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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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S. 92(2): Important principles of law laid down with regard to the “Need Test”, “Evidence Test” or “Rendition Test” to evaluate the ALP of intra-group services rendered by an Associated Enterprise and whether the TPO has the right to determine the ALP at ‘Nil’
GE Money Financial Services Pvt Limited vs. ACIT
(2016) TaxCorp(LJ) 10175 (ITAT-DELHI) · Section 92(2)
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HC - Primary agricultural credit societies, registered as such under the KCS Act; and classified so, under that Act are entitled to exemption u/s 80P.
THE CHIRAKKAL SERVICE CO-OPERATIVE BANK LTD VS.THE COMMISSIONER OF INCOME TAX
(2016) TaxCorp(LJ) 10174 (HC-KERALA) · 80P
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S. 153A assessment cannot be made for the AYs in which incriminating material is not recovered even though incriminating material may be recovered for other years in the block of 6 years
Pr. CIT vs. Lata Jain
(2016) TaxCorp(LJ) 10173 (HC-DELHI) · Section 153A
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S. 271C: Concept of "Reasonable Cause" for avoiding levy of penalty for TDS default explained
ITO vs. Pushpanjali Hospital and Research Centre Pvt Ltd
(2016) TaxCorp(LJ) 10172 (ITAT-AGRA) · Section 271C
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S. 195/ 40(a)(ia): Commission paid to non-resident agents for services rendered outside India is not liable for TDS u/s 195. The retrospective amendment to s. 195 to provide that s. 195 applies whether or not the non-resident person has a residence or place of business or business connection in India makes no difference to the legal position
DCIT vs. Sesa Resources Ltd
(2016) TaxCorp(LJ) 10171 (ITAT-PANAJI) · Sections 195, 40(a)(ia)
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HC - Cancellation of sale certificate and sale deed in relation to an immovable property is not taxable u/s 10(3) as “casual and non-recurring” sum
Girish Bansal vs. UOI
(2016) TaxCorp(LJ) 10170 (HC-DELHI) · Section. 10(3)
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HC - In proceedings u/s 153A, existence of incriminating material in all years is necessary during block-assessment.
Pr. CIT. vs. Lata Jain
(2016) TaxCorp(LJ) 10169 (HC-DELHI) · Section. 153A
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HC - When assessee had complied with the provisions of the Act, ITAT should not have refused to condone the delay on this ground.
Wayne Burt Petro Chemicals (P) Ltd. vs. ITAT, ACIT
(2016) TaxCorp(LJ) 10168 (HC-MADRAS)
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SC - SLP dismissed - HC was justified in deleting interest levied u/s 234A/B/C as Revenue had failed to adjust seized cash.
CIT. vs. Sunil Chandra Gupta
(2016) TaxCorp(LJ) 10167 (SC) · Secton. 234A/B/C
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ITAT - Service-tax to be excluded from “income from house-property” as there is no element of income therein.
Anil Gupta vs. ACIT
(2016) TaxCorp(LJ) 10166 (ITAT-CHANDIGARH)
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HC - Belief of AO that difference in purchase price and book value of shares is taxable u/s 28 is merely change of opinion. Reassessment quashed.
UNITECH HOLDINGS LIMITED Vs. DEPUTY COMMISSIONER OF INCOME TAX
(2016) TaxCorp(LJ) 10165 (HC-DELHI)
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ITAT - Research that goes into development of modern LCA or helicopter is scientific-research. Eligible u/s 35(1)(iv).
Hindustan Aeronautics Ltd. vs. ACIT
(2016) TaxCorp(LJ) 10164 (ITAT-BANGALORE) · Section. 35(1)(iv)
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HC - Activities carried out by assessee’s Indian subsidiary doesn’t constitute a PE in India.
NORTEL NETWORKS INDIA INTERNATIONAL INC. Vs. THE DIRECTOR OF INCOME TAX –I
(2016) TaxCorp(LJ) 10163 (HC-DELHI)
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