"23 December 2015" Archive

Draft Guiding Principles for determination of Place of Effective Management (POEM) of a Company

F. No. 142/11/2015-TPL (23/12/2015)

F. No. 142/11/2015-TPL Section 6(3) of the Income-tax Act, 1961, prior to its amendment by the Finance Act, 2015, provided that a company is said to be resident in India in any previous year, if it is an Indian company or if during that year, the control and management of its affairs is situated wholly in India. This allowed tax avoidance...

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Note on definition of factoring business

Factoring works mainly on the principle of seller selling the receivables of a debtor to a specialized financial intermediary called a factor. The sale of the receivables takes place at a discount and the ownership of the receivables is transferred to the factor who shall on purchase of receivables, collect the dues from the debtor [&hell...

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Posted Under: Income Tax |

Transfer of lease right in land and transfer of building being two different assets, Sec.50 applicable only on transfer of building

DCIT Vs J.B. Eng. Works (ITAT Mumbai)

ITAT Mumbai held In the case of DCIT vs. J.B. Eng. Works that that the assessee had transferred independent interests in two different assets and therefore the Capital Gains arising on the assignment of leasehold interest in the land being a capital asset was rightly offered for tax as Long...

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Issue & service of notice u/s 143(2) not applicable to assessment u/s 153A

Shri Jeevan Kumar Agarwal Vs. ACIT (ITAT Lucknow)

ITAT Lucknow held In the case of Shri Jeevan Kumar Agarwal vs. ACIT that there is no specific provision in the Act requiring the assessment made under section 153A to be after issue of notice under section 143(2). In the case of Ashok Chaddha vs. CIT...

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TPO can reject transfer pricing study report based on multiple year data and use only current year data

DCIT Vs M/s. Parametric Technology (India) Pvt. Ltd. (ITAT Bangalore)

ITAT Bangalore held In the case of DCIT vs. M/s. Parametric Technology (India) Pvt. Ltd. that the use of current year’s data is mandated by the relevant I.T. Rules, 1962 and by not adhering to this, the assessee's TP Study was rendered unreliable. ...

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No fresh notice u/s 143(2) required in case of change in jurisdiction officer in later proceedings

M/s Treadstone International Vs ACIT (ITAT Lucknow)

ITAT Lucknow held In the case of M/s Treadstone International vs. ACIT that we find no merit in the contention of the assessee that every time new Officer should issue a notice u/s 143(2). Whenever jurisdiction is transferred from one Officer to other Officer the subsequent officer...

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S. 263 Only Can to hold further enquiries in case of inadequate enquiry by AO

A2Z Maintenance and Engineering Services Ltd. Vs CIT (ITAT Delhi)

ITAT Delhi held In the case of A2Z Maintenance and Engineering Services Ltd. vs. CIT that the Hon'ble Jurisdictional High Court in the case of DIT vs Jyoti Foundation 357 ITR 388 (Delhi) held that where the order u/s 263 records that the inquiries were not sufficient and further inquiries...

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Sec.10A- Communication cost in absence of profit element is to be excluded from total & export turnover

Pegasystems Worldwide India Pvt. Ltd. Vs ACIT (ITAT Hyderabad)

In the case of Pegasystems Worldwide India Pvt. Ltd. Vs. ACIT Hyderabad Bench of ITAT directed the AO to reduce communication cost not only from export turnover but also from the total turnover for the purpose of computation of deduction as per Explanation 2 to section 10A....

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Revenue cannot file appeal against voluntarily decision of AO/TPO

Trend Micro India Pvt. Ltd. Vs. DCIT (ITAT Delhi)

In this case of Trend Micro India Pvt. Ltd. Vs. DCIT Delhi Bench of ITAT observed that whether revenue can argue against the order passed by AO in pursuance to the directions of DRP. The ITAT held that it is not permissible to argue any issue decided by AO by DR before tribunal....

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Notification No. 147/2015-Customs (N.T.), Dated: December 23, 2015

Notification No. 147/2015-Customs (N.T.) (23/12/2015)

NOTIFICATION NO. 147/2015-CUSTOMS (N.T.) In exercise of the powers conferred by the second proviso to clause (ii) of sub- section (2) of section 61 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs, being satisfied that it is necessary so to do in the public interest, hereby specifies the class of goods, name...

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CD’ is an admissible ‘documentary evidence’ : SC

Shamsher Singh Verma Vs State of Haryana (Supreme Court of India)

In the case of Shamsher singh verma vs. State of Haryana, the Apex court on the point of admissibility of evidence held that the ‘compact disc’ is also a document within the meaning of Section 3 of Indian Evidence Act, 1872....

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TDS Provision is applicable only when payment is made in ‘monetary terms’

CIT Vs Bruhat Bangalore Mahanagar Palike, In the (Karnataka High Court at Bengaluru)

In CIT vs. Bruhat Bangalore Mahanagar Palike, the Karnataka High Court on the issue of applicability of TDS provision held that section 194LA only applies to compulsory acquisition of land and not on voluntary acquisition....

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Re-opening being exceptional power, revenue to comply pre-requisite condition of ‘reasons’ strictly

Muller & Philpps (India) Ltd Vs ITO (ITAT Mumbai)

In the case of Muller & Philpps (India) Ltd vs. ITO, Hon’ble ITAT Mumbai held that the position of law is clear. It has been held by Hon’ble Supreme Court in the case of GKN Driveshaft 259 ITR 19, that it is mandatory on the part of the AO to provide the copy of the reasons to the assessee...

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Tribunal Power to grant stay is confined only to appellate order

Pr.C.I.T. Vs ITAT Delhi Bench, New Delhi & Another (Punjab & Haryana High Court at Chandigarh)

The Hon’ble (P&H) High Court in the case of Pr.C.I.T. vs ITAT Delhi Bench, New Delhi and anothers while dealing with the scope of power of Tribunal for grant of stay against the prosecution proceedings held that once...

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It is not the ‘profit from export’ but ‘profit of business’ which is to be considered in formula u/s 10B(4)

Riviera Home Furnishing Vs Addl. Commissioner of Income Tax (Delhi High Court)

In Riviera Home Furnishing vs. Addl. CIT, Hon’ble Delhi High Court while dealing with the interpretation of Section 10B(4) held that the manner of determining such eligible profits has been statutorily defined in sub-section (4) of section 10B of the Act....

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Section 10B: Duty Drawback is not the income derived from undertaking

Assistant Commissioner of Income Tax Vs Smt. Ranjana Johari (ITAT Jaipur)

ITAT Jaipur held in case of ACIT Vs. Smt. Ranjana Johari that if change made in the wooden article which resulted in to a new and different article then it would amount to manufacturing activity. The assessee, Ranjana Johari, had undertaken different activities to shape up...

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SEBI Meeting on Implementation of OECD Principles of Corporate Governance, Spot Price Determination of Commodities etc.

PR No. 297/2015 (23/12/2015)

PR No. 297/2015 Sixth Meeting of the International Advisory Board of SEBI The Sixth meeting of the International Advisory Board (IAB) of the Securities and Exchange Board of India (SEBI) was held on December 21 & 22, 2015. The following major issues were inter alia discussed during the meeting: i.        Implementation of OECD ...

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ITAT delete Addition for Low GP ratio calculated without considering Income disclosed during survey

DCIT Vs Shri Jitendra Maganlal Shah (ITAT Ahemdabad)

DCIT Vs Shri Jitendra Maganlal Shah (ITAT Ahemdabad) Assessee surrendered Rs.81,77,930/- during the course of survey proceedings covering the excess stock investment, expenses, etc. The assessee had declared a net profit @ 9.16% if the amount surrendered is taken into account...

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Cash Deposit in Undisclosed Bank A/c – ITAT deletes penalty as assessee declares Peak Cash as Income in Revised Return

Shri Jasmindersinh Grewal Vs Dy. Commissioner of Income Tax (ITAT Ahmedabad)

The assessee’s sole substantive ground challenges correctness of section 271(1)(c) penalty of Rs. 5 lacs imposed by the Assessing Officer as affirmed in the lower appellate proceedings. He had filed return on 30-04-2007....

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RBI extends deadline for exchange of Banknotes issued prior to 2005 to 30.06.2016

RBI/2015-16/275 DCM (Plg) No.G-8/2331/10.27.00/2015-16 (23/12/2015)

The Reserve Bank of India has, on a review, decided to extend the date for the public to exchange their pre-2005 banknotes till June 30, 2016. However, from January 01, 2016, such facility will only be available at identified bank branches (https://www.rbi.org.in/Scripts/Regionaloffices.aspx) and Issue Offices of the Reserve Bank. The Res...

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Notification No. 146/2015-Customs (N.T.) Dated- 23rd December, 2015

Notification No. 146/2015-Customs (N.T.) (23/12/2015)

Notification No. 146/2015-Customs (N.T.) Central Board of Excise and Customs hereby appoints the Principal Commissioner of Customs (Import), Inland Container Depot, Tughlakabad, New Delhi to act as a Common Adjudicating Authority to exercise the powers and discharge the duties conferred or imposed on the officers mentioned in Column 3 in...

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MAT on foreign companies for the period prior to 1.04.2015-reg

Instruction No. 18/2015 (23/12/2015)

Instruction No. 18/2015 With effect from 01.04.2001, the provisions of section 115JB shall not be applicable to a foreign company (including an FII/FPI) if:- (i) the foreign company is a resident of a country with which India has a Double Taxation Avoidance Agreement and such foreign company does not have a permanent establishment in acco...

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