is not confined only to money actually paid towards a liability, but also covers a liability accrued, although discharge could be at a future date Read More
  
 [2015] 55 taxmann.com 307 (Bombay)[2015] 273 CTR 317 (Bombay)
Financial hardship need not be considered in stay application if case was against revenue as per Superior Forum -IT : Where assessee raised plea that it being an agent of State Government its income was not taxable in view of article 289 of Constitution, unconditional stay would be granted pending disposal of appeal before Commissioner (Appeals) Read More
  
 [2015] 55 taxmann.com 308 (Gujarat)
AO to determine unexplained income on basis of highest peak of debit/credit on seized dairy, directs High Court -IT : Where Assessing Officer did not consider explanation tendered by assessee regarding transactions recorded in seized diary and also overlooked working of peak credit given by assessee, income was directed to be determined on basis of highest peak of unexplained receipts and payments Read More
  
 [2015] 55 taxmann.com 310 (Gujarat)
No penalty if assessee had wrongly claimed sec. 80-IB deduction without concealing particulars of income -IT: Where assessee's claim for deduction under section 80-IB in respect of SSI unit was denied on ground that it was a case of reconstruction of business, it could not be a ground to impose penalty under section 271(1)(c) taking a view that deduction was wrongly claimed Read More
  
 [2015] 55 taxmann.com 295 (Gujarat)
In best judgment assessment, income has to be computed on basis of net profit rate instead of Gross profit rate -IT : While making best judgment assessment, assessee's taxable income from business would be computed on basis of net profit rate shown by assessee in immediate preceding year and not based on gross profit rate of said year Read More
  
 [2015] 55 taxmann.com 292 (Gujarat)
Retracted statement of assessee, regarding benami concerns won’t invite addition in absence of any evidence -IT: Merely on basis of admission that few benami concerns were being run by assessee, assessee could not be subjected to addition when assessee retracted from such admission and revenue could not furnish any corroborative evidence in support of such admission Read More
  
 [2015] 55 taxmann.com 189 (Gujarat)
Forex gain on export would be deemed to be derived from industrial undertaking for computing sec. 80-IA relief -IT : While computing deduction under section 80-IA exchange rate difference should be treated to be derived from industrial undertaking whereas duty drawback should not be treated as derived form Industrial Undertaking Read More
  
 [2015] 55 taxmann.com 286 (Punjab & Haryana)[2014] 369 ITR 656 (Punjab & Haryana)
HC treated foreign gift as income from undisclosed sources as donor denied transfer of any amount as gift -IT : Where there existed no strong relationship between donor and donee and doner had not gifted any amount to any other person, foreign gift was to be treated as income from undisclosed source Read More
  
 [2015] 55 taxmann.com 309 (Rajasthan)[2015] 370 ITR 275 (Rajasthan)
Profit earned on sale of land by converting it into non-agricultural land on regular basis was business income -IT-I : Where assessee having purchased agricultural land, converted same into non agricultural land and sold same within a short span of time on regular basis to companies in which he was a director, income earned by assessee from said activity was taxable as 'business income' Read More
  
 [2015] 55 taxmann.com 288 (Karnataka)
Remittances towards cost of software products imported from foreign suppliers were royalty and liable to TDS -IT/ILT: Where remittances towards cost of software products imported from foreign suppliers was held as royalty, liable to TDS Read More
  
 [2015] 55 taxmann.com 455 (Gujarat)
Gujarat HC strikes down unconstitutional amendment to sec. 80-IB taking away tax benefit with retro-effect -IT : Amendment made in section 80-IB(9) by adding an Explanation was not clarificatory, declaratory, curative or made "small repair" in the Act, but on the contrary takes away the accrued and vested right of the Petitioner which had matured after the judgments of ITAT. Therefore, the Explanation added by Finance (No.2) 2009 was a substantive law. Explanation added to Section 80-IB(9) by Finance Act (No.2) of 2009 is clearly unconstitutional, violative of Article 14 of the Constitution of India a Read More
  
 [2015] 55 taxmann.com 184 (Gujarat)
CIT couldn't deny sec. 10(23AAA) approval to 'employees welfare trust' due to payment of corpus by employer -IT : Where commissioner had wrongly interpreted rule 16C and held that employer could not made any payment for corpus of employees welfare fund, order of Commissioner to reject registration under section 10(23AAA) was to be set aside Read More
  
 [2015] 55 taxmann.com 287 (Gujarat)
Gain arising from sale of asset couldn’t be taxed under sec. 50 if asset wasn’t part of block of asset -IT : Godown purchased in 1969, but not used since 1985-86 on which no depreciation was claimed in subsequent years, would not be included in block of assets in view of newly introduced section 50 w.e.f. 1-4-1988; profit arising on sale could not be taxed as short-term capital gain but as long-term capital gains Read More
  
 [2015] 55 taxmann.com 293 (Allahabad)
No block proceedings by department relying on statement of persons detained by police without conducting search -IT : Where assessee was neither searched nor assets were recovered from him and there was no warrant of authorization in name of assessee, addition as undisclosed income during block assessment was not sustainable Read More
  
 [2015] 55 taxmann.com 270 (SIKKIM)[2014] 369 ITR 567 (SIKKIM)[2015] 273 CTR 25 (SIKKIM)
HC lashes out at AO for making assessment on 'Sikkim Manipal University' under repealed Sikkim State tax manual -IT : After extension of Income-tax Act, 1961 to State of Sikkim with effect from 1-4-1990, Sikkim State Income-tax Manual, 1948, stands repealed and assessments made thereunder for assessment years 1997-98 to 2005-06 were without authority of law, non est and nullity Read More
  
 [2015] 55 taxmann.com 281 (Punjab & Haryana)
No prosecution against advocate for filing client's return on fake TDS certificate as it was supplied by client -IT: Where respondent, a tax practioner, filed a return on behalf of assessee claiming refund, in view of fact that respondent had no role in preparing TDS certificates, complainant-ITO could not initiate criminal proceedings against him on ground that refund was wrongly claimed on basis of ingenuine TDS certificates Read More
  
 [2015] 55 taxmann.com 258 (Gujarat)
Mere failure to file return of income doesn't invite concealment penalty -IT : Where no return had been filed by assessee and income was assessed on estimate basis by revenue, no penalty could be levied for concealment of income Read More
  
 [2015] 55 taxmann.com 177 (Kerala)
HC keeps coercive proceeding in abeyance on condition of payment of one-third balance tax liability by assessee -IT : Where assessee was willing to pursue remedy as provided in section 260A, coercive proceedings against assessee would be kept in abeyance for a period of two weeks on condition that assessee satisfied 1/3rd of balance liability Read More
  
 [2015] 55 taxmann.com 362 (Delhi)
Forfeiture of application money paid by an investment Co. to buy debentures is allowable as business loss: HC -IT : Where assessee, a promoter of JISCO, having paid application money for acquiring non-convertible debentures (NCDs) in right issue offered by JISCO, surrendered those NCDs to UTI which paid remaining amount and got allotment of NCDs in its favour, in view of fact that assessee had subscribed to NCDs as a matter of commercial expediency for making right issue successful which was in business interest of JISCO as well as assessee, application money in question forgone by assessee was to be all Read More
  
 [2015] 55 taxmann.com 262 (Allahabad)[2014] 272 CTR 277 (Allahabad)
HC upheld deduction of disputed interest liability as it had crystallized on execution of supplementary agreement -IT : Where liability to pay interest as stipulated in initial agreement was disputed and liability was crystallised only on execution of supplementary agreement in current year, deduction of interest liability of earlier years would be allowed in current year Read More
  
 [2015] 55 taxmann.com 280 (Punjab & Haryana)
ITAT couldn’t arbitrarily curtail penalty for assessee-in-default without any tangible reasons -IT : Where Tribunal arbitrarily reduced quantum of penalty for not depositing taxes before filing return without assigning any tangible reason, matter was to be remanded to reconsider same Read More
  
 [2015] 55 taxmann.com 283 (Madras)
Assessee owning Container Freight Station to be deemed as maintaining an infrastructure facility under sec. 80-IA -IT : Container Freight Station (CFS) is part of inland port and, therefore, is an infrastructure facility as defined in Explanation to section 80-IA(4)(i) Read More
  
 [2015] 55 taxmann.com 282 (Karnataka)
Sec. 54 relief allowed on cap gain from land, viz, long-term asset though flat existed on it was short-term asset -IT: Where assessee constructed three storied building on land, in view of fact that building as such was held by assessee for a period of less than 36 months prior to date of transfer whereas land was a long-term capital asset, assessee was entitled to claim benefit of section 54 in respect of both land and building Read More
  
 [2015] 55 taxmann.com 260 (Rajasthan)[2014] 369 ITR 138 (Rajasthan)[2014] 272 CTR 156 (Rajasthan)
Commission paid to NR agent for services rendered outside India wasn't taxable in absence of its PE in India -IT/ILT : Where assessee paid commission to its non-resident agents for rendering services outside India, said commission being in nature of a business profit, was not taxable in India in terms of article 7 of DTAAs between India and UAE Read More
  
 [2015] 55 taxmann.com 361 (SC)
SC: Lump-sum interest paid upfront on debentures in lieu of periodical payments is fully allowable in that year -IT : Upfront discounted lumpsum interest in lieu of periodical payments is allowable in full in year of payment Read More
  
 [2015] 55 taxmann.com 355 (Delhi)
No deemed dividend if 'Subrata Roy' gets advance from his firm which owes to Co. in which he is a shareholder -IT: Where assessee was a shareholder of a company and a partner of a firm and firm was agent of company, Rs. 1.89 crore advanced to assessee by firm from its own account of Rs. 60 crore could not be taxed as deemed dividend merely on ground that Rs. 26 crore collected by firm on behalf of company was not paid yet Read More
  
 [2015] 54 taxmann.com 340 (Allahabad)[2015] 229 Taxman 365 (Allahabad)
Scrutiny was void as it was made without issuing notice under Sec. 143(2) -IT : Where no notice was issued under section 143(2), no assessment order under section 143(3) could passed and therefore, assessment order passed under section 143(3) was void ab initio Read More
  
 [2015] 55 taxmann.com 253 (Andhra Pradesh and Telangana)[2014] 369 ITR 271 (Andhra Pradesh and Telangana)
AO can't make reference to valuation officer without rejecting books of account -IT : Assessing Officer could not have straightaway referred matter to Valuation Officer without rejecting books of account Read More
  
 [2015] 55 taxmann.com 254 (Allahabad)[2014] 369 ITR 310 (Allahabad)
Payment of loan EMI of subsidiary was deductible, being paid by guarantor-assessee to protect its business interest -IT: Where assessee as guarantor had repaid instalments of loans taken by its subsidiary company for protecting its business, assessee will be entitled to deduction of interest on such payments Read More
  
 [2015] 55 taxmann.com 252 (Gujarat)
No TDS on interest paid to custodian of finance Co. when special Court exempted TDS liability on such payments -IT : Where custodian was appointed for financial company from whom assessee had taken loan against pledge of shares, assessee would not be liable to deduct TDS on said interest payment made to custodian Read More
  
 [2015] 54 taxmann.com 327 (Bombay)[2015] 229 Taxman 444 (Bombay)
AO was directed to dispose off petitioner's objections keeping in view reasons recorded for issuing sec. 148 notice -IT: Where order disposing of objection raised by petitioner was beyond reasons recorded for reopening of assessment, Assessing Officer was to be directed to dispose of objections of petitioner to notice, afresh keeping in mind reasons recorded for issuing notice under section 148 Read More
  
 [2015] 55 taxmann.com 220 (Karnataka)
ITAT couldn't pass ex-parte order without considering adjournment sought on medical grounds of counsel -IT : Where Tribunal did not consider pray for adjournment sought on medical ground of assessee's advocate, order passed by Tribunal in absence of assessee was unjustified Read More
  
 [2015] 54 taxmann.com 320 (Rajasthan)[2015] 229 Taxman 378 (Rajasthan)
AO rightly rejected books when assessee failed to explain reasons for errors found in vouchers and books: HC -IT : Where no plausible reason was extended by assessee for errors in vouchers and in other account books, rejection of books of account was justified Read More
  
 [2015] 55 taxmann.com 350 (Karnataka)
AAR should dispose of issue on merits without dismissing application due to technical defaults: HC -Authority for Advance Rulings not throw out application on mere technicalities Read More
  
 [2015] 55 taxmann.com 193 (Madras)
Profit on sale of shares held as capital gains as shares were held by assessee for investment purpose -IT : Where assessee-company held shares as long term investment, profit on sale of share was to be treated as long term capital gain and not as business income; assessee was entitled for exemption under section 10(38) Read More
  
 [2015] 55 taxmann.com 175 (Gujarat)
Exp. on replacement of part of plant couldn't be capitalized if it was allowed as revenue exp. in earlier year -IT : Where expenses incurred for replacement in membrane cells - I plant was treated as revenue expenditure in earlier assessment years, same could not be treated as capital expenditure in relevant assessment year without any valid reason Read More
  
 [2015] 55 taxmann.com 204 (Gujarat)
Assessee would be entitled to compensation and not interest on interest for delay in tax refund -IT: In case of delay in granting refund, assessee would be entitled to compensation and interest can be awarded by way of compensation, but assessee would not be entitled to further compensation by way of interest on such interest, which is awarded as compensation Read More
  
 [2015] 55 taxmann.com 180 (Delhi)
Admission of mistake by 'CA' in computing book profits saves assessee from rigours of concealment penalty -IT : Where assessee's Chartered Accountant committed a mistake while computing book profits under section 115JB which he admitted by filing a personal affidavit, no case was made out for levy of penalty Read More
  
 [2015] 55 taxmann.com 188 (Allahabad)
Interest paid to related concern as per resolution passed by committee of assessee-society wasn't unreasonable -IT : Payment of interest at rate of 18 per cent to creditors on basis of resolutions passed by executive committee of assessee-society was found reasonable Read More
  
 [2015] 55 taxmann.com 176 (Andhra Pradesh)
HC deletes disallowance as statement recorded in survey was retracted and revenue didn't have any other evidence -IT : Where statement recorded under section 132(4) had been retracted and revenue did not press into service any other supporting material, assessee was entitled for deduction towards commission and brokerage Read More
  
 [2015] 55 taxmann.com 181 (Bombay)
AO can't make reassessment on basis of objections raised by audit party without recording his satisfaction -IT : Assessing Officer could not reopen assessment regarding allowance of repairs on spare parts as revenue expenditure by simply following objections raised by audit party without recording his independent satisfaction Read More
  
 [2015] 55 taxmann.com 219 (Gujarat)
Income declared before SetCom can't be revised; payment of tax on revised income would abate proceedings -IT : It is not permissible for assessee to revise application made by it under section 245C(1); tax paid as per revised disclosure would be non compliance of section 245D(2D) leading to abatement of application before Settlement Commission Read More
  
 [2015] 55 taxmann.com 182 (Andhra Pradesh)[2015] 370 ITR 475 (Andhra Pradesh)[2015] 273 CTR 538 (Andhra Pradesh)
Penalty couldn't be imposed if assessment order didn't make evident about initiation of penalty proceedings -IT : Where intention or satisfaction to initiate penalty proceedings under section 271(1)(c) was not evident from order of assessment, penalty proceedings could not be initiated Read More
  
 [2015] 55 taxmann.com 230 (Delhi)
Sum paid for acquiring right to use technical know-how was revenue exp. as IP rights remained with foreign Co. -IT : Where assessee, engaged in manufacturing and selling of motorcycles, made payment of royalty to a foreign company for merely acquiring right to use technical know how whereas ownership and intellectual property rights in know how remained with foreign company, payment in question was to be allowed as business expenditure Read More
  
 [2015] 55 taxmann.com 201 (Bombay)
Non-refundable membership fees received by a club has to be taxed by spreading it over membership period -IT: Leasehold rights in property brought in by partner as its share would form part of assets of firm and on termination of lease compromise amount paid by firm was allowable as deduction in firm's hands Read More
  
 [2015] 55 taxmann.com 231 (Delhi)
5 months delay in issuing sec. 158BD notice after recording of satisfaction by AO wasn't fatal to block proceedings -IT : Where notice under section 158BD was issued to assessee after expiry of five months from satisfaction recorded by Assessing Officer of person searched, it could not be concluded that there was unreasonable delay in issuing said notice and same was fatal to block assessment proceedings Read More
  
 [2015] 55 taxmann.com 211 (Gujarat)
Sec. 11 relief could be denied only to extent of investment made in contravention of sec. 11(5) -IT : Exemption under section 11 can be denied only to extent of investment contravening provisions of section 11(5) read with section 13(1)(d) and not on entire income Read More
  
 [2015] 55 taxmann.com 183 (Rajasthan)[2014] 369 ITR 392 (Rajasthan)[2014] 271 CTR 581 (Rajasthan)
Transmission charges paid to GAIL pursuant to agreement for supply of gas couldn't be held as technical services -IT: Where transmission charges paid to oil company for supply of gas pursuant to a sale and purchase agreement, could not be termed to be an agreement for providing technical services; hence, provisions of sections 194C and 194J would not be applicable Read More
  
 [2015] 55 taxmann.com 186 (Gujarat)
Swimming pool of hotel couldn't be treated as plant and machinery for depreciation purposes -IT: A hotel is not entitled to depreciation on swimming pool at rate of 33.33 per cent by treating it as plant and machinery Read More
  
 [2015] 55 taxmann.com 187 (Karnataka)
Sec. 54F: Original cap gain to be taxed in year of sale of new asset (investment) and not in year of its accrual -IT: Where investment was made by way of purchasing a plot to avail exemption under section 54F, but after a year said property was sold, capital gain tax would be levied in year of sale of said property and not in original year of capital gain Read More
  
 [2015] 55 taxmann.com 255 (SC)
High Court couldn't deny sec. 10(23C) relief by quoting faulty reasoning of AO from Supreme Court's judgment -IT : Supreme Court sets aside High Court judgment denying exemption u/s 10(23C) by quoting non-existing passage from Supreme Court judgment Read More
  
 [2015] 55 taxmann.com 21 (Allahabad)
No denial of sec. 80-IA relief just because project wasn't awarded soley to assessee but to its joint venture -IT : Assessee would be entitled to deduction under section 80-IA, even if project was not awarded solely to assessee but to joint venture with assessee Read More
  
 [2015] 55 taxmann.com 170 (Gujarat)
Exp. incurred on issuance of convertible debentures is in nature of capital expenditure -IT : Expenditure on issue of convertible debentures is directly related to expansion of capital base of company and is a capital expenditure Read More
  
 [2015] 55 taxmann.com 56 (Gujarat)
Registration fee paid to SEBI was allowable as revenue exp., rules Gujarat High Court -IT : Amount of registration fee paid to SEBI was allowable as revenue expenditure under section 37(1) Read More
  
 [2015] 55 taxmann.com 151 (Bombay)
No reassessment to disallow sec. 33AC relief due to change of opinion that shipping wasn't main business of assessee -IT : Where Assessing Officer allowed assessee's claim for deduction under section 33AC while completing assessment under section 143(3), he could not subsequently initiate reassessment proceedings merely on basis of change of opinion that assessee's main business was not operation of ships and, thus, deduction was wrongly allowed Read More
  
 [2015] 55 taxmann.com 79 (Madras)
Appellate authority is empowered to allow additional, bona-fide, ground raised by assessee -IT: Additional grounds claiming market development/advertisement expenses raised by assessee before appellate fora being bona fide required to be considered on merit Read More
  
 [2015] 55 taxmann.com 202 (Delhi)
Capital introduced by partners in the firm couldn't be deemed as loan to invoke provisions of sec. 269SS -IT : Provisions of section 269SS would not be violated when money is exchanged inter-se between partners and partnership firm in spite of fact that partnership firm and individual partners are separate assessees Read More
  
 ITAT
  
 [2015] 55 taxmann.com 305 (Pune - Trib.)
Fee paid by 'Bajaj Allianz' to NR surveyors wasn't FTS as they didn't make available technical know-how to insurer -IT/ILT : Where assessee-company engaged in business of general insurance, appointed non-resident surveyors who carried out surveys outside India, since said surveyors did not make any technical know-how available to assessee, payments made to them was not taxable in India as 'fee for technical services' Read Morenew
  
 [2015] 56 taxmann.com 1 (Pune - Trib.)
Non-furnishing of PAN by NR doesn't attract higher TDS rate of 20% u/s 206AA if tax rate under DTAA is beneficial -IT/ILT : TDS on payments to non-residents who do not furnish PAN shall deducted at DTAA rate if such rate less than 20% Read Morenew
  
 [2015] 55 taxmann.com 268 (Pune - Trib.)
Assessee couldn't claim cost against revisional order passed by CIT, even though such order was unsustainable -IT : An assessee is entitled to depreciation on assets entire amount of which has been claimed as deduction on account of application for charitable purposes Read Morenew
  
 [2015] 55 taxmann.com 261 (Bangalore - Trib.)
Co. engaged in development of software isn't comparable to a Co. rendering related development services -IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services, to its AE, in view of fact that some comparables selected by TPO were improper on account of their high turnover whereas in case of other comparables there was functional difference as they were engaged in developing software products, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh Read More
  
 [2015] 55 taxmann.com 290 (Delhi - Trib.)
Gain arising from sale of land was taxable in hands of individual even if it was wrongly shown as income of HUF -IT : Where HUF wrongly showed capital gain on sale of land in hands of it while land was property of individual and not property of HUF, capital gain would not be income of HUF Read More
  
 [2015] 55 taxmann.com 263 (Mumbai - Trib.)
Delay in disbursal of share application money by AE would attract interest at LIBOR and not at rate fixed by MCA -IT/ILT : While determining ALP of goods exported by assessee to its AE, action of TPO in excluding export incentive received by assessee on account of said exports was not proper Read More
  
 [2015] 55 taxmann.com 284 (Mumbai - Trib.)
Section 271AAA and sec. 271(1)(c) have different concomitant scope; to operate exclusively -IT: Section 271AAA and section 271(1)(c) have different concomitant scopes and are mandated to operate exclusively Read More
  
 [2015] 55 taxmann.com 259 (Delhi - Trib.)
Co. outsourcing its activities couldn't be compared with a Co. providing services of its own -IT/ILT : A company mainly outsourcing its activities cannot be compared to ITES service provider rendering services by its own Read More
  
 [2015] 55 taxmann.com 256 (Jodhpur - Trib.)[2014] 165 TTJ 20 (Jodhpur - Trib.)(UO)
Sec. 69 additions upheld as assessee failed to show that residential flat was purchased out of his past savings -IT : Where assessee's claim regarding land development expenses was rightly allowed by Assessing Officer in original return and there was no material to deviate from earlier findings, ad hoc disallowance was not justified in assessment during search Read More
  
 [2015] 55 taxmann.com 227 (Bangalore - Trib.)
AO to ascertain whether expats were rendering technical services after verifying actual services rendered by them -IT/ILT: Where employees of affiliates abroad were rendering services to assessee-company as a part of any agreement of technical services agreed to be rendered by such affiliates to assessee, had to be seen based on verification of actual services rendered by them Read More
  
 [2015] 55 taxmann.com 233 (Mumbai - Trib.)
Comparable wherein extraordinary event of amalgamation had taken place couldn't be chosen as comparable -IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering ITES services to its AE, in view of fact that two comparables selected by TPO were inappropriate on account of happening of extraordinary event of amalgamation, impugned addition made to assessee's ALP deserved to be deleted Read More
  
 [2015] 55 taxmann.com 226 (Hyderabad - Trib.)
Corporate guarantee provided to AE is subject to TP adjustment due to inherent risk in it -IT/ILT : Transaction of providing loans to subsidiary whether a direct loan or providing credit for initial expenditure, which is stated to be reimbursable, calls for transfer pricing adjustment Read More
  
 [2015] 55 taxmann.com 235 (Kolkata - Trib.)
ITAT deletes TP adjustment in case of 'Philips India' as DRP had passed non-speaking order -IT/ILT : Where DRP confirmed adjustment made to assessee's ALP by passing a non-speaking order, same was to be set aside and matter was to be remanded back for disposal afresh Read More
  
 [2015] 55 taxmann.com 234 (Mumbai - Trib.)
TP adjustment upheld as sum paid to AE for procuring ad-space was higher as compared to non-AE -IT/ILT: Where assessee made adjustment to assessee's ALP in respect of payment made to AE for purchasing ad space in relation to advertisement sales for satellite televisions broadcasted by AE in India, since there was nothing on record showing that assessee had to pay more in non-prime time slot to off-set deficit of target revenue transferred to AE in prime time slots, impugned adjustment was to be confirmed. Read More
  
 [2015] 55 taxmann.com 194 (Mumbai - Trib.)[2014] 34 ITR(T) 124 (Mumbai - Trib.)
Discount offered by air travel agent to lure customers couldn't be held as commission; not liable for sec. 194H TDS -IT: Where air travel agent, while issuing tickets to customers, offered discount to increase volume of business, same could not be treated as commission to customers liable to TDS under section 194H Read More
  
 [2015] 55 taxmann.com 236 (Mumbai - Trib.)
ITAT grants stay on tax demand arising out of TP adjustment as assessee had prima case in its favour -IT/ILT : Where for computing of AMP expenses, Assessing Officer had included free samples to distributors, additional discount to distributors and buyers, assessee had good prima facie case for grant of stay on demand arising out of T.P. adjustment Read More
  
 [2015] 55 taxmann.com 218 (Hyderabad - Trib.)
Provisions of Sec. 167B providing taxability at maximum marginal rate isn't applicable to a society -IT : Provisions of section 167B have no application to Society registered under Societies Act 1860 or any other society formed in accordance on similar lines Read More
  
 [2015] 55 taxmann.com 53 (Mumbai - Trib.)
Effect of forex fluctuation not to be considered for computing operating margins of comparable -IT/ILT : When assessee is an established company for purpose of comparison, turnover would be relevant only to ensure that comparable selected is also an established player capable of executing all types of work relating to software development Read More
  
 [2015] 55 taxmann.com 203 (Mumbai - Trib.)
Reassessment upheld as assessee failed to show that change in depreciation policy was in conformity with AS -IT : Where assessment in case of assess-company was completed under section 143(3) read with section 115JB accepting returned loss, in view of fact that assessee had not produced requisite record to show that changes made in depreciation policy was in conformity with accounting standards as required under provisions of Companies Act, Assessing Officer was justified in initiating reassessment proceedings Read More
  
 [2015] 55 taxmann.com 171 (Pune - Trib.)
Deeming fiction of sec. 50C won't apply in case of transfer of leasehold rights in land or building -IT : Provisions of section 50C do not apply in case of transfer of leasehold rights in land or building Read More
  
 [2015] 55 taxmann.com 225 (Hyderabad - Trib.)
Payment for pre-clinical research was FTS as payer had right over patents and gained knowledge in research -IT/ILT: Where assessee had entered into agreement with a UK company and a Netherlands company for conducting pre-clinical research studies, since it had rights over patents, secret knowledge etc., attained during course of conducting research, services received by assessee fulfilled definition for 'technical services' as per provisions of section 9(1)(vii) and also definition for these technical services as per relevant DTAA with UK and Netherlands Read More
  
 [2015] 55 taxmann.com 200 (Bangalore - Trib.)
No TDS on export commission paid to NR agent for rendering services abroad in absence of his PE in India -IT/ILT : No TDS on export commission paid to NR agent for rendering services abroad in absence of his PE in India Read More
  
 Statutes
  
PRESS RELEASE
Interest rate of Sukanaya Scheme and 5 Year Senior Citizen Saving Scheme increased by 0.1% w.e.f. April 1, 2015 -IT : Small Savings Schemes – Interest Rate on – Revised Rates of Interest Applicable on Specified Small Savings Scheme Effective from 1-4-2015 Read Morenew
  
PRESS RELEASE
CBDT opens window for roll back requests for another 3 months for existing APAs or pending applications -IT/ILT : Section 92cc of The Income-Tax Act, 1961 - Advance Pricing Agreement (Apa) – Clarification On Applications And Agreements Filed Or Entered Into Prior To 1-1-2015 Read Morenew
  
PRESS RELEASE
I-T Dept. issues list of 18 tax defaulters who are either not traceable or have no assets; total arrears exceed 500 cr. -IT/ILT : List of Defaulters of Income /Corporate Tax Read More
  
NOTIFICATION (NO.1/2015)/SO 812(E) [F.NO.Q.20015/6
Govt. announces setting-up of two additional benches of AAR at NCR and Mumbai -IT/ILT : Section 245-O of the Income-Tax Act, 1961 – Authority for Advance Rulings – Creation of Two Additional Benches of Authority for Advance Rulings (Income Tax) at Specified Places Read More
  
CIRCULAR DGBA.GAD.NO.4407/42.01.029/2014-15
RBI asks banks to provide details of tax collections from April 1 to 3, 2015 -IT/E&C/BANKING : Scheme for Collection of Dues of (I) Central Board of Direct Taxes (II) Central Board of Excise and Customs (III) Departmentalised Ministries Account – Furnishing of Statement of Residual Transactions - Financial Year 2014-15 Read More
  
LETTER [F.NO.279/MISC/54/2015-SO(ITJ)]
Departmental Counsels to obtain info demanded by Court from concerned CITs; CBDT reiterates -IT : Section 260A of the Income-Tax Act, 1961 - High Court - Appeal to – Responsibility of Standing Counsel in Communicating Court's Decision Read More
  
LETTER [F.NO.279/MISC/54/2015-SO(ITJ)]
CBDT reminds CIT about his responsibility to give assistance to Departmental Counsel -IT : Section 260A of the Income-Tax Act, 1961 - High Court - Appeal to – Responsibility of Cit to Give Assistance to Deparment Counsels Pursuant to Instruction No.7/2011 [F.No.279/Misc./M-42/2011-ITJ], Dated 24-5-2011 Read More
  
LETTER [F.NO.380/02/2014-IT(B)]
CBDT directs Chief CIT(TDS) to take follow-up actions with banks for deposit of TDS of March, 2015 -IT : Monitoring of Budget Collections – Follow up of TDS to Be Paid by Banks Read More
  
CIRCULAR DGBA.GAD.NO.4285/42.01.029/2014-15
RBI fixes 15 April as date of closure of residual transactions of March by banks for F.Y. 2014-15 -IT/BANKING/E&C : Scheme for Collection of Dues of (I) Central Board of Direct Taxes (II) Central Board of Excise and Customs (III) Departmentalised Ministries Account – Reporting and Accounting of March Transactions – Special Arrangements of Financial Year 2014-15 Read More
  
CIRCULAR NO.4/2015 [F.NO. 500/17/2015-FT&TR-IV]
Dividend paid by foreign Co. abroad for shares deriving substantial value from Indian assets not taxable: CBDT -IT/ILT : Section 9 of the Income-Tax Act, 1961 - Income Deemed to Accrue or Arise In India - Clarification on Explanation 5 to Clause (I) of Sub-Section (1) of Section 9 Read More
  
NOTIFICATION NO. 26/2015 [F.NO.196/08/2014-ITA.I]
Govt. notifies various entities for the purpose of exemption under Section 10(46) -IT : Section 10(46) of the Income-Tax Act, 1961 - Exemptions - Statutory Body/authority/board/commission - Notified Body or Authority – Kerala Toddy Workers' Welfare Fund Board Read More
  
LETTER [F.NO.380/1/2015-IT(B)]
CBDT unveils Central Action Plan for first quarter of financial year 2015-16 -IT/ILT : Central Action Plan for First Quarter i.e. (April, 2015 to June, 2015) of the Financial Year 2015-16 Read More
  
NOTIFICATION NO.25/2015 [F.NO.501/12/1995-FTD-I]
DTAA signed with Czech Republic in year 1986 would be applicable to successor Slovak Republic, FinMin notifies -IT/ILT : Section 90, read with Section 119, of the Income-Tax Act, 1961 – Double Taxation Agreement – Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Czechoslovak Socialist Republic – Clarification on Applicability of Agreement Dated 25-5-1987 to Slovak Republic Read More
  
NOTIFICATION NO.24/2015 [F.NO.501/09/1995-FTD-I]
India inks DTAA with Croatia; to be effective from 1st April 2016 -IT/ILT : Section 90 of the Income-Tax Act, 1961 - Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries - Croatia Read More
  
 News
  
Govt. notifies income computation and disclosure standards for purpose of Sec. 145; effective from April 1, 2015 -IT/ILT : Section 145 of the Income-Tax Act, 1961 – Method of Accounting - Income Computation and Disclosure Standard I Relating to Accounting Policies [01-04-2015] Read Morenew
  
Are We Really Serious About Black Money? -Are We Really Serious About Black Money? [01-04-2015] Read Morenew
  
Interest Rates Retained for Most Small Saving Schemes -Interest Rates Retained for Most Small Saving Schemes [01-04-2015] Read Morenew
  
Tax defaulter list includes market violators -Tax defaulter list includes market violators [01-04-2015] Read Morenew
  
APA rollback application deadline extended -APA rollback application deadline extended [01-04-2015] Read Morenew
  
HSBC tax evasion suspects in India told to get a lawyer -HSBC tax evasion suspects in India told to get a lawyer [01-04-2015] Read Morenew
  
‘Direct tax collection might miss revised target’ -‘Direct tax collection might miss revised target’ [01-04-2015] Read Morenew
  
Expats, Families may Land in New Black Money Net -Expats, Families may Land in New Black Money Net [31-03-2015] Read More
  
Good time to book gains in public- sector ETF -Good time to book gains in public- sector ETF [31-03-2015] Read More
  
HC relief for gas producers -HC relief for gas producers [31-03-2015] Read More
  
More Steps on Anvil to Boost FDI -More Steps on Anvil to Boost FDI [30-03-2015] Read More
  
Should you Buy Sukanya Samriddhi Yojana? -Should you Buy Sukanya Samriddhi Yojana? [30-03-2015] Read More
  
‘Resident companies will get covered’ -‘Resident companies will get covered’ [30-03-2015] Read More
  
CBDT asks I-T dept to act on public grievances after prime minister's rap -CBDT asks I-T dept to act on public grievances after prime minister's rap [30-03-2015] Read More
  
Blackmoney: Swiss banks seek fresh undertakings from Indians -Blackmoney: Swiss banks seek fresh undertakings from Indians [30-03-2015] Read More
  
Retro Tax Law Not Applicable on Dividends by Foreign Firms -Retro Tax Law Not Applicable on Dividends by Foreign Firms [27-03-2015] Read More
  
Names of 18 Tax Defaulters Made Public -Names of 18 Tax Defaulters Made Public [27-03-2015] Read More
  
Revenue dept releases list of 18 tax defaulters -Revenue dept releases list of 18 tax defaulters [26-03-2015] Read More
  
1.6 million refunds unclaimed with I- T dept -1.6 million refunds unclaimed with I- T dept [26-03-2015] Read More
  
Govts LTA plan to cover 4 Saarc nations; I- T Act tweak likely -Govts LTA plan to cover 4 Saarc nations; I- T Act tweak likely [26-03-2015] Read More
  
Cos Can Access All Professional Services From One Source Soon -Cos Can Access All Professional Services From One Source Soon [25-03-2015] Read More
  
Taxman to Proceed with MAT Levy on FPIs as CBDT Provides No Clarity -Taxman to Proceed with MAT Levy on FPIs as CBDT Provides No Clarity [25-03-2015] Read More
  
Investors Rejig Portfolios to Trim Capital Gains Tax Outgo -Investors Rejig Portfolios to Trim Capital Gains Tax Outgo [25-03-2015] Read More
  
Compensate Stock Slide: Cairn -Compensate Stock Slide: Cairn [25-03-2015] Read More
  
Companies can apply for PAN number online -Companies can apply for PAN number online [25-03-2015] Read More
  
I- T dept to send OTP to ease taxpayer e- filing -I- T dept to send OTP to ease taxpayer e- filing [25-03-2015] Read More
  
Tax dept moves on MAT collection -Tax dept moves on MAT collection [25-03-2015] Read More
  
Cairn Energy seeks damages from India over tax demand -Cairn Energy seeks damages from India over tax demand [25-03-2015] Read More
  
Company Can Claim Expense Deduction Paid to its Unit: ITAT -Company Can Claim Expense Deduction Paid to its Unit: ITAT [24-03-2015] Read More
  
IFC’s success to hinge on tax breaks -IFC’s success to hinge on tax breaks [24-03-2015] Read More
  
I-T returns to track black money abroad -I-T returns to track black money abroad [24-03-2015] Read More
  
I-T Dept to Scrutinise Foreign Assets of Indians -I-T Dept to Scrutinise Foreign Assets of Indians [23-03-2015] Read More
  
HSBC Swiss Holders Face a Dead End -HSBC Swiss Holders Face a Dead End [23-03-2015] Read More
  
‘APAs are a win- win deal for corporates and govt’ -‘APAs are a win- win deal for corporates and govt’ [23-03-2015] Read More
  
Educational institutions get tax relief -Educational institutions get tax relief [23-03-2015] Read More
  
The cost of filing belated tax returns -The cost of filing belated tax returns [23-03-2015] Read More
  
How EPFO proposals will impact you -How EPFO proposals will impact you [23-03-2015] Read More
  
Over 94% of Outstanding Tax Hard to Recover: CAG Report -Over 94% of Outstanding Tax Hard to Recover: CAG Report [21-03-2015] Read More
  
Govt tables Bill on hush money in Parliament -Govt tables Bill on hush money in Parliament [21-03-2015] Read More
  
New policy for listing start- ups in 3- 4 months -New policy for listing start- ups in 3- 4 months [21-03-2015] Read More
  
Black money Bill introduced in LS -Black money Bill introduced in LS [21-03-2015] Read More
  
Copy of Anti-Black Money Bill -Today Black Money Bill is presented in the Lok Sabha. The copy of the bill is now available for download [20-03-2015] Read More
  
Highlights of Anti-Black Money Bill -IT/ILT/CL/INDIAN ACTS & RULES : Highlights of The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 Introduced in Lok Sabha Today [20-03-2015] Read More
  
Black Money Law to Stay Fair, Safeguards in: FM -Black Money Law to Stay Fair, Safeguards in: FM [20-03-2015] Read More
  
Black money Bill likely to be tabled in Lok Sabha today -Black money Bill likely to be tabled in Lok Sabha today [20-03-2015] Read More
  
Govt’s money laundering crusade looms over India property bubble -Govt’s money laundering crusade looms over India property bubble [20-03-2015] Read More
  
Cairn India’s mounting troubles -Cairn India’s mounting troubles [20-03-2015] Read More
  
Religare to Integrate Socially Relevant Assets under REIT -Religare to Integrate Socially Relevant Assets under REIT [19-03-2015] Read More
  
Past mistakes aren’t past -Past mistakes aren’t past [19-03-2015] Read More
  
Less warmth for tax- free bonds in FY16 -Less warmth for tax- free bonds in FY16 [19-03-2015] Read More
  
Rollback mechanism enforced into Advance Pricing Agreements – An insight into -CBDT has announced Income-tax (Third Amendment) Rules, 2015 to prescribe the conditions, procedure and manner for roll back mechanism in advance pricing agreements. [18-03-2015] Read More
  
Large Companies See Increase in Advance Tax -Large Companies See Increase in Advance Tax [18-03-2015] Read More
  
Two Months On, Banks Still Clueless about Sukanya Plan -Two Months On, Banks Still Clueless about Sukanya Plan [18-03-2015] Read More
  
Cabinet Nod to Bill on Black Money, CST Compensation -Cabinet Nod to Bill on Black Money, CST Compensation [18-03-2015] Read More
  
Taxman to Take a Closer Look at Overseas Assets -Taxman to Take a Closer Look at Overseas Assets [18-03-2015] Read More
  
New laws may cover GIFT finance centre -New laws may cover GIFT finance centre [18-03-2015] Read More
  
Historic moment, please cooperate, FM tells Oppn -Historic moment, please cooperate, FM tells Oppn [18-03-2015] Read More
  
Bill approved to nab those hoarding black money abroad -Bill approved to nab those hoarding black money abroad [18-03-2015] Read More