Archive for February, 2008

Complex tax laws pose problems both in interpretation and implementation. Which is why tax legislation and treaties should be simple and understandable to the common man and those in trade, reasoned Chief Justice Swatanter Kumar of the Bombay High Court when speaking at the International Tax Conference, organised by IFA (International Fiscal Association) India and the OECD (Organisation for Economic Cooperation and Development) , in Mumbai on Wednesday. Full Article

Ranbaxy Laboratories Ltd. v. Additional Commissioner of Income-tax Section 92C, read with section 92CA, of the Income-tax Act, 1961 - Transfer pricing - Computation of Arm's length price - Assessment year 2004-05 - Whether Assessing Officer in light of Instruction No. 3 of 2003, dated 20-5-2003 of CBDT is duty bound to refer matter to transfer pricing officer of international transaction exceeding Rs. 5 crores, having regard to purpose of specialized cell created by reve.. Full Article

FOR the Income Tax Department, the latest ruling of the Larger Bench of the Punjab & Haryana High Court amounts to a big win. And, at the centre of the dispute was whether the interest paid on borrowed capital for purchasing new plant and machinery before the same is put to use is revenue expenditure or to be added to the 'actual cost' of the asset? What further complicated the issue was the fact that the assessee was a running company and wanted to set up a new plant by.. Full Article