HC : Lays down twin tests for determining "compulsory acquisition"; TDS u/s 194LA not applicable 
Naya Raipur Development Authority
July 24 2014
HC rules that land acquired by Naya Raipur Development Authority (assessee) vide mutual agreement with owners under Nivesh Act, not compulsory acquisition, accordingly, assessee not liable to deduct t...View more

HC : ITAT holding share income as capital gains, not mere 'another possible view' 
Harit Exports Ltd.
July 24 2014
HC upholds ITAT order that income from sale of shares is taxable as capital gain, not business income; Assessee maintained separate portfolio for share investment from the very beginning, frequency of...View more

HC : Accrual, not payment relevant for salary taxability; Pre-ammendment non-compete fee non-taxable 
Ashok D ‘Souza
July 24 2014
HC reverses Tribunal’s order, holds non-compete fees and technical know-how fees received by assessee during AY 2002-03 from his employer not taxable; Though payment falls under ambit of ‘...View more

HC : Reads Rajdharma to Revenue for wasting 'precious' court time; Public interest paramount 
 Larsen and Toubro Ltd
July 23 2014
HC reprimands Revenue for not abiding by ITAT’s findings in a matter based on settled principles of law, leading to wastage of precious judicial time; Holding Revenue officers as trustees of pub...View more

HC : AP HC differs from Karnataka on 'lease vs ownership'; Holds building rent as business 
S.Premalatha
July 23 2014
HC rules that rental income received by assessee from building constructed on leasehold land is assessable as business income and not house property income; Construction of building on land taken on l...View more

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NTT hangs by thread; CJI skeptical over Tribunal independence, standards, CA role

July 24 2014
5 judges Constitution bench of SC, led by Chief Justice of India (CJI) reserves judgment on constitutional validity of National Tax Tribunal (NTT); CJI poses barrage of questions to Attorney...View more

Bombay HC admits Millennium’s writ against AAR ruling on software payments taxability

July 23 2014
Bombay HC admits Millennium’s writ against AAR ruling on issue of whether payment received for computer software supply amounts to ‘royalty’; AAR had held that license fees paid for ...View more

HC to decide if DRP can issue directions at variance with draft order

July 23 2014
Bombay HC admits Revenue’s appeal against Mumbai ITAT ruling in Dredging International N.V.’s case; ITAT had held that DRP cannot take up new issue and issue directions which are at varian...View more

Bombay HC admits MTDC's appeal on interest income classification as business vs IOS

July 18 2014
Bombay HC admits Maharashtra Tourism Development Corporation’s appeal against Mumbai ITAT ruling on interest income treatment of State / Central Govt grants deposited in fixed deposits; ITAT rej...View more

Datar invokes "basic structure" doctrine, urges SC to strike down National Tax Tribunal

July 18 2014
5 judge Constitution Bench of apex court to decide on constitutional validity of National Tax Tribunal (NTT) & the extent to which "Tribunalization of justice" is permissible under Indian Constitu...View more

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ITAT : Proportionate, not full FTC available under Art 23 of India – Thailand DTAA 
Arvind Metals & Minerals (P) Ltd.
July 04 2014
ITAT dismisses assessee’s appeal, allows foreign tax credit on proportionate basis in view of Article 23(2) of India – Thailand DTAA, as against full credit claimed by assessee; As per Art...View more

HC : Mandatory interest u/s 234A/B/C unsustainable absent AO's ‘specific’ direction; Applies 'Ranchi Club' ratio 
Oswal Exports
July 04 2014
HC quashes AO’s order for charging interest u/s 234A / 234B / 234C (for AY 1990-91), as no specific direction for levying of interest given in assessment order; Though interest under above secti...View more

ITAT : Upholds McDonald’s re-assessment as lower tax rate application results in income escapement 
McDonald’s Corporation
July 03 2014
Tribunal upholds re-assessment in McDonald’s case as income escaped assessment by lower tax rate application accepted u/s 143(1); Application of 15% tax rate for royalty income under India-US DT...View more

ITAT : NR-payments for morphological studies not FTS, no ‘make available’ under India-UK DTAA 
Dholera Port Ltd. & Adani Port- Infrastructure Pvt. Ltd.
July 02 2014
ITAT quashes AO’s order u/s 201(1)/(1A) holding assessee (engaged in development of Dholera Port in Gujarat) in default, rules payment to UK company not liable to TDS u/s 195; Payments to UK com...View more

HC : “Less than full disclosure” during assessment prima facie valid for Sec 148 notice 
Rosy Blue (India) Ltd.
June 27 2014
HC dismisses assessee’s writ challenging reassessment notice u/s 148, prima-facie view suggested “less than full and true disclosure of material facts” by assessee during assessment ...View more

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CBDT announces inter-city transfers of Addl/ Jt Commissioners

July 24 2014
CBDT orders inter-city transfers / postings of 33 Additional/Joint Commissioners with immediate effect.  Click below to read order No.112/2014...View more

Income Tax Offices to remain open this weekend; Special counters arranged

July 24 2014
CBDT has announced that for the convenience of taxpayers, the Income Tax offices will remain open for accepting returns of income during normal office hours on this weekend i.e July, 26th and July 27t...View more

Sec 163 inapplicable where income beneficiary files return in India as ‘resident’

July 23 2014
Delhi High Court allows assessee’s writ challenging Commissioner’s order u/s 264, holds assessee not ‘representative assessee’ u/s 163 in respect of income of non-resident...View more

J. Ramasubramanian expresses concern over regulators lagging in catching up with international structures

July 22 2014
J. Ramasubramanian expresses concern over regulators lagging in catching up with international structures ...View more

FM addresses CCITs, stresses tightrope walk between tax collection & tax facilitator role

July 21 2014
FM addresses CCITs, expresses hope that revenue target for current FY will not be achieved but also surpassed; Credibility of tax department its biggest asset, IRS officers ought to work with highest ...View more

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2 ITAT members transferred to Mumbai and Bangalore
July 19 2014
Two Tribunal members have been transferred as follows : Shri. Joginder Singh (JM), from Indore to Mumbai and Shri. Abraham George (AM) from Kolkata to Bangalore. ...View more

CBDT announces inter-city transfers of Addl/ Jt Commissioners
July 24 2014
CBDT orders inter-city transfers / postings of 33 Additional/Joint Commissioners with immediate effect.  Click below to read order No.112/2014...View more

ITAT : Distinguishes Asia-Sat ruling; Reuters's forex deal-matching system's revenue qualifies as 'royalty' 
Reuters Transaction Services Ltd.
July 21 2014
Income received by Reuters UK (‘assessee’) from its Indian subscriber banks, for providing 'foreign exchange deal matching system', constitutes ‘royalty’ under Article 13 of In...View more

HC : Lays down Sec 44BB, 44DA taxability law on services income; Relies on OHM ruling 
PGS Geophysical AS
July 21 2014
HC rules that Norwegian assessee’s (company engaged in business of providing services in connection with prospecting for mineral oils) FTS income for AY 2008-09 taxable u/s 44BB(1) and not u/s 4...View more

FM defends MAT on SEZ
July 19 2014
FM says MAT levied on all companies to address inequity in taxation of corporate taxpayers; Removal of MAT from SEZ developers and units had no justification vis-à-vis other sectors of economy ...View more