bombay high court

The taxman does not have claim over the bank overdraft facility of a defaulter since the lender does not owe money, but has promised a loan for business, the Bombay High Court has ruled. By taking an overdraft facility, a taxpayer becomes a debtor to the bank and hence, no authority has the right to attach overdraft facility for recovering tax dues, the court said in an order dated July 8. Full Article

The Supreme Court has remanded the income tax department’s appeal raising pertinent issues related to taxability of foreign telecasting companies to the Bombay High Court.The issue revolves around the method of computation of profits by non-resident firms from their Indian operations especially those which don’t have branch offices or permanent establishments in India or are not maintaining country-wise accounts of their operations. Full Article

section 80HHC, Deduction under Section 80HHC, Bombay High Court, export turnover,deduction under section 80HHC Full Article

Mumbai Congress chief Kripashankar Singh continues to be in the dock. Income-tax department and the anti-corruption bureau of Maharashtra on Thursday informed Bombay High Court that the probe into allegations of accumulation of unaccounted wealth by former state minister and MLA Kripashanker Singh and his family members is still on. Full Article

Mr Justice D. D. Sinha of the Bombay High Court, one of the judges on the Division Bench hearing audit firm Price Waterhouse's petition against Securities and Exchange Board of India, recused himself from hearing the case on Friday, without assigning any reason. Full Article

CIT vs. Kalpataru Colours and Chemicals (Bombay High Court)- S. 28 (iiid) provides that “any profit on the transfer” of the DEPB shall be business profits. Under Explanation (baa) to s. 80HHC, 90% of “the sum referred to in s. 28(iiid)” has to be reduced from the business profits. Under the third Proviso to s. 80HHC (3), in the case of an assessee having an export turnover exceeding Rs. 10 crores, the profits referred to in s. 80HHC (3) can be increased by 90% of.. Full Article

In a significant ruling, the Supreme Court has ruled that taxpayers can legally reduce their liability through dividend-stripping, a term used for selling mutual fund units at a discount post-dividend. An apex court bench headed by Chief Justice SH Kapadia has said there is nothing wrong in dividend-stripping after getting the tax benefits. The bench further said such dividend stripping after availing of the tax rebates cannot be termed as abuse of law. Full Article

This is the latest twist to the two-year dispute between tax authorities and third party administrators, or TPAs. On Tuesday, the Supreme Court dismissed an appeal against the Bombay High Court order which held that TPAs — which are typically companies that liaise between insurers and hospitals to facilitate cashless treatment for policyholders — should deduct taxes while making payment to hospitals. Full Article