ITAT: Quashes revision proceedings u/s 263 in IBM case involving over Rs. 1000 cr. additions

Bangalore ITAT quashes Sec 263 proceedings in case of IBM India P. Ltd. for AY 2007-08, in the second round of litigation; Invoking the revisionary jurisdiction u/s 263, CIT(Large Taxpayer

Jan 17,2017

ITAT: Denies new workmen deduction u/s 80JJAA, prefers ‘literal’ interpretation over ‘purposive’ construction

Bangalore ITAT denies Sec 80JJAA deduction to assessee-company (engaged in manufacture & export of computer software) for AYs 2001-02 & 2002-03, as the new workmen employed by assessee fails the

Jan 17,2017

ITAT: CIT cannot invoke revisionary powers u/s 263 to initiate penalty after AO completed assessment

Ahmedabad ITAT quashes CIT’s revision order u/s 263 directing AO to initiate penalty proceedings u/s 271(1)(c) in respect of assessee’s erroneous deduction claim u/s 10B for AY 2010-11; ITAT rules

Jan 16,2017

ITAT: Upholds Sec 14A disallowance; Substantial Rule 8D compliance sufficient, AO’s non-recording of satisfaction irrelevant

Delhi ITAT upholds Sec 14A disallowance despite requisite satisfaction not recorded by AO before making the disallowance; During relevant AY 2009-10, assessee did not make any ‘suo-motu’ disallowance u/s 14A,

Jan 16,2017

ITAT: Pharma co. 'freebies' to doctors allowable deduction, not violative of MCI guidelines

Mumbai ITAT allows deduction u/s 37 to a Pharma co. (‘assessee’) in respect of freebies given to doctors during AY 2010-11, rejects Revenue’s stand that since payments were made in

Jan 13,2017

ITAT: Confirms Sec. 14A disallowance for assessee-dealer in shares, Rejects no expense plea

Chennai ITAT dismisses assessee’s (a dealer in shares and securities)appeal for AY 2009-10, upholds disallowance made u/s 14A disallowance read with Rule 8D; On noting that no disallowance was made

Jan 13,2017

ITAT: Time-charter hire charges, not royalty u/s 9; Distinguishes Poompuhar ruling

Chennai ITAT reverses CIT(A) order for AY 2002-03, payment of hire charges by assessee-charterer (an Indian Company) to Foreign Shipping Companies (‘FSC’) for transportation on a time charter basis not royalty u/s

Jan 13,2017

ITAT: Export commission to non-resident agents not taxable; Differs from AAR's SKF Boilers ruling

Ahmedabad ITAT holds that commission paid to non-resident export commission agents by assessee (an Indian company engaged in manufacturing steel pipes), not taxable in India for AY 2010-11 & Sec

Jan 12,2017

ITAT: IT-support payments to Canadian-AE involving equipment not 'royalty' absent vested 'right to use'

Ahmedabad ITAT dismisses Revenue’s appeal for AY 2013-14, payment towards IT support services by assessee (an Indian company) to its associated enterprise (‘AE’) in Canada not taxable as royalty under

Jan 11,2017

ITAT: FTC eligible on 'income', not 'gross-receipts'; Allows taxpayer's claim considering 'unique' facts

Ahmedabad ITAT allows foreign tax credit (‘FTC’) claimed by assessee (an Indian company engaged in software development) in respect of taxes withheld in Singapore and Indonesia on receipt from software

Jan 11,2017