Direct Tax landmark rulings

1. ITAT Delhi · 18 Mar 2016
   ITAT - Amount received by a Singaporean company from its AE was in the nature of discounting charges and not interest u/s 2(28A).

   Cargill Financial Services Asia Pte Ltd. Vs. Asstt. Director of Income-tax

   (2016) TaxCorp(LJ) 10022 (ITAT-DELHI)

2. ITAT Bangalore · 18 Mar 2016
   ITAT - For making Sec 54EC capital-gains investment, sale-deed execution date is relevant and not consideration-receipt date.

   Harikrishna R Vs. ITO

   (2016) TaxCorp(LJ) 10021 (ITAT-BANGALORE) · Section. 54EC

3. ITAT Delhi · 18 Mar 2016
   ITAT - Inter-connect Usage Charges by Bharti to Foreign Telecom Operators neither 'royalty' nor 'FTS' u/s 9(1)(vi)/(vii). Sec 195 TDS not applicable.

   Bharti Airtel Limited vs. ITO

   (2016) TaxCorp(LJ) 10020 (ITAT-DELHI) · Section. 9

4. Supreme Court · 18 Mar 2016
   SC - SLP Dismissed - HC was justified in quashing ITAT order which had held that no addition could be made in the block assessment proceedings in case of assessees for want of undisclosed income.

   Shibu Soren vs. CIT

   (2016) TaxCorp(LJ) 10019 (SC)

5. ITAT Mumbai · 17 Mar 2016
   ITAT - 100 % stay of demand granted to assessee (a Singaporean company) till disposal of appeal relying on 1969-CBDT instruction.

   Dimension Data Asia Pacific Pte. Ltd. V. DCIT

   (2016) TaxCorp(LJ) 10018 (ITAT-MUMBAI)

6. Karnataka High Court · 17 Mar 2016
   HC - Sec 40(a)(ia) disallowance justified for TDS default on rent, professional charges and contractual payments to transporters made by assessee. Reliance on Vector Shipping ruling by ITAT not correct.

   Ryatar Sahakari Sakkare Karkhane Niyamit vs. ACIT & Others

   (2016) TaxCorp(LJ) 10017 (HC-KARNATAKA) · Section. 40(a)(ia)

7. ITAT Hyderabad · 16 Mar 2016
   ITAT - No TDS u/s 195 for licence-fees paid by to foreign entities in USA and UK towards dataset as it does not amount to royalty under respective DTAAs.

   GVK Oil & Gas Limited Vs. ADIT

   (2016) TaxCorp(LJ) 10016 (ITAT-HYDERABAD)

8. ITAT Delhi · 16 Mar 2016
   ITAT - Software sale by an India branch of a UK company to Indian customers is business receipts and not royalty under Article 13 of India-UK DTAA.

   Datamine International Ltd. vs. ADIT

   (2016) TaxCorp(LJ) 10015 (ITAT-DELHI) · Section. 9

9. ITAT Hyderabad · 15 Mar 2016
   ITAT - Where a method has been prescribed by the legislature, that method alone shall be followed for computation of FMV u/s Sec 56(2)(viia).

   Medplus Health Services P. Ltd. V ITO

   (2016) TaxCorp(LJ) 10014 (ITAT-HYDERABAD) · Section 56(2)(viia)

10. ITAT Delhi · 15 Mar 2016
    ITAT - Contract revenue to a Norwegian company on account of crew provision services on leased vessel is taxable in India.

    Siem Offshore Crewing AS Vs ADIT

    (2016) TaxCorp(LJ) 10013 (ITAT-DELHI) · Section 44BB

11. ITAT Mumbai · 15 Mar 2016
    ITAT - Compensation to tenants towards alternative accommodation not in the nature of 'rent'. No TDS u/s 194I.

    Sahana Dwellers Pvt. Ltd. vs. ITO

    (2016) TaxCorp(LJ) 10012 (ITAT-MUMBAI) · Section 194I

12. ITAT Mumbai · 14 Mar 2016
    S. 9(1)(vii)/ Article 12: “Startup services”, though technical in nature, are not assessable as “fees for technical services” u/s 9(1)(vii) if they do not involve any “construction, assembly mining or like projects”. The services are also not taxable under Article 12 as they do not “make available” technical knowledge

    Raytheon Ebasco Overseas Ltd vs. DCIT

    (2016) TaxCorp(LJ) 10011 (ITAT-MUMBAI) · Section 9(1)(vii)

13. ITAT Delhi · 14 Mar 2016
    S. 9/ 44BB: Income received by a non-resident under a time charter agreement accrues and arises in india even when the vessel and crew are outside the territorial waters of India. Such income is assessable on a presumptive basis u/s 44BB

    Siem Offshore Crewing AS vs. ADIT

    (2016) TaxCorp(LJ) 10010 (ITAT-DELHI) · Sections 9, 44BB

14. ITAT Mumbai · 14 Mar 2016
    ITAT - Revenue failed to establish that effective management and control of affairs of assessee was in India as such Indian parent not constituting PE for NR.

    Forbes Container Line Pte. Ltd. vs. ADIT

    (2016) TaxCorp(LJ) 10009 (ITAT-MUMBAI)

15. ITAT Mumbai · 14 Mar 2016
    ITAT - Payment received by an Israel resident for embedded software does not amount to royalty under Indo-Israel DTAA.

    Galatea Limited Vs. DCIT

    (2016) TaxCorp(LJ) 10008 (ITAT-MUMBAI)

16. ITAT Ahmedabad · 14 Mar 2016
    ITAT - Depreciation available on ‘unregistered’ trademark as the same not contingent on registration.

    Trio Elevators Company (India) Ltd. Vs. ACIT

    (2016) TaxCorp(LJ) 10007 (ITAT-AHMEDABAD) · Section. 32

17. ITAT Pune · 14 Mar 2016
    ITAT - Deduction claim u/s 80(IB)(10) rejected based on strict interpretation to the term “one acre”.

    Virag Deshpanday Developers Vs. ITO

    (2016) TaxCorp(LJ) 10006 (ITAT-PUNE) · Section. 80(IB)(10)

18. Supreme Court · 14 Mar 2016
    SC - Modifies Kerala HC order with respect to assessee’s capital gains exemption claim u/s 54F.

    XAVIER J PULIKKAL Vs. DEPUTY COMMISSIONER OF INCOME TAX

    (2016) TaxCorp(LJ) 10005 (SC) · Section. 54F

19. Supreme Court · 14 Mar 2016
    SC - Various subsidies (transport, power, interest and insurance) received qualify for incentive deduction u/s 80IB and 80IC for AY 2004-05.

    CIT. vs. Meghalaya Steels Ltd.

    (2016) TaxCorp(LJ) 10004 (SC) · Section. 80IB/IC

20. Supreme Court · 12 Mar 2016
    S. 80-IB(4): Subsidies (such as transport subsidy, Interest subsidy and power subsidy) paid to the assessee with the object of reducing the cost of production constitutes "profits derived from the business of the industrial undertaking" and is eligible for deduction u/s 80-IB. Liberty India 317 ITR 218 (SC) is distinguishable on facts

    CIT. vs. Meghalaya Steels Ltd.

    (2016) TaxCorp(LJ) 10003 (SC) · Section. 80-IB(4)

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