"18 June 2011" Archive

Whether quantum of deduction under section 80IA is directly proportional to the profits of the undertaking and hence it has nothing to do with investment made in plant and machinery?

Mahanagar Telephone Nigam Limited Vs Addl. CIT (ITAT Delhi)

Mahanagar Telephone Nigam Limited Vs Addl.CIT (ITAT Delhi)- Whether proportionate deduction under section 80IA is permissible where major amount of profits is attributable to new setup and meagre amount is attributable to old set up in view of the amended provisions of of clause (iv)(c) of 80-IA and 80IA(4)(ii) - Whether quantum of deduct...

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Assessee entering into separate agreements for supply of materials, erection and for civil work portion, etc.-No tax deducted on payment made for supply of materials-Applicability of section 194C

Karnataka Power Transmission Corporation Ltd. Vs. Asst. CIT (ITAT Bangalore)

When parties enter into two separate contracts, one for material and one for labour, the transaction would not be one and indivisible, but would fall into two separate agreements, one of work or service and the other of sale. In such a case, the provisions of section 194C would apply only to the labour contract and not to the materials co...

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Notification No. 34/2011- Income Tax Dated 16-6-2011

Notification No. 34/2011- Income Tax 16/06/2011

Notification No. 34/2011- Income Tax - In exercise of the powers conferred by clause (6C) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies that any income arising to M/s. Rolls Royce Defense Services Inc., with principal place of business at 2001, South Tibbs Avenue, Indianapolis, Indiana 46...

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Poultry Sheds used for the business of hatching constitutes ‘Plant’ for the purpose of depreciation under section 32

CIT Vs Shivalik Hatcheries Pvt. Ltd. (Himachal Pradesh High Court)

CIT v Shivalik Hatcheries Pvt. Ltd. - ITAT, on the basis of the material placed before it came to the conclusion that the building of the poultry shed has been specifically designed with a view to protect the birds from disease. It has been designed to ensure proper lighting and circulation of air; proper and scientific feeding arrangem...

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Partners liable to prosecuted u/s. 278B if there are specific averments in complaint that they were responsible for every act or act of omission and commission of the firm at the time when offence was committed

Deepak Engineering Works and Others Vs CIT and Others (Patna High Court)

Deepak Engineering Works and Others v CIT and Others (Patna High Court)- , section 278B, makes it clear that onus lies on the Partners or Directors to prove that they are not responsible for any of the offence committed by a firm / company. First proviso to section 278B(1), quoted above, makes it clear that onus lies on the Partners or Di...

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MCA issues Clarification on Dispute Between SEBI and Sahara Group

The Ministry of Corporate Affairs has clarified, that Sahara Prime City limited, a Sahara Group company intending to go for an IPO, had filed information about its group companies to SEBI in its Draft Red Herring Prospectus. SEBI as market regulator vested with the mandate of investor protection, upon noticing inadequacy in material discl...

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Posted Under: Income Tax |

Taxpayer’s functional profile and place in the value chain can be a key determinant of the parameters of economic analysis

ST Microelectronics Private Limited Vs. CIT(A) (ITAT Delhi)

ITAT Delhi has recently pronounced its ruling in the case of ST Microelectronics Private Limited v. CIT(A), wherein it upheld the revenue’s rejection of transfer pricing analysis undertaken by the taxpayer since the taxpayer had improperly characterized itself as a low-risk software service provider and accordingly, selected wrong compa...

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Inactivity for a limited period does not mean that business ceased to exist. Accordingly, expenditure is allowable even though no business income is earned during such period

Bechtel International Inc. Vs. ADIT (ITAT Mumbai)

Recently ITAT Mumbai in the case of Bechtel International Inc., USA v. ADIT held that mere inactivity for a limited period does not mean that the taxpayer’s business ceased to exist or that it did not carry on any business at all. Expenditure incurred during the said period of inactivity / lull is allowable even though the taxpayer has ...

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Repatriating foreign nationals permitted to retain India bank account

The Reserve Bank of India (RBI) has issued AP (DIR Series) Circular No. 70, dated June 9, 2011 permitting Authorized Dealer Category – I banks [AD] to re-designate resident accounts of repatriating foreign nationals as Non-Resident (Ordinary) [NRO] accounts. This will enable foreign nationals to receive their bona fide dues even after...

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Posted Under: Income Tax |

Access to information on Swiss accounts made easier by Swiss Parliament

The Swiss Parliament today gave approval to amendments to tax treaties with countries, including India, making it easier for to access information about the illegal funds held by their nationals in Swiss private banks. The upper house of the Swiss Parliament endorsed amendments to double-taxation agreements in line with internationally ap...

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Posted Under: Income Tax |

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