Shipping Company Denied Mauritius Treaty Benefit; Indian Agent Ruled Not a Dependent PE - In light of the ITAT’s findings in ITO (IT)-3(1)(1), Mumbai v. Bay Lines (Mauritius) Ltd. [2024] ITD (Mum) (ITA No. XXX/Mum/2024), the claim for DTAA benefit under Article 8 was rightly denied due to the absence…
Income tax - Sections 9(1)(vii) - Income from Automated Passenger Services Not Taxable as Fees for Technical Services—No ‘Make Available’ of Technology to Indian Airlines - The ITAT Mumbai’s decision makes it clear that automated services provided from outside India, where no technology or technical…
Income Tax - Sections 68, 69C - ITAT Mumbai Quashes Additions for Short-Term Capital Loss and Unexplained Credits: No Direct Link Found Between NRI Assessee and Alleged Penny Stock Manipulation - The Tribunal’s decision makes it clear that in the absence of direct evidence linking the assessee to the…
Income-tax - Sections 143(3), 144C(13) - ITAT Delhi Rules Cost Reimbursement for IT/Support Services Not Taxable: Absence of 'Make Available' Clause Sinks Revenue's Case - The Delhi ITAT's ruling reaffirms that cost-to-cost reimbursements for IT/support services, where there is no profit element and…
Income tax - Sections 9(1)(vii), 195 - Bombay High Court Rules On Nil Deduction Of Tax For Transponder Services: A Key Decision On Royalty And Tax Treaty Interpretation - The Bombay High Court’s decision signifies an essential moment in defining the tax implications of payments for transponder services.…
Income Tax - Sections 50C, 144, 144C, 147 - ITAT-Hyderabad Quashes Re-assessment Due to Incorrect Premise in Capital Gains Disclosure by Non-Resident Individual - In light of the current decision, it is critical for taxpayers, particularly non-resident individuals, to meticulously substantiate and maintain…
Income Tax - Section 9(1)(vi), 40(a)(i) - ITAT Reiterates Non-Royalty Status of Software Payments; TDS Obligation Nullified - The Tribunal's decision reinforces the clear legal principle that payments made for the use of software do not necessarily translate to royalty under the provisions of the Income-tax…
Income Tax - Sections 10(38), 69A, 69C, 148, 148A - ITAT Holds Re-assessment Order Invalid Due to Limitation Breach in Faceless Assessment Case - The Tribunal's ruling underscores the critical importance of adhering to statutory limitations within tax reassessment proceedings. Tax authorities must ensure…
Legal Crux of ITAT-Delhi Decision on Background Checks and Royalty Taxation - In light of the Tribunal's decision, it is imperative for the assessee and similar entities operating in the realm of human resource services to review their income classification meticulously. The ruling not only reaffirms…
Penalty Assessment under FEMA Upheld: Appellate Tribunal’s Discretion Affirmed - The Appellate Tribunal’s ruling reinforces the principle that penalties imposed under FEMA can vary significantly based on the discretion exercised by the Adjudicating Authority. This discretion must align with the facts…
Income tax - Sections 195 - ITAT Chennai Rules on Taxability of Payments for Marketing Services to Non-Resident: Confirms Exemption under India-Sri Lanka DTAA - The ITAT's ruling firmly establishes that payments for services rendered by non-residents, specifically independent personal services, are …
Income Tax - Section 295(1) - Tax Tribunal Affirms Assessee's Right to Claim Foreign Tax Credit Despite Delay in Filing Form 67 - In light of the ITAT’s decision, it is essential for practitioners and assessees to recognize the importance of international tax treaties in determining claim rights for…
ITAT-Hyderabad Affirms Reopening of Assessment Due to Under-Reported Interest Income and Incorrect Book Profit Computation - The decision by the ITAT reaffirms the necessity for accurate reporting of interest income and adequate disclosures regarding inventory valuation methods. Assessees must be aware…
Income Tax - Sections 10A, 254(2) - ITAT Orders Fresh Examination of Transfer Pricing Adjustments in Schneider Electric Case Due to Inadequate Application of Comparables and Filters - Ultimately, the ITAT's ruling mandates that the revenue authorities diligently review the TP adjustments and Section…
Income tax - Sections 9(1)(vii) - Court Ruling Affirms Non-Taxable Status of Marketing Contributions and Reservation Fees in High-Profile Hospitality Dispute - The High Court's ruling reinforces the view that payments for marketing contributions and reservation services, when not integral to the primary…
Income Tax - Sections 69A, 115BBE, 148 - ITAT Remands for Reassessment of Unexplained Credits and Additional Evidence - The ITAT's ruling underscores the importance of evidentiary support for claims of loans, particularly in transactions involving NRIs. The paradigm set forth in this case affirms that…
Income Tax - Sections 143(3), 144C(13) - ITAT-Delhi Rules in Favor of Non-Resident Company Over Tax Treatment of Freight Charges and Lease Line Fees - In light of the Tribunal's ruling affirming its earlier positions, companies engaging in logistics and support services can cautiously reinterpret their…
Income tax - Sections 94B - ITAT Decision Clarifies Definition of Associated Enterprises in Interest Rate Adjustments - The ITAT ruling emphasizes the need for meticulous adherence to definitions surrounding associated enterprises in financial transactions. Assessees must diligently evaluate their relationships…
Income Tax - Section 144C - ITAT Ruling on Transfer Pricing Risks in IT-Enabled Services Case - In light of the Tribunal's findings, the current decision presents actionable insights for the assessee and similar entities in the IT sector engaging in international transactions. It emphasizes the necessity…
Income Tax - Sections 144B, 144C - ITAT Delhi Upholds Depreciation Adjustment Claim for Manufacturing Assessee - In light of the ITAT's ruling, it is imperative for the assessee (and similarly positioned entities) to focus on adequately documenting and justifying depreciation adjustments based on capacity…