"24 May 2009" Archive

IT dept. imposed penalty on DLF for understatement of income, auditors role in question

NEW DELHI: The I-T authorities have slapped a tax liability of Rs 300-400 crore on realty leader DLF over what they called understatement of income and fund diversion by the company. The liability was raised after a special audit by the Income Tax department in the accounts of DLF for the year 2005-06. With the kind of […]...

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Posted Under: Income Tax |

Advance Ruling on nature of receipts derived by an Australian company from ONGC

In re Worley Parsons Services Pty. Ltd., (Authority for Advance Rulings- Income Tax)

3. The applicant contends that the services under various contracts except contract no. 5 cannot be brought within the sweep of `royalties' as defined in Art. XII.3 of the Double Taxation Avoidance Agreement (hereinafter referred to as `DTAA' or `Treaty'), that there was no permanent establishment in India except in relation to Contract n...

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AAR on tax liability of a partnership firm to be formed in Canada by a Canadian company for executing its PSCs in India

In re Canoro Resources Limited (Authority for Advance Rulings-Income Tax)

10.1 It is the common stand of both - the applicant and the Revenue, that the nature of income arising from the transfer of the applicant's participating interest in Amguri block to the proposed partnership firm, shall be capital gains. Where they differ is regarding the mode of computation of that income. Whereas the applicant submits th...

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To claim deduction under section 80P the status of the co-operative society shall be a primary society

ACIT Vs The Salem District Co-op. Milk Producers Union Ltd. (ITAT Chennai)

8. As seen in section 80P(2)(b), the deduction in respect of income of co-operative societies has been dealt in under different parts. In respect of the sums referred in clause (a) of sub-section (2), the assessee needs to be a co-operative society engaged in various activities specified therein. In the case of sums referred to in clauses...

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Determination of residential status of Assessee not resident in India in 9 out of 10 previous years

Satish Dattatray Dhawade Vs ITO (ITAT Mumbai)

15.2 On a careful reading of section 6(1) alongwith the circular cited above we are of the considered opinion that where the individual is resident in the previous year, but was not a resident in India in 9 out of 10 previous years preceding the year or was in India for a total period of 730 days or more in seven previous years then his r...

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Year of taxability on transfer of lease hold rights of immovable property

Atlas Automotive Components Pvt. Ltd. Vs ITO (ITAT Mumbai)

21. In view of the above submissions of the assessee and in view of the fact that M/s.Sky Blue Trading & Investment Pvt. Ltd. is sister concern of the assessee, we find no merit in the contentions of the assessee that the transaction between the assessee and M/s.Sky Blue Trading & Investment Pvt. Ltd. fell through because of the non-compl...

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Interest to Partners is allowable even if there is no book profit

ITO Vs M. M. Textiles (ITAT Mumbai)

10. The core of controversy in this appeal is against the deductibility or otherwise of an interest of Rs. 6,50,236 allowed to the partners which was claimed as deduction. The case of the Assessing Officer is that no deduction on account of interest to partners can be allowed. The learned D. R. submitted that the rental income of Rs. 16.7...

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