Freight payments made to shipping agents of Non-Resident/ Non-Resident shipping companies: Applicability of provisions of Tax Deduction at Source

Case: DCIT Circle-1 vs. Keshodwala Foods. Veraval, Rajkot ITAT Outcome: Assessee Facts The Assessee had incurred terminal handling charges amounting to Rs.1.29 Cr without deducting the tax at source.The Assessing Officer observed that such payment was made to the resident transport operator/ labour contractors to load the goods on the ships. Accordingly, the Assessee was … Continue reading Freight payments made to shipping agents of Non-Resident/ Non-Resident shipping companies: Applicability of provisions of Tax Deduction at Source

Factors leading to the formation of Fixed Place Permanent Establishment

Case link: Union of India vs. U.A.E. Exchange Centre, Supreme Court Outcome: Assessee Facts The Assessee was a limited company incorporated in the United Arab Emirates (UAE). It was engaged in offering, among others, remittance services for transferring amounts from UAE to various places in India.The Assessee had set up its first liaison office in … Continue reading Factors leading to the formation of Fixed Place Permanent Establishment

Issue examined under original assessment proceeding: Whether re-opening in such case is justified – 2

Case: Jayesh T Kotak Vs Deputy Commissioner Of Income Tax, Gujarat HC Outcome: Assessee Facts The Assessee had filed a return showing total income at Rs. 1.48 crores. A notice under section 143(2) was issued to the Assessee. After calling for extensive details by various notices and the Assessee replying to those notices, the Assessing … Continue reading Issue examined under original assessment proceeding: Whether re-opening in such case is justified – 2

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

Case: SPR & RG Constructions Pvt Ltd vs. ACIT, Corporate Circle - 6 (2), Chennai ITAT Outcome: Assessee Facts The Assessee-company had filed its return of income for the relevant assessment year 2013-14 on 30.09.2013. Subsequently, the Assessee had filed a revised return on 26.11.2013. The assessment was selected for scrutiny under CASS and notice … Continue reading Issue examined under original assessment proceeding: Whether re-opening in such case is justified¬†

Stay of demand on payment of an amount lesser than prescribed per cent of disputed tax demand: Jurisdiction of tax authorities to grant a stay

Case: The KEM¬†Hospital and Seth G. S. Medical College Employees Co-Operative Credit Society Ltd vs. Union of India, Bombay HC Outcome: Assessee Facts The Assessee was an Association of Persons running a co-operative credit society and providing credit to its members.For the assessment year 2017-18, the Assessing Officer passed the assessment order holding Assessee was … Continue reading Stay of demand on payment of an amount lesser than prescribed per cent of disputed tax demand: Jurisdiction of tax authorities to grant a stay

The amount received as share premium: Applicability of Section 68

Case: M/S Intent Dealers Pvt. Ltd. Kolkata vs. I.T.O.,Ward-10(2), Kolkata ITAT Outcome: Assessee Facts The Assessee had filed the return on 15.01.2013. The case was selected for scrutiny and the assessment order under section 143(3) was passed on 25.03.2015. Subsequently, notice under section 263 was issued by the Principal Commissioner of Income Tax owing to … Continue reading The amount received as share premium: Applicability of Section 68

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

Case: The Pr. Commissioner of Income Tax -9 vs Valvoline Cummins Pvt. Ltd, Delhi HC Outcome: No substantial question of law Facts The Assessee had incurred advertising, marketing and promotion expenses during the year under consideration.The Tribunal concluded that the said transaction constituted to be an international transaction and remanded the matter to Assessing Officer/Transfer … Continue reading Advertisement, Marketing and promotion expenses: Requirement to benchmark these expenses

Stay of demand on payment of an amount lesser than prescribed per cent of disputed tax demand: Jurisdiction of tax authorities to grant a stay

Case: Mansukhlal Amritlal Modi vs The Union of India, Bombay HC Outcome: Assessee Facts The Assessee had not filed return of income. During the assessment proceedings, Assessing Officer treated the sale transaction amount of Rs. 2.62 Cr as the unexplained income of the under the section of the Act and added the same to the … Continue reading Stay of demand on payment of an amount lesser than prescribed per cent of disputed tax demand: Jurisdiction of tax authorities to grant a stay

Interest on outstanding receivables: Transfer pricing implications

Case: ACIT Central Circle-3(2) Hyd Vs Satyam Venture Engineering Services Pvt Ltd, Hyderabad ITAT Outcome: Remand Facts There were outstanding balances of the Assessee's Associated Enterprises with respect to payables and receivables during the year.The Dispute Panel Resolution did not consider the outstanding balances of its Associated Enterprises with respect to payables and receivables for … Continue reading Interest on outstanding receivables: Transfer pricing implications

Date of execution of sale deed vs date of agreement to sale: Relevant date for the determination of transfer of land under section 2(47) of the Act read with section 53A of the Transfer of Property Act, 1882

Case: ITO vs Shri Nareshbhai Ranchhodbhai Tandel, Surat ITAT Outcome: Assessee Facts The land was transferred on 24.07.2007 in performance to the agreement to the sale between the Assessee (vendors - Assessee, and his brother) and M/s.Polycab Wires Pvt Ltd.(Purchaser).According to the Assessing Officer, since the sale deed was registered before the Sub-Registrar, Daman on … Continue reading Date of execution of sale deed vs date of agreement to sale: Relevant date for the determination of transfer of land under section 2(47) of the Act read with section 53A of the Transfer of Property Act, 1882