HC: Adjustment of Genpact's refund against tax demand invalid, contrary to CBDT Circular

Tax Refund ajdustment against tax demand not allowed when issues decided in assessee’s favour earlier by ITAT & HC ; Tax adjustment contrary to CBDT Circular No. 1194 ; Sec

Jan 03,2012

HC: HC can admit additional issues not framed initially; Sec 80IB benefit denied

HC has powers to adjudicate additional issues not forming part of substantial question of law initially framed; Non-formulation of questions of law for disputed issues without opportunity of being heard

Jan 02,2012

HC: Maruti correctly granted Sec 10(10C) exemption on VRS payment; Scheme compliant with Rule 2B  

Sec. 10(10C) exemption for VRS payment cannot be denied merely because VRS compensation not calculated according to methods under Rule 2B; Rule 2B aimed at providing monetary limit on VRS payment

Dec 30,2011

HC: Delhi HC follows Kar HC; Telecommunication expenses to be excluded from total turnover

Communications expenses to be excluded from total turnover as the same are excluded from export turnover; Karnataka HC ruling in Tata Elxsi Ltd and Bombay HC decision in Gem Plus

Dec 29,2011

HC: Unconfirmed creditor balance as per balance sheet cannot be taxed u/s 41(1)

Creditors' balances remaining outstanding for over 4 years not taxable u/s 41(1), even if no balance confirmation available; Disclosure of creditors' balance in balance sheet amounts to acknowledgment of debt

Dec 29,2011

HC: Delhi HC confirms ITAT Special bench ruling in Ericsson

Equipment supply not taxable in India where property and risks passed outside India; mere signing of agreements in India not relevant; Acceptance test carried out in India not a determinative

Dec 26,2011

HC: Non-compete fees a capital expenditure; ITAT SB ruling in Tecumseh affirmed

Non-compete fee in consideration of a restrictive covenant for 5 years is capital expenditure; 5 years non-compete period results in enduring benefit; ITAT Special Bench decision in Tecumseh affirmed

Dec 26,2011

HC: AAI's expense provision for removal of encroachments at airports deductible

Provision by Airport Authority of India for removal of encroachment at airports, neither a capital expenditure nor a contingent liability; Co-ordinate bench decision for earlier year denying deduction overruled;  AAI not

Dec 26,2011

HC: Software sale by Infy to US subsidiary a trading receipt, eligible for Sec 10A benefit

Gain on sale of software by Infosys to subsidiary taxable as trading receipt and not as ‘capital gains’; Sec 10A benefit available on software sold through STP unit even though

Dec 21,2011

HC: Foreign currency expenses to be excluded from turnover for Sec 80HHE deduction; Infy engaged in providing technical services

Foreign currency expenses to be excluded from turnover in computing Sec 80HHE deduction; Infosys engaged in providing technical services outside India and not export of software as per CA certificate

Dec 21,2011