ITAT: Rectification of depreciation claim without filing revised return allowed, SC decision in Goetze India distinguished  

Rectification of incorrect rate of depreciation by way of a letter during assessment proceedings allowed; Assessee made no fresh claim but only corrected its earlier claim for depreciation; SC decision

Mar 28,2012

ITAT: FIIs can set-off business loss despite no PE, refuses reliance on Fidelity Northstar AAR ruling 

AAR Ruling in Fidelity Northstar not applicable in view of favourable AAR ruling in assessee’s own case, holding income from sale of shares as business & not capital gains; Non-resident

Mar 27,2012

ITAT: No ‘agency’ created under sub-broking agreement with Sharekhan 

Assessee (sub-broker) not ‘agent’ of main broker, Sharekhan; Agreement between assessee and Sharekhan on ‘principal-to-principal’ basis; Transfer of business to Sharekhan after change in Stock Exchange regulations not ‘termination of

Mar 26,2012

ITAT: Housing Board taxable for project income despite execution on behalf of Local Govt

Chandigarh Housing Board (CHB) liable to tax for income generated from project carried out on behalf of Chandigarh administration; CHB not an agent/nodal agency of Chandigarh administration; Doctrine of diversion

Mar 22,2012

ITAT: US University's income from distance learning course not royalty

Income received by Foreign University under affiliate agreement for providing distance educational courses in India not taxable as Royalty; Indian affiliate merely provided marketing and promotion services for courses;  No

Mar 19,2012

ITAT: Lease transaction a sham; Lessor denied depreciation benefit as Lessee the "Real Owner" 

Transaction for leasing boiler entered into by assessee-lessor not genuine, but found to be simple loan transaction; Arrangement facilitated by assessee only to claim depreciation; Law permits only tax planning

Mar 15,2012

ITAT: Discount charges on Deep Discount Debentures deductible as interest u/s 24(b)

Proportionate discount on Deep Discount Debentures issued for construction of house property amounts to interest u/s 2(28A); Deduction for interest available u/s 24(b) in computing income from house property; CBDT Circular No.

Mar 13,2012

ITAT: Fees paid for regularization of construction not penal, depreciation available

Fees paid to regularize violation in construction of building pursuant to State Government Ordinance not 'penal' in nature, forms part of construction cost; Depreciation available on regularization fees capitalised; Restriction u/s 37 on deduction

Mar 12,2012

ITAT: Foreign branch ‘Resident’, No TDS u/s 195 on payment by HO to foreign branch

Status of foreign branch same as head office; Foreign branch a resident in the view of Indo-US DTAA and Income Tax Act; TDS u/s 195 not applicable on payments made

Mar 12,2012

ITAT: No treaty relief to German shipping company under 'Slot arrangement'

Slot arrangement not ‘pooling arrangement’ as per Article 8(4) of Indo-Germany DTAA; No treaty relief to non-resident shipping company; Definition of pooling arrangement as per Sec 115VB cannot be applied

Mar 12,2012