"04 January 2010" Archive

Determination of ALP of an international transaction

Gharda Chemicals Ltd. Vs DCIT (ITAT Mumbai)

If we agree with this submission of the Id. A.R that as the ultimate tax liability of the assessee together with its AE does not vary even if the lower price is charged inter se, and hence the exercise done by the TPO be held as fruitless, then the provisions of section 92 to 92F would become redundant. Since the provisions require the de...

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In penalty proceedings, assessee can always show that finding recorded in quantum proceedings is neither reliable nor sufficient to impose penalty

Dhirajlal Maganlal Shah Vs. ITO (ITAT Ahmedabad)

On careful consideration of relevant facts, I am of the view that important fact stated by the assessee in his reply to penalty notice has not been considered in accordance with law. The revenue authority and the Tribunal in the quantum proceedings proceeded mainly on a presumption that the payment was made through account payee cheque, d...

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Any company whose principal business is banking or granting of loans and advances will not be attracted by explanation to section 73 of the IT Act, 1961

ITO Vs Bijay Paper Traders & Investments Ltd. (ITAT Delhi)

. In view of the above decision, the company whose principal business is that of granting of loans and advances, may earn a comparatively high income from some other activity in a particular year, merely because the income/loss from share trading in the year under consideration is higher than the interest income,...

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Expenditure claimed as revenue in nature is allowable U/s. 37(1) not U/s. 35AB of the Income Tax Act, 1961

Mahindra & Mahindra Ltd. Vs JCIT (ITAT Mumbai)

Since in the case under consideration, the expenditure claimed by the assessee is revenue in nature, therefore, the same is allowable u/s 37(1) of the Act and not u/s 35AB of the Act. The above view is supported by the fact that the Finance (No.2) Act, 1998 introduced from the asst. yr. 1999- 2000 on wards,...

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Live payment nexus in routing of income between employer and expatriate personnel must be established so as to attract section 163(1)(c) of Income tax Act, 1961

Pride Foramer S. A. S. Vs ACIT (ITAT Delhi)

In view of the above, the grievance of Pride Foramer against being treated as an agent of the expatriate personnel under section 163 of the Act is found to be of merit and it is accepted as such....

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Section 92 of Income Tax Act,1961 not applicable to advertisement expenditure incurred by assessee, a wholly owned subsidiary of an American restaurant company in India

Mc Donald's (India) Pvt. Ltd. Vs ACIT (ITAT Delhi)

In fact, the assessee has borne part of the advertisement expenditure which was to be borne in full by the Indian franchises. Hence, we are of the considered opinion that section 92 is not applicable with regard to the advertisement expenditure. ...

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An order can’t be treated erroneous simply because Assessing officer in his order not made elaborate discussion with reference to his satisfaction

Radhey Shyam Agarwal HUF Vs. CIT (ITAT Agra)

Order can be revised if and only if the twin conditions, viz., one that the order is erroneous and two - that to that extent it is prejudicial to the interest of the Revenue co-exist....

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Section 176(3A) applicable only when there is a discontinuance of business

ITO Vs Jalamsinh B. Barad (ITAT Ahmedabad)

The Honourable Madras High Court in CIT Vs Western Agencies Madras Pvt. Ltd. (2008) 305 ITR 301 held that if a company lakes over the business of the firm by taking over assets and liabilities of the firm, then the company cannot be assessed in respect of the income of the period prior to dissolution of the firm....

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New Decade of Auto Sector

The Indian automobile industry is performing with a consistency cap on its head. It has again plucked off another feather to decorate its growth hat. The automobile sector in India surprisingly did well and outperformed our expectations in terms of sales growth during 2009.When the western economies were struggling to survive their big au...

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Posted Under: Income Tax |

Section 194A of the Income-tax Act, 1961- Deduction of tax at source – Interest other than interest on securities – Notified institution

Notification No. 1/2010-Income Tax 04/01/2010

Notification No. 1/2010-Income Tax In exercise of the powers conferred by sub-clause (f) of clause (iii) of sub-section (3) of Section 194A of the Income Tax Act, the Central Government hereby notifies the Rural Electrification Corporation Ltd., New Delhi for the purpose of said clause....

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