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ITAT - Transfer Pricing - While an adjustment for working capital investment is required, the transaction of sale of goods and receivables arising therefrom can be aggregated. If the differential impact of working capital has been factored in the pricing of the transaction of sale, no further adjustment can be made
Kusum Healthcare Pvt. Ltd vs. ACIT
(2015) TaxCorp(LJ) 6018 (ITAT-DELHI)
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HC - Transfer Pricing - Entire law on determining ALP of transaction of loan of money to AE discussed
CIT vs. Cotton Naturals (I) Pvt. Ltd
(2015) TaxCorp(LJ) 6017 (HC-DELHI)
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ITAT - ITDC, a hospitality company, could not be considered as a comparable company for determining ALP of international transaction of assessee which was engaged in research and development activity on behalf of its holding company.
Assistant Commissioner of Income-tax, Circle-12(1), New Delhi v. Honda R & D (India) (P.) Ltd.
(2015) TaxCorp(LJ) 5993 (ITAT-DELHI) · http://taxcorp.in/FileOpenINTL.aspx?ID=7993&Category=INTLDecisions&CategoryType=Zip
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HC - Interest was rightly charged under section 234B(4) despite fact that no interest had been levied under section 234B(1) at time of framing regular assessment.
AIMS Oxygen Ltd. v. Additional Commissioner of Income-tax
(2015) TaxCorp(LJ) 5992 (HC-GUJARAT) · http://taxcorp.in/FileOpenDT.aspx?ID=58861&Category=Judgment&CategoryType=Zip
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ITAT - Survey fee paid to non-residence surveyors was not FTS as they didn't make available technical know-how to assessee-insurer, not taxable under section 9(1)(vii).
Deputy Director of Income-tax, (International Taxation-I), Pune v. Bajaj Allianz General Insurance Co. Ltd.
(2015) TaxCorp(LJ) 5991 (ITAT-PUNE) · http://taxcorp.in/FileOpenDT.aspx?ID=40209&Category=ITAT&CategoryType=Zip
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ITAT - Private hospitals have been made in a five star style, DIT(E)’s order cancelling Sec 12A registration is justified. Collecting samples of patients for testing desirability of introducing new drug by commercial companies, not a 'medical research' activity as per assessee’s objects but a commercial activity.
Devki Devi Foundation vs DIT
(2015) TaxCorp(LJ) 5989 (ITAT-DELHI)
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ITAT - Ownership of State cannot be considered or taken into account to determine the character or nature of the activities carried on by the MIDC. Sec 11 charity exemption not available to MIDC as hit by Sec 2(15) proviso.
Maharashtra Industrial Development Corporation vs. DDIT
(2015) TaxCorp(LJ) 5988 (ITAT-MUMBAI) · Section 2(15)
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ITAT - Penalty was levied by invoking Explanation 1 to Sec 271(1)(c) which deems ‘concealment' of income, therefore, prosecution u/s.276C, being for 'wilful attempt to evade taxes’, cannot be launched unless the additions and penalty is established. Stay u/S.254(2)(a) proviso against launch of Prosecution is granted.
Jindal Steel & Power Ltd vs ACIT
(2015) TaxCorp(LJ) 5987 (ITAT-DELHI) · Section 254(2)(a)
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ITAT - Assessee held shares of group companies for strategic purposes and not for selling/buying shares frequently and further no expenditure was actually incurred by the assessee to maintain such investments, no Sec 14A disallowance
Piem Hotels Limited vs. DCIT
(2015) TaxCorp(LJ) 5986 (ITAT-MUMBAI) · Section 14A
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ITAT - AO is not entitled to treat all purchases as bogus merely because sales-tax department has called the seller a "Hawala dealer". The AO ought to have verified the bank details of the assessee and the seller and other evidence before treating the purchases as bogus
Ramesh Kumar & Co
(2015) TaxCorp(LJ) 5985 (ITAT-MUMBAI)
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ITAT - Addition towards bogus purchases cannot be made solely on the basis of statements of seller before sales-tax authorities. The AO has to conduct own enquiries and give assessee opportunity to cross-examine the seller
ITO vs. Deepak Popatlal Gala
(2015) TaxCorp(LJ) 5984 (ITAT-MUMBAI)
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ITAT - Once the particular transaction, which is the subject matter of comparison for transfer pricing adjustment, has not even undertaken or has been cancelled, then such a transaction has to be excluded for the purpose of benchmarking the transfer price.
M/s Livingstones Versus Deputy commissioner of Income Tax, 16(3), Mumbai
(2015) TaxCorp(LJ) 5974 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=35149&Category=ITAT&CategoryType=Zip
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ITAT - The condition precedent for invoking the “make available” clause is that the services should enable the person acquiring the services to apply technology contained therein. Unless there is a transfer of technology involved in technical services the “make available” clause is not satisfied. Article 12 of India U.S.A. treaty were not applicable.
The Income-tax Officer(Intl. Taxn.) Vadodara Versus M/s Denial Measurement
(2015) TaxCorp(LJ) 5973 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=39635&Category=ITAT&CategoryType=Zip
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HC - Reopening of assessment u/s 147 - The reasons to believe must be such, which upon a plain reading, should demonstrate that such a reasonable belief could be formed on some basis/ foundation and had in fact been formed by the Assessing Officer that income has escaped assessment.
Krown Agro Foods Pvt. Limited Versus Assistant Commissioner of Income-Tax Circle 5 (1) New Delhi
(2015) TaxCorp(LJ) 5972 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=60741&Category=Judgment&CategoryType=Zip
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HC - PLR rates are not applicable to loans to be re-paid in foreign currency. The interest rates vary and are thus dependent on the foreign currency in which the repayment is to be made
Commissioner of Income Tax-I Versus M/s Cotton Naturals (i) pvt. Ltd.
(2015) TaxCorp(LJ) 5971 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=60758&Category=Judgment&CategoryType=Zip
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SC - SLP dismissed. HC had held as inadmissible u/s 37(1), a claim for reduction in value of closing stock on account of goods confiscated by Customs. Assessee is not entitled to claim any expenditure which had been incurred on account of any infraction of law
CIT vs Ambassador Industrial
(2015) TaxCorp(LJ) 5970 (SC) · Section 37(1)
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SC - When it is clearly mentioned that amendment in the statute is substantive in nature, assessee has no option to avail benefits even on retrospective basis. Retrospective benefit of amended Sec 40A(3) (amended w.e.f April 1,1996) is not available to assessee for entire block period of ten years, despite the amendment date falling within the block period.
M.G pictures Ltd vs ACIT
(2015) TaxCorp(LJ) 5969 (SC)
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SC - Once the income from leasing gas cylinders is accepted as the “business income”, which is taxed at the hands of the assessee as such, there is no reason how the depreciation on these gas cylinders could be disallowed on the ground that the cylinders were not purchased for “leasing business
K.M. Sugar Mills Limited vs. CIT
(2015) TaxCorp(LJ) 5968 (SC)
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ITAT - Section 206AA (providing for higher 20% TDS rate without PAN cases) does not override Sec 90(2) of the Act. Lower rate of TDS as per favourable DTAA provisions would be applicable and not higher rate u/s 206AA.
DDIT vs. Serum Institute of India Limited.
(2015) TaxCorp(LJ) 5967 (ITAT-PUNE) · Section 206AA
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HC - Since before completion of regular assessment, BCA (Business Corporate Agreement) was available with AO, hence no failure on part of assessee to “fully and truly disclose all material facts”. Re-assessment on the assumption that Sec 10A exemption was wrongly granted to assessee due to non-production of BCA is to be quashed.
IBS Software Services Pvt. Ltd. vs Union of India
(2015) TaxCorp(LJ) 5966 (HC-KERALA)
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