"23 July 2015" Archive

Interest from surplus fund taxable as income from other sources

M/s Himlayan Expressway Limited Vs ITO (ITAT Chandigarh)

ITAT Chandigarh held in the case M/s Himlayan Expressway Limited vs. ITO that it is clear that the borrowed funds were not required by the assessee for business purposes. Therefore, the same funds were surplus funds in nature for that period which was utilized for making term deposits on which the assessee earned the interest....

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‘Individual’ Better Than ‘ Firm’ or A ‘Company’ for small Assessees

In the modern income-tax regime the 'individual' status is proving to be better option to assessees keeping in view the tax-saving instruments & tedious/ TDS provisions of income-tax & structure of tax as well as statutory provisions and laws like Indian Companies Act, 2013. ...

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Posted Under: Income Tax |

Big shock to ‘Power’ Sector in GST

Electricity is an important source of commercial energy. In recent years increased price of electricity has raised many socioeconomic and political issues. Although, there are any reasons for rise in the price of electricity but this article high lights the cascading effects of taxes in power sector. The power sector should be included in...

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Posted Under: Income Tax |

Estoppel does not apply against a Statute

HCL Technologies Vs. ACIT (Delhi High Court)

In the present case the Hon’ble High court while deciding two vital issues held that the estoppels does not apply against a statute and Mere expansion of the Existing Units can’t be termed as a separate undertaking in order to claim deductions under section 10A....

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Standby Maintenance Charges could not be termed as technical services u/s 9(1)(vii)

Flag Telecom Group Limited Vs Dy. DIT,( ITAT Mumbai)

In the present case HC held that standby maintenance charges are not technical services within the meaning of section 9(1)(vii). On the issue of Restoration Activities High court held that amount received from restoration activities cannot be termed as business income as the large portion of the cable Network was outside the Jurisdiction...

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Liability to pay additional duty allowable in the year in which such liability arises

Tupperware India Pvt. Ltd. Vs CIT (Delhi High Court)

Even though the excise duty was for manufacturing activity that occurred earlier, the liability to pay such additional duty did not exist in the previous years and as a result, could not have been claimed by the assessee as expenditure in the concerned previous years. ...

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Businessman is best judge to decide its commercial expediency

ACIT Vs Shri Milan N. Shah,(ITAT Mumbai)

In the present facts of the Case, the Hon’ble tribunal held that businessman is the best Judge to find out what is the best for his business and to whom he should employ as the Commercial Expediency is only known to him....

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TNMM is a right method to arrive at ALP when assessee have not taken Substantial Risks

CIT Vs Marubeni India Pvt. Ltd. (Delhi High Court)

In the present facts of the case the Hon’ble High Court held that as the assessee have not taken substantial risks and was a mediator in the international transactions. Hence, Transactional Net Margin Method is a right method instead of Profit Split method....

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Proceedings u/s 263(1) could only be invoked after satisfaction of its Ingredients

Ranglal Bagaria (HUF) Vs CIT (ITAT Kolkata)

In the present case the Hon’ble Tribunal held that for invoking section 263 both the conditions that the order of AO is erroneous as well prejudicial to the interest of Revenue should be satisfied...

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Reassessment could be Initiated if True Facts not Disclosed Earlier

CIT Vs Velocient Technologies Ltd. (Delhi High Court)

In the present case, the Hon’ble High court held that the proceedings of re-assessment could be made if full and true facts have not been disclosed earlier. Also, it was held that section 68 could be invoked if the genuineness of parties are not proved....

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