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Direct Tax Laws
  
 SC/HC
  
 [2014] 46 taxmann.com 166 (Karnataka)
Data collection charges couldn’t be deemed as charges for professional services to attract TDS under sec. 194J -IT : Data collection charges paid by assessee are not covered by expression 'professional services' as mentioned in Explanation to section 194J Read Morenew
  
 [2014] 46 taxmann.com 128 (Bombay)
Reimbursement of demurrage charges to be excluded from shipping profits while applying sec. 44B -IT: Section 44B could not be invoked in case of demurrage charges reimbursed by assessee to non-resident for import of crude oil Read Morenew
  
 [2014] 46 taxmann.com 53 (Gujarat)
Assessee-developer need not own land to claim sec. 80-IB(10) benefit, rules HC -IT: Section 80-IB(10) deduction is admissible to assessee-developer though land was owned by a co-operative society Read Morenew
  
 [2014] 46 taxmann.com 145 (Allahabad)
Rent from letting out a small portion of space is business income if assessee occupies other portion for business -IT: Where assessee owning a shopping mall, let out a small portion of said mall, in view of fact that after a short period let out portion of mall had been taken back and, moreover, in major portion of said premises assessee was already carrying out his own business, rental income derived from shopping mall was to be taxed as business income Read Morenew
  
 [2014] 46 taxmann.com 14 (Delhi)
Matters decided by SetCom were conclusive, which couldn’t be interfered with under reassessment, rules HC -IT: Once Settlement Commission has completed proceedings, its order is considered conclusive as regards matters 'stated therein' per section 245-I and reopening any proceeding in respect of matters covered in said order would be barred Read Morenew
  
 [2014] 46 taxmann.com 71 (Gujarat)
Trust constituted for admin and management of various port activities entitled to sec. 12A registration -IT: Where assessee-trust was constituted under Major Ports Trusts Act, 1963 for administration, control and management of various port activities, said activities being in nature of general public utility within meaning of section 2(15), assessee's application seeking registration under section 12A was to be allowed Read Morenew
  
 [2014] 46 taxmann.com 283 (Delhi)[2014] 364 ITR 605 (Delhi)
Exp. incurred by assessee to increase airtime of TV programmes for better returns was revenue exp. -IT : Where expenditure related to expansion was incurred for carrying out existing business more efficiently and with a view to generate more revenue and it did not result in creation of any tangible asset and any advantage of enduring nature, said expenditure was allowable as revenue expenditure Read More
  
 [2014] 46 taxmann.com 56 (Gujarat)
HC upheld reassessment on sec. 69A additions as search initiated by AO had revealed bogus loan transaction -IT : Where subsequent to completion of assessment, Assessing Officer, on basis of search carried out in case of another person, came to know that loan transactions of assessee with a finance company were bogus as said company was engaged in providing accommodation entries, it being a fresh information, he was justified in initiating reassessment proceeding in case of assessee Read More
  
 [2014] 46 taxmann.com 108 (Allahabad)
Limitation period for assessment restarted once stay order was vacated even if it wasn’t communicated to department -IT : In terms of provisions of Explanation 1(ii) to section 153, period of limitation for assessment can be stayed only by an order or injunction of any Court and as soon as said order or injunction of Court is vacated, period of limitation shall re-start even though order vacating injunction is not communicated to department Read More
  
 [2014] 46 taxmann.com 109 (Bombay)
Belated appeal due to Advocate’s laxity couldn’t be condoned as I-T officers were supposed to take follow-up -IT : Appeal filed by revenue pending for non-removal of office objection ought to be followed up not only by Advocate for revenue but also by revenue officials in-charge of initiating litigation and therefore merely because revenue's Advocate owned up mistake or lapse, delay would not be condoned automatically as departmental official must also give explanation for not being in touch with Advocate and following matter in question Read More
  
 [2014] 46 taxmann.com 55 (Karnataka)
Sum incurred for transfer of customer and HR database from predecessor to successor co. is an allowable exp -IT : Where in pursuance of an agreement entered into between assessee and TATA IBM, a part of business being handled by erstwhile TATA IBM was handed over to assessee company due to bifurcation of software and hardware business, expenditure incurred by assessee on processing domestic customer database and transfer of human skills in terms of said agreement, was to be allowed as business expenditure Read More
  
 [2014] 46 taxmann.com 35 (Gujarat)
Director won’t pay taxes of Co. if its building destroyed in earthquake and insurance claim is under litigation -IT: Where company in which assessee was a director could not pay tax dues as its hotel building got damaged in earthquake, in view of fact that insurance claim had been raised but same was not passed by insurance company and civil disputes were still pending, it could not be regarded as a case where director i.e. assessee, failed to take measures for protecting property or interest of company and, therfore, impugned order passed against assessee in terms of section 179 deserved to be quashed Read More
  
 [2014] 46 taxmann.com 16 (Allahabad)
No denial of sec. 10(23C) relief to educational institution if it included some general objects in its object clause -IT: Trust carrying on educational activities, cannot be denied exemption under section 10(23C) merely because object clause also contains certain generalised objects Read More
  
 [2014] 46 taxmann.com 151 (Delhi)
AO can only scrutinize statement of garnishee under sec. 226 without examining nature or existence of liability -IT : In terms of section 226(3)(vi), power of Assessing Officer/TPO does not extend to adjudicating upon nature of existence of liability, however, if there is facial invalidity or falsity in assertion of garnishee as to absence of its liability to assessee, there is no preclusion of Assessing Officer's authority to scrutinize said statement to find out whether it is false and take proceeding to another direction, if it is false Read More
  
 [2014] 46 taxmann.com 122 (Madhya Pradesh)
Advance money couldn’t be taken as deemed dividend if it was received pursuant to a sales agreement -IT: Where Assessing Officer made addition to assessee's income in respect of certain amount received from 'P' by invoking provisions of section 2(22)(e), in view of fact that said amount was received through account payee cheques in accordance with sale agreement entered into between assessee and company 'P' for sale of land owned by assessee, impugned addition deserved to be deleted Read More
  
 [2014] 46 taxmann.com 138 (Bombay)
No transfer of case on non-compliance of summons under sec. 131 without giving an opportunity to assessee -IT: Principles of natural justice require that assessee should be given an opportunity to explain whether not responding to summons issued under section 131(1A) was sufficient reason to transfer its assessment from one place to another Read More
  
 [2014] 46 taxmann.com 120 (Gujarat)
No additions for excess stock declared by MD of Co. if examination of records revealed otherwise -IT : Where examining summary of stock valuation and other relevant material, Tribunal computed valuation of stock and deleted a part, same was not to be interfered Read More
  
 [2014] 46 taxmann.com 17 (Allahabad)
Accumulated losses of old business are allowable if assessee starts new business with same management and control -IT: For claiming brought forward losses, mere fact that such loss related to business which was closed down and new business was started would not make any difference if unity of control and common management persisted Read More
  
 [2014] 45 taxmann.com 547 (Allahabad)
Case remanded as CIT(A) invoked disallowance for TDS default without making independent evaluation of services -IT : Matter remanded where in absence of independent evaluation whether services rendered by assessee were technical services or professional services, disallowance for non-deduction of tax at source under section 194J was made Read More
  
 [2014] 46 taxmann.com 144 (Bombay)
Condonation plea of revenue with false explanation dismissed; followed by ramifications for contempt of Court -IT : Where explanation given by revenue for condonation of delay in filing appeal was found to be false, revenue would not be given an opportunity to file an application seeking condonation of delay an proceedings for contempt of Court might be initiated Read More
  
 [2014] 46 taxmann.com 121 (Punjab & Haryana)
Missing agricultural income in previous year’s return confirms denial of sec. 10(37) exemption for transfer of land -IT: Where on perusal of earlier return filed by assessee, it was found that agricultural income shown was nil and assessee was unable to dispute that land was falling within municipal limits and, it could not be conclusively held that agricultural activities were being carried on land, petitioner was not entitled for benefit under section 10(37) Read More
  
 [2014] 45 taxmann.com 491 (Gujarat)
No denial of sec. 10A relief if assessee possessed expertise to develop software and had export permission -IT : Where there was permission from Software Technology Parks of India to export software, as well as proof of export, professional competence of assessee in developing software could not be doubted for denying its claim under section 10A Read More
  
 [2014] 45 taxmann.com 469 (Allahabad)
Failure to allot shares after collection of sum from applicants due to Govt.’s restriction won’t attract penalty -IT : Where assessee, a Sahkari mill, deducted certain amount from purchase price given to farmers on ground that such collection would be utilized for issuance of shares, in view of fact that shares could not be issued subsequently as State Government did not give requisite permission, it could not be regarded as a case of furnishing inaccurate particulars of income so as to impose penalty under section 271(1)(c) Read More
  
 [2014] 45 taxmann.com 470 (Kerala)
HC vacates attachment of one property as other property offered for attachment was likely to fetch higher sum -IT : Where in order to collect tax dues, revenue authorities attached a property belonging to assessee, in view of fact that alternative property offered by assessee was of higher value as compared to property already attached, assessee's prayer for release of property in question was to be accepted Read More
  
 [2014] 45 taxmann.com 471 (Delhi)
No concealment penalty if assessee opts to take route of presumptive taxation to escape sec. 40A(3) disallowance -IT : Where at time of initiating penalty proceedings Assessing Officer did not have any material on record showing that payments made by assessee to suppliers of building materials were bogus, he could not have merely on basis of assessee's offer to be taxed on estimate basis, concluded that assessee had provided inaccurate particulars in its return and, thus, impugned penalty order passed under section 271(1)(c) was to be set aside Read More
  
 [2014] 45 taxmann.com 473 (Rajasthan)
No addition under sec. 68 if all share applicants were taxpayers and their identities were established -IT : Where assessee-company had submitted details of contribution/loans, as well as confirmations, returns, affidavits, bank statements, PAN numbers, etc. of creditors and contributors of share capital, addition under section 68 could not be made Read More
  
 [2014] 46 taxmann.com 30 (Gujarat)
Converting scrap into an entirely new product to be treated as manufacturing activity for sec. 80-IB relief -IT: Where assessee put imported scrap to series of manual and mechanical processes and thereby brought into existence entirely new and distinct commodity which was marketable, it was to be regarded as 'manufacturing' activity and, thus, assessee's claim for deduction under section 80-IB was to be allowed Read More
  
 [2014] 45 taxmann.com 488 (Kerala)
Sum taxed as undisclosed income couldn’t be challenged if made on basis of sworn statements under sec. 132(4) -IT: There can be no complaint against amount being taxed as undisclosed income where same has been disclosed by way of voluntary statement given by assessee under section 132(4) Read More
  
 [2014] 46 taxmann.com 32 (Allahabad)
Conversion of industrial land into residential plots isn’t akin to conversion of cap assets into stock-in-trade -IT : Where assessee, a sick unit, having obtained permission from State Government, converted its industrial land into residential plots and sold a part of it during relevant year, it was not a case where land in question had been transferred after converting it into stock-in-trade of business and, therefore, provisions of section 45(2) did not apply to assessee's case Read More
  
 [2014] 46 taxmann.com 300 (SC)
No denial of Sec.54 relief for non-execution of sale deed within time if assessee was thwarted doing so by court -IT : Where assessee having executed an agreement to sell in respect of a house property, purchased a new residential property within one year from date of agreement to sell, in view of fact that subsequently sale deed could not be executed within prescribed time for reason that assessee had been prevented from dealing with said residential house by an order of a competent court, a valid 'transfer' took place within meaning of section 2(47) by executing agreement to sell and, consequently, relief Read More
  
 [2014] 45 taxmann.com 472 (Andhra Pradesh)
HC affirms sec. 68 addition relying on cash book seized by Sales-tax Dept. which revealed unrecorded sales -IT: Addition under section 68 can be made on basis of cash book found during inspection by sales-tax department Read More
  
 [2014] 45 taxmann.com 531 (Rajasthan)
Provision for gratuity created before enactment of Gratuity Act to be allowed after enactment of said Act -IT : Where on coming into force of Gratuity Act, 1972 assessee company became liable for first time in assessment year 1973-74 to provide gratuity to its employees which included current as well as past liability and assessee made provision of said amount on actuarial basis, assessee's claim for entire expenses was to be allowed Read More
  
 [2014] 45 taxmann.com 481 (Gujarat)
No reassessment to deny interest on unpaid sales tax if all facts related to it were disclosed in assessment -IT : Where assessee disclosed all material facts in respect of its claim for interest on unpaid sales tax at time of assessment proceedings, Assessing Officer could not initiate reassessment proceedings four years taking a view that claim was wrongly allowed Read More
  
 [2014] 45 taxmann.com 480 (Karnataka)
Reassessment upheld as assessee had accepted his earlier return filed in response to invalid notice -IT : When assessee not only participated in proceedings but accepted his return filed in response to first invalid notice under section 148, as return filed in response to third notice under section 148, assessment orders passed under section 143(3) could not be said to be ab initio void on ground that no valid returns were filed by assessee Read More
  
 [2014] 45 taxmann.com 512 (Delhi)
Sec. 69B additions couldn’t be made on DVO’s report in absence of any evidence to prove unexplained investment -IT: In absence of any positive evidence on record, addition cannot be made on account of undisclosed investment in property merely placing reliance upon report to DVO Read More
  
 [2014] 45 taxmann.com 487 (Madras)
No writ against sec. 263 Show Cause notice if CIT had made revision when order was prejudicial to revenue -IT: Expression 'resulted into an order prejudicial to interest of revenue', in order of Commissioner was sufficient for invoking power under section 263 and assessee ought not to have approached writ court at stage of show-cause notice Read More
  
 [2014] 45 taxmann.com 437 (Delhi)
HC disallows interest as its liability accrued in later years when equity was converted into debt with retro-effect -IT: Deduction under section 36(1)(iii) on account of payment of interest on loan converted from share capital, was not admissible as where liability to pay interest had not crystallized during relevant previous year Read More
  
 [2014] 45 taxmann.com 484 (Kerala)
HC rejects assessee’s plea for sec. 12A registration as time-limit for filing registration request had surpassed -IT: Where time limit for considering application for registration under section 12A was already complete and matter having been considered by this Court in earlier judgment, writ petition filed by appellant was rightly dismissed Read More
  
 [2014] 45 taxmann.com 564 (Gujarat)
No reassessment to prune sec. 80-IA relief if AO’s proposal to re-compute relief was baseless -IT : Where recomputation proposal of section 80-IA was found to be baseless by virtue of binding decisions, no reassessment was to be allowed Read More
  
 [2014] 45 taxmann.com 477 (Karnataka)
Rent receipts of property not taxable in hands of Co. if shareholders are deemed owners of property under sec. 27 -IT: Where assessee-company owned a landed property and it had constructed a commercial building on said land and later on it allotted specific portion of building to shareholders and thereafter it leased entire building to a tenant and distributed rental amount/monthly rent after deducting tax and maintenance to shareholders proportionately, in given situation shareholders were owners of specific portion of building allotted to them and it could not be said that assessee deemed to have derived i Read More
  
 [2014] 45 taxmann.com 483 (Allahabad)
No disallowance of borrowing cost by AO on pretext of it being capital in nature if it was utilized for business -IT : Total preliminary expenses has to be apportioned and allowed in ten successive previous years Read More
  
 [2014] 45 taxmann.com 476 (Allahabad)
No penalty on denial of sec. 10B relief due to late collection of export proceeds on client’s disapproval -IT : Where accounts were duly audited and relevant report in Form 56G was furnished and payment was disclosed on receiving, there was no mala fide intention or element of concealment; penalty could not be levied Read More
  
 [2014] 45 taxmann.com 443 (Gujarat)
Before initiating reassessment AO must dispose of preliminary objection of assessee by passing speaking order -IT : Before initiating reassessment proceeding, it is obligatory for Assessing Officer to dispose of assessee's preliminary objection by passing a speaking order only Read More
  
 [2014] 45 taxmann.com 532 (Karnataka)
Erecting road, bus shelters and so forth as part of advertisement business couldn’t be termed as infra-development -IT: Where assessee - advertising-company had developed existing road median, erected bus-shelters and light poles for its advertisement business, activities indulged by assessee-company were part of its normal activities of advertising and publicity rather than one of infrastructure development and therefore, was not eligible for deduction under section 80-IA(4) Read More
  
 [2014] 45 taxmann.com 448 (Gujarat)
Delay in filing of appeal due to failure of AO to hand over his charge to successor is condonable -IT : Where delay in filing appeal by Revenue took place due to unusual circumstances of failure on part of concerned Assessing Officer to handover charge to successor officer, delay should be condoned Read More
  
 [2014] 45 taxmann.com 475 (Delhi)
ITAT had to affirm finding of CIT(A) on determination of ALP when revenue failed to controvert it -IT : Where Tribunal confirmed findings of lower appellate authority on point of determination of arm's length price and Department was not able to controvert those findings said order needed no interference Read More
  
 [2014] 46 taxmann.com 171 (Allahabad)
Payments of commission at higher rate to son of partner without business expediency attracts sec. 40A(2) -IT : Where there was no commercial consideration or business expediency for payment of, excessive commission, payment of commission should be restricted to sum as allowed to other workers Read More
  
 [2014] 45 taxmann.com 451 (Bombay)[2014] 364 ITR 213 (Bombay)[2014] 265 CTR 348 (Bombay)
No reassessment to restrict sec. 80-IB relief as it was allowed after detailed verification during assessment -IT : Reassessment notice was bad in law where it was based upon allowance of excessive deduction under section 80-IB but facts revealed that claim for deduction under section 80-IB was allowed in original assessment after consideration Read More
  
 [2014] 45 taxmann.com 474 (Gujarat)
No reassessment to make addition of CENVAT balance lying with department if it was disclosed during assessment -IT: Where assessee had in scrutiny assessment disclosed facts that sales were made exclusive of excise duty/Modvat credit balance lying with excise department and excluded such amount from computation of income, initiation of reassessment after expiry of 4 years on ground that income escaped assessment was not proper Read More
  
 [2014] 45 taxmann.com 511 (Bombay)
HC affirms payment of 20% of tax demand and guarantee for balance sums during pendency of appeal of Vodafone -IT : Where during pendency of appellate proceedings, Tribunal directed to deposit only 20 per cent of tax demanded and revenue was willing to accept a corporate guarantee for balance amount, impugned direction issued by Tribunal did not require any interference Read More
  
 [2014] 45 taxmann.com 436 (Karnataka)
Sec. 10(23AAA): Only income from investment is taxable and not whole investment made in violation of sec. 11(5) -IT: Where Employees Welfare Fund was approved by Commissioner, only income portion from investment made in violation of section 11(5) and not whole of investment, would be liable to tax Read More
  
 ITAT
  
 [2014] 46 taxmann.com 8 (Mumbai - Trib.)
Incidental observations of ITAT couldn’t be taken as its findings or observations to initiate reassessment -IT: Where there was an incidental observation on year of income taxability, it could not be taken as a 'finding' or 'direction' enabling reassessment under section 150 Read Morenew
  
 [2014] 46 taxmann.com 126 (Chennai - Trib.)
Comparables accepted in subsequent year couldn’t be rejected by TPO in earlier year without any reason of rejection -IT/ILT-I: Where TPO made adjustment to assessee's ALP by rejecting a comparable picked up by assessee, in view of fact that while making impugned adjustment TPO did not consider assessee's plea that said comparable had been accepted in succeeding year and, moreover detailed reasons for rejecting it had not been assigned, impugned adjustment deserved to be set aside and matter was to be remanded back for disposal afresh Read Morenew
  
 [2014] 46 taxmann.com 15 (Pune - Trib.)
Profit on sale of commercial space gets sec. 80-IB relief as housing project was approved prior to 1-4-2005 -IT : Prior to 1-4-2005, local authority could approve a housing project without or with commercial use to extent permitted under Development Control Rules and, therefore, an assessee would be entitled to deduction under section 80-IB(10) in respect of profits derived from approved project including profits from sale of commercial space Read More
  
 [2014] 46 taxmann.com 31 (Chennai - Trib.)
Hospital is entitled to claim sec. 11 relief from income arising from pharmacy, an integral part of hospital -IT : Where assessee, a charitable society registered under section 12A, was running a hospital, income earned by it from its pharmacy being integral to main object of running hospital, could not be excluded from computing income eligible for exemption under section 11 Read More
  
 [2014] 46 taxmann.com 26 (Delhi - Trib.)
Leave encashment payments are deductible on basis of ‘actual’ payment under sec. 43B, says ITAT -IT : Depreciation on goodwill which is an asset as per section 32 is allowable as held by Tribunal in series of earlier years Read More
  
 [2014] 46 taxmann.com 27 (Lucknow - Trib.)
An AOP can file appeal through any of its HUF members and not through any member of such HUF in individual capacity -IT : Where AOP consisted of a number of HUFs, appeal was to be filed by any of HUF as member of AOP or its Principal Officer, and not by any member of a HUF in his individual capacity Read More
  
 [2014] 46 taxmann.com 18 (Mumbai - Trib.)
Investment to acquire controlling stake in a group co. and not to earn any income won’t attract sec. 14A rigour -IT : Where assessee made certain investment with an object of acquiring controlling stake in a group concern and not for earning any income out of investment, Assessing Officer was not justified in invoking provisions of section 14A, read with Rule 8D in order to disallow a part of incidental dividend income earned on said investment Read More
  
 [2014] 46 taxmann.com 9 (Hyderabad - Trib.)
Transactions amongst Indian residents are outside the realm of ‘International Transactions’ under sec. 92B -IT/ILT : Where both assessee and its AEs with whom it had undertaken transactions were residents in terms of Indian taxation, any transaction between them would not constitute international transaction Read More
  
 [2014] 46 taxmann.com 91 (Hyderabad - Trib.)
Payment of privilege fee by alcohol distributor to State Government wasn’t allowable as business exp -IT: Payment of privilege fee made by assessee, a wholsale distributor of alcoholic products, to State Government in terms of section 23A of Excise Act, 1968, was merely an application of income and, thus, it could not be allowed as business expenditure under section 37(1) Read More
  
 [2014] 46 taxmann.com 107 (Mumbai - Trib.)
Deductions allowable under one provision can’t be withdrawn unless other overriding provision is overstepped -IT : Once deduction is allowable under specific section, which is on an altogether different footing, same cannot be withdrawn by any other section unless conditions mentioned under any overriding section have been infringed Read More
  
 [2014] 46 taxmann.com 89 (Mumbai - Trib.)
Filing of revised return in anticipation of proposed adjustment by TPO won’t escape penalty -IT/ILT : Where subsequent to reference made by Assessing Officer to TPO for determination of ALP relating to transaction of reimbursement of expenses incurred in respect of services availed from AE, assessee filed a revised return making disallowance of entire marketing expenses, since said revision was made in anticipation of proposed adjustment, it could not be regarded as voluntary and bona fide and, thus, authorities below rightly passed penalty order under section 271(1)(c) on basis Read More
  
 [2014] 46 taxmann.com 106 (Delhi - Trib.)
Entity with more than 1/3rd related party transactions couldn’t be an appropriate comparable, ITAT says -IT/ILT : Where TPO made certain addition to assessee's ALP by adopting a new set of comparables, in view of fact that one of comparable selected by TPO was improper as it had related party transactions of about 36 per cent, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh Read More
  
 [2014] 46 taxmann.com 52 (Ahmedabad - Trib.)
ITAT remanded case relating to taxation of royalty on software due to conflicting views of High Courts on it -IT/ILT: In view of conflicting decisions of two High Courts regarding treatment of payment made by assessee to a foreign company for getting licence to use a software, matter was to be remanded back for disposal afresh on basis of evidence brought on record Read More
  
 [2014] 46 taxmann.com 285 (Hyderabad - Trib.)
TPO can’t estimate operating cost of EOUs on basis of their turnover when their segmental results are available -IT/ILT : Where segmental working is available on basis of separate books of account maintained for EOU unit, TPO is not justified in estimating operating cost on basis of proportionate turnover Read More
  
 [2014] 46 taxmann.com 33 (Mumbai - Trib.)
NR to be taxed at 10% for long-term capital gains under proviso to sec. 112; following Cairn UK ruling -IT/ILT : Where assessee, a non-resident company registered in UK, purchased shares of an Indian Company listed in BSE from another UK based company, assessee was entitled to benefit of deduction of lower rate of tax at rate of 10 per cent Read More
  
 [2014] 46 taxmann.com 90 (Delhi - Trib.)
ITAT upheld TP addition for notional interest relying on SBI base rate for delayed payments made by AEs -IT/ILT : Where substantial amounts were due to assessee from its AEs as there were delays in receiving payments from AEs, DRP taking strength from safe harbour rule, rightly directed Assessing Officer/TPO that interest was to be computed on basis of SBI base rate as on 30 June of relevant previous year plus 150 basis point Read More
  
 [2014] 45 taxmann.com 447 (Lucknow - Trib.)
Limitation period for sec. 154 rectification begins when AO passes original order and not consequential one -IT: For purpose of rectification under section 154, limitation starts from date on which original assessment order is passed by subordinate authority and not date when he had passed consequential order in terms of directions issued by appellate authority in remand Read More
  
 [2014] 46 taxmann.com 129 (Bangalore - Trib.)
DRP isn’t empowered either to set aside proposed variation or issue directions to AO for further enquiry -IT/ILT-I : In terms of section 144C(5), DRP has no power to set aside any proposed variation or issue any direction for further enquiry and passing of assessment order Read More
  
 [2014] 46 taxmann.com 105 (Kolkata - Trib.)
ITAT fixes ALP of oil considering Malaysian Oil Board’s rate on date of contract instead of date of invoice -IT/ILT : Where in transfer pricing proceedings, TPO made addition to assessee's ALP in respect of import of crude palm oil by adopting Malaysian Palm Oil Board (MPOB) rate prevailing on invoice date, in view of fact that for all purposes of execution and cancellation, MPOB rates specified on date of contract were applied, which was in accordance with prevalent practice of trade impugned addition deserved to be set aside Read More
  
 Statutes
  
INSTRUCTION NO. 5/2014 [F. NO. 279/MISC. 142/2007
CBDT revises monetary limits for filing appeals; issues measures to reduce litigation -IT : Section 268A of the Income-Tax Act, 1961 - Appeals And Revision - Filing of Appeal or Application For Reference by Income-Tax Authority - Revision of Monetary Limits For Filing of Appeals by the Department Before Income Tax Appellate Tribunal, High Courts And Supreme Court - Measures for Reducing Litigation Read Morenew
  
Live Update Budget 2014: Personal Tax Exemption Limit raised by Rs. 50,000; No change in rate of surcharge -Live Update Budget 2014: Personal Tax Exemption Limit raised by Rs. 50,000; No change in rate of surcharge Read More
  
LETTER [F NO 279/MISC/M-20/2011-1TJ]
CBDT notifies revised proforma for submission of proposal to file SLP -INSTRUCTIONS ON STANDARD OPERATING PROCEDURE ON FILING OF APPEALS/ SPECIAL LEAVE PETITIONS (SLPS) BY THE INCOME TAX DEPARTMENT IN THE SUPREME COURT AND RELATED MATTERS INSTRUCTIONS REGARDING- REVISED PROFORMA B TO INSTRUCTION NO 4/2011 DATED 09.03.2011 Read More
  
PRESS RELEASE
CBDT allows usage of one mobile number and email-id for 10 user accounts in e-filing portal -UPDATE AND VALIDATE TAXPAYER EMAIL ID AND MOBILE NUMBER FOR THEIR E‐FILING ACCOUNT Read More
  
A.P. (DIR SERIES)(2013-14) CIRCULAR NO. 151
RBI directs banks to comply with new requirement prescribed in Form 15CA/15CB while remitting money to NRs -IT/FEMA/ILT : Remittances to Non-Residents - Deduction of Tax at Source Read More
  
 Articles
  
Pre-Budget : Income-tax Act may take hint from Companies Act, 2013 -Companies Act, 2013 has replaced the Companies Act, 1956. Various new provisions have been introduced in the 2013 Act which may drive Finance Bill, 2014 to bring corresponding changes in the Income-tax Act, 1961. Some recommendations on Income-tax Act on basis of provisions of the Companies Act, 2013 are stated below. Read Morenew
  
Pre-Budget - Key Expectations from the Budget 2014-15 -Hon'ble Delhi High Court in India Trade Promotion Organization v. CIT [2013] 38 taxmann.com 233 has held that the expression 'any amount' used in section 244A in contrast to expression 'refund' used in section 244 is much wider and broader in scope. The word 'any amount' would include within its scope and ambit the interest element which has accrued and is payable on the date of refund. Similar view was taken by the Delhi High Court earlier in CIT v. Goodyear India Ltd. [2001] 249 ITR 527 and by Read Morenew
  
Budget 2014-15 : Some suggestions on personal taxation (including salary earners) -The new incumbents of the Central Government having taken oath of office on 26th May, 2014, seem to be busy with budget making in full swing. The Finance Ministry must be getting flooded with submissions and representations from various quarters, including various Chambers of Business, Trade and Commerce, giving their views and suggestions in regard to measures that the Finance Minister (FM) should incorporate in the Finance Bill, 2014 concerning Direct and Indirect Taxes. Read Morenew
  
 News
  
Budget 2014-15 – A Beacon of hope for individual taxpayers -The maximum exemption limit for an individual and a senior citizen has been raised by Rs. 50,000, that is, from Rs. 2 lakh to Rs. 2.5 lakh in case of individual taxpayers below the age of 60 years and from Rs. 2.5 lakh to Rs. 3 lakhs in case of resident senior citizens. There are no changes in the rate of surcharge and education cess. [12-07-2014] Read Morenew
  
REIT Tax Sops Boost Morale of PE Funds -REIT Tax Sops Boost Morale of PE Funds [12-07-2014] Read Morenew
  
Budget 2014-15: Confusion Over Windmills Sops -Budget 2014-15: Confusion Over Windmills Sops [12-07-2014] Read Morenew
  
Hike In Home Loan Deduction Suits Big-Ticket Borrowers -Hike In Home Loan Deduction Suits Big-Ticket Borrowers [12-07-2014] Read Morenew
  
`Budget has Created Enabling Environment for Investment' -`Budget has Created Enabling Environment for Investment' [12-07-2014] Read Morenew
  
FM Header Likely to Score, say Brokers -FM Header Likely to Score, say Brokers [12-07-2014] Read Morenew
  
India Inc: MAT offsets investment allowance benefit -India Inc: MAT offsets investment allowance benefit [12-07-2014] Read Morenew
  
Govt clears confusion on date of debt MF tax hike -Govt clears confusion on date of debt MF tax hike [12-07-2014] Read Morenew
  
Budget 2014 - Finance Bill 2014: Changes in Transfer Pricing regime -As per the existing Transfer Pricing provisions, penalty for non-furnishing of documentation and information can be imposed by either Assessing Officer ('AO') or Commissioner (Appeals). Through, Union Budget 2014, the Finance Minister has proposed to empower Transfer Pricing Officer ('TPO') by extending the power to levy penalty under section 271G on the taxpayer on non-furnishing of information. [11-07-2014] Read More
  
Budget 2014 - Jaitley's Penalty Kick -A goal has been scored by assessees, with the Finance Minister booting out the Annual Information Return (AIR), in his first budget. This silent move has gone unnoticed. The penalty provision has substituted Annual Information Return with "statement of financial transaction" and "reportable account." Section 271FA has been amended, to do away with the dreaded AIR, word. [11-07-2014] Read More
  
Budget 2014 - LTCG on Mutual Fund Units (other than equity oriented) to attract higher rate of tax at 20% -Section 112 provides for taxation of long term capital gains in case of different persons. Sub-section (1)(d) provides for taxing LTCG in cases other than that of a Resident Individual, HUF, Domestic Company, Non Resident and Foreign Company at a lower rate of tax. [11-07-2014] Read More
  
Budget 2014 - Sharks Get Shock: Higher penalty for giving inaccurate statements to I-T Authorities -Tax dodgers have to gulp a bitter dose of quinine medicine, as a brand new penalty provision has been introduced in the Jaitley's budget. For inaccurate statements, before the income tax authorities, the penalty has been steeply hiked from minimum Rs.100 to a mammoth Rs. 50,000, chilling tax evaders. [11-07-2014] Read More
  
Budget 2014 - Relaxation from rigours of Section 206AA shall not be restricted to infrastructure bonds only -Where the payee does not furnish the PAN, section 206AA obliges the deduction of tax at source at the higher of the -(i) at the rate specified in the relevant provision of this Act; or(ii) at the rate or rates in force; or(iii) at the rate of twenty per cent.This provision was not to applicable in respect of payment of interest, on long-term infrastructure bonds, as referred to in section 194LC, to a non-resident, not being a company, or to a foreign company. [11-07-2014] Read More
  
Budget 2014: Amendments proposed in connection with Tax Deducted at Source (TDS) -The existing provisions of section 40(a)(i) of the I-T Act provide that certain payments such as interest, royalty and fee for technical services made to a non-resident shall not be allowed as deduction for computing business income if tax on such payments was not deducted, or after deduction, was not paid within the time prescribed under section 200(1) of the IT Act. [11-07-2014] Read More
  
Budget 2014: Towards Rebooting Growth: A BMR Analysis of Union Budget 2014 -July 11, 2014. Budget 2014 reflects a number of priorities identified in the BJP election manifesto - the need to simply the taxation regime, provide a non-adversarial tax environment, revamped dispute resolution mechanisms and the need to build a consensus with State Governments to introduce GST expeditiously. Beyond this, the other material priority was to leverage tax policy to the extent possible to kick start the investment cycle leading to job-creation and economic growth. Budget 2014 addr [11-07-2014] Read More
  
Budget 2014 - I-T Officers are given power to survey so as to verify deduction of tax at source -The existing provisions of Section 133A of the Income Tax Act, 1961 ("the Act") provides that an income tax authority may enter [11-07-2014] Read More
  
Budget 2014: Budget proposes tax transparent treatment for REITs: Commercial real estate to get a push -Among other proposals, the Budget 2014-15 proposes a tax transparent treatment to real estate investment trusts and infrastructure investment trusts. [11-07-2014] Read More
  
Budget 2014 - Setback for Corporates on CSR Expenditures -Budget 2014 - Setback for Corporates on CSR Expenditures [11-07-2014] Read More
  
Budget 2014 - Sweet & Bitter for NGOs & Trusts -The Finance Bill, 2014 has brought some very far reaching and important amendments for the charitablesector, particularly for those NGOs and Trusts which are availing tax exemptions under section 10(23C) and section 11. [11-07-2014] Read More
  
Budget 2014 - Entities claiming Sec. 35AD benefits covered in ambit of Alternate Minimum Tax -As per the existing provisions of section 115JEE, the persons specified under Heading C of Chapter VI-A (claiming deductions under Section 80HH to 80RRB except Section 80P) and section 10AA such as industries in backward areas, entities engaged in specified export business, SEZ's etc were attracting the provisions of AMT. [11-07-2014] Read More
  
Budget 2014: Use of multiple year data allowed for comparability analysis -Rule 10B(4) of the Income Tax Rules, 1962 ("The Rules") specifies that the data to be used in comparability analysis shall be the data of that particular year in which the subject transaction is entered; [11-07-2014] Read More
  
Budget 2014 : Introduction of 'Rollback' provisions under Indian Advanced Pricing agreement Regime -The APA regime had been introduced by Finance Act 2012 as a mechanism to curb the voluminous and time consuming litigation in the field of transfer pricing in India. [10-07-2014] Read More
  
Budget 2014 - Reference can be made to Valuation Officer even without rejecting books of accounts -Section 142A provides that for the purpose of making an assessment or reassessment the Assessing Officer (AO) has a power to make a reference to the Valuation Officer (VO) for estimating the value of investment, bullion, jewellery etc. Before making a reference to the VO it is mandatory for the AO to reject the books of account as per Judgment of the Supreme Court in Sargam Cinema Vs. CIT [197 Taxman 203] [10-07-2014] Read More
  
Budget 2014: Expansion of tax incentive schemes -Section 32AC: Investment Allowance to Manufacturing Companies [10-07-2014] Read More
  
Loophole allowing double deductions under Section 10AA and Section 35AD is plugged -Finance Bill, 2014 has proposed to amend section 35AD of the Income tax Act, 1961 ('the Act') and introduced investment linked deduction for business of laying and operating slurry pipelines used for carrying iron ore as well as setting up and operating semi-conductor wafer fabrication manufacturing unit. [10-07-2014] Read More
  
Budget 2014 - Sec. 54EC exemptions restricted to Rs. 50 lakhs even if investment is made in two financial years -Section 54EC is proposed to be amended by the Finance Bill 2014 by insertion of another proviso in sub-section (1), after the first proviso (now existing) with effect from the 1st day of April, 2015, namely: [10-07-2014] Read More
  
Budget 2014 - FM brings tax certainty for FIIs; grants status of 'capital asset' to securities held by FIIs -The existing Section 2(14) defines a 'capital asset' means property of any kind held by an assessee, whether or not connected with his business or profession but does not include: [10-07-2014] Read More
  
Dividend Distribution Tax to be paid after grossing up of 'Dividend Distributed' -Section 115-O was introduced by Finance Act, 1997 and materially altered the taxation of income distribution by companies. Prior to its introduction, entire amount of dividends (say Rs.1,000) paid by a company to its shareholders was taxed in the hands of the shareholders, and the Government collected tax on this entire amount from such shareholders. [10-07-2014] Read More
  
Budget 2014 - Roll over of investment for Section 54 and 54F exemptions to be restricted to one house only -The provisions of section 54 prior to its amendment proposed in the Finance Bill 2014 introduced today reads as under: [10-07-2014] Read More
  
Budget 2014 - Methodology for taxation of Anonymous Donations modified -Section 115BBC provides for methodology for taxing income of University, Hospitals, Charitable Organisation etc when their total income includes Anonymous Donations ("AD") as follows: [10-07-2014] Read More
  
Concessional tax rate for foreign dividends extended without any sunset clause -As per section 115BD, the dividends [as per clause (22) of section 2 but not including sub-clause (e)] received by Indian companies from foreign companies are taxable at a concessional rate of 15%. [10-07-2014] Read More
  
Budget 2014 - Letting loose TDS compliance requirements -There was a great expectation that the new Government would present a Super Budget 2014 which would uplift the economy in all fronts from sluggishness. The Finance Minister of UK who visited India recently, added to the hype / optimism by saying that the new Government is firing the cylinders for the past seven weeks and there is a great scope for increased co-operation by way of British investment in India. [10-07-2014] Read More
  
Budget 2014 - A New Special Purpose Vehicle for financing PPP and Infrastructure Projects -The Finance Bill, 2014 proposes to inserts a new clause (23FC) in section 10 of the Income Tax Act, 1961 which would provide that: [10-07-2014] Read More
  
Budget 2014 - Vehicle operators to pay more -Budget 2014 has lot of forward looking amendments aimed at simplifications and clarifications for the taxpayers at large. There are also certain amendments to back the tax administration by nullifying decisions rendered by appellate authorities. However, the homework done by the tax department is laudable for the reason that it is in the right direction to provide the hassle-free tax compliance in the days to come. [10-07-2014] Read More
  
Budget Highlights -Download Press Release issued by PIB on Budget highlights [10-07-2014] Read More
  
Copy of Budget Speech -Download copy of Speech given by Hon'ble Finance Minister Sh. Arun Jaitley [10-07-2014] Read More
  
Copy of Finance Bill, 2014 -Download copy of Finance Bill, 2014 presented today. [10-07-2014] Read More
  
Govt non-committal on DTC, says Bill has lapsed -Govt non-committal on DTC, says Bill has lapsed [09-07-2014] Read More
  
Need a tax litigation settlement scheme -Need a tax litigation settlement scheme [08-07-2014] Read More
  
Budget may Provide Balm for Businesses Hurt by `Tax Terror' -Budget may Provide Balm for Businesses Hurt by `Tax Terror' [08-07-2014] Read More
  
Voda Hopes Govt'll Scrap Retroactive Law Amendment -Voda Hopes Govt'll Scrap Retroactive Law Amendment [08-07-2014] Read More
  
Resolve Indo-Mauritius Tax Issues: Singapore's FSC -Resolve Indo-Mauritius Tax Issues: Singapore's FSC [07-07-2014] Read More
  
Make Justified Requests: Swiss Banks to India -Make Justified Requests: Swiss Banks to India [07-07-2014] Read More
  
Four suggestions for the Budget -Four suggestions for the Budget [07-07-2014] Read More
  
DTH operators wish for easing of tax burden ahead of Budget -DTH operators wish for easing of tax burden ahead of Budget [07-07-2014] Read More
  
Online I-T returns will need email, mobile number -Online I-T returns will need email, mobile number [07-07-2014] Read More
  
Don’t expect too much -Don’t expect too much [07-07-2014] Read More
  
Oil and gas sector seeks tax holiday -Oil and gas sector seeks tax holiday [07-07-2014] Read More
  
Inheritance tax unlikely to be re-imposed -Inheritance tax unlikely to be re-imposed [05-07-2014] Read More
  
Taxpayers Have to Share Email ID, Mobile Number with I-T Dept -Taxpayers Have to Share Email ID, Mobile Number with I-T Dept [05-07-2014] Read More
  
Number of schemes under 80C should be reduced -Number of schemes under 80C should be reduced [04-07-2014] Read More
  
Govt might waive interest & penalty -Govt might waive interest & penalty [04-07-2014] Read More
  
No pass- through status for alternative investment funds -No pass- through status for alternative investment funds [03-07-2014] Read More
  
I-T exemption limit may not be raised significantly in Budget -I-T exemption limit may not be raised significantly in Budget [03-07-2014] Read More
  
Industrial Parks to get Same Benefits as SEZs, NIMZ -Industrial Parks to get Same Benefits as SEZs, NIMZ [03-07-2014] Read More
  
Need more tax sops for telcos: DoT -Need more tax sops for telcos: DoT [02-07-2014] Read More
  
Ready to e-file your tax returns -Ready to e-file your tax returns [02-07-2014] Read More
  
MFs’ BUDGET WISH LIST -MFs’ BUDGET WISH LIST [02-07-2014] Read More
  
FM hints at bold steps to cut fiscal deficit -FM hints at bold steps to cut fiscal deficit [02-07-2014] Read More
  
SC Refuses To Entertain PIL in Vodafone Case -SC Refuses To Entertain PIL in Vodafone Case [02-07-2014] Read More
  
Assess I-T Fairly Across Classes -Assess I-T Fairly Across Classes [02-07-2014] Read More
  
Entrepreneurs, PEs Hope for End of Tax Woes -Entrepreneurs, PEs Hope for End of Tax Woes [02-07-2014] Read More
  
Bet on Arbitrage Funds to Earn Tax-efficient Returns -Bet on Arbitrage Funds to Earn Tax-efficient Returns [02-07-2014] Read More
  
A blueprint to encourage tax compliance -A blueprint to encourage tax compliance [01-07-2014] Read More
  
Regaining Taxpayer’s Trust -Regaining Taxpayer’s Trust [01-07-2014] Read More
  
Allow firms to choose the TDS rate -Allow firms to choose the TDS rate [30-06-2014] Read More
  
Anomalies in income-tax laws -Anomalies in income-tax laws [30-06-2014] Read More
  
DTC faces cold treatment -DTC faces cold treatment [30-06-2014] Read More
  
CAG Preparing to Examine Transfer Pricing Cases: RTI -CAG Preparing to Examine Transfer Pricing Cases: RTI [30-06-2014] Read More
  
India Seeks Info on Secret Accounts from Switzerland -India Seeks Info on Secret Accounts from Switzerland [30-06-2014] Read More
  
Black Money: Agencies told to Share Data -Black Money: Agencies told to Share Data [30-06-2014] Read More