Delhi Appellate Tribunal Establishes Liability of Company Directors Under FEMA for Concealed Foreign Payments; Electronic Evidence Upheld, Penalties Reduced - In summary, the Tribunal’s decision clarifies that directors and officers can be held personally liable under FEMA for their participation and…
Appellate Tribunal Clarifies Third-Party Payment Restrictions for Pre-2013 Export Transactions; Reduces Company’s Penalty under FEMA - The Tribunal’s decision firmly establishes that, prior to the RBI’s circular of 8 November 2013, Indian exporters were not legally permitted to receive export proceeds…
Tribunal Clarifies Ex-Post-Facto Approval Regularises FEMA Contraventions in Share Transfer; Penalty Maintained for Unexplained Funding - The tribunal’s decision establishes that ex-post-facto approval by the RBI regularises the procedural lapse of not obtaining prior approval for share transfer transactions…
Income tax – Sections 197, 245R - Supreme Court Upholds Taxability of Capital Gains from Flipkart Share Sale: India-Mauritius DTAA Benefits Denied to Tiger Global Entities Due to Impermissible Avoidance Arrangement - The Supreme Court’s decision establishes that in the post-GAAR and 2016 Protocol era,…
Income Tax Act - Section 195 - Delhi High Court Rules Physical Presence Mandatory for Service PE under India-UK DTAA – Virtual Presence Not Sufficient for Taxability - The Delhi High Court’s decision provides actionable clarity that for a foreign entity to attract Service PE status and thus be subject…
Income Tax - Sections 195, 197 - Delhi High Court Quashes Nil Withholding Certificate Denial for UK Educational Firm Due to AO’s Non-Compliance with Rule 28AA in FTS Dispute - The Delhi High Court’s decision mandates strict compliance with Rule 28AA by the AO when processing applications under Section…
Income Tax - Sections 144C, 147, 148, 151 - ITAT Mumbai Declares Reassessment Void for Lack of Proper Sanction: Approval from Principal Chief Commissioner Held Mandatory under Amended Section 151(ii) in FTS Dispute - The ITAT Mumbai’s decision establishes that strict compliance with the amended sanctioning…
Income tax - Sections 194J - ITAT Mumbai Rules: Automated Roaming Charges Not Liable for TDS under Section 194J—Disallowance under Section 40(a)(ia) Deleted - The ITAT Mumbai’s decision establishes that, for roaming charges paid to telecom operators, where the core service is rendered through a fully…
Income Tax - Sections 40(a)(ia), 147, 148, 195 - ITAT Lucknow Rules Testing Charges to Foreign Entities Not Taxable as Fees for Technical Services: Reassessment Under Section 147 Quashed - The ruling of the ITAT, Lucknow Bench, provides a clear actionable precedent: payments for ballistic testing and…
Income Tax – Sections 6(1)(c) - Flipkart Co-Founder Deemed Indian Resident Despite Move to Singapore: ITAT Upholds Centre of Vital Interest and DTAA Tie-Breaker Application - The ITAT’s decision affirms that for individuals transitioning between countries, mere relocation or new overseas investments…
Income Tax - Sections 92CA, 143(3), 143A, 143B - Transfer Pricing Adjustment on Rupee-Denominated CCD Interest Deleted—Domestic Lending Rate, Not LIBOR, Held Applicable - This ITAT-Delhi decision firmly reiterates that interest on rupee-denominated CCDs issued to non-resident AEs must be benchmarked…
Income Tax - Sections 271G, 92D, 139(1) - ITAT Ahmedabad Rules Penalty Under Section 271G Invalid Without Specific Documentary Lapse in Transfer Pricing Scrutiny - In light of the above, the ITAT Ahmedabad dismissed the Revenue’s appeal and upheld the deletion of the penalty. The ruling makes it abundantly…
Delhi Tribunal Reduces Penalty for Directors and Firm in Hawala Payment & Customs Evasion Case Involving Falsely Declared Agrochemicals - The Tribunal affirmed the findings of contravention under Section 3(b) of FEMA for making Hawala payments to exporters in China and for customs duty evasion through…
Appellate Tribunal Permits Substitution of Seized Demat Accounts with Fixed Deposit under SAFEMA: Relief Granted Subject to Adjudication and Compounding Outcome - The Tribunal’s decision underscores that in cases of seizure under Section 37A of FEMA, the core objective is to secure an equivalent amount…
Income tax - Sections 9(1)(vi) - ITAT Mumbai Rules Interest on Delayed Aircraft Lease Rentals by Irish Entity Not Taxable in India under Article 8 of India-Ireland DTAA - The ITAT, Mumbai, has held that interest earned on delayed payment of lease rentals by an Irish lessor, being an inseparable component…
Income tax - Sections 37 - ITAT Delhi Upholds Deductibility of One-Time Distributor Compensation Paid by Tupperware India Amidst Business Model Shift: Unliquidated Damages under Section 37 Allowed - On the facts and legal analysis, the ITAT Delhi decisively held that the one-time compensation paid by…
Income tax - Sections 195, 119(2)(b) - Gujarat High Court Directs Refund of TDS to NRI Employee for Sale of Shares: Condones Delay in Return Filing, Disapproves State’s Unjust Enrichment - The Gujarat High Court concluded that the retention of the refund by the State, in the absence of any legal bar…
Income Tax - Sections 9(1)(vi), 192 - ITAT Delhi Rules Salary Reimbursements to Seconded Employees Not Taxable as Fees for Technical Services under India-Japan DTAA - The ITAT Delhi has reaffirmed that cost-to-cost salary reimbursements for seconded employees, where the employment is substantively with…
Income tax - Sections 9(1)(vii), 40(a)(ia), 194J - ITAT Mumbai Holds No TDS Required on Roaming Charges: Payment for Telecommunication Connectivity Not "Technical Service" under Section 194J - The ITAT Mumbai’s decision unequivocally holds that payments made by a telecom service provider to other operators…
Income Tax - Sections 92CA, 144C - ITAT Delhi Quashes Assessments Passed Beyond Limitation under Section 144C(13) in High-Value Transfer Pricing Cases - The ITAT Delhi allowed the assessee’s appeals and set aside the final assessment orders for both AY 2017-18 and 2018-19. The Tribunal held that the…