"11 December 2011" Archive

Expenditure can be disallowed only in the event of non-deduction of TDS & not in cases involving short deduction

Dy. Commissioner of Income Tax Vs. Sandvik Asia Ltd. (ITAT Pune)

Expenditure can be disallowed only in the event of non-deduction of tax at source, and not in the cases involving short deduction, TDS not required to be deducted on exchange rate difference if TDS already been deducted at the time of credit of amount...

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Income-tax Act Benefit u/s. 47(xiv) of the cannot be denied in case there is a delay in allotment of shares to the proprietor on conversion of a proprietary concern into a company

Income Tax Officer Vs Shri. Sanjay Singh (ITAT Delhi)

Income-tax Act Benefit u/s. 47(xiv) of the cannot be denied in case there is a delay in allotment of shares to the proprietor on conversion of a proprietary concern into a company...

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Section 54F Exemption available even if investment is made under joint name with spouse

Commissioner Of Income Tax Vs Ravinder Kumar Arora (Delhi High Court)

CIT Vs. Ravinder Kumar Arora (Delhi HC)- Section 54F mandates that the house should be purchased by the assessee and it does not stipulate that the house should be purchased in the name of the assessee only. Here is a case where the house was purchased by the assessee and that too in his name and wife‟s name was also included additional...

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Sale of Software without granting right to duplicate, amounts to sale of copyrighted article and not the transfer of copyright and therefore not taxable as ‘Royalty’

M/s. Novel Inc. Vs. The Deputy Director of Income- Tax (International Taxation) (ITAT Mumbai)

Novel Inc. Vs. DDIT (Intl. taxation) - The proceeds from sale of Software to Distributors, without granting the right to duplicate / alter / modify the software, cannot be construed as ‘Royalty’, regardless of the fact that the taxpayer choose to describe its product as ‘intellectual value’ in its invoices. The Tribunal held that ...

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Section 194I – TDS not deductible on transmission and wheeling charges paid by power trading companies as same in not rent

M/s. Grid-Co Limited Vs Asst. Commissioner of Income- Tax (ITAT Cuttack)

GRID-CO Limited Vs. ACIT (ITAT Cuttack)-The Tribunal observed that Circular No. 5 and Circular No. 736 had given restricted meaning to the word ‘rent’. However, in view of the decisions relied by the tax department, the word ‘rent’ is to be given a wider meaning. Accordingly, the contention of the taxpayer on this aspect was rejec...

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No functions, assets and risks analysis is required before AY 2002-03 for determination of profits attributable to dependent agent permanent establishment; no further attribution if dependent agent paid arm’s length commission

Director of Income Tax Vs BBC Worldwide Ltd. (High Court of New Delhi)

DIT Vs. BBC Worldwise Ltd. (Delhi HC)- Bombay High Court in Set Satellite (Singapore) Pvt. Ltd. (supra) held that if correct ALP is applied and paid, nothing further rwould be left to be taxed in the hands of the foreign enterprise. In the said case, Morgan Stanley (supra) as well as Circular No.23 issued by the CBDT was taken into consid...

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TPO cannot take cognisance suo moto of any international transaction for adjustment in ALP

Commissioner of Income Tax Vs Amadeus India Pvt. Ltd. (Delhi High Court)

CIT Vs. Amadeus India Pvt Ltd (Delhi HC) - Role of Transfer Pricing Officer (TPO) is limited to determination of the Arm’s Length Price (ALP) in relation to the international transaction(s) referred to him by the Assessing Officer (AO). The TPO, on a suo moto basis, cannot take cognizance of any other international transaction not speci...

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Payments received by a non-resident for Value Added Services (VAS) is partly treated as ‘Royalty’ and partly as ‘Fees for Technical Services’ under India-UK tax treaty

De Beers UK Limited Vs. Dy. Commissioner of Income Tax (Intl. Taxation)-1(2) (ITAT Mumbai)

De Beers UK Limited Vs. DCIT (ITAT Mumbai)- The Tribunal held that the payment for VAS has to be considered partly as royalty under para 3(a) of Article 13 of the tax treaty being the payment for various types of information of commercial nature acquired based on past experience and partly as FTS under para 4(a) of Article 13 of the tax t...

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National Savings Certificates-IX Issued specified as class of Savings Certificates to which Government Savings Certificates Act, 1959 will apply

Notification No. G.S.R. 868(E) (07/12/2011)

Notification No. G.S.R. 868(E), dated 07-12-2011- In exercise of the powers conferred by section 1(3) of the Government Savings Certificates Act, 1959, the Central Government through this notification has specified that National Savings Certificates-IX Issue shall be the class of Savings Certificates to which the said Act applies. Accordi...

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Indirect tax collection rises 16.8 percent during the first eight months of the current fiscal

Indirect tax collections rose 16.8% during the first eight months of the current fiscal to Rs 2,52,544 crore, prompting the Central Board of Excise and Customs (CBEC) to express "optimism" in achieving the revised Budget estimate target.However, Central Excise collections dropped by 6.5% to Rs 11,761 crore in November, mainly on account o...

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