"January, 2010" Archive - Page 39

Central trade unions to oppose taxing of withdrawals from savings schemes

The central trade unions will press for shelving of a proposal, that wants to tax withdrawals from savings schemes, including provident funds, at the pre-Budget meeting with Finance Minister Pranab Mukherjee on January 14. "(The) Finance Minister has invited trade unions for pre- budget consultations on January 14," All India Trade Unions...

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Posted Under: Income Tax |

GST exemption list covered item which cannot be taxed under GST

If something is not taxable at all, can one exempt it? Obviously not. If one does it, it is conceptually meaningless and even absurd. Taking an excise example, it is like saying that free air is exempt. If free air is not taxable, it cannot be exempted by the government. Precisely this type of conceptual error is visible in the exemption ...

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Posted Under: Income Tax |

Income tax department matching politicians poll affidavits with their Income Tax Return

The finance ministry has quietly initiated the process of opening up the income tax files of politicians belonging to all parties and tallying their income statements with the affidavits filed by them with the Election Commission during the 2009 parliamentary polls. Verification of the assets declared by the Lok Sabha candidates, many of...

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Posted Under: Income Tax |

Two major tax reforms to reduce transaction costs for exporters significantly

Two major tax reforms due by next year promise to reduce transaction costs for exporters significantly. A simpler income-tax regime will put more money in the hands of businesses, which can invest these as they consider best. The Goods and Services Tax (GST) regime will reduce complications and lower the compliance costs. Together, they w...

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Posted Under: Income Tax |

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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