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Archive: 19 February 2012

Posts in 19 February 2012

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

May 15, 2024 6435 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.

Interest payable U/s. 220(2) to be computed from the date of fresh assessment order if original been set aside

February 19, 2012 32253 Views 1 comment Print

in case the assessment is set aside by the CIT(A) and setting aside become final, interest u/s. 220(2) has to be charged only after the expiry of 35 days from the date of service of demand notice pursuant to the fresh assessment order. In the case of the assessee, since the original order of assessment was confirmed by the CIT (A) but on further appeal, the Tribunal set aside the order of the CIT(A) and the issue restored to the AO, it was held that in terms of the circular, the interest u/s. 220(2) has to be charged only from the date of fresh assessment order.

Payment under inter-linked contracts for manufacturing attracts TDS u/s 194C – Karnataka High court

February 19, 2012 2247 Views 0 comment Print

The assessee, Nova Nordisk Pharma India Ltd, an Indian Company was engaged in marketing of pharmaceutical products. It was a subsidiary company of NOVA Nordisk, Singapore. One of the products (insulin in medically presentable form), was manufactured by M/s. Torrent Pharmaceuticals Limited (Torrent) and supplied to the assessee company. The raw material was supplied by a foreign company NOVA Nordisk, Denmark. Torrent pursuant to the contract, was required to sell entire output only to the assessee company in India.

Section 50C – Fair market value determined by DVO cannot be replaced for full value of consideration

February 19, 2012 3335 Views 0 comment Print

The language in section 55A does not refer the ‘value of consideration’ but only uses the term ‘Fair Market value’. So the scope of the section gets con-fined to determine the fair market value of a capital asset only. Thus, considering the language of section 48 the value so deter¬mined cannot be substituted for ‘Full value of consideration’. – Section 50C states that the AO can refer to DVO u/s. 55A only if the assessee claims that the value adopted by the stamp valuation authority exceeds their fair market value or the value so adopted by stamp valuation authority has not been disputed by any authority, Court or High Court.

Authority for Advance Rulings (Income-tax) – FAQs

February 19, 2012 9660 Views 2 comments Print

The Advance rulings can be sought on any question of law or fact specified in the application in relation to a transaction which has been undertaken, or is proposed to be undertaken, by the non¬resident applicant. Even a resident applicant may seek rulings regarding tax liability of a non¬resident in relation to a transaction with the resident applicant. In case of a public sector undertaking advance rulings may be sought on an issue of fact or law relating to computation of total income, pending before an Income-tax Authority or the Appellate Tribunal.

TP Adjustments to be restricted to international transactions and cannot form the basis for rejecting books of accounts

February 19, 2012 831 Views 0 comment Print

Whether adjustment should be restricted only to the international transactions or can be extended to the entire turnover of the taxpayer? 2. Are the books of accounts liable to be rejected if there is a transfer pricing adjustment? 3. Prior to 1.10.2009, is the benefit of standard deduction of-+5% under the proviso to section 92C(2) of the Act available to the taxpayer?

Interest on I-T refund received by foreign company taxable as interest income

February 19, 2012 2728 Views 0 comment Print

Whether the interest on income-tax refund is to be considered as interest income falling within Article 11(2) of the tax treaty or as interest income attributable to permanent establishment or fixed base in India falling under Article 11(5) read with Article 7 of the tax treaty? 2. whether the expression ‘attributable’ as used in Article 11(5) of the tax treaty has to be construed as equivalent / narrower to the term ‘effectively connected’ as used under Interest Article in other tax treaties with India and thereby squarely covered by the Special Bench decision of Clough Engineering Ltd.

Section 80IA- Industrial Parks becoming operational and applying for registration after 31 March 2006 not eligible for tax holiday under erstwhile Industrial Park Scheme, 2002

February 19, 2012 813 Views 0 comment Print

Petitioner had filed the application for registration on 23rd September, 2006 after the 2002, Scheme had come to an end, as the scheme was applicable only upto 31 st March, 2006. The industrial park set up by them was not operational/functional by 31st March, 2006. It became operational on a subsequent date. The completion certificate for the said park issued by the Pune Municipal Corporation is dated 29th August, 2007. The petitioner cannot, therefore, claim notification under the 2002, Scheme.

Section 50C not applicable to tenancy rights and unregistered document

February 19, 2012 9028 Views 0 comment Print

On applicability of Section 50C of the Act in absence of registered document -Capital gain has to be computed on the basis of sale consideration received or accruing to the taxpayer. Even if the document was not registered, the capital gain has to be computed on the basis of the sale consideration shown and received by the taxpayer unless there was material to show that the sale consideration was understated. In this case, the document was not registered and no stamp duty had been paid. Therefore, stamp duty value cannot be adopted for the purpose of computation of capital gain and the value shown in the agreement has to be adopted as there is no material to show that the taxpayer had understated the sale consideration.

Payment of commission to Indian agent at arm’s length price does not relieve non-resident from further attribution of profits to PE in India

February 19, 2012 1433 Views 0 comment Print

MTV Asia LDC Vs. DCIT ITAT Held that The taxpayer did not provide any documentary evidence to substantiate various expenses incurred as well as no separate books of accounts were maintained for Indian operations. Therefore, application of Rule 10 of the Income-tax Rules 1962 prescribing computation of income on reasonable basis in case of non-resident is justifiable. Copies of tax computations filed with Singapore tax authorities reflect substantial losses to the taxpayer in respect of Global Operations. Therefore, margin applied by the AO are high. The transponder charges and programme charges constitute 95.88% of the revenue.

Non-availability or non-association of independent witness cannot be a ground for discharge or acquittal in all cases

February 19, 2012 2656 Views 0 comment Print

The non-availability or non-association of independent witness cannot be a ground for discharge or acquittal in all cases. It would depend upon the facts and circumstances of each case and the evidentiary value of the prosecution witnesses could not be undermined at the stage of framing of charges. It is moreso when the prosecution has cited some panch witnesses to be examined in support of its case. The impugned order discharging the accused/respondents apparently suffers from illegality and has caused miscarriage of justice. At the stage of charge, what is to be seen by the Trial Court was laid down by the Supreme Court in the catena of judgments. Reference is made to the judgment in case State of Bihar v. Ramesh Singh, AIR 1977 SC 2018.

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