The CIT(A) however agreed with alternate plea of the assessee that if the assessee proves to the satisfaction of the Assessing Officer that the payments made by the assessee are included by the payees in their returns of income, and taxes have been paid by them thereon, the Assessing Officer may modify the demand raised u/s 201(1).
Clause (d) inserted in section 801B[10) with effect from April 1, 2005, is prospective and not retrospective and hence could not be applied for the period prior to April 1, 2005. Since deduction under section 801B[1Oj were on the profits derived from the housing projects approved by the local authority as a whole. ITAT held that once the project is approved by the local authorities, then deduction has to be allowed on the whole of the project .
The Ld. Counsel submits that company has been paying the Directors remuneration as a profit commission as per the provisions of the Companies Act, 1956, after determination of the profits. The assessee-company also is performance incentives to the Managers. He submitted that Mr. S. Rao was Chairman & Managing Director of the assessee company who withdrew from the active participation of the company’s business and Mr. Anil S. Rao was paid a commission of Rs.81,39,200/- @ 8% of the profit which as per the resolution passed by the Board. We have also heard Ld. D.R. We find that the profit commission which is paid to the Director is approved in the general meeting (G.M.) of the shareholders and required evidence was filed before the Ld. CIT (A).
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State Bank of India has decided to allow its old home loan borrowers, paying high interests, to move to the new lower rates, which were offered to other borrowers later, by paying 1% of the outstanding amount as conversion fee.
ITAT held that profits from participation of cargo under ‘Slot Arrangement’ are not eligible for benefit of Article 8 of the India-Germany tax treaty (the tax treaty) in case the mother vessels are not owned, hired or chartered by the taxpayer.
Capital gain on buy-back of shares is taxable under Section 46A of the Act in the hands foreign company – S. 46A, which provides that in the case of a buyback, the difference between the consideration and the cost of acquisition shall be deemed to be capital gains is a special provision and prevails s. 45. S. 47 overrides s. 45 but not s. 46A. There is no reason to enquire whether s. 46A is a charging section or not. The result is that even if the exemption in s. 47(iv) is held applicable, it does not override s. 46A and the applicant is subject to capital gains.
Assessee had disclosed full and true particular relating to claim of depreciation at time of original assessment then assessing officer has no jurisdiction to issue notice under section 148 of the Act, after the period of four year from the end of relevant assessment year. We, therefore, issue a writ of certiorari quashing the notice under Section 148 of the Act.
