HC : Sec 194H TDS inapplicable absent principal-agent relation; Applies principle of doubtful penalization 
November 24 2014
HC deletes Sec 40(a)(ia) disallowance, Sec 194H inapplicable as ‘fees’ charged by bank for rendering banking services (i.e providing credit-card swiping machine to assessee for receiving p...View more

ITAT : Govt agency’s ‘other income’ not to be isolated, relatable to ‘Govt-Grant’, thus non-taxable 
November 24 2014
ITAT holds assessee’s (a Govt of India undertaking) ‘other income’ as non-revenue, thus non-taxable; Since assessee received grants from Govt for certain expenditure in developing in...View more

ITAT : Upholds reassessment on former HC judge; Rejects ‘information from unauthorized source’ plea 
November 24 2014
ITAT upholds re-assessment proceedings initiated against assessee, a former HC judge; Observes information collected by Judges Inquiry Committee (JIC) and forwarded by member IRS officer formed AO&rsq...View more

ITAT : Sale-deed execution, not registration relevant for capital gains; Distinguishes Suraj Lamp’s case 
November 21 2014
Transfer of property takes place in year of sale-deed execution i.e. when consideration was paid and possession was handed over; Rejects Revenue’s reliance on SC ruling in Suraj Lamp and Industr...View more

HC : ITAT order deleting non-compete income absent specific agreement not perverse 
November 21 2014
HC dismisses Revenue appeal against ITAT decision, ITAT rejected attributing part share sale consideration towards non-compete fees; States that in the absence of specific consideration in the agreeme...View more

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Bombay HC to adjudicate whether Explanation to Sec 90 abrogates non-discriminatory clause under India-Japan DTAA

November 19 2014
Bombay HC admits assessee's (Indian branch of a Japanese bank) appeal against Tribunal’s order on issue of rate of tax applicability and net vs. gross interest taxability; Bombay HC to rule whet...View more

Bombay HC admits appeal on treatment of negative net-worth in capital gains computation​

October 01 2014
Bombay HC admits Summit Securities Ltd’s (assessee) appeal against ITAT Special Bench decision on issue of addition of negative net worth in capital gains tax computation on slump sale; Special ...View more

Sec. 195 interpretation back in focus w.r.t tax treaty applicability

September 17 2014
Bangalore ITAT reserves judgment on TDS applicability to interconnect usage charges paid to non-resident telecom operators in Vodafone South’s case (VSL); Senior Advocate N. Venkatraman argues t...View more

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

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HC : Toll road a ‘building’, not ‘plant’, lower depreciation rate applicable 
November 12 2014
HC denies higher depreciation rate benefit to assessee on BOT project, holding toll road as ‘building’ entitled to 10% depreciation and not ‘plant’ entitled to 25% depreciation...View more

HC : UK firm qualifies as 'person' under DTAA to avail benefits, quashes re-assessment 
November 12 2014
HC quashes Sec 148 notice issued to UK partnership firm (‘assessee’), holds assessee eligible for treaty benefits under India-UK DTAA ; Rejects Revenue’s stand that assessee, being p...View more

ITAT : Holds Liechtenstein Bank despoit into discretionary trust as unaccounted income 
November 11 2014
ITAT holds deposit made by assessees (individual taxpayers) in Trust’s bank account in Liechtenstein Bank (wherein assessees were sole beneficiaries) represents unaccounted income of the assesse...View more

ITAT : Transmission charges not ‘rent’ liable to Sec 194I TDS, assessee not-in-default u/s 201(1)/(1A) 
November 10 2014
ITAT holds assessee (power distribution company) not in default u/s 201(1)/(1A), rules payment of electricity transmission charges not ‘rent’ liable to Sec 194I TDS; Rejects Revenue’...View more

HC : Denies income aggregation while computing Chapter VI-A deduction, follows SC’s Canara Workshop ruling 
November 06 2014
HC allows deduction claim u/s 80HH and 80I with respect to each unit separately, rejects Revenue’s action of aggregating income from different sources while computing Chapter VI-A deduction; Fol...View more

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OECD BEPS "Treaty Abuse" follow-up work directs focus on LOB rule

November 21 2014
OECD releases discussion draft on follow-up work on Action 6 (Prevent Treaty Abuse) of BEPS Action Plan, identifies 20 issues on which follow-up work is required and highlights questions on which comm...View more

CBDT announces re-constitution of DRPs at 8 locations

November 21 2014
CBDT re-constitutes DRPs at Delhi, Mumbai, Pune, Kolkata, Gandhinagar, Hyderabad, Banagalore and Chennai; Changes effective from November 15, 2014 Click below to read and download CBDT Order. ...View more

RBI clarifies Indian tax laws applicability for acquisition of immovable property

November 21 2014
RBI clarifies that transactions relating to acquisition of immovable property in India by person resident outside India who is Indian citizen / person of Indian origin is subject to applicable tax law...View more

CBDT announces transfers/postings of CCITs/CITs in partial modification of earlier order

November 20 2014
CBDT announces local transfers/postings of CCITs/CITs in partial modification of earlier order No 209 of 2014 dated November 11, 2014. Click below to read and download the revised order No 209. ...View more

CBDT: Clarifies assessment order-date, not service-date, as deemed assessment completion for SetCom application

November 19 2014
CBDT issues clarification in respect of earlier Circular 3/2008 explaining Revised Settlement Scheme which was put in place vide Finance Act, 2007; Earlier, Circular provided that assessment shall be ...View more

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CBDT announces local transfers / postings of CITs/DITs
November 18 2014
CBDT announces local transfers / postings of CITs/DITs with immediate effect ; Pursuant to transfer order, 237 officers transferred locally. ...View more

HC : LO involved in marketing goods, not mere communication channel, constitutes Indian-PE 
November 17 2014
HC confirms Tribunal’s order that assessee’s (US company) Indian liaison office (LO) constituted a permanent establishment (PE), making assessee liable to tax in India on its business inco...View more

HC : Consideration for hiring out dredgers, not “royalty”, distinguishes Poompuhar ruling 
November 19 2014
HC rules that amount received by assessee (Netherlands Company) for hiring out dredgers to Indian sister concern for use in India ports not “Royalty” within meaning of India-Netherlands DT...View more

HC : Lumpsum payment for technical know-how necessary for installation not 'royalty' 
November 20 2014
HC rules that lumpsum consideration paid by assessee to foreign company for supply of technical know-how, machinery installation and erection cannot be treated as “Royalty” under the Act; ...View more

Taxsutra Book Review - ' Private Trusts & Corporates'
November 17 2014
Book Review by Mr. P.V. Srinivasan ( Sr. VP, Taxation, Wipro Ltd. ) In this book “Private Trusts and Corporates” the author has attempted to demystify the subject of `trusts’ by e...View more