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ITAT - A merchant banker engaged in business of investment, merchant banking and corporate finance can not be chosen as comparable for an investment advisor under TP study
Deputy Commissioner of Income-tax, 2 (1), Mumbai v. Arisaig Partners India (P.) Ltd.
(2015) TaxCorp(LJ) 6855 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenINTL.aspx?ID=8026&Category=INTLDecisions&CategoryType=Zip
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ITAT - A software development service provider is functionally different from a company which owns significant intangibles and has huge revenues from software products.
McAfee Software (India) (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle-12 (1), Bangalore
(2015) TaxCorp(LJ) 6854 (ITAT-BANGALORE) · http://taxcorp.in/FileOpenDT.aspx?ID=40574&Category=ITAT&CategoryType=Zip
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ITAT - For computation of arm's length price, a company providing software development support services can not be compared with a company developing its own software
NTT DATA FA Insurance Systems (India) (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle-11 (3), Bangalore
(2015) TaxCorp(LJ) 6853 (ITAT-BANGALORE) · http://taxcorp.in/FileOpenDT.aspx?ID=40153&Category=ITAT&CategoryType=Zip
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HC - Since warrant of authorisation indicated premises where search and seizure operation was to be conducted, warrant issued in name of any family member is valid to search a joint property without any demarcation.
Harbhajan Singh Chadha v. Director of Income-tax
(2015) TaxCorp(LJ) 6852 (HC-ALLAHABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=60751&Category=Judgment&CategoryType=Zip
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ITAT - Two business models, namely, outsourcing services and providing in-house services cannot be compared with each other because of their inherent differences.
Xchanging Technology Services India (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle-18 (1), New Delhi
(2015) TaxCorp(LJ) 6851 (ITAT-DELHI) · http://taxcorp.in/FileOpenINTL.aspx?ID=8112&Category=INTLDecisions&CategoryType=Zip
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ITAT - Provision for bad and doubtful debts should be considered as part of operating cost while computing margins of comparables.
Alliance Global Services IT India (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle-1 (1), Hyderabad
(2015) TaxCorp(LJ) 6850 (ITAT-HYDERABAD) · http://taxcorp.in/FileOpenINTL.aspx?ID=7971&Category=INTLDecisions&CategoryType=Zip
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ITAT - Since part of loan was subsequently converted into equity, no TP adjustment can be made for interest free loans given to AE.
Shrenuj & Co. Ltd. v. Additional Commissioner of Income-tax- Range 5 (3), Mumbai
(2015) TaxCorp(LJ) 6849 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=41047&Category=ITAT&CategoryType=Zip
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ITAT - Fees paid to overseas loan-arranger neither interest u/s 2(28A) nor fees for technical service (FTS) u/s 9(1)(vii), TDS u/s 195 not applicable.
Idea Cellular Limited vs ADIT
(2015) TaxCorp(LJ) 6848 (ITAT-MUMBAI) · Section. 195
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ITAT - Payment of ‘license fee’ and ‘management service fee’ by India Branch to its UK Head-office, not in the nature of ‘head office expenses’ u/s 44C. Addition to be deleted.
Lloyd’s Register Asia (India Branch Office) vs ACIT
(2015) TaxCorp(LJ) 6847 (ITAT-MUMBAI) · Section. 44C
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ITAT - Interest allowable u/s 36(1)(iii) with respect to loan taken by assessee for purchase of property. It is incorrect to hold that proportionate interest expenditure should be disallowed since assessee advanced interest-free loan to sister concern, which if utilized towards property-purchase, the interest component would have been reduced.
DCIT. Vs. International Institute of Planning & Management Pvt. Ltd.
(2015) TaxCorp(LJ) 6846 (ITAT-DELHI)
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ITAT - Joint Development Agreement - Land transfer to be treated as conversion of capital asset into stock in trade u/s 45(2) and prorata cost to the developer as ‘full value consideration’. Sale of flats and bungalows to be treated as business income.
ACIT. Vs. M/s. Medravathi Agro Farms Pvt. Ltd.
(2015) TaxCorp(LJ) 6845 (ITAT-HYDERABAD) · Section. 45(2)
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HC - Assessee is entitled to claim deduction u/s 80 IA even though it have been set off losses against the profits from other sources
CIT. VS. GR Thangamaligai Firm
(2015) TaxCorp(LJ) 6844 (HC-MADRAS) · Section. 80 IA
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ITAT - Even if no business is carried, the expenditure incurred to maintain the corporate entity has to be allowed as a deduction u/s 37(1)
Preimus Investment and Finance Ltd vs. DCIT
(2015) TaxCorp(LJ) 6843 (ITAT-MUMBAI) · Section 37(1)
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ITAT - Loans and advances given for business transaction between the parties does not fall within the definition of “deemed dividend" /s 2(22)(e)
Ishwar Chand Jindal vs. ACIT
(2015) TaxCorp(LJ) 6842 (ITAT-DELHI) · Section 2(22)(e)
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HC - Expenses incurred towards a project which could not be materialized was rightly treated as revenue expenditure and not as capital expenditure.
Deputy Commissioner of Income-tax (Asstt.) v. Gujarat Narmada Velley Fertilizers Co. Ltd.
(2015) TaxCorp(LJ) 6841 (HC-GUJARAT) · http://taxcorp.in/FileOpenDT.aspx?ID=61250&Category=Judgment&CategoryType=Zip
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ITAT - Since assessee did not bear any working capital risk, there is no need for making any negative working capital adjustment.
Adaptec (India) (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle 1 (1), Hyderabad
(2015) TaxCorp(LJ) 6840 (ITAT-HYDERABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=40991&Category=ITAT&CategoryType=Zip
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ITAT - Introduction of leasehold property as capital in consortium and permitting bank for an equitable mortgage on said property, amounts to ‘transfer’ under section 2(47).
Andhra Networks Ltd. v. Deputy Commissioner of Income-tax, Circle 1 (1), Hyderabad
(2015) TaxCorp(LJ) 6839 (ITAT-HYDERABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=38820&Category=ITAT&CategoryType=Zip
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HC - Since assessee merely invested funds through ‘PMS’ and there was no separate business infrastructure to carry out its share transactions, profit on sale of shares is to be treated as ‘capital gains’.
CIT. vs. Kapur Investments
(2015) TaxCorp(LJ) 6838 (HC-KARNATAKA)
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ITAT - As per CBDT Circular No. 14/2014, transfer or re-deployment of technical manpower from existing units to new SEZ units shall not be construed as splitting up or reconstruction of the existing business. Section 10A deduction allowable to assessee (an IT company) in respect of its new units.
iGATE Computer Systems Ltd. Vs. The Addl. Commissioner of Income Tax
(2015) TaxCorp(LJ) 6837 (ITAT-PUNE) · Section. 10A
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SC - It is not open to the assessee to claim depreciation for the current year and not claim unabsorbed depreciation of the previous years
Seshasayee Paper and Board Limited Vs. DCIT
(2015) TaxCorp(LJ) 6836 (SC)
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