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Direct Tax Laws
  
 SC/HC
  
 [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 Morenew
  
 [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 Morenew
  
 [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HC lashes out at AO for making assessment on 'Sikkim Manipal University' under repealed Sikkim State tax manual -IT : After extension of Income-tax Act, 1961 to State of Sikkim with effect from 1-4-1990, Sikkim State Income-tax Manual, 1948, stands repealed and assessments made thereunder for assessment years 1997-98 to 2005-06 were without authority of law, non est and nullity Read Morenew
  
 [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
  
 [2015] 55 taxmann.com 59 (Bombay)
No denial of set-off losses of amalgamating Co. against book profit of assessee due to change of opinion of AO -IT: Where Assessing Officer allowed assessee's claim for set off of loss of company amalgamated with it against its book profits while determining MAT liability, he could not initiate reassessment proceedings subsequently merely on basis of change of opinion that aforesaid loss was wrongly set off Read More
  
 [2015] 55 taxmann.com 58 (Madras)[2015] 274 CTR 61 (Madras)
Revenue couldn't demand Sec. 220 interest without showing any reason for not initiating any action for 27 year -IT : Where revenue had not placed any material to show that as to why no action was initiated for 27 years and genuine hardship to assessee was also not considered, demand of interest under section 220(2) was not justified Read More
  
 [2015] 54 taxmann.com 411 (Calcutta)
HC upheld disallowance as assessee failed to give reason for increase in conversion charges paid to its affiliate -IT : Where assessee could not give satisfactory reason for increase in conversion charges paid to its sister concern, part of such conversion charges was disallowed under section 40A(2) Read More
  
 [2015] 55 taxmann.com 57 (Gujarat)
At the time of Sec. 80G approval object of trust needs to be examined without considering application of income -IT: At time of granting approval under section 80G, only object of trust is required to be examined Read More
  
 [2015] 55 taxmann.com 158 (Gujarat)
HC accepts cash method of accounting in respect of money retained by customers for fulfilment of warranty -IT : Where assessee was consistently following system of accounting of crediting money retained by customers from sale proceeds as and when received and Assessing Officer accepted such method in earlier years, there was no need to disturb method of accounting followed by assessee Read More
  
 [2015] 55 taxmann.com 240 (Delhi)
Delhi HC disagrees with Special Bench’s decision in LG’s case; rejects ‘bright line’ test to determine ALP of AMP exp. -IT/ILT: Where AO/TPO accepts comparables adopted by assessee, with or without making adjustments, as a bundled transaction, it would be illogical and improper to treat AMP expenses as a separate international transaction - If functions performed by tested parties and the comparables match, with or without adjustments, it would mean that AMP expenses are duly accounted for - It would be odd to accept comparables and determine or accept transfer price and still segregate AMP expenses as an interna Read More
  
 [2015] 55 taxmann.com 125 (Gujarat)
Exp. incurred on expansion of existing business is allowable as revenue exp. -IT : When certain profit is to be excluded from claim of deduction under sections 80HH, 80-I and 80HHC, it is not gross profit but net thereof, that is gross profit minus expenditure incurred for earning such profit, which should be excluded Read More
  
 [2015] 54 taxmann.com 69 (Bombay)[2015] 229 Taxman 392 (Bombay)
ITAT isn't precluded from considering additional ground raised by assessee even if it isn't raised before CIT(A) -IT : Even if Commissioner (Appeals) may or may not have rendered any view on issue raised, does not mean that Tribunal is precluded in law from considering same after it is specifically raised by assessee before it Read More
  
 [2015] 54 taxmann.com 381 (Gujarat)[2015] 229 Taxman 381 (Gujarat)
Uniform allowance paid to employees wouldn't be deemed as perquisite; not liable to TDS under sec. 192 -IT : Uniform allowance paid by assessee to its employees could not be regarded as additional salary in form of allowance within meaning of section 17(1)(iv) attracting provisions of section 192 Read More
  
 [2015] 54 taxmann.com 380 (Kerala)[2015] 229 Taxman 455 (Kerala)
Income of slot charterer is includible in tonnage income even if its operations carried out in non-qualifying ships -IT : Income from slot charter operations of a tonnage tax company is liable to be included while determining tonnage income under tonnage tax scheme even if such operations are carried on in ships which are not qualifying ships in terms of provisions of Chapter XIIG of Act Read More
  
 [2015] 55 taxmann.com 157 (Bombay)
Waiver of loan wasn't taxable as business income when such loan wasn't treated as business transaction earlier -IT : Where in earlier years revenue did not accept loan transaction as business transaction, waiver of said loan could not be considered as business income under section 28(iv) Read More
  
 [2015] 54 taxmann.com 341 (Gujarat)[2015] 229 Taxman 341 (Gujarat)
Mere report of Valuation Officer isn’t sufficient to reopen an assessment of builder -IT : Report of Valuation Officer would not constitute any additional information; therefore, re-opening of assessment under section 147 was not valid Read More
  
 [2015] 54 taxmann.com 211 (Delhi)[2015] 229 Taxman 433 (Delhi)
No penalty on disallowance of capital gains if disclosure was made to identify investment and stock-in-trade -IT : Where assessee had disclosed all particulars relating to capital gain on sale of shares in return and balance sheet, no penalty could be levied under section 271(1)(c) merely because Assessing Officer treated such capital gain as business income of assessee Read More
  
 [2015] 55 taxmann.com 20 (Andhra Pradesh)[2015] 370 ITR 209 (Andhra Pradesh)
Income unearthed during search isn't undisclosed income of block period if it is duly reflected in books -IT: Where all items of cash credits alleged against assessees were reflected in books of account, an exercise under section 158BB by Assessing Officer was not justified Read More
  
 [2015] 55 taxmann.com 160 (Madras)
ITAT couldn't pass order without considering objections of assessee relating to non-compliance of sec. 144C by AO -IT/ILT : Order of remand based by Tribunal without considering assessee's objection relating to non-compliance of section 144C by authorities below was to be set aside with a direction for de novo consideration Read More
  
 [2015] 55 taxmann.com 19 (Gujarat)
Bajra seeds after processing with poisonous chemicals became new article; eligible activity for Sec. 80-IA relief -IT: Where bajra seeds after treatment with poisonous chemicals got rendered unfit for human consumption and, was a different article or thing than raw bajra fit for human consumption, said activity would be an activity of manufacturing Read More
  
 [2015] 55 taxmann.com 75 (Bombay)
Sum paid to consultant-doctor without any stipulation of working hours or leave would attract sec. 194J TDS -IT: Where from contracts, no stipulations regarding working hours, academic leave or attachments had been found which would reveal that consultant doctors were employees of assessee, Tribunal was right in holding that there existed no relationship of employer and employee between assessee and consultant doctors and accordingly, TDS under section 194J would be applicable on doctors remuneration and not under section 192 Read More
  
 [2015] 55 taxmann.com 22 (Kerala)[2014] 369 ITR 532 (Kerala)
Trust's object of paying pension to employees or their dependents isn't an object of general public utility -IT : Where assessee trust's object was to pay pension to employees of GCDA or their dependents from corpus created out of contributions made by said employees itself, such an object could not be an object of general public utility, hence, registration under section 12AA could not be granted Read More
  
 [2015] 54 taxmann.com 318 (Allahabad)[2015] 229 Taxman 446 (Allahabad)[2014] 369 ITR 419 (Allahabad)
No reassessment after 4 years without obtaining sanction of CIT original assessment was made under sec. 143(3) -IT : Where original assessment was made under section 143(3), issuance of notice under section 148 after four years from end of relevant assessment year without sanction of Commissioner was invalid Read More
  
 ITAT
  
 [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 Morenew
  
 [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
  
 [2015] 55 taxmann.com 221 (Hyderabad - Trib.)
No working capital adjustment in TP proceedings if assessee neither pay any interest nor bear working capital risk -IT/ILT : Where assessee did not pay interest on working capital loans and did not bear any working capital risk, revenue authorities were not justified in making negative working capital adjustment in course of transfer pricing proceedings Read More
  
 [2014] 52 taxmann.com 252 (Mumbai - Trib.)[2015] 37 ITR(T) 1 (Mumbai - Trib.)[2015] 67 SOT 390 (Mumbai - Trib.)[2015] 167 TTJ 73 (Mumbai - Trib.)
No clubbing of interest-free loan given by ‘Shahrukh Khan’ to his wife from whom she had purchased assets -IT : 'Shahrukh Khan' gave interest-free loan to his wife, Gauri Khan, who in turn, purchased a residential house and jewellery from said loan amount. The department clubbed the value of loan amount in the net wealth of 'Sharukh Khan'. Extending cash loan, to wife does not come within the definition of asset as provided under Section 2(ea) of the wealth tax Act, thus, it could not be said that there was a transfer of asset; the impugned loan amount was not includible in net wealth of assessee Read More
  
 [2014] 52 taxmann.com 211 (Pune - Trib.)[2015] 67 SOT 297 (Pune - Trib.)(URO.)[2015] 167 TTJ 217 (Pune - Trib.)
ITAT invokes MFN clause to import make available clause from India-Portugese DTAA into the India-Sweden DTAA -IT/ILT : Swedish company can claim Fee for Technical Services ('FTS') received from its Indian subsidiaries as tax-exempt if 'make available' condition is not satisfied on the basis of Indo-Portugese DTAA even though Indo-Sweden DTAA makes no reference to 'make available' condition. In view of the Most Favoured Nation clause ("MFN clause") in the protocol to the Indo-Sweden DTAA, a Swedish company can claim beneficial provisions for FTS contained in a later treaty such as Indo-Portugal treaty Read More
  
 [2015] 53 taxmann.com 461 (Chandigarh - Trib.)[2014] 36 ITR(T) 686 (Chandigarh - Trib.)[2015] 67 SOT 278 (Chandigarh - Trib.)[2014] 166 TTJ 98 (Chandigarh - Trib.)(UO)
Exemption granted under sec. 80G would be on perpetual basis; no need to make fresh application for its renewal -IT : Where assessee was granted exemption under section 80G, there was no need for assessee to make fresh application as same was perpetuity in nature Read More
  
 [2015] 55 taxmann.com 210 (Hyderabad - Trib.)
TPO has to accept price charged by assessee on his failure to find a comparable under CUP method -IT/ILT: Where TPO has expressed his inability in finding a comparable under CUP method, there is no other choice left to TPO but to accept price charged by assessee as ALP Read More
  
 [2015] 55 taxmann.com 80 (Delhi - Trib.)
AO rightly rejected books of timber trader as he didn't mention quality of timber on sales vouchers: ITAT -IT : Where assessee, engaged in trading of timber, did not mention quality of timber on sale vouchers, even though it had purchased timber at different rates according to quality of timber, Assessing Officer rightly rejected assessee's books of account holding that stock register was not maintained properly Read More
  
 [2015] 55 taxmann.com 150 (Mumbai - Trib.)
Co. engaged in advisory and software support services isn't comparable to High end KPO service providers -IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering advisory and software support services to its AE, in view of fact that some of comparables selected were improper on account of turnover, brand value and functional difference as they rendered high end KPO services, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh Read More
  
 [2015] 55 taxmann.com 81 (Hyderabad - Trib.)
House constructed by builder on behalf of assessee has to be considered for granting sec. 54F relief to assessee -IT: Investment of consideration received on transfer, in a flat constructed by builder within 3 years would amount to construction of a residential house for purpose of claiming deduction under section 54F Read More
  
 [2015] 55 taxmann.com 82 (Indore - Trib.)
Sum advanced to subsidiary out of borrowed sums due to commercial expediency won't attract disallowance -IT : Disallowance should not be made under section 36(1)(iii), if loans had been advanced by assessee due to commercial expediency to sister concerns Read More
  
 Statutes
  
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 Morenew
  
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
  
NOTIFICATION NO. 23/2015 [F.NO.142/14/2014-TPL]/SO
CBDT notifies Rules for rollback of an Advance Pricing Agreement -IT/ILT : Income-Tax (Third Amendment) Rules, 2015 – Amendment in Rules 10F, 10H, 10-I, 10K, 10M, Form 3CEC & 3CED and Insertion of Rules 10MA, 10RA & Form 3 CEDA Read More
  
AST INSTRUCTION NO.134 [F.NO.DGIT(S)/DIT(S)-3/AST/
CBDT issues instructions for CsIT related to non-migration of PAN due to pending refund caging -IT : Section 139A of the Income-Tax Act, 1961 – Permanent Account Number – Non-Migration of Pans Due to Pending Refund Caging Read More
  
NOTIFICATION NO. 22/2015 [F. NO. 203/07/2014/ITA-I
Govt. notifies 'IIT, Varanasi' as scientific research association under Sec. 35(1)(ii) -IT : Section 35(1)(ii) of the Income-Tax Act, 1961 - Scientific Research Expenditure - Approved Scientific Research Associations/institutions - Indian Institute of Technology (BHU), Varanasi Read More
  
 News
  
Retro Tax Law Not Applicable on Dividends by Foreign Firms -Retro Tax Law Not Applicable on Dividends by Foreign Firms [27-03-2015] Read Morenew
  
Names of 18 Tax Defaulters Made Public -Names of 18 Tax Defaulters Made Public [27-03-2015] Read Morenew
  
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
  
This `Swachh' Plan may not PAN Out Well for Gold Sales -This `Swachh' Plan may not PAN Out Well for Gold Sales [17-03-2015] Read More
  
Delhi HC Lays Down Rules on Taxation of Ad Spend by MNCs -Delhi HC Lays Down Rules on Taxation of Ad Spend by MNCs [17-03-2015] Read More
  
Jewellers urge govt to exempt them from new PAN rule -Jewellers urge govt to exempt them from new PAN rule [17-03-2015] Read More
  
Black money: SIT asks CBI, ED for better coordination -Black money: SIT asks CBI, ED for better coordination [17-03-2015] Read More
  
MNCs’ India arms get transfer- pricing relief -MNCs’ India arms get transfer- pricing relief [17-03-2015] Read More
  
Advance pricing relief for cross- border deals -Advance pricing relief for cross- border deals [17-03-2015] Read More
  
Despite taxation, NPS is a much better option -Despite taxation, NPS is a much better option [16-03-2015] Read More
  
KPMG is Working Globally for Consistency in Tax Policies -KPMG is Working Globally for Consistency in Tax Policies [16-03-2015] Read More
  
BUDGET 2015- 16 AND KEY LEGISLATIVE CHANGES -BUDGET 2015- 16 AND KEY LEGISLATIVE CHANGES [16-03-2015] Read More
  
Agency commission not tax deductible -Agency commission not tax deductible [16-03-2015] Read More
  
Stop subsidising real estate purchases -Stop subsidising real estate purchases [16-03-2015] Read More
  
MF retirement scores over NPS -MF retirement scores over NPS [16-03-2015] Read More
  
Tax- saving tips for buying and selling a property -Tax- saving tips for buying and selling a property [16-03-2015] Read More
  
‘Cairn taxdemand has not reduced investors interest’ -‘Cairn taxdemand has not reduced investors interest’ [16-03-2015] Read More
  
Rs. 20,495- cr tax notice issued to Cairn India -Rs. 20,495- cr tax notice issued to Cairn India [14-03-2015] Read More
  
Cairn Energy Can Seek Review of Draft Order on Tax -Cairn Energy Can Seek Review of Draft Order on Tax [13-03-2015] Read More
  
Mauritius DTAC talks to resume -Mauritius DTAC talks to resume [13-03-2015] Read More