Saraf Chemicals Ltd. Vs DCIT (ITAT Mumbai)- If the expenditure is made for the initial outlay or for the expansion of the business or a substantial replacement of the equipment, then it would fall under the capital expenditure.
DCIT Vs Rupen Das (ITAT Kolkata)- The assessee was engaged in providing security guards to various Government and non-Government organisations and regular payment to the employees was essential to provide better services.
DCIT Vs Rediff.com India Limited (ITAT Mumbai) – Certificate issued by a Chartered Accountant has no decisive impact on tax ability of income in the hands of a non-resident but it is only prima-facie evidence about the tax ability.
DCIT Vs Rediff.com India Limited (ITAT Mumbai)- A.O. disallowed the claim of bad debts on the ground that the transactions pertain to the current year and the same was written off by the assessee in the same year itself.
Diageo India Private Limited Vs. DCIT (ITAT Mumbai)- ITAT held that the contractor of bottling unit of the taxpayer and the overseas Diageo group entities are Associated Enterprises (AEs) and transaction entered between them are covered by the provisions of the Indian transfer pricing regulations.
DCIT v. ABAQUS Engineering Pvt Ltd (ITAT Chennai) – Recently, the Chennai Bench of Income-tax Appellate Tribunal in the case of ABAQUS Engineering Pvt Ltdheld that the payment made for supply of software is not ‘royalty’ since it is ‘copyrighted software’ and not copyright in the software. The Chennai Tribunal relied on the Mumbai Tribunal’s decision of TII Telecom International Pvt Ltd and Delhi Tribunal Special Bench decision of Motorola Inc, where it has been held that the supply of software does not amount to any transfer of copyright but only transfer of copyrighted article.
ACIT Vs M/s. Khanna & Annadhanam (ITAT Delhi)- Briefly, the controversy is that assessee is a firm of Chartered Accountants and carrying on profession as such. During the year the assessee had shown a sum of Rs. 1,15,70,000/- in the capital account of the partners as received from an international consultancy firm Deloitte Touche Tohmatu International (DTTI). The amount was not reflected by the assessee in its P&L a/c but directly credited to partners accounts.
Shri Shibu Soren Vs. ACIT and 4 others (ITAT Delhi)- If there is any undisclosed income and there is a search, addition of such undisclosed income is to be made in block.It is observed by the Honourable Jurisdictional High Court in this case that where the department is aware of the existence of an asset, then the department may be fully justified in issuing notice u/s 148 if the department feels that there is any undisclosed income.
Dresser Rand India Pvt. Ltd. Vs ACIT (ITAT Mumbai)- The integral tests for a Cost Contribution Arrangement to be considered at arm’s length are: that the services were availed, the costs have been allocated in a reasonable and an impartial manner and there is documentation to demonstrate the receipt of services.
Emersons Process Management India Pvt Ltd. Vs. Add. CIT (ITAT Mumbai)- The fact that this company was selected as one of the comparables, by assessee himself, in the preceding assessment year cannot be put against the assessee, as whether or not a comparable is to be included must depend on its merits rather than be solely guided by events of an earlier year – particularly when assessee is successfully able to demonstrate that the entity sought to be used as comparable is not engaged in same or materially similar business at least in the present year.
