The Delhi Bench of Income Tax Appellate Tribunal (“the Tribunal”) in its recent ruling in the case of ACIT v. Vedaris Technologies (Pvt.) Ltd [2010-TII-10-ITAT-DEL-TP] has held that selection of comparable uncontrolled transactions (“comparables”) for determining arm’s length price (“ALP”) should be done with reference to Rule 10C(2) of the Income-tax Rules, 1962 (“the Rules”).
This is a significant judgment which emphasises the comparability standards required for the application of the CUP method and signifies the relevance of ‘business considerations’ while determining the arm’s length price. Whereas the original judgement indicated the Tax Court’s unwillingness to look at the overall business relationship within the group, the FCA has taken a much broader view, recognising what a reasonable business person dealing at arm’s length would consider (such as the use of intangibles). The FCA’s reference to “business reality” is a breath of fresh air for taxpayers.
Reopening of tax assessment beyond four years on the basis of a retrospective amendment is not justified, if the assessee has fully and truly disclosed all the material facts necessary during the original assessment proceedings
The Supreme Court (SC) has clarified the nominee of a depositor in a bank does not get ownership of the money in the account after death of the depositor. The nominee gets exclusive right to receive the money lying in the account. It gives him all th
An inflow of over Rs 7,300 crore into 26 companies, most of them registered at two Delhi addresses, from companies registered in Mauritius and Cyprus has caught the attention of tax slueths. Sensing that this could be a case of “round-tripping” – mo
A bank manager, testifying before a local court trying Satyam scam case, today said fixed deposit receipts and amounts given in the documents pertaining to his bank, which were seized by the CID last year, were fake. According to A Sebasen, BNP Parib
The SEZs are headed by Development Commissioners (Joint Secretary/Director/Deputy Secretary Level at the Centre) with supportive Customs and Ministerial Staff. Central Government appoints Development Commissioner in one or more Special Economic Zone. [Section 11(1) of the SEZ Act], Central Government also appoints such officers and other employees as it considers necessary to assist the Development Commissioner in the performance of his functions in the Special Economic Zones [Section 11(2) of the SEZ Act].
SEZ : Clarification on Instruction No. 49 on FTWZ issues INSTRUCTION NO. 71, DATED 12-11-2010 I am directed to refer to Instruction No. 49, dated 12th March, 2010 of this Department and to amend the point No. (iv) of the abovementioned instruction to the extent that instead of there being no limitation on units set […]
In a major breakthrough in the efforts to trace illegal money stashed in foreign shores, the Income Tax department has received classified information on two high value deposits of stud-farm owner Hasan Ali from the US and the UK. The department, thr
Suspecting an uptick in the insider trading activities in the recent market rally, Sebi has enhanced its surveillance for possible violations of rules prohibiting trading based on prior and inside information. The market watchdog has come across over
