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

ITAT: Land development agreement allowing possession & control results in taxable transfer

Capital gains on transfer of property under development agreement taxable in the year of transfer of possession and control; Actual payment of consideration under development agreement not relevant to determine

Dec 28,2011

ITAT: License & technology fees for manufacture a deductible revenue expenditure  

Annual license and technology fees paid to JV partners for manufacture and sale of products allowed as a revenue expense in the absence of perpetual license to use technical information;

Dec 27,2011

ITAT: Leasehold rights in land acquired on bid acceptance date  

Leasehold rights in land acquired on date of acceptance of bid and part performance of obligation; Date of conveyance or full payment not relevant to determine date of acquisition of rights; Capital

Dec 27,2011

ITAT: Symantec's new unit not a mere expansion, eligible for Sec 10A benefit  

New unit not an expansion of existing unit and eligible for separate Sec 10A deduction; New unit carrying out different activities & not set-up merely to claim extended tax holiday;

Dec 26,2011

ITAT: Deduction available u/s 37 for non-prospecting expenses incurred prior to commencement of mining

No disallowance attracted on expenses of De Beers on non-prospecting activities as pre-commencement expenditure; Diamond mining business commenced once Government approvals obtained and prospecting activity started; Absence of actual income

Dec 23,2011

ITAT: Discount offered by Ranbaxy to Collection Centres not subject to TDS u/s 194H

  No 'principal agency' relationship created between SRL Ranbaxy Laboratory & Collection Centres as per contract terms; Discount offered by laboratory to the collection centre not in the nature of ‘Commission’;

Dec 22,2011

ITAT: No tax on deemed rent for vacant inhabitable house

Vacant house not rented throughout the year despite owner's efforts qualify for benefit of Sec 23(1)(c); Absent  actual rent received, annual rent for vacant property to be 'NIL'; ‘Actual’ letting in past or in relevant FY not

Dec 21,2011

ITAT: Reconstruction test u/s 10B not relevant if old unit shut down for long time

Use of plant & machinery not a pre-condition to avail tax holiday u/s 10B; New undertaking not formed by reconstruction of existing business since old unit discontinued business since five

Dec 20,2011