Depreciation on goodwill

Case: Bantec TPS India Pvt Ltd Vs Asst CIT Cir 15(1)(2), Mumbai ITAT Outcome: Remand Facts The Assessing Officer while passing draft assessment order dated 31.03.2016, disallowed Assessee’s claim of depreciation on goodwill. Aggrieved against the draft assessment order, the Assessee filed objections before the Dispute Resolution Penal assailing inclusion of Genesys and Excel in … Continue reading Depreciation on goodwill

Payments made for purchase of software: Scope of definition of the term ‘Royalty’ as per India-USA tax treaty

Case: Aspect Software Inc. USA Vs DCIT, Circle- 1(1)(1), Intl. Taxation, Delhi ITAT Outcome: Remand Facts The Assessee was engaged in the activities of hardware sale, software licensing, professional services, implementation services and maintenance services. Out of the revenues received, the Assessee had offered to tax only receipts on account of professional services in the … Continue reading Payments made for purchase of software: Scope of definition of the term ‘Royalty’ as per India-USA tax treaty

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: DCIT vs. Late Shri Pravinsinh N. Zala, Rajkot ITAT Outcome: In favour of 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. Thus, the Assessing Officer initiated proceedings under section 153C of the Act against the Assessee. … 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

Failure in submission of PAN to person making payment: Rate as Section 206AA vs tax treaty rate

Case: Deputy Commissioner of Income Tax, International Taxation, Circle- 1(1) Vs Bharat Fritz Warner Ltd., Bangalore ITAT Outcome: In favour of Assessee Facts The Assessee was a company engaged in the business of manufacturing metal cutting grinding machines, spares, accessories and related services. The DCIT, International Taxation, Circle 1(1), Bangalore received information from the ACIT, … Continue reading Failure in submission of PAN to person making payment: Rate as Section 206AA vs tax treaty rate

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

Case: Bharat C. Parekh vs. ITO 12(2)(1), Mumbai ITAT Outcome: Partial Facts The Assessee was an individual deriving income from salary, house property, capital gain and income from other sources. For the assessment year under dispute, the Assessee had filed his return of income on 29.07.2008, declaring total income of Rs. 8.47 lakhs. The assessment … Continue reading Issue examined under original assessment proceeding: Whether re-opening in such case is justified

Payments made by a channel operator to secure advertisements: Applicability of TDS provisions under section 194H

Case: DCIT vs. New Delhi Television Ltd., Delhi ITAT Outcome: Remand Facts As the Assessee earned income through sale of advertisement time on its various channels, this advertisement time was sold generally through advertisement agencies. These advertisement agencies in turn sales this advertisement time to the advertisers. The Assessee raised invoice on such advertisement agencies … Continue reading Payments made by a channel operator to secure advertisements: Applicability of TDS provisions under section 194H

Benefit of 5percent variation between stamp duty value and consideration: Curative and retrospective applicability of provisions of section 50C

Case: DULARI DEVI HETAMSARIA, LEGAL HEIR OF LATE SHYAM SUNDER HETAMSARIA vs. ACIT, CIRCLE - 3, KOLKATA ITAT Outcome: In favour of Assessee Facts During the Assessment Year 2008-09, as per valuation report of the valuation officer the value of the building was to the tune of Rs. 1.76 Crs. However, the Assessee had shown … Continue reading Benefit of 5percent variation between stamp duty value and consideration: Curative and retrospective applicability of provisions of section 50C

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

Case: AMRABATHI INVESTRA PVT LTD vs ITO, WARD - 12(3), KOLKATA ITAT Outcome: In favour of Assessee Facts The Assessee had filed its return of income for A.Y. 2009-10 originally on 25.09.2009 showing loss of Rs. 17.64 crores. The said return of income was processed under section 143(1) of the Act on 07.10.2010. Later on, … Continue reading Issue examined under original assessment proceeding: Whether re-opening in such case is justified

Stock discovered during survey proceedings: Applicability of section 115BBE of Income-tax Act

Case: ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2 vs SHRI SUDESH KUMAR GUPTA, JAIPUR ITAT Outcome: In favour of Assessee Facts A survey under section 133A was conducted on 29.08.2013 at the business premises of the Assessee. During the course of survey proceedings, stock was physically verified and valued at Rs. 46.07 lakhs and the Assessee … Continue reading Stock discovered during survey proceedings: Applicability of section 115BBE of Income-tax Act

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

Case: GILLATTE INDIA LTD vs ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, JAIPUR ITAT Outcome: In favour of Assessee Facts The Assessee had incurred Advertising, Marketing and Promotion expenses during the year.According to the Transfer Pricing Officer, by incurring excessive Advertising, Marketing and Promotion spend, the Assessee was creating/ adding value to the intangibles legally owned … Continue reading Advertisement, Marketing and promotion expenses: Requirement to benchmark these expenses