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Archive: 21 August 2011

Posts in 21 August 2011

Free YouTube Live on The global landscape –  from market’s to trade

May 24, 2024 45 Views 0 comment Print

Join us for an insightful and dynamic YouTube Live session on “The global landscape –  from market’s to trade.” with renowned financial analyst Ankit Baid, MBA Finance. The presentation explores shifting of the global economic landscape, focusing on the decline of US dominance and the rise of China. It examines the potential decrease in global […]

Live Course on Appeal, Pleading & Drafting under GST by CA Sachin Jain

May 15, 2024 7389 Views 0 comment Print

oin us for an immersive live course led by renowned expert CA Sachin Jain, as we delve into the intricacies of appeal, pleading, and drafting under GST.

Fees paid to a foreign company for rendering testing and certification services cannot be treated as income deemed to accrue or arise in India under Section 9(1)(vii) of the Income-tax Act

August 21, 2011 1953 Views 0 comment Print

Havells India Ltd Vs ACIT (ITAT Delhi)- It has been held that where services have been rendered outside India and have been utilised for the purpose of making or earning any income from any source outside India, such payments would fall outside the purview of Section 9(1)(vii) of the Act and will not be deemed to accrue or arise in India.

Fees received by KPMG for assisting an Indian Company in acquisition of Sugar mills in Brazil is not Fees for Technical Services under the Income-tax Act

August 21, 2011 1802 Views 0 comment Print

ITO Vs Bajaj Hindustan Ltd. (ITAT Mumbai)- There is not dispute that the payment in question made by Assessee to KPMG is in respect of services which otherwise fell within the definition of FTS as given in the Act. The dispute is whether the exceptions mentioned in clause (b) to Sec.9(1)(vii) of the Act would apply so that it can be said that the fees in the nature of FTS has not accrued or arisen to KPMG in India.

Income of non-resident attributed to its PE in India taxable as business profits; balance income not to be taxed as fee for technical services – ITAT Mumbai

August 21, 2011 998 Views 0 comment Print

Nippon Keiji Kyokoi Vs ITO (ITAT Mumbai)- Notwithstanding a change in the position by the assessee, the Tribunal has held that the effective connection with the permanent establishment in India has to be determined based on a functional test in the case of fees for technical services . Furthermore, the Tribunal also upheld that if the services are said to have been effectively connected with the permanent establishment, the income would be taxable only as business profits to the extent of attribution and the balance income would not be liable to tax in India as fees for technical services .

Expenditure incurred by the assessee-company, incorporated for carrying out the business of the BPO, prior to the setting up of business, cannot be taken into account for computing the business income

August 21, 2011 471 Views 0 comment Print

ITO Vs Omni Globe information Technologies India (P) Ltd (ITAT Delhi)- Business is set up when it reaches a stage where it is in a position to procure business and not before. However, the expenditure becomes deductible from such stage, irrespective of the date of actual receipt of the business. The assessee-company had been incorporated on 19 March 2004 for carrying out the business of the BPO. It incurred the expenditure of Rs 59,24,809 under various heads in the months of April and May, 2004. Although the staff had been recruited, it was not ready to render services as the staff had to be trained with the systems.

ESOP Holding period to be reckoned from the date of exercise of option to buy shares and not from the earlier date of grant of options

August 21, 2011 2555 Views 0 comment Print

ACIT Vs Pramod H. Lele (ITAT Mumbai)- The Stock Option Plan had granted only an ‘option to buy’ a specified number of shares in a specified timeframe at a specified price, subject to the fulfilment of other conditions set out in the plan. There was no compulsion on the part of the assessee to acquire the shares. In other words, the Stock Option Plan only allowed the assessee to get benefit from the increase in the market price of the shares between the date of grant and the date of sale of shares. Therefore, where only stock options were issued and stood in the name of employees and no payment was made until the date of exercise, mere grant of an option does not result in a transfer of shares.

Amendment brought to cast TDS liability on individuals and HUF u/s. 194C do not applies to AY 2007-08

August 21, 2011 2917 Views 0 comment Print

Shri Prashant H Shah Vs ACIT (Ahmedabad ITAT)- It is further important to mention that vide an amendment with effect from 1/6/2007 an individual or HUF have also been inducted vide sub-clause (k) in section 194C(1) of the IT Act. At this juncture, it is worth to hold that as far as the AY in hand is concerned, i.e. AY 2007-08, this latest amendment of section 194C(1)(k) of the Act being introduced with effect from 01/06/2007 has no applicability.

Reassessment after four years on change of opinion not valid

August 21, 2011 1042 Views 0 comment Print

CIT, Chennai Vs M/s Simpson & Co. (Madras High Court)- There must be a nexus between the material at the hands of the Officer and formation of belief that there was escapement of wealth from assessment on account of the failure of the assessee to disclose fully and truly, all material facts. In the absence of any nexus or any one of the requirements, the reassessment proceedings could not be upheld as one falling under Section 17 of the Wealth Tax Act.

Provisions of Section 72A would be applicable only when ‘amalgamating company’ and not ‘amalgamated company’ has accumulated losses

August 21, 2011 24220 Views 0 comment Print

Wrigley India Private Ltd. v ACIT (ITAT Delhi)- Whether the Tax Officer has, inter alia, erred in disallowing the claim of brought forward losses and unabsorbed depreciation of the Taxpayer post amalgamation? The Tribunal agreed with the position taken by the Taxpayer by holding that: – The conditions specified in Section 72A(2) of the IT Act are applicable only when amalgamating company has brought forward losses and unabsorbed depreciation. However, in the Taxpayer‟s case, the amalgamating company does not have brought forward losses and unabsorbed depreciation and hence, the provisions do not apply

Non-Implementation of SAFTA by Pakistan

August 21, 2011 435 Views 0 comment Print

Pakistan maintains a ‘Positive List’ of 1945 items which are allowed to be imported from India. Under SAFTA, Pakistan operates a sensitive list (negative list) of 1169 items. This issue is being discussed at the ongoing rounds of bi-lateral trade talks between India and Pakistan. At the Commerce Secretary level talks in April 2011, Pakistan side has in-principle agreed to move from ‘Positive List’ to ‘Negative List’ trade regime. Pakistan has also recognized that grant of MFN status to India would help in expanding the bilateral trade relations.

Cooperative Housing Society (Delhi) – Frequently Asked Questions

August 21, 2011 34367 Views 24 comments Print

1 .How a cooperative housing society can be formed? An application for registration in Form No. 1 should be signed by 60 members who are forming the society. Along with the application the following documents should also be filed. Four copies of the proposed byelaws duly signed by each of the signatory to the application.

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