ITAT: Rejects asset acquisition from affiliates at higher values; Upholds depreciation disallowance invoking Sec 43

Bangalore ITAT upholds depreciation disallowance on intangible asset  i.e. ‘distribution network’ and other assets acquired by Sanyo BPL Pvt. Ltd. (assessee, a JV co.) invoking Explanation 3 to Sec 43(1),

Nov 22,2016

ITAT: CA firm donation to ICAI buildings satisfies 'commercial expediency' test; Allows Sec. 37 deduction

Mumbai ITAT allows business expenditure deduction u/s 37(1) for contribution made by assessee (a CA firm) to the Pune branch of Institute of Chartered Accountants of India ('ICAI') towards construction

Nov 21,2016

ITAT: ‘Unpaid service tax’ though not routed through P&L a/c triggers Sec 43B disallowance

Ahmedabad ITAT upholds Sec 43B disallowance on unpaid service tax for AY 2006-07 in case of an Electricity transmission company (‘assessee’); Rejects  assessee’s stand that since service tax payable was

Nov 21,2016

ITAT: Quashes DRP-dismissal; Filing only a scanned copy of Form 35A, a curable defect

Mumbai ITAT quashes DRP's dismissal of assessee's application u/s 144C(13) on the ground that assessee filed only a scanned copy of application in Form 35A, holds such defect to be

Nov 18,2016

ITAT: India-Swiss treaty protocol doesn’t allow automatic application of restrictive Portuguese FTS definition

Ahmedabad ITAT rules that technical/consultancy service payments by assessee (an Indian Pharma co.) during AY 2008-09 to a Switzerland based company, constitutes Fess for Technical Services (‘FTS’) under India-Swiss DTAA;

Nov 18,2016

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