On 3 July 2018, the Organisation for Economic Co-operation and Development (‘OECD’) released the first public discussion draft on the transfer pricing aspects of financial transactions (‘the Discussion Draft’). What was in the Discussion Draft? Clarification on the application of the principles covering the accurate delineation of financial transactions Address specific issues related to the pricing of … Continue reading OECD Transfer Pricing Guidance on Financial Transactions: Need to Introspect Arm’s Length Financial Arrangements
Case Name: Amit Inter-trade Pvt. Ltd. v. DCIT Forum: ITAT Ahemdabad Members: Rajpal Yadav, Wasim Ahmed Background Assessee is a private limited company which filed its return declaring NIL income. The assessee company (Amit inter-trade Pvt. Ltd.) got merged with J.P. Iscon Ltd. with effect from April 1, 2014. The AO issued a notice under … Continue reading ITAT Ahmedabad Decides: Can an assessment proceeding be initiated against a company which has ceased to exist?
Case Name: AMRUTBHAI G PRAJAPATI vs ITO, WARD-1 Forum: Ahmedabad ITAT Background AO issued notice u/s 148 of the Act on 27.03.2015 followed by notice u/s 142(1) on 22.06.2015.The assessee filed the return of income on 05.01.2016 in response to notice under section 148 of the Act.On obtaining approval and memo u/s 151 it is … Continue reading ITAT Ahmedabad Decides: Can approval granted u/s 151 without mentioning the date on which approval granted reckoned to be valid?
Case Name: Lakshmi Machine Works v. Addl. CIT Forum: Chennai ITAT Members: Ramit Kochhar, N.R.S. Ganesan About Lakshmi Machine Works: The assessee is engaged in the business of manufacturing of textile machinery and had made investments in various corporate entities amounting to INR 154 Crores as at 31 Mar 2012. Issue 1 Under the provisions … Continue reading ITAT Chennai decides: Can expenses related to dividend earned from strategic investments be disallowed? + 2 more issues
Issue: Whether CIT(A) erred in confirming the AO’s decision of levying Long term capital gain tax? Case name: Ishwarbhai Patel v. ITO-Ward Background The assessee along with other co-owners sold the immovable property on 29.09.2008 for INR 3,80,40,000 in which assessee`s share was 1/3rd which worked out to INR 1,26,80,000. AO considered long term capital … Continue reading ITAT Surat decides: Can negotiated-compensation given in lieu of acquisition, turn compulsory acquisition u/s 10(37) to a voluntary sale transaction?
Issue: Whether CIT(A) erred in confirming the addition of INR 21,74,843 by the AO? Case name: Salarpuria Investments Pvt. Ltd. v. DCIT Background The assessee is an NBFC Company. The AO made an addition to the tune of INR 21,74, 843 to the income of the assessee, by disallowing the same under Section 14A read … Continue reading ITAT Kolkata Decides: Can Disallowance Under Section 14A be Made if the Interest Earned is More than the Interest Paid in the Relevant AY?
Issue: Whether CIT(A) erred in confirming the addition of INR 53,50,500 by the AO? Case name: Pradyot B. Borkar v. ACIT Background The assessee filed his return of income declaring a total income of INR 32,30,000. While assessment, the AO noticed that the assessee has offered a long term capital gain of INR 31,12,638 arising … Continue reading ITAT Mumbai Decides: Can amount provided in lieu of re-development of a property be treated as capital gains in the hands of the assessee?
Data, they say, is the new oil. Much like oil, in its crudest form, data has little use. And while oil needs to be processed in an elaborate refinery, data needs a refinery of no less magnitude. I could go on and this comparison would be fun to stretch but let me get to the … Continue reading The story of an Income Tax Issue
Issue: Whether CIT(A)’s Order confirming the AO’s addition of INR 23,55,074 to the total income of the assessee hold good? Case name: HAC India Ltd. v. DCIT Circle Background The assessee claimed the interest paid on loan taken from Kotak Bank as an expense while computing short term capital gain under Section 111A. The assessee … Continue reading ITAT Kolkata decides: Can the Assessee re-claim the expense disallowed under Section 14A while computing short term capital gains?
Issue: Whether CIT(A)’s Order upholding the AO’s Disallowance under Section 43B on account of non-payment of service tax, hold good? Case name: Vikon Engineering Pvt. Ltd. v. ACIT Background The assessee company filed its return of income for the AY 2010-11 on 28.09.2010 declaring total income at INR 3,73,34,500/-. The AO made the following adjustments: … Continue reading ITAT Delhi decides: Can deduction u/s 43 be disallowed for service tax if it is not routed through P&L account?