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

HC: Cost allocation for Sec 10A unit based on employee head-count upheld

IT Department not to reject cost allocation method which is reasonable and followed consistently, unless any defects are pointed; Assessee's common cost allocation between Sec 10A unit and domestic unit

Dec 20,2011

HC: Payment for import of software, later integrated with hardware, amounts to ‘royalty’ 

Payment for import of software, which is integrated separately with imported hardware, amounts to ‘royalty’ u/s 9(1)(vi) in hands of non-resident; Contract for importing software an independent contract 

Dec 15,2011

HC: Sec 163 proceedings against Ingram India on offshore deal time barred

Notice for assessing Ingram India as an agent u/s 163 issued beyond two years from assessment year; Sec 163 proceedings  to recover Rs 575 cr capital gains tax time barred;

Dec 15,2011

HC: Reassessment to deny Sec 10 exemptions to GIC invalid  

Reassessment proceedings constituted ‘change of opinion’ of AO since Sec 10 exemption was granted during assessment based on communication from CBDT to IRDA; AO could not ignore binding precedents of Bom HC in

Dec 14,2011

HC: Actual use of asset by lessee not relevant for lessor's depreciation claim

Actual date on which asset was put to use by lessee, not relevant for lessor’s claim for depreciation on leased assets; Lessor entitled to depreciation, once assets installed at the

Dec 14,2011