ITAT: Deletes Rs. 5000 cr. capital-gains addition on Birla group demerger sans consideration; Disregards accounting entry

Mumbai ITAT deletes Rs. 5261.28 cr capital-gains addition in case of Aditya Birla Telecom Limited (‘assessee’) on hive-off of  its telecom business;  During relevant AY 2010-11, assessee de-merged its telecom

Nov 17,2016

ITAT: No respite on cash purchases disallowance; Rejects assessee’s ‘transaction genuineness’ plea

Mumbai ITAT upholds disallowance u/s 40A(3) in case of assessee (engaged in shipping business) for making cash payments exceeding the prescribed limit of Rs 20,000 during AY 2009-10; Rejects assessee’s

Nov 17,2016

ITAT: Sec.40(a)(ia) disallowance inapplicable to owners’-association covered under mutuality ambit absent business activity

Hyderabad ITAT reverses CIT(A) order for AY 2010-11, provisions of Sec. 40(a)(ia) [meant for computing business income] inapplicable to assessee-trust not engaged in any business activity and having exempt receipts; Notes that assessee-trust

Nov 16,2016

ITAT: Internet bandwidth payments & end-user software license payments, not royalty

Hyderabad ITAT rules that payment made by assessee (an Indian company engaged in software development) to Verizon USA for providing internet and bandwidth services and also for providing equipment (‘CPE’)

Nov 15,2016

ITAT: TDS applicable on year-end provisions, upholds Sec 40(a)(ia) disallowance on ‘commission payable’

Ahmedabad ITAT upholds Sec 40(a)(ia) disallowance for AY 2009-10 on year end provisions of commission expense as no TDS deducted by assessee-individual; Rejects assessee’s stand that since it was following

Nov 15,2016

ITAT: Deletes Sec 40(a)(i) disallowance; No Sec 195 TDS on management fees, subsistence reimbursements to UK parent

Delhi ITAT holds that payment made to UK  parent for  provision of  management services in relation to advise and guidance on key management decisions to explore the possibilities of acquisition

Nov 11,2016

ITAT: Forex gain on ECB restatement a capital receipt; Relies on Woodward Governor (SC)

Bangalore ITAT holds that foreign exchange gain earned by assessee-company on restatement of external commercial borrowings (‘ECB’) on capital account to be regarded as capital receipt and thus not taxable for AY 2010-11; Observes that

Nov 07,2016

ITAT: UAE company's FTS-income not taxable in India sans specific article in DTAA

Bangalore ITAT reverses DRP order for AY 2012-13, fees for technical services (‘FTS’) received by assessee (company incorporated in UAE) from its Indian counterpart not chargeable to tax in India absent

Nov 07,2016

ITAT: Allows deduction for doubtful debts provision relying on SC ratio in Vijaya Bank

Chennai ITAT allows assessee’s (a co-operative bank) appeal for AY 2010-11; Revenue made addition of provision created towards NPA and bad debt not written off in the books on the ground

Nov 04,2016

ITAT: NHPC project receipts to Swiss co. taxable, Indian subsidiary constitutes ‘fixed place PE’

Chennai ITAT rules that amount received by assessee (a Switzerland company) pursuant to NHPC project, taxable in India for AY 2008-09,  holds assessee’s Indian subsidiary (‘CIWSPL’) represented through its MD

Nov 04,2016