ITAT

ITAT: After HC, ITAT too says earn-out fully taxable upon share transfer

Deferred sale consideration on share transfer contingent upon subsequent year's profitability, taxable in the year of 'transfer'; Sec 45(1) a deeming provision, which does not provide for taxability on actual

Aug 02,2012

ITAT: Financial crisis, multiple litigations reasonable cause to condone delay 

100 days delay in filing appeal due to financial crisis, multiple legal proceedings reasonable cause to condone; Businessman in acute financial problem should first restore the financial position to run

Aug 02,2012

ITAT: TDS recovery provisions invocable only where ‘recipient’ fails to pay taxes

Follows Allahabad HC in Jagran Prakashan; HC ruling marks a ‘paradigm shift’ in manner of invoking recovery provisions u/s 201 for TDS default; AO cannot impose interest for TDS default

Aug 01,2012

ITAT: Pune ITAT takes Mumbai bench head on over portfolio management fees, allows deduction 

Even if Mumbai ITAT in Homi Bhabha did not follow KRA Holdings decision, portfolio management fees allowed as deduction in computing capital gains; Tribunal’s earlier ruling in favour of assessee

Jul 31,2012

ITAT: Expats' ignorance of Indian tax laws valid excuse to escape concealment penalty 

Expatiate employees deputed to India had bonafide explanation for not disclosing salary received from foreign employer; Under-reporting of salary was voluntarily disclosed and tax was voluntarily deposited in Indian treasury

Jul 31,2012

ITAT: Sec 10A benefit available even if substantial work outsourced 

Sec 10A benefit available even if majority of the work outsourced to consultants and third parties; 'Outsourcing' is part and parcel of the 'manufacturing' activity; CBDT Circular No. 697 dt

Jul 27,2012

ITAT: Duration of stay in India decisive criteria of residential status

Assessee qualifies as 'non-resident' as duration of stay in India did not exceed 182 days; Assessee was not ‘living in India’ and going abroad on visits as held by AO;

Jul 27,2012

ITAT: No Indian PE for Google Ireland; Search engine advt. income not Royalty 

Payments to Google Ireland for search engine advertisements not in the nature of royalty or fees for technical services; Yahoo India Ltd ruling relied upon; No TDS liability in India

Jul 26,2012

ITAT: Pre-2008, HO expenses fully allowable to PE under Indo-UAE treaty

Pre-2008, no restriction under Article 7(3) of Indo-UAE treaty on allowability of head office expenses while computing PE’s profits; Amended provision w.e.f 1-4-2008 laid down that domestic law restriction (Sec

Jul 26,2012

ITAT: Reimbursements to foreign co under secondment agreement not FTS liable to TDS

No TDS u/s 195 on reimbursement to foreign entity for salary and administrative expenses incurred in pursuance of ‘Secondment Agreement’; Mere secondment of foreign co's staff not tantamount to FTS

Jul 25,2012

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