International Tax

ITAT: No FBT on telephone, local travel, agent conference expenses

FBT not attracted on expenditure where no benefit flows to employee by the reason of his employment; FBT not applicable on non-employee expenses; FBT not payable on telephone expenses, brokers’

Nov 28,2011

HC: Producing voluminous records during assessment does not debar re-opening

Producing voluminous records before AO does not necessarily amount to true and full disclosure of facts u/s 147; Reassessment proceeding beyond 4 years time limit valid since assessee failed to disclose

Nov 25,2011

HC: Interest free loan to director not deemed income

Interest free loan to director not deemed income u/s 2 (24)(iv): Punjab & Haryana HC  

Nov 24,2011

ITAT: Profit based commission to directors disallowed as paid in lieu of dividend 

Profit based commission paid only to directors of the company was in lieu of dividend; Disallowance of commission expense u/s 36(1)(ii) upheld; Assessee indulged in tax avoidance by paying commission

Nov 16,2011

ITAT: Full deduction for 'Windmill' profits u/s 80IA despite earlier losses

Deduction u/s 80IA on profits from windmill operations allowable in the 'first year of claim' irrespective of losses in earlier years; Initial assessment year' u/s 80IA(5) to mean first year

Nov 08,2011

HC: Exclusion from Export Turnover to be reduced from Total Turnover for Sec 10A

Any exclusion from ‘export turnover’ to also be excluded from ‘total turnover’ for Sec 10A relief

Nov 07,2011

HC: STP unit’s profits for Sec 10A relief to be computed before adjusting loss and depreciation

Brought forward business losses & unabsorbed depreciation not to be adjusted in computing profits eligible for Sec 10A relief (which is an undertaking specific benefit); Sec 10A an exemption section

Nov 07,2011

HC: Software expenses deductible as revenue expenditure

Expenditure incurred for use of software in order to run business more efficiently, allowable as revenue expenditure; Test of ‘enduring benefit’ not conclusive for determining the nature of expenditure; Legitimate claim for

Nov 07,2011

HC: Expenditure for use of software, allowable as revenue expenditure

  Expenditure incurred for acquiring license to use software application as well as making improvements in respect of leasehold premises, allowable as revenue expenditure

Nov 07,2011

SC: For MAT computation, deduction u/s 80HHE to be based on book profit, not 'tax profits'

While computing MAT profit, reduction for ‘benefit u/s 80HHE’ to be computed based on ‘book profit’ and not ‘income-tax profit’ under normal provisions:SC 

Nov 04,2011