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ITAT - Mark up of managerial services post incorporation - There can be no mark-up on reimbursement of expenses incurred by the assessee prior to incorporation.
New Delhi Television Ltd. Versus ACIT, Circle 13 (1), New Delhi and Dy. CIT, Circle 13 (1) New Delhi
(2016) TaxCorp(LJ) 10911 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=50895&Category=ITAT&CategoryType=Zip
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S. 37(1): Foreign exchange loss is not a "notional" or "speculation" loss and is allowable as a deduction. CBDT's Instruction No. 3 of 2010 which deals with foreign exchange derivative transactions (forward contracts) is not applicable to cases of losses in dealings with foreign exchange
CIT vs. Vinergy International Pvt. Ltd
(2016) TaxCorp(LJ) 10893 (HC-BOMBAY) · Section 37(1)
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Transfer Pricing: Argument that transaction of extending credit period to AEs cannot be regarded as “international transaction” in the absence of any income arising therefrom is not acceptable. Observations in Vodafone vs. UOI 368 ITR 1 (Bom) are in a different context. The transaction of extending credit period to AEs is closely linked with the transaction of providing services to the AE and is not a separate transaction. Both transactions have to be aggregated for determination of ALP
Tally Solutions Pvt. Ltd vs. ACIT
(2016) TaxCorp(LJ) 10892 (ITAT-BANGALORE)
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Transfer Pricing: The TPO is required to be consistent in matters relating to selection of comparables. If a comparable has been included or rejected in an earlier year, he is not entitled to take a different view in a later year if there is no change in circumstances
Hyundai Rotem Company vs. ACIT
(2016) TaxCorp(LJ) 10891 (ITAT-DELHI)
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HC - Deduction allowed u/s 43B to assessee in respect of employees’ contribution to PF deposited after PF Act due-date but before return filing due- date.
Bihar State Warehousing Corporation Ltd. vs. CIT
(2016) TaxCorp(LJ) 10890 (HC-PATNA) · Section. 43B
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Conduct of the Counsel in making selective reference to the Tribunal’s order in “very deceitful manner” is “highly deplorable”. Attempt to re-argue matter is “clear case of abuse of process of court” and is condemned “in no uncertain terms as it resulted in colossal waste of valuable time of this Tribunal”. Verdict in Dr. T.K. Dayalu (202 TM 531 (Kar) on taxability of development agreements is “not good law” in view of CIT vs. N. Vemanna Reddy (Kar)
Triad Resorts & Hotels P.Ltd vs. WTO
(2016) TaxCorp(LJ) 10879 (ITAT-BANGALORE)
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S. 28: Income from letting of property on rent by an assessee engaged in the business of letting is assessable as "business profits" u/s 28 and not as "Income from house property" u/s 22
Rayala Corporation Pvt. Ltd vs. ACIT
(2016) TaxCorp(LJ) 10878 (SC) · Sections 22, 28
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S. 14A is applicable even where the motive of the assessee in acquiring the shares is to obtain controlling interest in a company and not to earn dividends
United Breweries Limited vs. DCIT
(2016) TaxCorp(LJ) 10877 (HC-KARNATAKA) · Section 14A
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ITAT - Even though assessee was shown as the co-owner of the property, source of funds for investment in purchase of the property was by assessee’s husband. The entire STCG arising on sale of the property is to be assessed in the hands of assessee’s husband and not in assessee’s hands.
ITO Vs. Dr. Vandana Bhulchandani
(2016) TaxCorp(LJ) 10865 (ITAT-MUMBAI)
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HC - Interest on non-performing assets not taxable on accrual basis in a co-operative bank hands in view of RBI norms relating to income recognition and assets classification.
Pr. CIT. Vs. Shri Mahila Sewa Sahakari Bank Ltd.
(2016) TaxCorp(LJ) 10864 (HC-GUJARAT)
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HC - Assessee was entitled to claim setoff of loss carry forward from its old business activity in new business activity.
Master Silk Mills (P) Ltd. vs. DCIT
(2016) TaxCorp(LJ) 10863 (HC-GUJARAT)
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ITAT - No disallownce u/s 40A(3) in view of Rule 6DD as assessee made cash deposits directly in payee’s bank account.
Ramnagar Pachwai & C.S. (S) Shop vs. ITO
(2016) TaxCorp(LJ) 10862 (ITAT-KOLKATA) · Section. 40A(3)
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HC - Allotment of shares pursuant to application in Public Issue not purchase' under Explanation to Sec. 73.
AMP Spinning & Weaving Mills Pvt. Ltd. vs. ITO
(2016) TaxCorp(LJ) 10861 (HC-GUJARAT) · Section. 73
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ITAT - Amount remitted by an Indian subsidiary to its 100% Mauritian holding company under share buy-back scheme is not taxable in India. No TDS u/s Sec 195.
Korn Ferry International Pvt. Ltd. Vs. ACIT (OSD)
(2016) TaxCorp(LJ) 10860 (ITAT-MUMBAI)
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ITAT - Amount received by a US individual for rendering software development services to an Indian entity is not taxable under Article 15 (Independent personal services) of India-US DTAA.
ITO(IT). vs. Susanto Purnamo
(2016) TaxCorp(LJ) 10859 (ITAT-AHMEDABAD)
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ITAT - Addition on account of non-charging of interest on advance given towards supply of equipment by the assessee to its AE deleted.
M/s. Essar Steel Orissa Ltd., (Since merged with Essar Steel India Ltd.) Versus The ACIT, Range 5 (1), Mumbai
(2016) TaxCorp(LJ) 10858 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=50733&Category=ITAT&CategoryType=Zip
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ITAT - Business not running - According to the section 37, the expenses incurred to preservation and protected the assets of the company are liable to be deducted.
M/s. Sterlite Infra Ltd. (Earlier known as Sterlite Paper Ltd.) Versus Income Tax Officer 2 (3) (3), Mumbai and ACIT 2 (3), Mumbai
(2016) TaxCorp(LJ) 10857 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=50734&Category=ITAT&CategoryType=Zip
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ITAT - The discount on debentures as well as the premium payable on actual redemption on debentures in future years and the expenditure incurred for issue of such debentures are all held to be revenue expenditure.
M/s. Siemens Building Technologies Pvt Ltd. C/o. Siemens Ltd. Versus The Commissioner of Income Tax I, Chennai and Vice-Versa
(2016) TaxCorp(LJ) 10856 (ITAT-CHENNAI) · http://taxcorp.in/FileOpenDT.aspx?ID=50735&Category=ITAT&CategoryType=Zip
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ITAT - The goodwill receipt is only an advance and can be chargeable to tax as part of total sale consideration, when the ownership get transferred. Hence, addition made by the AO is deleted.
S. Malla Reddy, Hyderabad Versus Income-tax Officer, Ward – 8 (3), Hyderabad
(2016) TaxCorp(LJ) 10855 (ITAT-HYDERABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=50065&Category=ITAT&CategoryType=Zip
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ITAT - Subscription charges paid to pay channels - The expenditure incurred is in the nature of direct expenditure, therefore, not coming under any of the provisions of section 30 to 38 of the Act, therefore, no disallowance can be made for want of non deduction of tax at source.
ITO, Ward-4 (2), Visakhapatnam Versus Waltair Communications Pvt. Ltd. and Vica-Versa
(2016) TaxCorp(LJ) 10854 (ITAT-VISAKHAPATNAM) · http://taxcorp.in/FileOpenDT.aspx?ID=50736&Category=ITAT&CategoryType=Zip
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