"26 January 2011" Archive

Where assessee files its return u/s 44AD, it is not under obligation to explain individual entry of cash deposit

CIT Vs. Surinder Pal Anand (Punjab & Haryana High Court)

Section 44AD of the Act was inserted by Finance Act, 1994 w.e.f. 1.4.1994. Sub-section (1) of Section 44AD clearly provides that where an assessee is engaged in the business of civil construction or supply of labour for civil construction, income shall be estimated at 8% of the gross receipts paid or payable to the assessee in the previou...

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Depreciation on assets acquired out of foreign currency loans

DDIT (Int'l Taxation) Vs. Staubil A. G. India Branch Office (ITAT Mumbai)

The assessee has stated that additions to the fixed assets include loss of foreign exchange rates at the year-end which is added to the written down value of the block of assets. This adjustment pertaining to fixed assets i.e. (premises) acquired in India out of foreign currency loans. The assessee was asked as to why such claim should no...

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Cross-border services- Prior to 18-4-2006 services rendered by a non-resident service provider to a resident recipient could not be taxed as a service at the hands of resident recipient

S. R. Batliboi & Associates Vs. UOI (Delhi High Court)

In fact, the Bombay High Court in Indian National Shipowners Association v. Union of India [2009] 19 STT 408 (Bom.) has more than adequately dealt with the entire issue and inter alia concluded that it is only after enactment of section 66A that taxable services received from abroad by a person belonging to India are taxed in the hands of...

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The CIT must give reasons and basis for his conclusion that the order sought to be revised is erroneous

Crisil Ltd. Vs. Addl. CIT (ITAT Mumbai)

The assessee is mainly engaged in the business of rendering rating, advisory, and research and information services, and the assessee also has a unit registered under the software technology park scheme which is granted approval for "development and export of computer software, information technology and enabled services". During the cour...

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Profit on frequent purchase and sale of shares in short period by assessee has to be treated as `income from business’

Harsha N. Mehta Vs. DCIT (ITAT Mumbai)

The activity of frequent buying and selling of shares over a short span of period has to be treated as business being adventure in the nature of trade and the income has to be treated as business income and not as capital gain....

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Payment made for renewal of DOT licence should not fall under section 35ABB as it would fall more appropriately u/s 37

Bharti Airtel Ltd. Vs. ACIT (ITAT Mumbai)

The DOT licence fee paid by assessee is not in the nature of capital expenditure falling under section 35ABB, but the same is revenue in nature, allowable under section 37(1)...

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Just because creditors/share applicants could not be found at address given, it would not give Revenue the right to invoke section 68

CIT Vs. Dwarkadhish Investment (P.) Ltd. (Delhi High Court)

Though in Section 68 proceedings, the initial burden of proof lies on the assessee yet once he proves the identity of the creditors/share applicants by either furnishing their PAN number or income tax assessment number and shows the genuineness of transaction by showing money in his books either by account payee cheque or by draft or by a...

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Roaming charges paid by telecom service providers not in nature of ‘rent’ which attracts withholding tax

On the issue of whether such payments are, alternatively, in the nature of fees for technical services (FTS), liable to tax withholding under any other provision of the ITL, the Mumbai ITAT restored the matter to the Tax Authority for fresh adjudication in the light of the Supreme Court's (SC) directions in the case of Bharti Cellular Ltd...

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Posted Under: Income Tax |

Upon amalgamation rights of amalgamating company devolve upon amalgamated company

Speed line Agencies Vs. T Stanes & Co. Ltd [2010] 160 Comp Cas 33 (SC)- Supreme Court of India

The Supreme Court has, on facts of the case, upheld the decision of Madras High Court that from the scheme of amalgamation becoming effective, proceedings in which the transferor company was a party be continued and enforced by or against the transferee company in the same manner and to the same extent as it could be or might have been co...

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Govt considering Voting rights for NRIs

The government is considering the issue of granting voting rights to Non-Resident Indians and suggestions have been submitted to the Election Commission on the matter, Union minister for overseas Indian affairs Vayalar Ravi said on Sunday. Speaking...

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Posted Under: Income Tax |