ITAT: 'Actual payment' of royalty, not book-entry triggers Sec. 195 TDS, cites treaty provisions

Ahmedabad ITAT holds that assessee (an Indian company) not liable to deduct TDS u/s 195 at the time of crediting royalty amount to the account of its Italy based group

Apr 06,2017

ITAT: Directs payment of 50% outstanding demand; CBDT’s 2016-Instruction inapplicable to Tribunal proceedings

Bangalore ITAT rejects assessee's (Google India) contention to restrict partial payment to 15% for grant of stay of outstanding demand of Rs. 486 Cr for AY 2012-13, directs deposit of

Apr 06,2017

ITAT: FTC cannot exceed applicable withholding under treaty; Lays down principle for computation

Ahmedabad ITAT sets aside CIT(A)'s order disallowing foreign tax credit (‘FTC’) with respect to taxes withheld on dividend earnings in the US for AY 2009-10 in case of assessee-individual (resident

Apr 05,2017

ITAT: Revenue wins "close call" on FTC; Tribunal bows to SC's "higher wisdom"

Ahmedabad bench of Tribunal reverses CIT(A) order, denies deduction u/s 37(1) of Income-tax Act for that portion of foreign taxes paid for which relief is not available u/s Sec. 90/91;

Apr 04,2017

ITAT: Strategic & financial counselling service payment to US entity neither royalty nor FIS

Ahmedabad ITAT rules that professional fees paid by assessee-company to US entity for rendering ‘Strategic and Financial Counselling’ services, not royalty under Article 12(3) of India-US DTAA for AY 2009-10; ITAT notes

Apr 04,2017

ITAT: No Sec 195 TDS on salary reimbursement under secondment agreement to parent-company

Ahmedabad ITAT rules that reimbursement by Indian subsidiary (‘assessee’) to its US holding company towards salary of seconded employees for AY 2009-10 not subject to TDS u/s 195; Rules that

Apr 03,2017

ITAT: Married daughter's rent payment to mother a 'sham' transaction; Dismisses HRA claim

Mumbai ITAT rejects house rent allowance (‘HRA’) exemption u/s 10(13A) claimed by assessee-individual (a chartered accountant) for AYs 2009-10, 2010-11 and 2011-12, holds the entire arrangement of rent payment by

Apr 03,2017

ITAT: Gains on mortgaged-property sale, though received by Bank, not income-diversion for taxpayer

Chennai ITAT rules that gains arising on sale of mortgaged property, taxable as capital gains in assessee’s hands despite sale-consideration received by bank for AY 2009-10; ITAT notes that the

Mar 24,2017

ITAT: NBFC's statutory fund transfer, not diversion of income, denies deduction

Chennai ITAT denies assessee's (an NBFC) claim of deduction with respect to 20% profits transferred to Statutory Reserve fund (as mandated by Sec. 45-IC of the Reserve Bank of India

Mar 24,2017

ITAT: No Sec 194C TDS on Sugar manufacturing company’s payment to contractors on farmers’ behalf

Visakhapatnam ITAT rules that payment to contractors by assessee (a sugar manufacturing company), on  behalf of farmers,  for harvesting and transporting sugarcane from farmer’s field to its factory, not subject

Mar 24,2017