Archive for August, 2009

SUMMARY OF CASE LAW Section 139(5) has not been enacted for providing an escape route to the assessee when he is caught in the penal provisions relating to evasion of tax and AO is in the process of collecting evidence to nail him down; it is not the intention of law to give a right [...] Full Article

Where the assessee company itself admits that it is liable to deduct tax at source u/s 194H in respect of post-paid services rendered through its distributors, it is the duty of the assessee to prove that the services rendered by the assessee through the distributors on pre-paid package is different from the post paid package so as to qualify the former for exemption from operation of section 194H; therefore, if post-paid scheme is subject to section 194H, it is quite un.. Full Article

SUMMARY OF CASE LAW The mobilization/ demolization charges received by a non-resident foreign company in connection with supply of plant and machinery form part of gross receipts for the purpose of computing the income under section 44BB irrespective of whether the same was paid or payable in or outside India. Full Article

It is settled position of law that appeal is creature of Statute and appeal can be filed only when permitted by Statute and can be filed on the grounds mentioned In the Statute. In terms of section 260-A the High Court gets power to hear and decide an appeal only when a substantial question of law is involved. The section 260-A of the Act of 1961 thus, authorizes the High Court to hear an appeal only when substantial question of law is involved. Full Article

SUMMARY OF CASE LAW The benefit of lesser rate of tax conferred by the proviso to section 112(1) of the IT Act, 1961 can be invoked by a non-resident foreign company as well; the expression” before giving effect to 2nd proviso to section 48″ cannot be construed as a condition precedent for invoking the proviso [...] Full Article

SUMMARY OF CASE LAW In view of the clear cut guidelines of the RBI regarding transfer of AFS category investment into HTM category investment, the claim of the assessee-bank towards provisions of depreciation on account of transfer of securities from AFS category to HTM category is to be allowed. Full Article

The process of electronically filing Income tax returns through the internet is known as e-filing and is meant to ensure saving of time and paperwork for taxpayers. It is mandatory for companies and Firms requiring statutory audit u/s 44AB to submit the Income tax returns electronically for AY 2009-10. E-filing is possible with or without [...] Full Article

Jindal Thermal Power vs. DCIT (Karnataka High Court) The assessee entered into a contract with Raytheon – Ebasco, a foreign company, and two of its’ foreign subsidiaries, for commissioning of a power plant. The assessee made payments to Raytheon for rendering technical services, providing ‘start-up’ services and taking ‘overall responsibility’ for the Project. The two [...] Full Article