"28 October 2012" Archive - Page 2

Interest on debt capital borrowed from shareholders can not be disallowed as thin capitalization rules not in force

Director of Income-tax, International Taxation-II, Mumbai Vs Besix Kier Dabhol SA (Bombay high Court)

During the course of the proceedings before the Tribunal the revenue contended that the borrowings on which the interest has been claimed as a deduction are in fact capital of the assessee and brought only under the nomenclature of loan for tax consideration. It was the case of the appellant-revenue before the Tribunal that debt capital i...

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Insurance of vehicles used in transportation of goods / employees is input service

Manikgarh Cement Vs Commissioner of Central Excise & Customs, Nagpur (CESTAT Mumbai)

The definition of 'input service' provided under rule 2(l) of CENVAT Credit Rules, 2004 covers a gamut of activities relating to the business undertaken by the manufacturer or the service provider. In the case under consideration the appellant has used the vehicles owned by them either for transportation of their employees or for transpor...

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No S. 80(IB)(10) denial for mere delay in permission for business

Commissioner of Income-tax - IV Vs Tarnetar Corporation (Gujarat High Court)

In the present case, therefore, the fact that the assessee had completed the construction well before 31st March, 2008 is not in doubt. It is, of course, true that formally BU permission was not granted by the Municipal Authority by such date. It is equally true that explanation to clause (a) to section 80-IB(10) links the completion of t...

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Disallowance of consultancy charges partly u/s. 40A(2) without determining market value not justified

Commissioner of Income-tax Vs Modi Revlon (P.) Ltd. (Delhi High Court)

In order to determine whether the payment is not sustainable, the Assessing Officer has to first return a finding that the payment made is excessive under section 40A (2). If it is found to be so, then the Assessing Officer has to determine what constitutes the fair market value of the services rendered and disallow the difference between...

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Interest u/s 132B is allowable on entire sum seized regardless of any post-assessment adjustments

G.L. Jain Vs Commissioner of Income-tax-XI (Delhi High Court)

Section-132B(4) cannot be construed or interpreted in a manner as to defeat the rights of the assessee/writ petitioner to the property itself. The fact that it limits the liability to the point of time when assessment is completed would mean that authorities have to be alive of this fact and release the amount within reasonable time....

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Commissioner (Appeals) do not have power of remand under Service Tax Laws

Commissioner of Service Tax, Kolkata Vs Devansh Exports (CESTAT Kolkata)

Thus in case of service tax also the Commissioner (A) is not empowered to remand the matter, he has to decide the matter by himself. Therefore the order of ld. Commissioner (Appeals) remanding the case to the lower authority, is not sustainable. ...

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No penalty levied on Akhilesh yadav for violation of Sec. 269SS, as reasonable cause was exist

Deputy Commissioner of Income-tax, Circle-5 Vs Akhilesh Kumar Yadav (ITAT Agra)

In the instant case, the AO did not dispute the genuineness of the transaction entered into between the assessee and Samajwadi Party and no addition had been made in this regard. Instead of cash, if the assessee had taken loan through cheque, it would have taken some time for process in clearing. Since the amount was deposited and withdra...

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Where liaison office of assessee merely co-ordinated its purchases in India, it could not be regarded as assessee’s PE in India

Deputy Director of Income-tax (International Taxation) Vs M. Fabricant & Sons Inc. (ITAT Mumbai)

Section 9 does not seek to bring into the tax net the profits of a non-resident which cannot reasonably be attributed to operations carried out in India. Even if there be a business connection in India, the whole of the profit accruing or arising from the business connection is not deemed to accrue or arise in India. It is only that porti...

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Error in e-filling of Income tax Return can be rectified u/s. 154 application

Shrikant Real Estates (P.) Ltd. Vs Income-tax Officer (ITAT Mumbai)

In the present system of e-filing of return which is totally depended upon the usage of software, It is possible that some clerical errors may occur at the time of entering the data in the electronic form. The return is prepared electronically which is converted into an XML file either through the free down loaded software provided by the...

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Roads inside & within boundary wall of premises are part of factory buildings

Commissioner of Income-tax, Jaipur Vs Sunshine Glass Indus (P.) Ltd. (Rajasthan High Court)

In Hukamchand Mills Ltd. v. CIT [1978] 114 ITR 870 (Bom.), the roads laid out within factory premises were regarded as part of factory buildings and were entitled to depreciation. In the case of CIT v. Lucas TVS Ltd. [1977] 110 ITR 346 (Mad.), the word 'building' was held to include roads laid in the proximity of factory for the purpose o...

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