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Direct Tax Laws
  
 SC/HC
  
 [2014] 47 taxmann.com 239 (Karnataka)
Rental income from letting out building in software technology park was assessable as business income -IT : Where rental income was received by assessee from letting out building along with other amenities in a Software Technology Park, same was chargeable to tax under head 'Income from business and profession' Read Morenew
  
 [2014] 47 taxmann.com 331 (Karnataka)[2014] 363 ITR 410 (Karnataka)
No interest on late filing of block return due to delay on part of department in issuing copy of seized docs -IT : No interest can be levied under section 158BFA for late filing of block return where such delay was on account of delay on part of department in issuing copies of documents seized during search Read Morenew
  
 [2014] 47 taxmann.com 310 (Himachal Pradesh)
Payment to sub-contractors for transportation of LPG cylinders would be subject to TDS under Sec. 194C -IT: Where assessee entered into a contract with IOC for carriage of LPG cylinders, in view of fact that assessee in turn got transportation of cylinders done through three parties by entering into sub-contracts with them, payments of freight charges made to sub-contractors were covered by section 194C(2) and, thus, assessee was required to deduct tax at source while making payments in question Read More
  
 [2014] 47 taxmann.com 238 (Bombay)
Exp. on issue of FCCBs was allowable as holders had no compulsion but an option to convert them into equity shares -IT: Where Assessing Officer allowed assessee's claim for deduction of expenses incurred on issue of Foreign currency Covertible Bonds (FCCBs), in view of fact that unless option was exercised by bondholders, conversion of those bonds into equity shares was not permissible, impugned revisional order passed by Commissioner disallowing expenditure in question on ground that FCCBs in real sense, were equity shares right from beginning and that conversion of bonds was only a routine technical complia Read More
  
 [2014] 47 taxmann.com 332 (Bombay)
Re-assessment affirmed as commission paid to foreign agent was included in cost of asset to escape TDS liability -IT/ILT: Where commission paid to foreign party was not shown separately but added to cost of purchase to avoid TDS liability, there had been less than full and true disclosure of all material facts during assessment proceedings and, therefore, reopening of assessment even after four years from end of relevant assessment year was justified in law Read More
  
 [2014] 47 taxmann.com 240 (Allahabad)[2014] 361 ITR 66 (Allahabad)
No transfer of case without recording of reasons and without giving an opportunity of being heard to assessee -IT : Power to transfer a case under section 127 is conditioned by requirement of furnishing a reasonable opportunity of being heard, wherever it is possible to do so, to assessee and of recording reasons Read More
  
 [2014] 47 taxmann.com 241 (Gujarat)
Concealment penalty couldn’t be imposed when issue of unit-wise deduction to assessee was debatable one -IT : Where Assessing Officer passed a penalty order under section 271(1)(c) for raising a false claim of deduction under section 80HHC, in view of fact that issues like unit wise deduction, exclusion of excise duty and sales-tax from total turnover etc. had been a matter of dispute between Department and assessee and, thus, issue of deduction was a debatable one, Tribunal was justified in setting aside impugned penalty order Read More
  
 [2014] 47 taxmann.com 243 (Madras)[2014] 361 ITR 332 (Madras)
HC directs ITAT to consider in detail issue of nature of income from sale of shares as business income or cap gains -IT : When specific case of assessee was that income arising from sale of shares could not be treated as income from business, in fairness to claim of assessee, Tribunal ought to have considered same in detail to arrive at a factual finding Read More
  
 [2014] 47 taxmann.com 286 (Bombay)
HC following rule of consistency allows depreciation to HSBC on fee paid to SEBI for registration of mutual fund -IT : Where Tribunal emphasising rule of consistency, allowed assessee's claim for depreciation on fee paid to SEBI for registration of mutual fund, reliance placed by revenue on subsequent judgment of High Court for contending that depreciation was wrongly allowed, could not carry its case any further and, thus, impugned order of Tribunal was to be confirmed Read More
  
 [2014] 47 taxmann.com 268 (Punjab & Haryana)
HC uphold sec. 41(1) additions as trading liability ceased to exist when creditors denied any dues from assessee -IT : Trading liability to pay back being ceased to exist, same is to be treated as taxable income Read More
  
 [2014] 47 taxmann.com 235 (Gauhati)[2013] 358 ITR 551 (Gauhati)
Order passed by HC without formulating question of law and without hearing parties on such question was illegal -IT : If an order is passed by High Court in breach of procedure, which a statute such as section 260A has laid down, such a procedural defect shall remain open to correction by High Court by taking resort to its plenary power of review or ex debito justitiae to prevent abuse of its process Read More
  
 [2014] 47 taxmann.com 258 (Bombay)
HC grants stay against tax demand to ‘ICICI prudential’ as ITAT had decided impugned issue in favour of ICICI -IT: Where demand in dispute relates to an issue which has been decided in favour of assessee, stay against demand of tax should be granted Read More
  
 [2014] 47 taxmann.com 265 (Bombay)
Absence of reasons to show failure of assessee to disclose facts won’t make re-assessment notice invalid -IT : Where Assessing Officer initiated reassessment proceedings taking a view that deduction under section 80HHC was not available to assessee since it did not have profit from exports, since there was no failure on part of assessee to disclose truly and fully all material facts necessary for assessment, in view of proviso to section 147, initiation of reassessment proceedings after expiry of four years from end of relevant assessment year was not sustainable Read More
  
 [2014] 47 taxmann.com 294 (Karnataka)
Recovery proceedings couldn’t be initiated if bank guarantee was already furnished by assessee -IT: Where petitioner in response to notice of demand of tax had already produced to satisfaction of Additional Commissioner of Income-tax that bank guarantee for balance amount was still in force, no recovery proceedings could be enforced against petitioner Read More
  
 [2014] 47 taxmann.com 267 (Allahabad)
Approval granted to charitable institution under sec. 10(23C) would remain in force till it is withdrawn -IT: Where assessee was granted approval after 1-12-2006 by Chief Commissioner under section 10(23C), same would be a one time affair and continues to remain in force till it is withdrawn; hence, assessee's application for extention of approval would be redundant Read More
  
 [2014] 47 taxmann.com 295 (Allahabad)
Order of SetCom couldn’t be interfered with even if it made an error of law in calculating concealment penalty: HC -IT : Even if there was an error of law or fact in calculating penalty by Settlement Commission, discretion exercised by it requires no interference unless exercise of power made by Settlement Commission was perverse requiring interference under article 226 of Constitution Read More
  
 [2014] 47 taxmann.com 292 (Karnataka)
Sale of land by bogus firm which was introduced as capital contribution shall be taxable in hands of partner only -IT: Partnership being non-genuine and land being shown as capital contribution by partners, profit on sale of said land after their fake retirement was to be treated as capital gains in hands of individual assessees Read More
  
 [2014] 47 taxmann.com 290 (Kerala)[2014] 361 ITR 200 (Kerala)
AO could enquire about depositor’s info from banks even if no proceedings were pending against assessee -IT : Income-tax Officer can issue notice calling for information for enquiry purposes from assessee-bank in order to ensure that transactions of depositors are wholly transparent Read More
  
 [2014] 47 taxmann.com 289 (Gujarat)
Salary income declared after search proceedings would be undisclosed even if tax was deducted therefrom -IT : Tax to be deducted at source being also computed on estimated income of an assessee for relevant financial year, such deduction can not result in disclosure of total income for relevant assessment year Read More
  
 [2014] 47 taxmann.com 291 (Madras)[2013] 359 ITR 671 (Madras)
Buyers commission paid for procuring export order is an allowable deduction under section 37(1) -IT: Where assessee-exporter paid buyer's commission for procuring export orders and genuineness of payment was established, commission was deductible as business expenditure Read More
  
 [2014] 47 taxmann.com 287 (Kerala)
Compliance with all the conditions of section 220(2A) is a must to claim waiver of interest, rules HC -IT : While passing order under section 220(2A), Settlement Commission has to exercise its discretion judicially and satisfy that three conditions laid down under clauses (i), (ii) and (iii) of sub-section (2A) of section 220 have been fulfilled, before passing an order waiving interest Read More
  
 [2014] 47 taxmann.com 233 (Gujarat)[2014] 361 ITR 181 (Gujarat)
Payments made to contractors held allowable as TDS was deposited before due date of filing of return -IT: Where assessee had deducted TDS from payments to contractors and such amount was deposited with revenue before last date of filing of return, it was entitled to deduction of such payments Read More
  
 [2014] 48 taxmann.com 191 (Bombay)
AO isn't bound to follow municipal valuation of property to determine its Annual Value, rules HC -IT: In order to determine annual value of property, municipal rateable value may not be binding on Assessing Officer but that is only in cases where he is convinced that interest free security deposit and monthly compensation do not reflect prevailing rate and, in such a case, Assessing Officer can himself resort to enquire about prevailing rate in locality Read More
  
 [2014] 47 taxmann.com 185 (Punjab & Haryana)
Addition affirmed as assessee-firm had diverted its funds to partners for bringing it back as capital into the firm -IT: Where money introduced in names of partners was infact earned by firm from its business of cold storage, same was to be treated as unaccounted income of firm Read More
  
 [2014] 47 taxmann.com 184 (Allahabad)
AO couldn’t rescind trust’s registration if assessee-society had complied with requirements of sec. 12AA -IT: Where there was no whisper that assessee-society did not fulfill any conditions mentioned in section 12AA(3), cancellation of registration only on ground that society did not solely exists for charitable purpose, was unjustified Read More
  
 [2014] 47 taxmann.com 215 (Karnataka)
License fee paid by ‘ITC Hotels’ for using courtyard of palace for its business was allowable as revenue exp. -IT : Licence fee for using courtyard of a palace while running hotel in palace, is allowable revenue expenditure Read More
  
 [2014] 44 taxmann.com 247 (Gujarat)[2014] 224 Taxman 59 (Gujarat)(MAG.)
HC concluded that difference in quantity of manufacturing and export would be deemed as suppressed local sales -IT: Where there was considerable discrepancy in quantity of gold recorded in assessee's books at time when ornaments were manufactured and received from artisans, as compared to gold actually exported by assessee to its foreign importers and such differential quantity of gold did not form part of assessee's exports, it was rightly concluded that gold was subjected to local sales Read More
  
 [2014] 47 taxmann.com 211 (Punjab & Haryana)
Allowance for exp. or depreciation wasn’t admissible if assessee transferred its business to franchisee -IT: Where assessee had transferred its business to franchisee, assessee could no more claim any business expenditure or depreciation on expenses incurred by it Read More
  
 [2014] 47 taxmann.com 159 (Delhi)
HC orders special audit of ‘DLF’ as its accounts were incomplete and complex due to multiple sale transactions -IT : Where accounts did not contain narration of some entries and assessee failed to submit comparative details of expenditure in SEZ and non-SEZ units and affairs of company were not transparent, direction for special audit required Read More
  
 [2014] 47 taxmann.com 141 (Delhi)
Commission paid to director for furnishing personal surety against loan sanctioned to Co. was allowable -IT : Commission paid to directors in consideration of personal surety given to bank for facilitating loan, is allowable as deduction in hands of company Read More
  
 ITAT
  
 [2014] 47 taxmann.com 237 (Delhi - Trib.)
Sec. 14A disallowance confirmed by ITAT as assessee couldn’t point out any mistake in calculations as per rule 8D -IT : Where disallowance under section 14A was computed as per formula given in rule 8D and assessee failed to show any mistake in calculation made in respect of expenditure for earning exempt income, disallowance to be upheld Read Morenew
  
 [2014] 47 taxmann.com 335 (Kolkata - Trib.)
Conversion of Co. into LLP subject to tax if loans extended to partners out of reserves of the erstwhile Co. -IT: Where a company was converted into assessee, i.e. a limited liability partnership, in view of fact that subsequent to conversion loan was given to partners who were directors in erstwhile company in their profit sharing ratio out of reserves and surplus of erstwhile company, there was violation of proviso (f) of section 47(xiib) and, therefore, benefit of provisions of section 47(xiiib) was not available to assessee-firm Read Morenew
  
 [2014] 47 taxmann.com 410 (Chennai - Trib.)
Broker assuming all risks without any right to conclude contracts on behalf of NR can't be treated as agency PE -IT/ILT : Payment made to non-resident companies for procuring standard and copyrighted software products, for distribution or re-sale purpose on principal to principal basis could not be treated as payment towards royalty Read Morenew
  
 [2014] 47 taxmann.com 390 (Jodhpur - Trib.)[2013] 28 ITR(T) 389 (Jodhpur - Trib.)
Tippers purchased for letting out purposes couldn’t be deemed as part of plant & machinery; depreciable at 40% -IT: Tippers given on hire and registered as vehicle with registration authority are eligible for depreciation at 40 per cent Read Morenew
  
 [2014] 47 taxmann.com 336 (Hyderabad - Trib.)
Transaction between two resident entities won’t be an ‘International transaction’; no additions to be made -IT/ILT : Where for assessment year 2006-07 assessee and its associated enterprise both were residents of India for tax purposes, transaction between them did not constitute an international transaction, thus, addition made under section 92CA(4) was to be deleted Read Morenew
  
 [2014] 47 taxmann.com 236 (Cuttack - Trib.)
AO can’t decide issue of jurisdiction himself without referring matter to concerned DG, Chief CIT or CIT -IT : Where an assessee calls in question jurisdiction of Assessing Officer, then Assessing Officer shall, if not satisfied with correctness of claim, refer matter for determination under sub-section (2) of section 124 before assessment is made to Chief Commissioner or Director General and Commissioner; he cannot decide issue of jurisdiction himself Read More
  
 [2014] 47 taxmann.com 309 (Agra - Trib.)
Amount paid at any time without deducting tax therefrom would be hit by Sec.40(a)(ia) disallowance -IT : Where assessee challenged disallowance made by Assessing Officer on account of non-deduction of tax at source while making payments to sub-contractors on ground that disallowance under section 40(a)(ia) could only be made in respect of sums remaining outstanding at end of year, following order passed by Gujarat High Court in case of CIT v. Sikandar Khan N. Tanvar [2013] 357 ITR 312/[2014] 220 Taxman 256/[2013] 33 taxmann.com 133 plea raised by assessee was to be rejected Read More
  
 [2014] 47 taxmann.com 312 (Bangalore - Trib.)
Functionally dissimilar comparables to be excluded from TP study to determine ALP of R&D services -IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering research and development services to AE, in view of fact that three comparables selected by TPO were improper on account of functional difference, Commissioner (Appeals) was justified in excluding those comparables and accordingly granting partial relief to assessee Read More
  
 [2014] 47 taxmann.com 308 (Bangalore - Trib.)
Interest on deposits with Electricity Co. for electric connection to be taxed after reducing electricity exp. -IT : Where assessee, an association of owners of commercial areas owned in a building, deposited certain amount with BESCOM for availing electricity service connection, in view of fact that there was a direct nexus between interest received on said deposits and electricity consumption charges, assessee claim that electricity expenses had to be set off against interest income and it was only net interest, if any, could be brought to tax, was to be allowed Read More
  
 [2014] 47 taxmann.com 334 (Hyderabad - Trib.)
Renouncing of right to purchase a property in lieu of a sum was ‘transfer’; to be taxed as capital gains -IT: Where on account of failure of vendor to act upon agreement to sell, assessee filed a civil suit for specific performance which ultimately resulted in compromise, in view of fact that as per terms of MOU, assessee gave up his claim over property against consideration received, it could be interpreted that assessee had relinquished or extinguished his right over property in terms of section 2(47) Read More
  
 [2014] 47 taxmann.com 330 (Pune - Trib.)
Sum received from letting out an office space with facilities of cafeteria and conference room was business income -IT : Where assessee earned licence fee by letting out office space alongwith other facilities such as cafeteria, conference rooms LCD projectors etc., it being a case where property had been exploited by undertaking complex commercial activities, amount in question was to be taxed as business income Read More
  
 [2014] 47 taxmann.com 285 (Jaipur - Trib.)
AO couldn’t make exorbitant addition without considering purchases made by assessee from excise department -IT : Where assessee trader procured liquor through excise department only, even if books results were to be rejected, reasonable estimation of trading addition was to be made Read More
  
 [2014] 47 taxmann.com 283 (Delhi - Trib.)
Secondment of employee by group Co. to Indian affiliate for managerial services constitutes its service PE in India -IT/ILT: Where in terms of licence agreement entered into between assessee, a UK based company, and its Indian group concern, certain employees were seconded to Indian company to render services relating to manufacturing of Excavator loader in India, in view of fact that seconded employees furnished services including managerial services for a period of more than 90 days during relevant assessment years, Assessing Officer rightly concluded that service PE of assessee was established in India in t Read More
  
 [2014] 47 taxmann.com 329 (Cochin - Trib.)
Profit from sale of agricultural land can’t be included in book profit for the purpose of MAT -IT: Profit from sale of agricultural land would not be included for purpose of computing book profit under section 115JB Read More
  
 [2014] 47 taxmann.com 293 (Pune - Trib.)
Additions on basis of info extracted from loose paper found in search proceedings of third party set aside -IT: Where Assessing officer made additions in case of assessee on basis of noting in loose papers found during search proceedings in case of third party against name of assessee as there was no evidence to suggest that payments were made to assessee, additions so made were not justified Read More
  
 [2014] 47 taxmann.com 260 (Hyderabad - Trib.)
AO couldn’t invoke disallowance under Rule 8D if investment didn’t yield any exempt income -IT : It is only expenditure directly relating to income which is earned either on receipt basis or on accrual basis and which does not form part of total income of a particular assessment year which can be disallowed under clause (i) of rule 8D(2) of 1962 Rules Read More
  
 [2014] 47 taxmann.com 234 (Delhi - Trib.)
TNMM is most appropriate method for determining ALP of agency and marketing support services rendered to AE -IT/ILT : Where assessee was engaged in providing agency and marketing support services to its AE, TNMM was most appropriate method for determining ALP of said international transactions entered into with AE Read More
  
 [2014] 47 taxmann.com 259 (Cochin - Trib.)
Institutes providing event management courses without awarding any diploma not entitled to sec. 12AA registration -IT: In order to fall within meaning of 'education' as provided in section 2(15), there should be a normal schooling by way of regular and systematic instruction Read More
  
 [2014] 47 taxmann.com 264 (Hyderabad - Trib.)
Museum for Indian Arts shall get continued recognition as Trust, as long as it satisfies conditions of sec. 80G(5) -IT : A museum is entitled for approval under section 80G(5) Read More
  
 [2014] 47 taxmann.com 282 (Hyderabad - Trib.)
TP adjustments on basis of comparables with divergent operations and related party transactions aren’t tenable -IT/ILT: Where TPO made adjustment to assessee's ALP in respect of providing software development services to its AE, in view of fact that some of comparables selected by TPO were improper on account of functional difference, brand value, turnover, related party transactions etc., impugned adjustment was to be set aside and, matter was to be remanded back for disposal afresh Read More
  
 [2014] 47 taxmann.com 142 (Pune - Trib.)
Donations made to political parties are allowable under IT Act subject to limit specified under Companies Act -IT : Where assessee's claim for set off of loss incurred in trading activities in commodities against other business income was rejected on ground that said transactions were sham, in view of fact that Assessing Officer did not furnish assessee any material of non-service of notice to various parties even when he had option for calling attendance of those parties in terms of section 131, impugned order was to be set aside and matter was to be remanded back for disposal afresh Read More
  
 [2014] 47 taxmann.com 266 (Hyderabad - Trib.)[2013] 27 ITR(T) 791 (Hyderabad - Trib.)
Retention money received by a contractor to be taxed in the year of completion of contract -IT: Where assessee engaged in construction business, received certain amount as retention money, in such a case, irrespective of fact that assessee had adopted mercantile system of accounting, said amount was to be brought to tax in year in which contract was successfully completed Read More
  
 [2014] 47 taxmann.com 166 (Bangalore - Trib.)
Initial AY for availing of sec. 10A relief for 10 years to be counted from the year in which manufacturing begins -IT : Where assessee began to manufacture article or thing from assessment year 1995-96 and by virtue of amendment to section 10A(3) effective from assessment year 1999-2000, benefit of exemption was to be granted for ten consecutive years started from assessment year in which assessee began to manufacture article or thing i.e. assessment year 1995-96, even though assessee actually claimed benefit of said section for first time in assessment year 1998-99 Read More
  
 [2014] 47 taxmann.com 263 (Mumbai - Trib.)
No liability of bank to withhold tax from cap gains remitted to a non-resident when it was merely acting as broker -IT/ILT : Where assessee-bank was only acting as an authorized dealer to brokers of foreign residents in transferring funds in respect of share transactions which resulted in gains, it was not liable to deduct TDS under section 195 Read More
  
 [2014] 47 taxmann.com 182 (Jodhpur - Trib.)
CIT couldn’t exercise his revisional jurisdiction if AO had made full enquiry before allowing Sec. 10BA relief -IT : Where Assessing Officer had made full enquiry before allowing exemption under section 10BA, such order could not be revised under section 263 Read More
  
 [2014] 47 taxmann.com 231 (Agra - Trib.)
Registration to a trust couldn’t be denied in absence of any adverse finding about its objectives -IT : Where assessee trust had duly furnished complete details and documents and further, there were no adverse findings on fundamental issue regarding objectives of trust, assessee's application for registration could not be rejected Read More
  
 [2014] 47 taxmann.com 187 (Mumbai - Trib.)
Sum received by assessee towards sharing of global telecommunication facility with NR agents wasn’t FTS -IT/ILT : Amount received by assessee towards shared IT Global Portfolio Tracking system from its agents could not be added as fee for technical service to assessee's income Read More
  
 [2014] 47 taxmann.com 169 (Mumbai - Trib.)
Sec. 54F benefit is available on purchase of multiple units if it constitutes one residential house -IT : Claim under section 54/54F may be allowable in case of purchase of more than one new flat when said flats constitute one residential house Read More
  
 [2014] 47 taxmann.com 190 (Bangalore - Trib.)
No transfer under sec. 2(47) if share in inherited property was transferred pursuant to Court decree -IT : Amount received by assessee pursuant to a Court decree in lieu of her share in self acquired property of father who died intestate, could not be said to result in 'transfer' attracting provisions of section 2(47)(i) or (ii) Read More
  
 [2014] 47 taxmann.com 188 (Mumbai - Trib.)
Share application money won’t be deemed as international transaction of loan due to delay in allotment of shares -IT/ILT: Transactions involving payment of share application money could not be treated as international transactions of loan given by assessee-company to its AE merely because there was delay in allotment of shares Read More
  
 [2014] 47 taxmann.com 143 (Jaipur - Trib.)
No sec. 269SS violation on acceptance of cash loan from spouse due to business exigencies; ITAT deletes penalty -IT : Where assessee running a proprietorship concern, took cash loans from her husband carrying on another proprietorship business on account of business exigencies for making payments to labourers and lenders, there being no violation of provisions of section 269SS, impugned penalty order passed under section 271D was to be set aside Read More
  
 [2014] 48 taxmann.com 190 (Mumbai - Trib.)
ITAT follows AS-10 to include one-time vehicle tax in cost of vehicle treating it as capital expenditure -IT : Para 20 of Accounting Standard (AS)10 Accounting for Fixed Assets requires that the cost of a fixed asset should comprise its purchase price and any attributable cost of bringing the asset to its working condition for its intended use. One-time tax for the life time of "all motor cars and omnibuses used or kept for use" in the State of Maharashtra under the Bombay Motor Vehicles Tax Act, 1958 is a tax for user, active or passive, of the motor vehicle in the territory of Maharashtra . Theref Read More
  
 [2014] 47 taxmann.com 191 (Delhi - Trib.)
AO couldn’t allow interest on refund by resorting to sec. 154 as it was specifically provided for under sec. 244A -IT: Interest on grant of refund is specifically provided under section 244A; hence, order passed by Assessing Officer under section 154 granting interest was without jurisdiction and all subsequent proceedings emanating from it would also be nullity in eyes of law Read More
  
 [2014] 47 taxmann.com 64 (Panaji)
Land in hilly and rocky area unfit for cultivation couldn’t be deemed as agricultural land; subject to cap gains -IT : Requirement of new material or fresh tangible material coming in possession of Assessing Officer as a pre-requisite condition for reassessment is applicable only where Assessing Officer has made an assessment under section 143(3) Read More
  
 [2014] 47 taxmann.com 189 (Bangalore - Trib.)
No section 80P relief to a co-operative society towards interest on deposit made with banks -IT : Interest income on deposits made with banks is not attributable to income of co-operative society and outside realim of section 80P Read More
  
 [2014] 47 taxmann.com 164 (Hyderabad - Trib.)
Cos. engaged in sales of software can’t be used as comparables for Cos. providing software development services -IT/ILT : Where TPO made addition to assessee's ALP in respect of software development services provided to its AE located abroad, in view of fact that some of comparables selected by TPO were also engaged in sales of software products and thus they were functionally different whereas some other comparables were found inappropriate on account of related party transactions, brand value, high turnover, etc., impugned adjustment was to be set aside and, matter was to be remanded back for disposal af Read More
  
 [2014] 48 taxmann.com 148 (Mumbai - Trib.)
Consultant doesn't impart any experience to client when he renders consultancy services; not to be treated as royalty -IT/ILT : The royalty payment received as consideration for information concerning industrial, commercial, scientific experience alludes to the concept of knowhow. There is an element of imparting of knowhow to the other, so that the other person can use or has right to use such knowhow. In case of industrial, commercial and scientific experience, if services are being rendered simply as an advisory or consultancy, then it cannot be termed as "royalty", because the advisor or consultant is not im Read More
  
 [2014] 47 taxmann.com 183 (Chennai - Trib.)
Specific funds received by a Society of Anesthesiologists to fulfil specific objects were capital receipts -IT: Contribution towards specific funds of a society created for fulfilling specific objective, would be capital in nature Read More
  
 [2014] 47 taxmann.com 209 (Hyderabad - Trib.)[2013] 28 ITR(T) 125 (Hyderabad - Trib.)
No TP adjustment if comparables chosen by TPO were functionally diverse and earning supernormal profits -IT/ILT : Where TPO made certain addition to assessee's ALP in respect of rendering information technology enabled back office support services to its associated enterprise, in view of fact that some of comparables selected by TPO were inappropriate on account of functional difference and earning of supernormal profits whereas some other comparables were accepted without giving assessee a proper opportunity to raise its objections on their selection, impugned addition was to be set aside and, mat Read More
  
 Statutes
  
ORDER [F.NO.133/24/2014-TPL]
Due date for e-furnishing of tax audit report under Section 44AB for AY 2014-15 extended to 30-11-2014 -IT/ILT : Section 119 of the Income-Tax Act, 1961 - Income-Tax Authorities - Instructions to Subordinate Authorities – Extension of Due Date for Obtaining and Furnishing of Report of Audit Under Section 44AB for A.Y. 2014-15 in Case of Assessees who are not Required to Furnish Report under Section 92E from 30-9-2014 To 30-11-2014 Read Morenew
  
NOTIFICATION NO. GSR 588(E) [F.NO.1/2/2014-NS.II]
Higher Investment in PPF - FinMin notifies Rs. 1,50,000 as revised ceiling limit for investment in PPF -IT/ILT : Public Provident Fund (Amendment) Scheme, 2014 – Amendment in Paragraph 3 and Form-A Read Morenew
  
NOTIFICATION NO.35/2014 [F.NO.503/11/2005-FTD-II]
Govt. notifies India-Fiji DTAA -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 - FIJI Read More
  
ORDER NO.121 OF 2014 [F.NO.A-35015/07/2012-AD.VI]
CBDT orders for distribution of zones amongst CBDT members with effect from August 5, 2014 -IT : Distribution of Zones Amongst Members of CBDT W.E.F. 5-8-2014 Read More
  
 News
  
No Reits before next Budget, say developers -No Reits before next Budget, say developers [21-08-2014] Read Morenew
  
SIT on Black Money Making Some Progress: Apex Court -SIT on Black Money Making Some Progress: Apex Court [21-08-2014] Read Morenew
  
Vodafone tax case: Two arbitrators to appoint a third -Vodafone tax case: Two arbitrators to appoint a third [19-08-2014] Read More
  
AB Group Fined Rs150 cr Over Cash Haul in Its Office -AB Group Fined Rs150 cr Over Cash Haul in Its Office [19-08-2014] Read More
  
Reits could get respite from dividend tax -Reits could get respite from dividend tax [12-08-2014] Read More
  
New Posts to Speed up Pending I-T Dept Litigation -New Posts to Speed up Pending I-T Dept Litigation [12-08-2014] Read More
  
Tax law penalises buyers for construction delay by builders -Tax law penalises buyers for construction delay by builders [11-08-2014] Read More
  
PPF still the best among tax- exempt instruments -PPF still the best among tax- exempt instruments [11-08-2014] Read More
  
India gets secret blackmoney data -India gets secret blackmoney data [11-08-2014] Read More
  
Retro panel may not have powers to direct field officers -Retro panel may not have powers to direct field officers [11-08-2014] Read More
  
Funds Breathe Easy as Investors Roll Over FMPs for Tax Gains -Funds Breathe Easy as Investors Roll Over FMPs for Tax Gains [11-08-2014] Read More