The Tribunal has reiterated the principle that a certificate from the tax authorities of the other country regarding residency and beneficial ownership would be a sufficient evidence for beneficial ownership. The Ruling seems to suggest that although
The Tribunal accepted most of the contentions of the assessee. The ruling assumes significance since it has held that selection of right goods and negotiation of price as per the instructions of the Head Office though a part of the purchasing activit
Navayuga Info tech Private Limited Vs DCIT (ITAT Hyderabad)- Expenditure incurred on foreign travel, spent in foreign exchange, is to be reduced from the export turnover for the purpose of the computation of the deduction under s 10A. Interest on term deposits, profit on exchange variation, etc, do not form part of the profits and gains derived from the industrial undertakings qualifying for the exemption under s 10A.
The onus lying on the assessee to prove the nature and source of the credit is not discharged if the creditors in whose names amount is standing in the books of the assessee denied to have any knowledge of such credits. It is for the assessee to bring to the A.O. Shri R.N. Parikh and furnish necessary evidence that in fact, it was he who was using the accounts of the two persons and paying the money to the assessee on their behalf.
For arriving at the above conclusion, strength is drawn from the decision of Mumbai `L’ Bench of the Tribunal in the case of UCB India P. Ltd. v. ACIT [121 ITD 131 (Mum.)] where it was held that section 92C read with Rule 10B(1)(e) deals with Transactions Net Margins Method (TNMM) and it refers to only net profit margin realized by an enterprise fro
Ingredient about a bona fide claim is that assessee should be able to show or prove some intermediate steps in whole process of transaction; if it is not able to give evidence in respect of any step in whole process of transaction then it can be said that explanation furnished by assessee is not bona fide and is nothing but a bald claim for purposes of section 271(1)(c).
If the facts of the case are tested on the ratio of aforesaid decisions, in our considered opinion, the Id. Commissioner cannot deny renewal of registration on the ground that the assessee had claimed double deduction in respect of depreciation as well as capital expenditure i or had not applied the requisite income for the objects. If the assessee had claimed certain depreciation to which it was not entitled the recognition under section 80-G cannot be denied.
Penalty proceedings- Mere submitting a claim which is incorrect in law would not amount to giving inaccurate particulars of income of assessee, but if claim besides being incorrect in law is malafide, Explanation 1 to section 271(1)(c) comes into play and work to disadvantage of assessee.
If all speculative transactions will be claimed as hedging transactions, very purpose behind the provisions of section 73 not permitting set off of speculative loss against business income will become redundant.
Business disallowance under section 40(a)(ia) – Payment to resident without deduction of tax-Amendment in section 40(a)(ia) by the Finance Act, 2010-Nature of amendment-Amendment made by the Finance Act, 2010 in section 40(a)(ia) is of clarificatory nature and hence would apply retrospectively from 1-4-2005.
