"January, 2010" Archive - Page 40

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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Property in Maharashtra just got more expensive as government increased market value of real estate by 10-20 per cent in its Ready Reckoner 2010

The ready reckoner is a guide for the market price of residential and commercial properties, based on which stamp duty and registration fee for their sale and purchase are calculated. Under the revised rates, a land owner would have to pay more stamp duty because his land got more expensive; the developer would raise the sale price of his...

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Posted Under: Income Tax |

Change of method of accounting of overdue charges from mercantile basis to cash system does not create any income

CIT Vs. Annamalai Finance Ltd. (Madras High Court)

In the instant case, learned counsel for the Revenue is not in a position to demonstrate or satisfy us that due to the change of accounting method adopted by the respondent/assessee , which is permissible in law as per the ratio laid down in (i) CIT v. Matchwell Electricals (I.) Ltd. (2003)263 ITR 227 (Bom) and (ii) Hela Holdings Pvt. Ltd...

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Expenditure incurred on modification and renovation of a building before commencement of business is neither allowable U/s. 30(a)(ii) nor section 37

Punj Hospitality Pvt. Ltd. Vs. ITO (ITAT Delhi)

Hon'ble Madras High court in the case of A.Y.S. Paisutha Nadar v. CIT [1962] 46 ITR 1041 (Mad.) had held that section 10(2)(xv) of the Indian income-tax Act, 1922 [section 30(a)(ii) of 1961 Act.] relating to expenditure laid out or expended wholly and exclusively for the purpose of the assessee's business, clearly indicated that the expen...

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Validity of agreement for assignment of liabilities and assets by an assessee

MIRC Electronics Ltd. Vs DCIT (ITAT Mumbai)

However, in view of the fact that the agreement has been accepted as genuine in the hands of one of the parties and economic consequences have also occurred because the assignee has made the payment to the Government, the transaction is necessarily be treated as genuine one, and for this reason, ...

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AO not justified in adjustment to a international transaction whose arm’s length character is accepted by Transfer Pricing Officer (TPO)

Oracle India (P) Ltd. Vs. ACIT (ITAT Delhi)

The Delhi bench of the Income-tax Appellate Tribunal (the Tribunal), in the case of Oracle India (P) Ltd. V. ACIT (2009-TIOL-540-ITAT-DEL) (the taxpayer) held that section 40A(2) of the Income-tax Act, 1961 (the Act) overrides the provisions relating to computation of business income only and thus in relation to international transactions...

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Foreign company having Permanent Establishment in India cannot be taxed at the rate applicable to domestic company

JCIT Vs. State Bank of Mauritius Ltd. (ITAT Mumbai)

Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of JCIT v. State Bank of Mauritius Ltd. (2009-TIOL-712-ITAT-MUM) has held that the foreign company having Permanent Establishment (PE) in India cannot be taxed at the rate applicable to domestic company in view of insertion of Explanation 1 to section 90 of the I...

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