ITAT: Special Bench: Confirms Sec. 271D penalty absent pressing business need to accept loan in cash

Mumbai ITAT Special Bench (‘SB’) confirms penalty levy u/s. u/s 271D on assessee-company for receiving cash loans from one of its directors during AY 2008-09 as assessee failed to demonstrate

Jul 19,2018

ITAT: Salary ​reimbursement for ​Morgan Stanley's seconded employee not FTS​; Deletes TP mark-up​

Mumbai ITAT holds that payment received by assessee (Singapore company) during AY 2006-07 & 2007-08 from its associated enterprise in India viz. Morgan Stanley Advantage Services Private Limited (MSAS) towards

Jul 18,2018

ITAT: Special Bench - Mushrooms grown under controlled conditions in trays, qualify for agricultural exemption u/s 10(1)

Hyderabad ITAT Special Bench (‘SB’) rules in favour of assessee-company, holds that income from production and sale of white button mushrooms constitute ‘agricultural income’ exempt u/s. 10(1) for AYs 2008-09,

Jul 17,2018

ITAT: Rejects assessee's claim of reducing Sec 80IB(10) deduction in computing MAT book-profits

Mumbai ITAT rejects assessee's claim to allow deduction u/s. 80-IB(10) while computing book-profits for MAT purposes u/s. 115JB for AY 2012-13; Rejects assessee’s reliance on SC ruling in Rolta India Ltd.

Jul 16,2018

ITAT: Stake sale in c​losely-held company to widely-held company triggers Sec 79 loss restriction

Mumbai ITAT rules that Sec. 79 restriction on loss set-off and carry forward would apply to assessee-company, whose entire stake was acquired by a widely held company during subject AY

Jul 13,2018

ITAT: Sale of hardware alongwith embedded software, not royalty; Installation/ support services, not FTS

Delhi ITAT deletes tax and interest liability u/s 201(1)/(1A) in case of assessee-company (providing software development support to its US parent), rules that software payments to non-resident entities during AYs

Jul 13,2018

ITAT: Affiliation fee payment to US-company, not royalty absent transfer of technology

Hyderabad ITAT deletes 40(a)(ia) disallowance for AY 2006-07, holds payment of affiliation fee to a US company by assessee-company (a management consultant), not royalty either under IT Act or under

Jul 13,2018

ITAT: Protocol part & parcel of DTAA; Directs AO to examine MFN relief availability

Delhi ITAT sets aside AO’s order applying tax rate @20% u/s 115A on FTS received by Ericsson Telephone Corporation India (assessee, a Swedish company) during AY 2000-01 from its AEs

Jul 12,2018

ITAT: Payer not absolved from interest u/s. 201(1A) though payee's losses extinguish primary TDS liability

Bangalore ITAT confirms interest levy u/s. 201(1A) for TDS default by assessee-payer during AYs 2011-12 to 2015-16, despite ​non-applicability of primary TDS liability due to losses reported by non-resident ​​payee's Indian PE; Rejects assessee’s

Jul 11,2018

ITAT: Consideration for retiring as mutual fund AMC taxable; B. C. Srinivasa ​Shetty ratio inapplicable

Delhi ITAT rules that consideration received by assessee (Investment management company) during AY 2005-06 for retiring as Principal Asset Management Company (‘AMC’) of Sun F&C Mutual Fund,is taxable as capital gains; Notes

Jul 10,2018