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ITAT - ‘Customer relationship rights’ paid upon acquisition of business undertaking cannot be regarded as non-compete fees.
Incap Contract Manufacturing Services Pvt. Ltd. vs. DCIT
(2016) TaxCorp(LJ) 10195 (ITAT-BANGALORE)
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HC - Sec. 48 will be applicable to shareholders directly receiving part de-merger consideration instead of transferor co.. Same not not "diversion of income at the very source".
CIT. vs. Salora International Ltd.
(2016) TaxCorp(LJ) 10194 (HC-DELHI)
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ITAT - Once a claim is not arising out of the mandate and directions of the Tribunal, then, the same cannot be raked up or a fresh claim can be made in the second round of proceedings.
Lifeline Health Centre vs. DCIT
(2016) TaxCorp(LJ) 10193 (ITAT-MUMBAI)
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ITAT - Partners’ remuneration allowable from income which was offered to tax as unexplained investment u/s 69.
ITO. Vs. Roshan
(2016) TaxCorp(LJ) 10192 (ITAT-CHENNAI) · Section. 69
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ITAT - Deeming provisions of Sec. 50C not applicable to transfer of rights in land as the same cannot be equated to land or building or both.
Smt. Devindraben I. Barot Vs. Income Tax Officer
(2016) TaxCorp(LJ) 10191 (ITAT-AHMEDABAD) · Section. 50C
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HC - For AY 2001-02, no Sec 40(a)(i) disallowance to an Indian company for TDS default on payment to US company towards administrative fee.
HERBALIFE INTERNATIONAL INDIA PVT. LTD.Vs. COMMISSIONER OF INCOME TAX
(2016) TaxCorp(LJ) 10190 (HC-DELHI) · Section. 40(a)(ia)
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ITAT - Where delay in appeal-disposal was not attributable to assessee then stay can be granted beyond 365 days.
Google India Private Ltd. Vs. The Deputy Commissioner of Income Tax
(2016) TaxCorp(LJ) 10189 (ITAT-BANGALORE)
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SC - SLP Dismissed - HC had held that penalty u/s 271(1)(c) cannot be deleted on guise or pretence of legal opinion as a smokescreen and façade.
N.G. TECHNOLOGIES (IN LIQUIDATION) Vs COMMISSIONER OF INCOME TAX
(2016) TaxCorp(LJ) 10188 (SC)
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SC - Where requisite and due enquiries were not made during assessment proceedings, revision u/s 263 was justified.
CIT. vs. Amitabh Bachchan
(2016) TaxCorp(LJ) 10187 (SC)
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ITAT - Amount received by foreign resident from its Indian affiliate under Management and Administration Services agreement constitutes royalty for supply of commercial information.
TNT Express Worldwide (UK) Limited vs. DDIT (International Taxation)
(2016) TaxCorp(LJ) 10186 (ITAT-BANGALORE)
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SC - Rent can be said to have accrued or arisen only when a right to receive the same is vested in the assessee even in case of retrospective enhancement.
P.G.& W.SAWOO PVT. LTD. Vs. ACIT
(2016) TaxCorp(LJ) 10185 (SC)
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ITAT - Stock Appreciation Rights received by employee from US parent of an Indian company is taxable either as benefit in lieu of salary or as perquisite u/s 17.
Shri Soundarrajan Parthasarathy Vs. DCIT
(2016) TaxCorp(LJ) 10184 (ITAT-CHENNAI)
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ITAT - Absent PE in India, income arising to a Mauritian entity from installation and construction of off-shore platforms in India, not taxable.
J. Ray Mc Dermott Eastern Hemisphere Ltd. Vs. ADIT (IT) 1(2)
(2016) TaxCorp(LJ) 10183 (ITAT-MUMBAI)
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ITAT - Payments for 3D Seismic Data Interpretation services is not FTS under Article 13 of India- UK DTAA. Services do not “make available” technical expertise. No TDS u/s 195.
Adani Welspun Exploration Ltd. vs. I.T.O
(2016) TaxCorp(LJ) 10182 (ITAT-AHMEDABAD)
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HC - Sec 145A inapplicable to interest on enhanced land compensation.
Movaliya Bhikhubhai Balabhai vs. ITO
(2016) TaxCorp(LJ) 10181 (HC-GUJARAT) · Section. 145A
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Transfer Pricing: Corporate Guarantees are not comparable to Bank Guarantees & so the commission of 3% charged by Banks is not a benchmark to evaluate the ALP of a corporate guarantee but it has to taken at 0.5%. ITAT decisions which upheld the 3% rate cannot be followed as they are contrary to Everest Kanto 378 ITR 57 (Bom)
Thomas Cook (India) Limited vs. ACIT
(2016) TaxCorp(LJ) 10180 (ITAT-MUMBAI)
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S. 5/ 147: Even if income by way of rent is enhanced with retrospective effect, it accrues only when a right to receive the income is vested in the assessee. A notice u/s 148 seeking to assessee the income prior to its accrual is without jurisdiction
P.G. & W. Sawoo Pvt. Ltd vs. ACIT
(2016) TaxCorp(LJ) 10179 (SC) · Sections 5, 147
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Transfer pricing of AMP Expenditure: In the case of a manufacturer operating in a competitive industry, high AMP expenditure cannot be assumed to have been incurred for the benefit of the brand owner. The TPO has to prove that the real intention of the assessee in incurring AMP expenses was to benefit the AEs and not to promote its own business. Also, if the assessee has reported high turnover & profits & offered to tax, the basic ingredient required to invoke s. 92 that there is transfer of profit from India remains unproved. In the absence of the AO/ TPO showing that there is a formal/ informal agreement to share the AMP expenditure, the adjustment cannot be made. The matter cannot be remanded to the AO/ TPO for reconsideration
LÓreal India Private Limited vs. DCIT
(2016) TaxCorp(LJ) 10178 (ITAT-MUMBAI)
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Bogus Purchases: Purchases cannot be treated as bogus is (i) assessee has furnished quantitative reconciliation, (ii) Gross Profit rate is comparable to earlier & subsequent years, (iii) suppliers are income-tax assessees and their sales have not been treated as bogus by their AOs, (iv) payments are by account payee cheques and other documentary evidences are available
ACIT vs. Jaybharat Textiles & Real Estate Ltd
(2016) TaxCorp(LJ) 10177 (ITAT-MUMBAI)
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S. 153A/ 153C: If the assessee stands amalgamated with another Co, it ceases to exists and all proceedings of search u/s 132, notice and assessment u/s 153C on the assessee are a nullity and void ab initio
CIT vs. Indu Surveyors & Loss Assessors Pvt. Ltd
(2016) TaxCorp(LJ) 10176 (HC-DELHI) · Sections 153A, 153C
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