"10 February 2019" Archive

Payment to non-resident to purchase advertisement space for resale to advertisers in India constitutes Royalty

Google India (P.) Ltd. Vs Jt. DIT (ITAT Bangalore)

Payment to non-resident towards purchase of advertisement space for resale to advertisers in India constituted ‘Royalty’ under section 9(1)(vi) and assessee was under an obligation to withhold tax under section 195....

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Penalty U/s. 271(1)(c) not sustainable on failure of AO to strike off inappropriate words in show-cause notice U/s. 274

Ratan Kumar Paul Vs DCIT (ITAT Kolkata)

Where show cause notice issued under section 274 read with section 271(1)(c) did not specify charge against assessee as to whether it was for concealing particulars of income or furnishing inaccurate particulars of income, levy of penalty could no be sustained....

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S. 195 not applies to Foreign agent commission & reimbursement of expenditure not taxable in India

Kannan Devan Hills Plantations Co. (P) Ltd. Vs ACIT (ITAT Cochin)

Foreign agent commission and reimbursement of expenditure were not taxable in India and hence, section 195 had no application....

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Capital gain when assessee given developer possession & permission to construct property

Adinarayana Reddy Kummeta Vs ACIT (ITAT Hyderabad)

Where assessee did permit developer to enter into premises and do all necessary things for construction of apartments and assessee handed over the possession, provisions of section 2(47) got attracted....

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Interest cannot be disallowed for mere advancing of Interest-free advances to third parties

PCIT Vs Reebok India Company (Delhi High Court)

Merely because non-interest bearing advance was given to third parties, the same would not justify that the test of ‘commercial expediency’ was not satisfied by assessee. Hence, disallowance of proportionate interest made by AO was not justified, as the same was given for business purposes....

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ITAT on section 80-IA(4) deduction claimed by filing revised return

Sharp Designers and Engineers India Pvt. Ltd. Vs ACIT (ITAT Pune)

Assessee’s case with both original and revised returns filed in time was placed in a better position, therefore, deduction under section 80-IA was allowable, despite the same was claimed through filing of revised return....

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Remedy U/s. 264 could not be treated as regular remedy by passing regular remedy of appeals

Nataraju (HUF) Vs PCIT (Karnataka High Court)

Remedy under section 264 could not be treated as regular remedy by passing regular remedy of appeals. Where assessee preferred petition under section 264 deliberately avoiding availing of regular remedy, it was rightly rejected and therefore, writ petition was to be dismissed....

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Overview of TDS and TCS Provisions

Compliance of TDS and TCS provisions is one of the important aspects for every business. However, it is also a tricky issue since there are so many provisions and also due to frequent insertion of new provisions. Non Compliance with these provisions leads to payment of Interest, Late Filing Fee, Penalties and also punishable with [&hellip...

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Posted Under: Income Tax |

No disallowance U/s. 40A(3) on Payment by debtor directly to creditor of assessee through banking channel

M/s. Lion Mercantile P. Ltd. Vs ITO (ITAT Mumbai)

Where assessee’s debtor directly made payment through banking channel to assessee’s creditor to square up their account, provisions of section 40A(3) would not be attracted....

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Making incorrect claim in law would not by itself make assessee liable to penalty U/s. 271(1)(c)

CIT Vs L & T Finance Ltd. (Bombay High Court)

Making of incorrect claim in law would not by itself amount to concealment of income or giving inaccurate particulars of income. Since revenue had not been able to show even remotely that there was any concealment of income or filing of inaccurate particulars of income, appeal was to be dismissed....

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