ITAT: Breaks ranks with AAR, allows dissecting approach for offshore supplies 

AO not justified in concluding that one integrated turnkey thermal power contract was artificially split into offshore and onshore supply contracts; Mere incurring of loss in case of onshore activity,

Jun 23,2012

ITAT: Depreciation allowable on expenditure creating commercial right & generating royalty income 

Expenses paid to Fujitsu Micro Electronics for development of a component used in assessee’s product is capital expenditure; Such expense resulted in creation of ‘intangible asset’, as it could generate

Jun 22,2012

ITAT: Upholds cancellation of State Development Authority's charitable status 

Jammu Development Authority is commercial organization earning profits; Activities such as purchase and sale of properties for securing development amounts to trade or business; Cancellation of registration as charitable trust

Jun 21,2012

ITAT: Denies Sec 80IB benefit to housing project, refuses leniency on time limit 

Time limit for completion of housing project for claiming deduction u/s 80-IB(10) to be reckoned from the date of approval by local authority; Subsequent fulfilment of conditions for approval can't

Jun 21,2012

ITAT: Accepts trust's claim for enhanced accumulation of income, Depreciation deduction allowed

Assessee trust's claim for enhanced accumulation of income accepted; Filing of revised Form 10 sufficient, without revising return; Deduction of depreciation allowed while computing income; Delhi HC ruling in Vishwa

Jun 20,2012

ITAT: 'Double dip' benefit for trusts; both depreciation, capital cost deduction allowed

Depreciation to be deducted while computing income of charitable trust, even though full deduction already allowed for cost of capital asset; Income of trust to be computed on commercial principles;

Jun 20,2012

ITAT: Investments upto belated return filing eligible for capital gains relief u/s 54F

Amount utilized for acquiring new residential house till filing of belated return eligible for Sec 54F deduction; Benefit not restricted to investment made upto original due date; Sec 54F refers

Jun 20,2012

ITAT: Market survey fees taxable as FTS, IT Act applies if DTAA silent

Only because Indo-Mauritius DTAA silent on taxability of income as FTS, such income not automatically taxable as business income under DTAA; Provisions of Act to be considered and applied where

Jun 19,2012

ITAT: Panchnama not recording search irrelevant for block assessment's limitation period

Panchnama which records 'conclusion of search' is relevant for determining limitation for passing block assessment order u/s 158BC; Panchnama without actual search or seizure operations cannot extend the time-limit; Block

Jun 19,2012

ITAT: Non-compete fee for intra-group transaction a tax evasion tool

Part of sale consideration for business transfer within Group re-characterised as goodwill and held taxable; Allocating majority consideration towards non-compete, IPR, brand, a figment of creative accounting to evade tax

Jun 19,2012