Capital gains liability for non-individual taxpayers under an unregistered Joint Development Agreement (JDA) arises immediately upon execution and granting enjoyment rights (AY 2020-21), based on Section 2(47)(vi) of the Income Tax Act, despite construction delays.
The Supreme Court’s ruling on Permanent Establishment (PE) expands taxability for MNEs, holding that “effective control and continuous direction” through operational continuity, even without a traditional fixed office, constitutes a fixed-place PE under Article 5.
Recent ITAT and High Court rulings confirm the Tax Residency Certificate (TRC) is key to claiming DTAA benefits, reinforcing protection for pre-2017 foreign investments against ‘shell company’ allegations.
ITAT Chandigarh deleted a wrongful addition, condemning tax authorities’ misuse of authority for taxing income a consultant mistakenly declared. The ruling asserts that Income Tax Authorities must assist taxpayers in determining their correct income rather than penalize bona fide errors.
NCLT Delhi held that application for initiation of liquidation of the Corporate Debtor filed under section 33(2) read with section 33(1)(b) of the Insolvency and Bankruptcy Code is allowed in view of non-cooperation of the management.
Tribunal held that cost-to-cost reimbursements for IT support services do not qualify as Fees for Included Services (FIS) under Article 12 of the India-US DTAA, as no technical knowledge was “made available” to the Indian affiliate.
Calcutta HC ruled on challenging a Faceless Assessment order, directing the taxpayer to file an appeal when an objection to the 143(2) notice wasn’t raised earlier.
Indian statutory auditors must embrace IT proficiency and CAATs to manage ERP data and system controls. Non-IT friendly audits risk incomplete evidence, fraud, and reputational damage.
GST rulings clarify ITC eligibility on high-tension electricity infrastructure installed outside factory premises. Movable nature and business use prevent blockage under Section 17(5).
Gujarat High Court held that delay in filing of Income Tax Return due to technical glitches is duly condonable. Accordingly, order quashed and remanded back with direction to file return claiming deduction u/s. 80P of the Income Tax Act.
