HAC India Ltd. v. DCIT Circle

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 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?

VIKON ENGINEERING PVT LTD vs ACIT

ITAT Delhi decides: Can deduction u/s 43 be disallowed for service tax if it is not routed through P&L account?

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?

Brinks India Pvt. Ltd. v. DCIT

ITAT Mumbai decides: Can TPO ignore the benchmarking method proposed by the Assessee without providing valid reasoning for suggesting an alternate method?

Issue: Whether DRP’s confirmation of the TPO’s proposed adjustment to the ALP holds good? Case Name: Brinks India Pvt. Ltd. v. DCIT Background The assessee is a part of Brinks Global Services, which provides global risk management and secures logistics for valuables.The assessee company filed its return of income for the assessment year (AY) 2012-13 … Continue reading ITAT Mumbai decides: Can TPO ignore the benchmarking method proposed by the Assessee without providing valid reasoning for suggesting an alternate method?

OECD Unified Approach

Will OECD’s “Unified Approach” change the way we think tax?

Digital transformation of the world’s economy is changing the way businesses are operating globally. The business models and value creation processes of the digitalized enterprises typically have the following features - Access all the links in this article by signing up for free with Riverus Research Map for income tax here. cross-jurisdictional scale without physical … Continue reading Will OECD’s “Unified Approach” change the way we think tax?

ARYADOOT TRANSPORT PVT LTD vs DCIT CEN CIR 6(4)

ITAT Mumbai Decides: Can Value of Strategic Investments be considered while computing the amount of disallowance under Section 14A?

Case: Aryadoot Transport(P) Ltd. v. DCIT Issues: Whether CIT(A) erred in confirming the disallowance of INR 7.15 Lakhs by the AO?Whether the value of strategic investments should be taken into account while computing disallowance amount under Section 14A? Background The assessee carried out the business of providing truck trailers.He was assessed for the year, 2015-16, … Continue reading ITAT Mumbai Decides: Can Value of Strategic Investments be considered while computing the amount of disallowance under Section 14A?

Phoneix Medical Systems Pvt. Ltd. v. ACIT

Whether the Assessee can claim deduction under Section 35(2AB), without complying with all its conditions?

Case name: Phoneix Medical Systems Pvt. Ltd. v. ACIT Forum: Chennai ITAT Background The assessee manufactures engineering goods. While assessing the income for AY 2015-16, the AO, disallowed INR 3,01,754 under the head travelling expenses, INR 10,25,000 towards donation under the head other expenses u/S. 37 and INR 61,200 for penalty paid on sales tax. … Continue reading Whether the Assessee can claim deduction under Section 35(2AB), without complying with all its conditions?

Axis Risk consulting firm - case summary

Whether the CIT(A) erred in directing the AO/TPO to apply nil rate as arm’s length interest rate on outstanding receivables from Associated Enterprise?

Case: Addl. CIT v. Axis Risk Consulting Services Pvt. Ltd. Forum: Delhi ITAT Access all the links in this article by signing up for free with Riverus Research Map for income tax here. Background The assessee is an IT company which entered into international transactions with its Associated Enterprise. The assessee used the Transactional Net Margin … Continue reading Whether the CIT(A) erred in directing the AO/TPO to apply nil rate as arm’s length interest rate on outstanding receivables from Associated Enterprise?

DCIT v. Liquidator, M/s Petrofils Cooperative Ltd.

Whether depreciation allowance of earlier years can be adjusted in the relevant assessment year if no business being carried out in the relevant assessment year?

Case: DCIT v. Liquidator, M/s Petrofils Cooperative Ltd. Forum: Ahmedabad ITAT Access all the links in this article by signing up for free with Riverus Research Map for income tax here. Background This appeal by the revenue to the ITAT clubs similar claims pertaining to the following Assessment Years: 2004-05, 2009-10, 2011-12 and 2012-13. For the … Continue reading Whether depreciation allowance of earlier years can be adjusted in the relevant assessment year if no business being carried out in the relevant assessment year?

LIBOR Warning – The Countdown has begun – Is India geared up for the transition?

LIBOR Waning – The Countdown has begun – Is India geared up for the transition?

A crucial shift from the use of the London Interbank Offered Rate (LIBOR) is gaining momentum, with news looking at the end of LIBOR by December 2021. This raises an alarm for a closer relook and maybe a tweak, on all transactions involving the use of this historically dependent base rate. Key tax/transfer pricing implications … Continue reading LIBOR Waning – The Countdown has begun – Is India geared up for the transition?

Lok Sabha Passes the Taxation Laws (Amendment) Bill, 2019

On December 2, 2019, the Lok Sabha passed the Taxation Laws (Amendment) Bill, 2019 (“The Bill”) which inter alia reduces the corporate tax levied on domestic companies. The Bill is yet to be introduced in the Rajya Sabha and once passed by both the houses will replace the ordinance promulgated by the President in September … Continue reading Lok Sabha Passes the Taxation Laws (Amendment) Bill, 2019