ITAT: Levy of interest u/s 234C on MAT upheld

Interest u/s 234C leviable, in case of MAT liability u/s 115JB; AO's action in levying interest u/s 234C, while processing return u/s 143(1) upheld; Decisions in the context of Sec.

Dec 13,2011

ITAT: Explanation to Sec 73 not attracted if loss from exchange traded derivatives

Derivatives trading not speculative transaction u/s 43(5), where such trading was carried out through recognized stock exchange; Explanation to Sec 73 not applicable to such transactions; Loss incurred from exchange

Dec 11,2011

ITAT: Non-resident's income through direct re-selling of software not taxable as royalty 

Income of non-resident from re-selling of software via Indian distributor not taxable, Consideration received for transfer of ‘copyrighted products’ not ‘royalty’; Definition of royalty under Article 12(3)(a) of Indo-US DTAA

Dec 09,2011

ITAT: No Sec 40(a)(i) disallowance for 'short' deduction of tax

Disallowance u/s 40(a)(i) applicable only to non-deduction of tax and not to short deduction of tax; Assessee not required to again deduct tax u/s 195 at the 'time of remittance'

Dec 06,2011

ITAT: No Sec 14A disallowance to shipping co subject to tonnage tax

No disallowance u/s 14A on dividend income of shipping company subject to tonnage tax; Adjustment in computing book profits u/s 115JB to be applied for excluding  ‘book profits' of company subject to

Dec 05,2011

ITAT: Tax deductor not an 'assessee in default' u/s 201, when deductee discharged tax liability

Provisions of Sec. 201(1) not applicable, when deductee discharged the tax liability directly;Power transmission charges not 'rent' u/s 194I and hence, not subject to TDS

Dec 02,2011

ITAT: AO can raise tax demand if IT Dept files appeal against pro-assessee ruling    

Law prevailing at the time of making revision u/s 263 relevant for determining validity of revision proceedings; SC Ruling in Max India followed; AO entitled to raise demands even if decision is against

Dec 02,2011

ITAT: Artificial capital loss created through sale of distressed loan asset disallowed    

Loss on sale of loan asset as distressed asset was a fictional loss; Transaction was sham and fictitious exercise to artificially create loss; Set-off of loss against capital gains not permissible;

Nov 29,2011

ITAT: No FBT on telephone, local travel, agent conference expenses

FBT not attracted on expenditure where no benefit flows to employee by the reason of his employment; FBT not applicable on non-employee expenses; FBT not payable on telephone expenses, brokers’

Nov 28,2011

ITAT: No TDS u/s 194I on power transmission charges

Transmission & Wheeling charges paid to power transmission companies by GRIDCO does not amount to ‘Rent’ u/s 194I;  Payment was not for use of plant or machinery; TDS u/s 194I not attracted

Nov 25,2011