Pradeep Oil Corporation Vs. Municipal Corporation of Delhi and ANR (Supreme Court) Income Tax & Direct Taxes – Municipalities & Local Governments – Delhi Municipal Corporation Act, 1957, ss. 20(2) and 119 – Government Grant Act, 1895 – Property Tax – Lease or License – The President of India under the Government Grant Act, 1895, granted separate and distinct licenses to the appellant for maintaining depot for storage of petroleum products at a yearly license fee – Appellant had also given the right to erect/construct ‘petroleum installation buildings’ consisting of petroleum tanks, buildings and other conveniences for receiving and storing petroleum in bulk, and consequently possession of land had been given – Appellant raised various constructions comprising of an administration block etc.
Recently ITAT Mumbai in the case of Standard Chartered Bank (Taxpayer) (ITA No. 3827/ MUM/ 2006) on the issue whether data processing charges paid by the Taxpayer would constitute ‘royalty’ under the Indian Tax Laws (ITL) and the India – Singapore Tax Treaty (Tax Treaty) held that the payments were made for use of a facility and not any process. Furthermore, in the absence of control or physical access to any equipment, it cannot be said that the payment was made for any use or right to use the equipment. Hence, payment would not amount to ‘royalty’ under the ITL and the Tax Treaty and would be business income not chargeable to tax in absence of PE.
This appeal by special leave has been filed by the appellant Tmt. Rangammal against the order dated 11.07.2002 passed by the learned single Judge of the High Court of Judicature at Madras in Second Appeal No. 703/1992 by which the appeal was dismissed by practically a summary order although the substantial question of law which was formulated at the time of admission of the appeal was as follows: “Whether the sale deed executed by the de facto guardian on behalf of the minor without the permission of the court could be held to be valid ?
On 6th October, 2010, all the above-mentioned 13 members of the Karnataka Legislative Assembly, belonging to the Bharatiya Janata Party, hereinafter referred to as the “MLAs”, wrote identical letters to the Governor of the State indicating that they had been elected as MLAs on Bharatiya Janata Party tickets, but had become disillusioned with the functioning […]
HLS India Ltd. (2011) 11 taxmann.com 83 (Delhi) – The wireline logging and perforation services provided to oil companies amount to manufacturing and production of article or thing and therefore provider of such services will be regarded as industrial undertaking for the purposes of section 32A, 80-IA and 80-IB. The wireline logging and perforation equipment employed by taxpayer is eligible for 100% depreciation even though the service provider is not itself producing any oil nor is engaged in the activity of oil drilling.
Videocon Industries Limited Vs- Union of India and Anr – Supreme Court of India rejects petition under Section 9 of Arbitration & Conciliation Act, 1996 holding that application of Part I of the Act has been excluded. The judgment is indeed another good sign in the line of progressive and positive decisions in cases of international commercial arbitration. It comes soon after the Dozco Case and holds that when the substantive law of the arbitration agreement is a foreign law as selected by the parties, it necessarily implies that the parties had agreed to exclude the provisions of Part I of the Act. This judgment too, like the Dosco Case comes as another positive decision portraying the changing outlook of Indian judiciary towards international arbitrations.
The Delhi bench of the Income-tax Appellate Tribunal recently pronounced its ruling in the case of Haworth (India) Private Limited v. DCITwherein it upheld Revenue’s contention that arm’s length price can be determined under transactional net margin method even with one comparable company. Besides, the decision also deals with several other important aspects of the manner of application of TNMM, viz. method of making adjustments to the results, use of current year data, benefit of +/- 5% range and functional comparability.
Mr. Bharat Gandhi, Advocate, Mumbai has informed us that in respect of the parties whose cases are pending in DRTs, if one approaches the Supreme Court under Article 32 of the Constitution, the Supreme Court is issuing ex-parte stay orders restraining further action under the SARFEASI Act. The matters are tagged with the case of Khaja Industries in respect of which the vires of notification has been challenged, issued by the Central Govt in 2003, by which the co-operatives banks are invoking provision of SARFEASI Act. Mr. Bharat Gandhi has obtained such stays in few cases recently.
Siva Industries & Holdings Ltd vs. ACIT (ITAT Chennai) -Once there is no claim of income which does not form part of the total income under the Act, there cannot be any disallowance in relation to an investment which may or may not give rise to any Oincome which does not form part of the total income. In the present case it is noticed thatnone of the investments made by the assessee has generated any dividend income which has been claimed by the assessee ato be not to form part of the total income. In the circumstances, as it is noticed that the assessee does not have any income which does not form part of the total income nor has the assessee made such a claim, we are of the view that no disallowance under sec. 14A can be made on the assessee for the relevant assessment year.
A tax tribunal has ruled that service tax will apply on the proposed GMR-led joint venture in Special Economic Zone to provide maintenance, repair and overhauling (MRO) facilities to domestic and foreign airlines. The ruling was given by the Authority of Advance Rulings (AAR) on an application filed by the MAS-GMR Aerospace Engineering Company, a joint venture of GMR, Hyderabad International Airport Limited, Hyderabad and Malaysian Aerospace Engineering, SDN-BHD, Malaysia.
