Delhi High Court

Goodwill paid for commercial rights in the form of knowhow, technical information, etc. are eligible for depreciation

Commissioner Of Income Tax - IV Vs Hindustan Coca Cola Beverages Pvt. Ltd. (Delhi High Court)

Though the High Court was dealing with a contention that the depreciation on goodwill could be a possible view and agreed with that view, the decision highlights that it may be possible to claim depreciation on goodwill where the facts demonstrate t...

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Cross-border services- Prior to 18-4-2006 services rendered by a non-resident service provider to a resident recipient could not be taxed as a service at the hands of resident recipient

S. R. Batliboi & Associates Vs. UOI (Delhi High Court)

In fact, the Bombay High Court in Indian National Shipowners Association v. Union of India [2009] 19 STT 408 (Bom.) has more than adequately dealt with the entire issue and inter alia concluded that it is only after enactment of section 66A that taxable services received from abroad by a person belonging to India are taxed in the hands of...

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Just because creditors/share applicants could not be found at address given, it would not give Revenue the right to invoke section 68

CIT Vs. Dwarkadhish Investment (P.) Ltd. (Delhi High Court)

Though in Section 68 proceedings, the initial burden of proof lies on the assessee yet once he proves the identity of the creditors/share applicants by either furnishing their PAN number or income tax assessment number and shows the genuineness of transaction by showing money in his books either by account payee cheque or by draft or by a...

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Tax holiday not available to a foreign branch carrying on-site software development and full-fledged marketing operation

CIT V/s Interra Software India P. Ltd. (Delhi High Court)

The above ruling provides that tax holiday under section 10A would be available to a foreign office, i.e. a branch carrying on-site software development only if it is a liaison office. An independent branch carrying out full -fledged marketing operat...

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Profits from off-shore supply of equipment would not be taxable if transfer of title to purchaser takes place abroad- De

DIT V/s LG Cable (Delhi High Court)

The principles regarding taxability of income from offshore supplies under a turnkey contract undertaken by a foreign company in India have been laid down by the Supreme Court in Ishikawajma-Harima Heavy Industries Ltd. The above decision of the Delh...

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It is not permissible for the Assessing Officer to place himself in the position of the management of the assessee and take it upon himself to decide how much would be a reasonable expenditure for a particular business purpose

CIT Vs. Micromatic Machine Tools P. Ltd. (Delhi High Court)

While dismissing the appeal filed by the Revenue, it was noted by the Tribunal that nothing had been brought on record, by the Assessing Officer, to suggest that the expenditure was not incurred for the business purpose of the assessee. In the opinion of the Tribunal, if somebody, other than the assessee, benefited from the expenditure in...

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Renting of Immovable Property-There shall be no recovery of service tax from the service provider in respect of renting of immovable property alone

Home Solutions Retails Ltd. Vs. UOI (Delhi High Court)

In this writ petition there is a challenge to section 65(105)(zzzz) of the Finance Act, 1994 inasmuch as it purports to levy service tax on the renting of immovable property to be used for commercial / business purposes. This provision has been recently amended by the Finance Act, 2010 with retrospective effect from 1-6-2007....

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Goodwill is intangible asset u/s 32(1)(ii) and eligible for depreciation

Commissioner Of Income Tax Vs Hindustan Coca Cola Beverages Pvt. Ltd. (Delhi High Court)

On merits, s. 32(1)(ii) allows depreciation in respect of know-how, patent, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature. The term “commercial rights” are such rights which are obtained for effectively carrying on business and commerce. “Commerce” is a wide term which en...

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Raid on sister concern not ground for terminating contract

Meroform (India) Pvt. Ltd. Vs The Union Of India & Anr. (Delhi High Court)

An Enforcement Directorate raid on a sister concern connected with the Commonwealth Games scam is not a ground to terminate a contract, a division bench of the Delhi high court has declared. The Apparel Export Promotion Council had invited tenders and offered the contract for the February 2011 textile fair to an events management company,...

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Depreciation allowable on Assets forming part of Block of Assets even if same not used during the year

Commissioner Of Income Tax Vs M/s. Oswal Agro Mills Ltd. (Delhi High Court)

Pursuant to the insertion of the concept of “block of assets” w.e.f. 1.04.1988, depreciation is allowable on the WDV of the “block of assets” and individual assets lose their identity upon introduction into the block. The department’s argument that user of each and every asset is essential is not acceptable because it would mean...

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