Types of expenditure that can be allowed as amortisation under section 35DD of the Income Tax Act, 1961

Case: D.C.I.T.,CIRCLE-8(1) vs ASIAN HOTELS EAST LTD, KOLKATA ITAT Outcome: In favour of Assessee Facts For Assessment Year 2012-13, the Assessee had filed a return of income showing total income of Rs. 25.61 Crs. The case of the Assessee was selected for scrutiny through CASS.In the course of assessment under section 143(3) of the Act, … Continue reading Types of expenditure that can be allowed as amortisation under section 35DD of the Income Tax Act, 1961

Methodology selected by taxpayer for determining Fair Market Value of shares: Jurisdiction of a Tax Officer to ignore/ reject such selection and valuation methods adopted by taxpayer

Case: VBHC VALUE HOMES PVT LTD vs INCOME TAX OFFICER, WARD - 7(1)(3), BANGALORE ITAT Outcome: Remand Facts During the year under consideration, the Assessee had obtained a valuation report from Chartered Accountant to the value of the shares of the Assessee wherein DCF method was recommended at Rs.527/- per share.However, the Assessing Officer was … Continue reading Methodology selected by taxpayer for determining Fair Market Value of shares: Jurisdiction of a Tax Officer to ignore/ reject such selection and valuation methods adopted by taxpayer

Documents seized during search of a person other than the person against whom assessment proceedings are initiated under section 153A: Basis for passing order under section 153C

Case: DY. COMMR. OF INCOME TAX, CEN. CIR.-1 vs LATE SHRI PRAVINSINH N. ZALA, RAJKOT ITAT Outcome: Assessee Facts A search was conducted at the premises of the company namely M/s Amidhara Developers Pvt. Ltd., where certain documents belonging to Assessee were found. Accordingly, the Assessing Officer initiated proceedings under section 153C of the Act … Continue reading Documents seized during search of a person other than the person against whom assessment proceedings are initiated under section 153A: Basis for passing order under section 153C

Waiver of loan by the creditor: Taxability as a perquisite under Section 28 (iv) vs taxability as a remission of liability under Section 41 (1)

Case: THE INCOME TAX OFFICER, WARD-3, SRIKAKAULAM vs SRI VASAVI POLYMERS PRIVATE LTD, VISAKHAPATNAM ITAT Outcome: Assessee Facts During the course of assessment proceedings, the Assessing Officer found that the Assessee had received the benefit of Rs.1.70 crores as a result of one time settlement of loan by the Indian Overseas bank. The Assessee was … Continue reading Waiver of loan by the creditor: Taxability as a perquisite under Section 28 (iv) vs taxability as a remission of liability under Section 41 (1)

Issue examined under original assessment proceeding: Whether re-opening in such case is justified

Case: THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1) vs K V MOHANA RAO AND CO PRIVITE LTD, VISAKHAPATNAM ITAT Outcome: Assessee Facts The Assessee had filed its return of income by admitting total income of Rs. 23.82 crores. Subsequently, a revised return was filed on 18.04.2014 admitting total income of Rs. 21.82 crores. In the … Continue reading Issue examined under original assessment proceeding: Whether re-opening in such case is justified

Discount provided to distributors on prepaid SIM cards: Liability to deduct tax at source under section 194H

Case: VODAFONE IDEA LTD vs ACIT, TDS, CUTTACK ITAT Outcome: Assessee Facts A survey under section 133A of the Act was conducted on 29.9.2011 in the premises of the Assessee and it was found that the Assessee had violated the provisions of tax deducted at source in non-deducting the same.The Assessing Officer issued show cause … Continue reading Discount provided to distributors on prepaid SIM cards: Liability to deduct tax at source under section 194H

Roaming charges paid to telecom operator: Scope of ‘Fees for Technical Services’ and applicability of Tax deduction at source

Case: VODAFONE IDEA LTD vs ACIT, TDS, CUTTACK ITAT Outcome: Assessee Facts A survey under section 133A of the Act was conducted on 29.9.2011 in the premises of the Assessee and it was found that the Assessee had violated the provisions of tax deducted at source in non-deducting the same.The Assessing Officer issued show cause … Continue reading Roaming charges paid to telecom operator: Scope of ‘Fees for Technical Services’ and applicability of Tax deduction at source

Advertisement, Marketing and promotion expenses: Requirement to benchmark these expenses

Case: ACIT, CC- 31 vs PERNOD RICHARD INDIA PVT LTD, DELHI ITAT Outcome: Remand Facts During the year the Assessee incurred Advertising, Marketing and Promotion expenses for its manufacturing and distribution segment.According to the Transfer Pricing Officer the said expense was incurred to build different brands of the Associated Enterprises of the Assessee.Hence, he treated … Continue reading Advertisement, Marketing and promotion expenses: Requirement to benchmark these expenses