"14 January 2012" Archive

Section 10A deduction is available to a new unit even though STPI approval refers to it as expansion of existing unit

ACIT Vs. Symantec Software India P. Ltd. (ITAT Pune)

ACIT Vs. Symantec Software India P. Ltd. (ITAT Pune)- Based on the specific facts of the case, the Tribunal has reiterated that the fulfillment of the conditions of section 10A(2) is of utmost importance for claiming a deduction under section 10A. A reference to the new undertaking as expansion by the STPI would not dis-entitle the assess...

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Income received by a foreign company for granting film distribution rights not ‘royalty’

ADIT (IT) Vs. Warner Brother Pictures Inc (ITAT Mumbai)

ADIT (IT) Vs. Warner Brother Pictures Inc (ITAT Mumbai)- even if income arises to the Non-Resident due to the business connection in India, the income accruing or arising out of such business connection can only be taxed to the extent of the activities attributed to permanent establishment. In this case, the assessee does not have any per...

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Loss arising on sale of shares of wholly owned subsidiary deductible as business loss

Deputy Commissioner of Income Tax Vs. Colgate Palmolive India Limited (ITAT Mumbai)

DCIT Vs. Colgate Palmolive India Limited (ITAT Mumbai)- Camelot was a 100% subsidiary of the appellant and the appellant had deep business interest in Camelot. The main reason for setting up Camelot was to manufacture toothbrushes exclusively for the appellant. The appellant was relying upon Camelot for manufacturing of toothbrushes to be...

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Rate applicable to LTCG cannot be applied for gain on depreciable asset

Asst. Commissioner of Income Vs M/s. SKF Bearings India Ltd. (ITAT Mumbai) ITA No. 616/Mum./2006

ACIT Vs. SKF Bearings India Ltd. (ITAT Mumbai) - Sections 54EC and 74 refer to capital gain arising from the transfer of a long term capital asset and not with respect to a short term capital asset. Further, section 112(1 )(b)(i) and (ii) specifically refers to only long term capital gains. Hence, where section 50 by a legal fiction, dee...

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FAQ on New Schedule VI to the Companies Act, 1956

What is the date of applicability of the New Schedule VI? The New Schedule VI is applicable to all companies for financial statements prepared for financial year commencing on or after 01.04.2011 except banking, insurance and electricity companies which are governed by their own reporting formats under the respective pronouncements....

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Posted Under: Income Tax |

Transfer Pricing – ITAT Explains Law On Adjusting For Differences In Comparables

Demag Cranes & Components (India) Pvt. Limited Vs. DCIT (ITAT Pune)

Demag Cranes & Components (India) Pvt. Limited Vs. DCIT (ITAT Pune)- provisions of 10B(1)(e)(iii) of the Income tax Rules, 1962, which provides for the adjustments in the context of TNMM. From the above, it is explicitly clear that the for the arriving at the arm’s length price (ALP) as per TNMM, the net profit margin […]...

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Procedure for Filing Income Tax Settlement Application- Admission, Validation and settlement of the Application

Procedure for Filing Settlement Application Settlement application is to be filed only in the prescribed Form No.34-B notified under the Income Tax Rules, 1962. The form has to be signed by the applicant himself. The Form has to be properly filled up. An incomplete Form is liable to be rejected. In order to be admitted by ...

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Posted Under: Income Tax |

Income Tax Settlement Commission – Frequently Asked Questions

1. What is meant by Settlement in respect of tax disputes? How is it different from the appellate process? Settlement of disputes relating to Income Tax and Wealth Tax is based on the objective of dispute resolution Alternate. It is in the nature of mediation or arbitration. The Settlement orders passed by the Income Tax Settlement Commis...

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Posted Under: Income Tax |

Provisions of DTC Bill, 2010 relating to Settlement Commission

1. Time-Limit - DTC has kept the time limit for passing final settlement orders under Section 245D(4) at 18 months, as in the IT Act, 1961, however has increased various internal time-limits as under:...

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Posted Under: Income Tax |

Exemption to Trust U/s. 11 of Income Tax Act can not be denied if Payment made to concerns covered U/s. 13(3) not excessive

DDIT(E)- II Vs. M/s. Rock Church Ministries (ITAT Hyderabad)

DDIT(E)-II Vs. M/s. Rock Church Ministries (ITAT Hyderabad ) The purpose of section 13(1)(c) is to deprive a religious or charitable trust from exemption if it is found that its income is used or applied, directly or indirectly, for the benefit of the specified persons. Section 13(1)(c) carves out a general exception wherein the provision...

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