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

ITAT: Tribunal slams De Beers for 'tax evasion', holds marketing payment taxable as Royalty

Payment to non-resident for marketing information, based on past commercial experience, taxable as royalty; ITAT entitled to consider applicability of other tax provisions, related to ground before it, even if

Nov 23,2011

ITAT: No tax on conversion of proprietory firm into company though share allotment delayed

Capital gains exemption, on conversion of proprietary concern into a company, not to be denied on account of delay in allotment of shares; Conditions u/s 47(xiv) stands fulfilled, since assets

Nov 23,2011

ITAT: Revenue authorities not to split lumpsum payment into royalty and FIS

Payment received by non-resident for rendering services to Indian companies not taxable as royalty, where no economic consideration was paid to use assessee's name and logo

Nov 18,2011

ITAT: Profit based commission to directors disallowed as paid in lieu of dividend 

Profit based commission paid only to directors of the company was in lieu of dividend; Disallowance of commission expense u/s 36(1)(ii) upheld; Assessee indulged in tax avoidance by paying commission

Nov 16,2011

ITAT: If assessee did not claim depreciation, it was not allowable while computing deduction u/s 80-IA

If assessee did not claim depreciation, it was not allowable while computing deduction u/s 80-IA

Nov 14,2011