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ITAT - Without establishing through positive evidence that assessee and its related party have arranged their business transaction in a manner to produce more than ordinary profit to assessee, AO cannot invoke the provisions of section 10A(7) read with section 80IA(10) on mere presumptions and surmises.
DCIT. Vs. Quick MD
(2015) TaxCorp(LJ) 8583 (ITAT-HYDERABAD) · Section. 10A
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SC - SLP Dismissed - Clearances from statutory authorities and receipt of amount through normal banking channels insufficient, ‘’source’ creditworthiness must under section 68.
Velocient Technologies Ltd. vs. CIT
(2015) TaxCorp(LJ) 8573 (SC)
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HC - Certificate of Residence issued by Mauritius is sufficient evidence for residence under DTAC.
Serco BPO Private Limited vs. AAR
(2015) TaxCorp(LJ) 8572 (HC-P&H)
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HC - Even if the supply contract is an integral part of a composite contract on single sale responsible basis, there is no obligation to deduct TDS u/s 194C/ 194J. Service contracts, not being professional services, are not covered by s. 194J.
CIT vs. Executive Engineer, GESCOM
(2015) TaxCorp(LJ) 8571 (HC-KARNATAKA) · Sections 194C, 194J
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HC - Transfer Pricing - Important law laid down on the principles for identifying comparables for benchmarking an international transaction & determining the ALP in the context of whether KPO services are comparable to BPO services. Law also laid down on whether for TNMM method, broad functionality is sufficient and whether supernormal profits indicate that there is functional dissimilarity
Rampgreen Solutions Pvt. Ltd vs. CIT
(2015) TaxCorp(LJ) 8570 (HC-DELHI)
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HC - Failure by AO to comply with the law in G. K. N. Driveshafts (SC) & pass order on objections renders re-assessment order void; Even a s. 143(1) assessment cannot be reopened in the absence of new/ tangible material.
Pr. CIT vs. Tupperware India Pvt. Ltd
(2015) TaxCorp(LJ) 8569 (HC-DELHI) · Section 147
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ITAT - Entrance fee paid to golf club on behalf of director to develop links with other corporates leaders is an allowable business expenditure. CIT vs United Glass Mfg. Co. Ltd. followed.
DCIT. Vs. Hinduja Global Solutions Ltd.
(2015) TaxCorp(LJ) 8568 (ITAT-MUMBAI)
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ITAT - If no statement has been recorded at the time of search and where there is no occasion for the assessee to state the fact at the time of search, the addition can not be made.
Smt. Rutu S. Jindal Vs. ACIT
(2015) TaxCorp(LJ) 8567 (ITAT-DELHI)
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ITAT - Amount received by UK entity from BCCI for live coverage of IPL cricket matches not taxable as FTS’ / Royalty under India-UK DTAA.
IMG Media Limited vs. DDIT
(2015) TaxCorp(LJ) 8557 (ITAT-MUMBAI)
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ITAT - Harmonious reading of sections 145A and 43B brings out that the 'Business income’ is firstly required to be mandatorily computed by following the 'Inclusive method’” and thereafter, if some part of tax or duty is unpaid/ paid in advance, it should be added/deducted in the computation of income.
Maruti Suzuki India Ltd. vs. ACIT
(2015) TaxCorp(LJ) 8556 (ITAT-DELHI) · Section. 145A
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ITAT - Sec 194C TDS applicable on freight payments to C&F agents, therefore Sec 40(a)(ia) expense disallowance for TDS default confirmed.
ACIT. vs. Zephyr Biomedical
(2015) TaxCorp(LJ) 8555 (ITAT-PANAJI) · Section. 40(a)(ia)
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SC - CBDT Instruction No. 3/2011 specifying minimum monetary tax effect of Rs 10 lacs for Revenue appeals before HC is not retrospective in nature. Instruction applicable only to such cases which are filed after the issuance of the instruction.
CIT. vs. Suman Dhamija
(2015) TaxCorp(LJ) 8551 (SC)
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SC - Income of trust was not taxable in the hands of assessee even though the same was created for the benefit of assessee’s minor children because clubbing provisions are not applicable where minor child is entitled to income on attaining majority.
Kapoor Chand vs. ACIT
(2015) TaxCorp(LJ) 8548 (SC)
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SC - Allows additional depreciation claim even where Form 3AA (i.e Accountant’s report for claiming additional depreciation) was not filed along-with the return of income but during assessment proceedings.
CIT. vs. G.M. Knitting Industries(P) Ltd.
(2015) TaxCorp(LJ) 8543 (SC)
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HC - Reassessment order quashed which was passed in violation of principles laid down by co-ordinate bench ruling. Censure AO for not withdrawing erroneous order immediately.
Godrej Agrovet Ltd. vs. ACIT
(2015) TaxCorp(LJ) 8542 (HC-BOMBAY)
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ITAT - AEs are PE only in respect of trading transactions, therefore, any earnings from rendering of services in India cannot be attributed to such PE.
ABB Inc. vs. Deputy Director of Income Tax (International Taxation)
(2015) TaxCorp(LJ) 8534 (ITAT-BANGALORE)
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HC - (i) Provision in partnership deed for payment of salary at percentage share of profits multiplied by “allocable profits” is valid and entitles claim for deduction. S. 37(1) (ii)Contribution by law firm to IFA to create awareness of its activities is business expenditure.
CIT vs. Vaish Associates
(2015) TaxCorp(LJ) 8533 (HC-DELHI) · Section 40(b)(v)
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HC - (a) The second provisio to S. 40(a)(ia) inserted by FA 2012 cannot be treated as retrospective in operation (b) The fact that the payees have already paid tax on the amounts paid does not mean that a disalliowance for failure to deduct TDS cannot be made, (c) S. 40(a)(ia) cannot be interpreted to mean that it applies only to amounts "paid" and not to those "payable"
Thomas George Muthoot vs. CIT
(2015) TaxCorp(LJ) 8532 (HC-KERALA) · Section 40(a)(ia)
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ITAT - (i) Even if an amount is credited to the P&L A/c, the assessee can seek exclusion of that amount for purposes of “book profits” if a note to that effect is inserted in the A/cs (ii) An item of receipt which falls under the definition of “income”, are excluded for the purpose of computing “Book Profit”, since the said receipts are exempted u/s 10 of the Act while computing total income.
Shivalik Venture Pvt. Ltd vs. DCIT
(2015) TaxCorp(LJ) 8531 (ITAT-MUMBAI) · Section 115JB
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ITAT - Amount towards waiver of loan under OTSS, credited to "General Reserves" and not to the P&L Account cannot be added to "book profits". Supreme Court in the case of Apollo Tyres followed.
DCIT vs. Garware Polyester Ltd
(2015) TaxCorp(LJ) 8530 (ITAT-MUMBAI) · Section 115JB
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