ITAT: Concessional cap gains rate not applicable to 'long term' depreciable assets

Capital gains on transfer of long term depreciable assets taxable at normal rates applicable to short term capital gains; Concessional rate of 20% for long term capital gains cannot be

Jan 09,2012

ITAT: Profits from Portfolio Management Scheme taxable as business income, not capital gains

Profits on share transactions carried through Portfolio Management Scheme (PMS) taxable as business income and not capital gains; Portfolio Manager acts as agent to trade in shares; Sec 10(38) exemption

Jan 08,2012

ITAT: ITAT follows HC ruling, allows depreciation benefit to trust but opines contrary on merits

  ITAT opines allowing depreciation on assets to trust results in a double deduction and cannot be treated as application of income; However allows depreciation benefit to trust by following P&H

Jan 06,2012

ITAT: Income from sub-leased property taxable as House Property as lessee deemed owner

When lessee obtains substantial rights under lease agreement, lessee deemed to be owner u/s 27(iiib) of sub-leased property; SC decision in Podar Cements followed; Rent from sub-leasing taxable as 'Income from house

Jan 06,2012

ITAT: Lease rental under composite business arrangement taxable as business income, not house property

Rental income under lease agreement forming part of a composite arrangement for construction & maintenance, not taxable as income from house property or income from other sources; Revenue not justified in

Jan 05,2012

ITAT: Lease rent for IT Park taxable as income from other sources, not house property

Rental income received from lease of IT Park along with provision of additional facilities without which building could not be leased, not taxable as income from house property; Lease agreement

Jan 05,2012

ITAT: Post 2002, non compete fee pursuant to business transfer taxable as 'capital gains'

Post 2002, non-compete fee received in pursuance to transfer of business taxable as ‘capital gains’ and not as ‘business income’; Assessee transferred its right to manufacture or produce or process

Jan 05,2012

ITAT: No income accrual on retention money release against bank guarantee

Income does not accrue upon release of retention money against furnishing of bank guarantee; Retention money would become taxable only when absolute right to receive vests on completion of contract

Jan 05,2012

ITAT: Interest on loan for acquiring overseas investment deductible  

No disallowance attracted for interest on borrowings made for acquiring shares in Malaysian company alongwith controlling interest; Under IT Act, interest on borrowings deductible from taxable dividend income; Assessee can

Jan 04,2012

ITAT: Income received by Warner Bros for granting film distribution rights not ‘Royalty’ 

Consideration received by non-resident assessee from Indian company, for granting exclusive rights of distribution of cinematographic films, not taxable as royalty u/s 9(1)(vi) or Article 12(2) of Indo-US DTAA; Consideration

Jan 03,2012