HC : 'Guarantee commission' = insurance premium to cover risk; Allows Sec 37 deduction 
August 29 2014
HC allows deduction for 'guarantee commission' u/s 37 paid by State Fianncial Corporation to the State Government; Guarantor exposed to the liability in case of defaults by borrowers ; HC equates guar...View more

HC : 2014 amendment to Sec 54F prospective; Allows exemption for multiple residential units 
August 28 2014
HC allows Sec 54F relief from capital gains in respect of investment in 5 new residential flats by considering them as one unit for AY 2007-08; Assessee had entered into an agreement with developer to...View more

ITAT : Mere high profits no criterion to deny Sec. 10A benefit, ‘arrangement’ u/s 80IA(10) must
August 28 2014
ITAT allows assessee’s Sec 10A deduction claim, holds disabling provision u/s 10A(7) r.w.s, 80IA(10) (empowering AO to restrict deduction claim to ‘reasonable profits’) not triggered...View more

HC : Employee training key to BPO industry, indicates business 'set-up'; Expense deduction available 
August 28 2014
HC reverses ITAT’s order, allows expenditure incurred by assessee (a BPO service provider) on new employee training, though actual rendering of BPO services not ‘commenced’; In view ...View more

ITAT : Mortgaged assets takeover under SARFESI Act not 'transfer'; 'Possession' a 'relative' concept 
August 27 2014
Tribunal deletes short term capital gains (‘STCG’) addition, holds taking over of assets by secured lenders under Securitization Act, as not ‘transfer’ u/s 2(47); Secured lende...View more

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Madhya Pradesh HC also grants interim stay on Sec 234E recovery proceedings

August 18 2014
Madhya Pradesh HC issues notice to IT Dept. over assessee’s writ petition challenging validity of Sec 234E (which levies mandatory fee on TDS deductor for delay in submitting TDS returns); In ...View more

SC : Stays Karnataka HC order dismissing assessee’s writ against ‘reassessment initiation’

August 12 2014
SC stays operation and implementation of Karnataka HC ruling; Karnataka HC division bench dismissed assessee’s writ petition challenging reassessment notice and AO’s order rejecting assess...View more

SC stays adverse Madras HC ruling on re-assessment challenge vide 'writ' petition

August 11 2014
SC stays adverse Madras HC ruling on re-assessment challenge vide 'writ' petition: Sources ...View more

HC : Admits appeal on effective connection of Japanese assessee's FTS income to Indian PE

August 06 2014
Bombay HC admits Revenue’s appeal against Mumbai ITAT ruling in case of Nippon Kaiji Kyokoi (a Japanese entity engaged in providing inspection and certification services to marine industry); Uph...View more

HC: Admits Revenue’s appeal on validity of reassessment against Sec 143(1) assessment

August 05 2014
Bombay HC admits Revenue’s appeal against Mumbai ITAT ruling in H.V. Transmissions Ltd.’s case; ITAT had quashed reassessment against original summary assessment u/s 143(1), absent "tangib...View more

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HC : Quashes reopening; Reason to believe based on fresh tangible material essential requirement 
August 21 2014
HC quashes Sec 148 notice, absent new tangible material on record compelling AO to form belief of income escapement; Absent new tangible material, reassessment exercise amounts to re-appreciation or r...View more

ITAT : Rejects 14A disallowance on ‘presumption’; AO can't apply Rule 8D formula mechanically 
August 20 2014
ITAT deletes Sec 14A disallowance, quashes AO’s Sec 14A application based on ‘presumption’ that administrative expenses like telephone / salary would have been incurred for earning e...View more

SC : Confirms HC’s order holding assessee not-in-default for "debatable” expatriates’ salary 
August 19 2014
SC approves Delhi HC judgment, dismisses Revenue’s SLP; HC had held that assessee cannot be regarded as ‘assessee in default’ u/s 201 for non-deduction of tax at source on “deb...View more

HC : Depreciation not implicit under Rule 10; Actual allowance relevant for determining post-amalgamation WDV 
August 19 2014
Indian company taking over assets of Indian branch of foreign company (in year 1975), entitled to depreciation on WDV determined under scheme of amalgamation (being cost less depreciation actually all...View more

HC : Following Gujarat HC, Karnataka HC holds Sec 40(a)(ia) amendment extending TDS time limit retrospective 
July 31 2014
HC rules that Finance Act, 2010 amendment to Sec 40(a)(ia), which provides for deductibility of expenditure if TDS paid within return filing due date, is retrospective in nature; Amendment is curative...View more

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New Tribunal members for Ahmedabad, Pune, Chandigarh benches in latest round of transfer

August 30 2014
New Tribunal members for Ahmedabad, Pune, Chandigarh benches in latest round of transfer: Sources ...View more

CBDT sets up much awaited "retro" panel, directions binding on AO

August 29 2014
CBDT sets up committee to examine cases initiated by AO in respect of indirect transfers (pursuant to Finance Act, 2012 retrospective amendment) for the period before April 1, 2012; 3 member committee...View more

Joint Secretary, TPL - Sunil Gupta resigns: Sources

August 28 2014
Joint Secretary, TPL - Sunil Gupta resigns: Sources ...View more

India notifies DTAA with Fiji

August 25 2014
CBDT notifies ‘DTAA’ between Government of India and Government of the Republic of Fiji, which was signed on January 30, 2014; ‘Exchange of Information’ and ‘Limitation o...View more

India notifies Malta treaty, DTAA to be effective from April 1, 2015

August 22 2014
India notifies Malta treaty, DTAA to be effective from April 1, 2015 ...View more

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HC : Holds payment to use intranet facility under guise of ‘cost sharing’ as royalty 
August 25 2014
Payment by assessee (Indian company) to Canadian group company for use of intranet facility under ‘Cost Sharing Agreement’ (‘CSA’), taxable as royalty under Explanation 4 to Se...View more

HC : Allows Sec 9(1)(i)(b) exemption on 'sourcing' services by branch; Actual 'purchase' not necessary 
August 25 2014
Assessee (a Hong Kong based non-resident operating in India through branch) eligible for exemption u/s 9(1)(i)(b) for 'sourcing' services provided by Indian branch; Indian branch identified suppliers,...View more

HC : Approves 15% PE income-attribution absent new facts; ITAT's remand citing globalisation reversed 
August 26 2014
HC allows assessee’s appeal, approves 15% profit attribution to India PE of Dutch company engaged in Computerised Reservation System business; Since AO failed to bring out new facts / data on re...View more

Joint Secretary, TPL - Sunil Gupta resigns: Sources
August 28 2014
Joint Secretary, TPL - Sunil Gupta resigns: Sources ...View more

HC : Employee training key to BPO industry, indicates business 'set-up'; Expense deduction available 
August 28 2014
HC reverses ITAT’s order, allows expenditure incurred by assessee (a BPO service provider) on new employee training, though actual rendering of BPO services not ‘commenced’; In view ...View more