International Tax

ITAT: Portfolio management services fees not deductible, KRA Holdings decision bad law

Portfolio management services fees not deductible; Pune ITAT decision in  KRA Holding & Trading not good law: 

Sep 30,2011

ITAT: Interest on refund from IT Dept fully taxable without reducing interest paid

Interest paid on delayed payment of income tax not allowable as deduction u/s 36(1)(iii) or 37(1); Interest paid cannot be set off against interest received on tax refund; Gross amount

Sep 29,2011

HC: Capital gains u/s 48 to be calculated on full value of consideration, not market value

Capital gains on built-up area received under JDA, cannot be computed using market price of the property; Act consciously adopts two different concepts - ‘full value of consideration’ u/s 48

Sep 28,2011

ITAT: Tribunal has power to 'strike down' rules/notifications', Sec 10(15)(iv)(f) exemption withdrawal arbitrary

ITAT strikes down Government Order withdrawing exemption to Reliance Industries u/s 10(15)(iv)(f), on ECB interest ; Tribunal has power to strike down rules/  notification by application of doctrine of 'Reading Down';

Sep 26,2011

HC: Amended Sec 14A also applies for pre-2001 cases before Tribunals and HC

Sec 14A amendment by Finance Act, 2002 has retrospective application for pending assessments; Amended Sec 14A also applicable for pending appeal before ITAT and HC; Sec 14A disallowance upheld for

Sep 23,2011

HC: HC Dismisses Satyam writ, says no powers to extend time limit for Sec 153 assessment

Time limit for completing assessment u/s 153 cannot be extended by filing petition under Article 226, in absence of a legal provision

Sep 23,2011

HC: HC Directs Asst Comm to pass Sec 197 order without CIT's 'advise'/ 'consent'

Order u/s 197 to be passed after 'independent application of mind', not on 'dictation' or 'advise' of CIT

Sep 21,2011

AAR: AAR rejects payee's application as similar question pending before AO in payer's assessment

The AAR has rejected application by payee as questions raised covered in the assessment of payer entity. AAR observed that the question raised need not necessarily be subject matter of assessment

Sep 21,2011

AAR: AAR rejects applications on questions pending before AO

Issues raised in AAR application covered in assessment; AAR rejects the application

Sep 21,2011

HC: No 'notional' tax on investment advisory fees of AMC

Limits under SEBI regulations for Asset Management companies for charging advisory fees or recovery of expenses cannot be the basis to notionally levy tax; AMC's decision was a bonafide commercial

Sep 19,2011