"27 February 2011" Archive

Harshad Mehta case- I-T dept to get Rs 1996 cr

Keeping with an interim order passed by the Supreme Court in connection with the disbursement of funds of Harshad Mehta Group (HMG),the Bombay High Court has directed the custodian of assests of the late stock broker to release Rs 1995.66 crore to the Income Tax department, to clear their dues....

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Posted Under: Income Tax |

SEBI slaps Rs 25 lakh fine on Central Bank of India

Market Regulator SEBI today imposed a penalty of Rs 25 lakh for alleged violation of various norms pertaining to debenture trustee. The Sebi order said that Central Bank of India functioned as debenture trustee for IL&FS even when there was loan outstanding. The loan was given by the Central Bank of India....

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Posted Under: Income Tax |

Significant tax proposals by Gujarat, Kerala, Karnataka and MP States in their State Budget 2011

Significant tax proposals by Gujarat, Kerala, Karnataka and Madhya Pradesh States in their State Budget announced in February, 2011...

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Posted Under: Income Tax |

Royalty agreement renewed is in substance a new agreement & therefore entitled to lower rate of withholding tax

Income Tax Officer (International Taxation) Vs. M/s. National Engineering Industries Ltd. (ITAT Kolkata)

National Engineering Industries Ltd. (the taxpayer) had entered into a License & Technical Assistance agreement with Brenco Inc., USA on 19th August, 2002 which expired on 25th June, 2007. Under the agreement the taxpayer was required to pay a certain amount as royalty to Brenco Inc....

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Transfer Pricing- Documentation is required to be maintained contemporaneously on an annual basis

Air tech Private Limited Vs. Deputy Commissioner of Income Tax (ITAT Delhi)

The Delhi bench of the Income Tax Appellate Tribunal (Tribunal) recently pronounced its ruling in the case of Airtech Private Limited (Appeal no. ITA 3591 Del )/2010) on documentation aspect of transfer pricing (TP). The Tribunal held that contemporaneous TP Documentation was to be maintained by the taxpayer annually as the transaction wa...

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Transfer pricing- Tribunal provides guidance on recovery of pre-commencement costs

M/S Convergys Information Management (India) (F) Ltd. Vs. DCIT [ITA No. 299/Hl/2009]

The Hyderabad Bench of the Income-Tax Appellate Tribunal [the Tribunal] has in the case of M/S Convergys Information Management (India) (F) Ltd. v. DCIT [ITA no. 299/Hl/2009] , held that in a cost plus arrangement expenses incurred post the date of entering into agreement has to be marked up, as no customer would pay mark up before enteri...

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In case of wrong availment of CENVAT Credit Interest payable from date of availment and not from date of utilization- SC

Union of India Vs. M/s Ind-Swift Laboratories Ltd (Supreme Court of India)

The Supreme Court thus held that the attempt of the High Court to read down the provision by way of substituting the word “OR” by an “AND” is erroneous and therefore interest in case of wrong availment of cenvat credit has to be paid from the date of availment of credit and not date of utilisation....

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B/F business losses can be set off against other sources of income which are in the nature of business income, though chargeable to tax under another head of income

Gagan Trading Co. Ltd Vs. DCIT (ITAT Mumbai)

Though currently dividend income is exempt, the above decision lays down a principle that brought forward business loss can be set off against other sources of income which are in the nature of business income, though chargeable to tax under another head of income. Similar position has also been affirmed by the Mumbai Tribunal2 wherein it...

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Non-issue of s. 143(2) notice renders s. 147 assessment order invalid

UKT Software Technologies Vs. ITO (ITAT Delhi)

It is mandatory for the AO to issue notice u/s 143 (2). The issuance and service of notice u/s 143 (2) is mandatory and not procedural. If the notice is not served within the prescribed period, the assessment order is invalid...

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Proviso to Section 14A bars reassessment but not original assessment on the basis of the retrospective amendment

Honda Siel Power Products Ltd Vs. DCIT (Delhi High Court)

The proviso to Section 14A only bars reassessment/rectification and not original assessment on the basis of the retrospective amendment. The proviso does not stipulate and state that Section 14A of the Act cannot be relied upon during the course of the original assessment proceedings. The Assessing Officer was, therefore, required to disa...

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