Payment of fee for online subscription services not to be taxed as royalty

Note: You must have access to Riverus Research Map for Income Tax to access the links in this article. Email us at hello@riverus.in to try for free. Introduction The Bombay ITAT in its recent decision of Elsevier Information Systems GmbH v. Dy.Commissioner of Income Tax held that subscription fees paid to access an online database … Continue reading Payment of fee for online subscription services not to be taxed as royalty

Whether reopening of the assessment is valid on doubts of the authorities under section 147 R/W 143(3) of the Income Tax Act, 1961

Case: ACIT Khandwa V. M/s. Rajshree Fibres Bistan Road Khargone (M.P) ITAT Indore Listen to the case summary  ACIT Khandwa V. M/s. Rajshree Fibres Bistan Road Khargone (M.P), ITAT Indore here Background a) The case of the assessee was reopened for assessment and the assessment under section 147 r.w.s 143(3) of the income tax act, … Continue reading Whether reopening of the assessment is valid on doubts of the authorities under section 147 R/W 143(3) of the Income Tax Act, 1961

Is the CIT(A)’S order that provides for a 25% disallowance of bogus purchases is erroneous?

Case: ITO -WD- 3 (1) vs BHADRESH JAYANTILAL SHAH DOMBIVALI, ITAT MUMBAI. Listen to the case summary ITO -WD- 3 (1) vs BHADRESH JAYANTILAL SHAH DOMBIVALI, ITAT MUMBAI here Background: The assesee who was engaged in the business of trading had shown certain bogus purchases against returned income. Consequently, order of re-assessment was passed under … Continue reading Is the CIT(A)’S order that provides for a 25% disallowance of bogus purchases is erroneous?

Is deduction allowed on share in goodwill paid to legal heirs of deceased partner?

Case: WADIA GHANDY AND CO vs ACIT CIR. 16(3), ITAT MUMBAI Listen to the case summary WADIA GHANDY AND CO vs ACIT CIR. 16(3), ITAT MUMBAI here Background: During the assessment proceedings, the Assessing Officer disallowed assesse’s claim of deduction towards payments made to legal heirs of deceased partners. Assessee’s appeal against the said order … Continue reading Is deduction allowed on share in goodwill paid to legal heirs of deceased partner?

Can deduction be denied for partial cultivation on agricultural land?

Case: Rajendra Bastimal Chordiya vs Income Tax Officer, ITAT, Pune Listen to Rajendra Bastimal Chordiya vs Income Tax Officer, ITAT, Pune case summary and stay updated any time anywhere. Background: Assessee’s claim of deduction u/s 54B of the Act related to the sale of agricultural land was denied by the AO as: out of the total … Continue reading Can deduction be denied for partial cultivation on agricultural land?

Forum Review: Authority for Advance Rulings

While most of the preliminary tax litigation in India is centred around the ITATs, the Authority for Advance Rulings (AAR) also plays in important role in resolving tax issues before they get a chance to hit proper litigation. It is an independent quasi-judicial body which can give give rulings on taxation queries presented by Non … Continue reading Forum Review: Authority for Advance Rulings

Most Cited Unreported Judgments

Last week in our article series we discussed the oft overlooked unreported judgments. After establishing how these judgments are a prominent part of the corpus of judicial literature in India, and a valuable resource for any diligent practitioner, we thought we’d trawl our database to uncover the most popular unreported judgements. These judgements on important … Continue reading Most Cited Unreported Judgments

Deductions for Co-operative Societies: 5 questions and their answers

Section 80P of the Income Tax Act, 1961 provides for deduction in respect of income of co-operative societies. These incomes and the respective conditions are briefly as follows- 100% of the profit and gains attributable to certain businesses. 100% of the profit and gains of primary society carrying out supply of milk, oilseeds, fruits or … Continue reading Deductions for Co-operative Societies: 5 questions and their answers

Capital Expenditure vs Revenue Expenditure

The question about the nature of expenditure has always been a highly contested issue in tribunals and courts in India. Characterising an expenditure as revenue or capital has tax implications. Revenue expenditure is taken into account while computing taxable profits and would be eligible for a tax deduction whereas on capital expenditure only depreciation can … Continue reading Capital Expenditure vs Revenue Expenditure