Carriages which run under public transport system fall under category of stage carriages where passengers have a right to board or alight according to their choice and convenience and pay fares for the journey individually, do not fall under definition of ‘tourist vehicle’ under Section 2(43) of the Motor Vehicles Act.
Sapient Corporation Pvt Ltd vs. DCIT (ITAT Delhi) – When loss making companies have been taken out from the list of comparables by the TPO, Zenith Infotech Ltd. which showed super profits should also be excluded. The fact that assessee has himself included in the list of comparables, initially cannot act of estoppel particularly in light of the fact that the AO had only chosen the companies which are showing profits and had rejected the other companies which showed loss (Quark System vs. DCIT 38 SOT 307 (SB) followed).
ACIT vs. Clough Engineering Ltd (ITAT Delhi – Special Bench)- Under Article 11(4) of the DTAA, interest from indebtedness “effectively connected” with a PE of the recipient is taxable under Article 7 and not under Article 11. Though the interest was connected with the PE in the sense that it has arisen on account of TDS from the receipts of the PE, it was not “effectively connected” with the PE either on the basis of asset-test or activity-test. The payment of tax was the responsibility of the foreign company and the fact that it was discharged by way of TDS did not establish effective connection of the indebtedness with the PE. In order to be “effectively connected”, it is not necessary that the interest income has to be necessarily business income in nature. Even interest assessable under “other sources” can qualify.
ITO vs. Hemandas J. Pariyani The issue is whether the amount received by the society and its member on account of transferable development rights is taxable under capital gains. The issue in dispute is covered by the decision of the ITAT in the case of Jethalal v DCIT wherein it was held that transferable development rights granted by the Development Control Regulations for Greater Mumbai, 1991, qualifying for equivalent floor space index having no cost of acquisition, sale thereof does not give rise to taxable capital gains. Since the facts of the case under consideration is identical to that of the decision of the ITAT in the said case, the CIT(A) was justified in directing the AO not to charge capital gains tax on the compensation received by the assessee even on a protective basis. Amount received by the society and its member on account of transferable development rights is not taxable under capital gains.
S. 194C defines work to include carriage of goods and passengers by any mode of transport other than railways while s. 194-I defines rent to mean payment for use of plan (which is defined in s. 43 to include vehicles). As the cars were owned and maintained by the contractor and all expenditure was borne by the contractor, the contract was for carriage of passengers for which the assessee paid a fixed amount. Therefore, the payment of vehicle hire charges fell within the scope of s. 194C and was not rent for s. 194-I.
The term transfer used in Article 12(4) does not refer to absolute transfer of right of ownership. The assessee, a non-resident company engaged in the business of providing consultancy for infrastructure projects, entered into an agreement with the National Highway Authority of India (NHAI) for providing technical drawings and reports to NHAI for its infrastructure projects. The assessee was required to investigate the availability and viability of various modern technologies to ensure most economical cost estimate without affecting the quality of work. The scope of the services included preparation of the detailed project report, which covered the entire design for rehabilitation and strengthening of the existing carriage ways and required structures. It also included the study of environmental resettlement and rehabilitation needs as per the guidelines of the Government of India.
The Appellants are engaged in the manufacture of sugar mills machinery, heavy gears and steel casting, paper mill machinery, Diesel Engines etc. They also do de-shelling and re-shelling of old and worn out sugar mill rollers which are sent to them by various sugar mills when such rollers become old and worn out and requires reconditioning before further use.
The Lakshmi Vilas Bank Ltd Vs Addl.CIT, Tiruchirapalli (ITAT Chennai) -Where the AO has considered all the points, on the basis of which the CIT initiated proceedings u/s 263, following the decision of the ITAT and High Court in the case of the assessee itself, proceedings initiated u/s 263 are not valid as it is not prejudicial to the interests of the Revenue.
Turnkey contracts can be vivisected and discernible service elements involved therein can be segregated and classifiable as well as valued for levy of service tax under Finance Act, 1994 provided such services are taxable services as defined by that Act and depending on the facts and circumstance of each case, services by way of advice, consultancy or technical assistance in the case of turnkey contract shall attract service tax liability.
Recently ITAT Mumbai held that in the case of Chiranjeev Lal Khanna v. ITO held that considering the facts of the case and clauses in the agreement, the taxpayer has transferred land and building to the developer would be chargeable to tax as capital gains. Accordingly, Section 50C of the Income-tax Act, 196 1(the Act) would be applicable.
