2 Archive - 22 November 2009

"22 November 2009" Archive

Date of reckoning for limitation period provided U/s.154(7) of Income Tax Act, 1961

CIT Vs Tony Electronics Ltd. (Delhi HC)

Once an appeal against the order passed by an authority is preferred and is decided by the appellate authority, the order of the said authority merges into the order of the appellate authority; with this merger, order of the original authority ceases to exist and the order of the appellate authority prevails; the limitation for the purpos...

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Payment made for supply of technical know-how services for setting up cellular telecom services is capital expenditure

ITO Vs Spice Communications Ltd. (ITAT Delhi)

In the case before us, the Agreement between the assessee and DCIL/Distacorn and Modicorp is to assist the assessee by providing services in the manner setout in Schedule - 1 to the Agreement, [n the Agreement, it has been clearly provided that DCIL and Distacom have technical and operational...

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Directing special audit without opportunity of being heard to the assessee is merely an irregularity and not an illegality

Asstt. Commissioner of Income-tax Vs M/s. Sushila Milk Specialities Pvt. Ltd. (ITAT Delhi)

An order under section 142(2A) of the Income Tax Act, 1961, directing the assessee to get the accounts audited by an accountant nominated in this behalf by the Chief Commissioner or the Commissioner and to furnish a report of such audit, does entail civil consequences. The special audit under section 142(2A) is not limited to the mere pro...

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Where a DTA is converted into an EOU, the exemption u/s 10B is admissible on getting approval as 100% EOU

ITO Vs Vidya Tech Solutions Pvt. Ltd. (ITAT Delhi)

The principal of accrual of profit does not come in the way of allocation of profit in the two periods; deduction under different sections can be allowed on different profits, if the same are admissible....

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Allowability of exemption u/s 10(22) of IT Act, 1961 to a State-controlled Educational Society/Board

Assam State Text Book Production and Publication Corpn. Ltd. Vs. CIT (Supreme Court of India)

As per the letter of the Central Government dated 9-7-1973, all State-controlled Educational Committee(s) /Board(s) have been constituted to implement the Educational policy of the States(s), consequently, they should be treated as Educational Institution within the meaning of section 10(22)....

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Advance in ordinary course of business cannot be considered as deemed dividend U/s. 2(22)(e) of IT Act, 1961

CIT Vs Creative Dyeing & Printing Pvt. Ltd. (Delhi High Court)

Once it is held that the business transactions do not fall within section 2(22)(e), one need not to go further to section 2(22)(e)(ii) to take away the basic meaning, intent and purport of the main part of section 2(22)(e). ...

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Payments for technical services are to be treated as ‘fees for technical services’ under Article 13(4) of Indo-French DTAA

Maruti Udyog Ltd. Vs. ADIT (Int'l Taxation) [ITAT Delhi]

For the purposes of paragraph 2 of this Article, and subject to paragraph 5 of this Article, the term 'fees for technical services' means payments of any kind to any person in consideration for the rendering of any technical or consultancy services (including the provision of services of technical or other personnel) which:...

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Annual Letting Value of house property under section 23(1)(a) of Income Tax Act, 1961

Income Tax Officer 9(1)(2) Vs. M/s Baker Technical Services Private Limited (ITAT Mumbai)

In respect of properties where restriction under Rent Control Act is not applicable, the annual letting value has got to be determined after taking into consideration various factors and the standard rent or Municipal valuation may be adjusted after taking into account such factors....

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Advance Ruling on taxability of an American company, having no PE in India, for technology transfer to an Indian company against consideration

In re International Tire Engineering Resources LLC, (Authority for Advance Rulings)

It cannot be doubted that the technology/know- how transfer that is contemplated by clause 2 of the `Technology Transfer Agreement' between the parties gets covered by more than one sub-clause of Explanation 2 to section 9(1)(vi) of the Income-tax Act, 1961 i.e., sub-clauses (i),(ii) and (iv); the services in the form of technical assista...

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Deduction under section 80-IA is not dependent upon the assessee claiming or not claiming depreciation

Plastiblends India Ltd. Vs Addl. CIT (Bombay High Court)

In the present case, the dispute relates to the special deduction allowable under Section 80-IA contained in Chapter VI-A. Relevant provisions contained in Chapter VI-A including Section 80-IA (to the extent relevant),read as follows :-...

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