ITAT: Allows depreciation deduction despite TDS default on ‘capitalised’ software payment

Bangalore ITAT sets aside CIT(A)’s order for AY 2010-11 disallowing depreciation invoking provisions of Sec. 40(a)(ia); Assessee had claimed depreciation u/s 32 on the amount paid to Microsoft Corporation towards

May 19,2017

ITAT: Declaring undisclosed income vide revised return prior to notice issuance - not ‘concealment’

Chennai ITAT deletes concealment penalty u/s 271(1)(c), holds assessee-individual’s declaration of additional income by filing a revised return before initiation of re-assessment proceedings, valid; During relevant AY 2005-06, AO noted

May 19,2017

ITAT: Training expense remitted to Chinese parent for payment to third party, not reimbursement

Kolkata ITAT rules that remission of employee training expenses to Chinese parent by assessee (an Indian company engaged in construction of integrated steel plant) for payment to a Chinese training agency

May 19,2017

ITAT: 'Internal cost' of employing individual constitutes FTS, excludes deputation cost towards travel/insurance

Mumbai ITAT rules that amount received by assessee ( a US company engaged in grading and certification of diamonds) on account of reimbursement of travel expenses, group health insurance and other

May 19,2017

ITAT: Software developed from sub-contractor under taxpayer’s direct supervision eligible for Sec 10A relief

Chennai ITAT grants Sec. 10A exemption to assessee (a software company) for AYs 2010-11 and 2011-12 with respect to software exported by assessee; Rejects Revenue’s stand that assessee was not

May 18,2017

ITAT: Denies Sec 80-IB(10) deduction for allotting more than one unit to single buyer

Bangalore ITAT denies Sec. 80IB(10) deduction to assessee-builder for AY 2011-12 on account of violation of condition under clause (f) i.e. allotment of more than one residential unit to same

May 17,2017

ITAT: Damages for breach of contractual obligations deductible despite quantification in subsequent FY

Bangalore ITAT grants deduction to assessee (a partnership firm engaged in real estate business) for AY 2005-06 with respect to compensation damages (determined under arbitration award in August, 2005) for

May 17,2017

ITAT: Profit sharing between Dr. Reddy’s India and Switzerland, not a colourable device; Allows deduction

Hyderabad ITAT grants deduction to assessee [Dr. Reddy’s Laboratories Ltd., India (‘DRL, India’)] in respect of profit shared with DRL, Switzerland (‘DRL, SA’) for AY 2009-10 holding the arrangement to be bonafide; Pursuant to

May 17,2017

ITAT: Characterises land as non-agricultural, absent agricultural operations; Spontaneous vegetation, land location irrelevant

Chennai ITAT holds that gains arising on sale of land shall be exigible to capital gains tax for AY 2012-13, characterises assessee-individual’s land (inherited from father) as non-agricultural, despite purchased

May 15,2017

ITAT: Forfeited media rights advance not capital loss; Grants deduction to Zee Entertainment

Mumbai ITAT allows deduction u/s. 37 to Zee Entertainment (‘assessee’) with respect to write off of advance given to BCCI, rejects Revenue's stand that it represents a capital loss as it is in relation to

May 12,2017