Retention money credited to the profit and loss account: Treatment in computing “book profits” under section 115JB

Case: DCIT, CC-1(3) vs EMC LTD, KOLKATA ITAT Outcome: Assessee Facts The ground of appeal raised by the revenue was that the Commissioner of lncome-tax (Appeals) had erred in directing to exclude retention money of Rs. 28.87 lakhs in computing total income under normal provisions as well as in computing book profits under section 115JB. … Continue reading Retention money credited to the profit and loss account: Treatment in computing “book profits” under section 115JB

Roaming charges paid to telecom operator: Scope of ‘Fees for Technical Services’ and applicability of Tax deduction at source

Case: DCIT (TDS) - 2(3) vs VODAFONE INDIA LTD. (FORMERLY KNOWN AS VODAFONE ESSAR LTD.), MUMBAI ITAT Outcome: Assessee Facts The issue involved in the appeal filed was whether the interconnection usages charges (IUC) were in the nature of fees for technical services and whether the Assessee was liable for deduct tax at source under Section … Continue reading Roaming charges paid to telecom operator: Scope of ‘Fees for Technical Services’ and applicability of Tax deduction at source

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

Case: AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY INC. USA vs ADIT, DELHI ITAT Outcome: Assessee Facts The return of income for the year under consideration was filed in the capacity of the representative Assessee on 16.02.2006 and assessment was completed under section 143(3) of the Act. Subsequently, the Assessing Officer noticed that there was an agreement … Continue reading Issue examined under original assessment proceeding: Whether re-opening in such case is justified

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

Case: LIONBRIDGE TECHNOLOGIES PVT LTD vs ASST CIT 15(2)(1), MUMBAI ITAT Outcome: Assessee Facts The Assessee company engaged in the business activities of designing, developing and exporting of computer software and software services, filed its return of income originally on 30.09.2008 declaring total income at Rs. 26.83 lakhs for the A.Y. 2008-09 which was completed … Continue reading Issue examined under original assessment proceeding: Whether re-opening in such case is justified

Factors leading to formation of Dependent Agency Permanent Establishment

Case: DELMAS (UK) LTD vs DDIT (IT)-4(2), MUMBAI ITAT Outcome: Partial Facts The Assessee was a company, incorporated and fiscally domiciled in the United Kingdom, and was said to be engaged in the business of shipping. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the Assessee had earned freight income of … Continue reading Factors leading to formation of Dependent Agency Permanent Establishment

Scientific research expenditure under Section 35(2AB) incurred during the period prior to the approval: Eligibility for weighted deduction

Case: OMNI ACTIVE HEALTH TECHNOLOGIES LTD vs ACIT 7(3)(1), MUMBAI ITAT Outcome: Partial Facts The Assessee claimed a deduction under section 35(2AB) being 200% of amount incurred towards scientific research.The perusal of approvals from Department of Scientific and Industrial Research in Form No.3CM and working of deduction under section as per return of income reflected … Continue reading Scientific research expenditure under Section 35(2AB) incurred during the period prior to the approval: Eligibility for weighted deduction

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: SANJAY SAWHNEY vs PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI HC Outcome: Remand Facts The Revenue had initiated search action under Section 132 of the Act on Kouton Group on 19.02.2009 and during the search proceedings, it inter-alia seized a document described as ‘Memorandum of Understanding’ relating to transaction of sale and purchase of share capital of … 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

Payment of Transponder Charges: Scope of definition of Royalty

Case: DCIT (INTERNATIONAL TAXATION) vs THAICOM PUBLIC CO. LTD., DELHI ITAT Outcome: Assessee Facts The Assessee had claimed that the income earned by it from providing transponder services to customers in India was not taxable in its hands. According to the Assessee, the income earned by it from providing transponder services was neither taxable as … Continue reading Payment of Transponder Charges: Scope of definition of Royalty

Timeline for filing revised return pursuant to scheme of amalgamation/merger/demerger approved by National Company Law Tribunal

Case: ACIT, CIRCLE - 13(2) vs PADMA LOGISTICS & KHANIJ PVT LTD, KOLKATA ITAT Outcome: Remand Facts The Assessee Company had filed the original return of income on 28.09.2010 showing total income of Rs. 8.67 crores. On 13.09.2010 and 06.10.2010, the Assessee company and M/s. Star Ya Kalakaar.com Limited, a company having its registered Office in Bombay filed a … Continue reading Timeline for filing revised return pursuant to scheme of amalgamation/merger/demerger approved by National Company Law Tribunal

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

Case: ACIT, CC- 31 VS. PERNOD RICHARD INDIA PVT LTD, Delhi ITAT Outcome: Remand Facts During the year the Assessee incurred Advertising, Marketing and Promotion expenses for its manufacturing and distribution segment.According to the Transfer Pricing Officer the said expense was incurred to build different brands of the Associated Enterprises of the Assessee.Hence, he treated … Continue reading Advertisement, Marketing and promotion expenses: Requirement to benchmark these expenses