ITAT : Buy-back providing shareholder exit not reorganisation, Article 13(5) of India-Netherland DTAA inapplicable 
January 18 2016
Capital gains arising to a non-resident (a Dutch entity) on transfer of shares held in an Indian Company under a High-Court approved buy-back scheme taxable in India for AY 2006-07, exemption provided...View more

ITAT : Lays down law on exclusion of period in computing interest on refund u/s 244A
January 15 2016
ITAT quashes rectification order u/s 154 for assessee (a non-resident bank) reducing claim of interest on refund u/s 244A for AY 2002-03, says no mistake apparent on record; ITAT notes that assessee c...View more

ITAT : Transfer of subsidiary's shares not 'slump-sale' of undertaking; Rejects Revenue's Sec 50B application
January 14 2016
ITAT sets aside CIT(A) order, holds that UTV Software Communications' transfer of shareholding in its subsidiary to Disney would not amount to slump sale u/s 2(42C) and t...View more

HC : Intra-group share transfer triggers Sec 79; Ultimate Holding company not 'beneficial' owner 
January 14 2016
HC upholds ITAT order, denies set off and carry forward of business losses u/s 79 owing to 100% change in shareholding of assessee-company during AY 2009-2010; Dismisses assessee’s contention th...View more

SC : Upholds HC-order, denies depreciation claim on ‘sham’- sale and lease back transaction
January 14 2016
SC upholds HC order, rejects assessee’s depreciation claim on machinery purchased from Andhra Pradesh State Electricity Board (APSEB) and then leased back to APSEB; HC had noted findings by...View more

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SC: Admits SLP against Bom-HC order upholding non-taxability of Maersk’s communication system reimbursement

December 15 2015
SC admits Revenue’s SLP against Bombay HC judgement in case of A.P. Moller Maersk A/S. (assessee, a Danish shipping company); HC had held that amount received by assessee from its Indian agents ...View more

SC: Stays prosecution against Reliance for TDS default, considers voluntary payment

December 08 2015
SC stays Bombay HC finding regarding launching of prosecution against Reliance Industries Ltd. (‘assessee’); HC had upheld levy of penalty u/s 221 for delay in depositing TDS and had obser...View more

Recipient’s residential status’ relevant in Sec 40(a)(i) vs Sec 172 conflict, argues assessee before Full-Bench

December 03 2015
Bombay HC Full Bench hears assessee’s (Indian company) arguments pursuant to division bench’s reference on the ground “whether while dealing with allowability of expenditure u/s. 40(...View more

Is 'Profits & gains' synonymous with 'income'?; 'Motilal' judgment referred to SC's appropriate bench

September 18 2015
SC observes that finding in coordinate bench judgment in Motilal Pesticides that “the language of Sec 80HH and Sec 80M is the same” is prima facie incorrect, refers the matter to the Chief...View more

SC to examine TDS applicability on settlement payment to Swiss Co.

September 15 2015
SC to rule on whether appellant (an Indian Co.) was justified in deducting TDS u/s 195 while remitting settlement amount to a Swiss Co. (‘respondent’); Pursuant to entering into a Settleme...View more

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ITAT : Clubbing provisions u/s 64 inapplicable on non-resident's capital gains from share-transfer outside India
January 11 2016
ITAT deletes income addition u/s 64 (clubbing provisions) in case of non-resident individual-assessee, holds that capital gains arising from sale of shares registered in name of resident-wife cannot b...View more

ITAT : Non-charging of partners' expenses results in extra-ordinary profits u/s 80IA(10), restricts tax holiday
January 06 2016
ITAT dismisses assessee’s appeal, upholds invoking of Sec 80IA(10)  [which empowers AO to recompute reasonable profits & restrict the tax holiday] with respect to profits declared by&nb...View more

IT Department reiterates online validation of Sec 197 lower-TDS certificate to minimize discrepancy
January 04 2016
IT Department issues advisory to deductors while deducting TDS at lower rate in view of Sec 197 certificates;  Acknowledges that scenario of wrong quoting of Sec 197 certificate number arises owi...View more

CBDT: Clarifies no Sec 271(1)(c) penalty on additions under normal provisions in MAT cases
January 02 2016
CBDT clarifies that where MAT is applicable, no penalty u/s 271(1)(c) shall be levied with reference to additions/disallowances made under normal provisions of the Act for cases prior to AY 2016-17; C...View more

ITAT : 2009-amendment prescribing time-limits for Sec 201 proceedings 'curative'; Disagrees with Mahindra (SB) ratio
December 22 2015
ITAT upholds Sec 201(1)/(1A) proceedings on assessee in respect of TDS default on roaming charges for AYs 2003-04 to 2009-10 pursuant to notices issued in February 2009 and order passed in March 2011;...View more

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CPC-Bengaluru receives ISO-9001 certification, becomes a rare achiever of 3 ISO-certificates

January 18 2016
IT Department’s flagship project for processing tax returns, Centralized Processing Centre (‘CPC’) Bengaluru receives ISO 9001:2008 certification for quality management&nbs...View more

Income-tax Simplification Committee invites comments from stakeholders by January 23rd

January 18 2016
Income-tax Simplification Committee invites comments from stakeholders on draft recommendations by January 23rd either by post or through email at; After receiving feedback, Co...View more

President Mukherjee, CJI to grace ITAT’s "Platinum Jubilee" celebrations; Jaitley & Salve among speakers

January 18 2016
President Pranab Mukherjee to preside as Chief Guest at ITAT's "Platinum Jubilee" celebratiions in New Delhi on 24th & 25th January; FM Arun Jaitley, CJI T.S. Thakur, Justice Dipak Misra (SC), Jus...View more

India notifies Belarus treaty, DTAA to be effective from November 19, 2015

January 18 2016
Government of India notifies DTAA with the Republic of Belarus which was signed on June 3, 2015; DTAA includes clauses on ‘Exchange of Information’,  further DTAA to be...View more

CBDT orders issuing prompt refunds upto Rs 5000 without adjusting outstanding arrears

January 15 2016
CBDT provides update on special drive for expediting small tax refunds upto Rs 50,000; Over 18 lakh refunds aggregating to Rs.1,793 crore issued between December 1, 2015 and January 10,...View more

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CBDT releases draft POEM guidelines, prescribes 'active business outside India' test
December 23 2015
CBDT releases 6-pager draft guidelines for determining place of effective management (POEM) for residence of companies u/s 6 of the Income Tax Act; POEM determination to be primarily based on the fact...View more

HC : Delhi HC upholds AAR ruling on employee secondment creating PE; FTS also applicable 
April 29 2014
Employee secondment to assessee, an Indian company (Centrica India), from Candian & UK Group companies creates Permanent Establishment (PE); HC rejects plea that Indian company was economic employ...View more

CBDT seeks to allay fears on scope of ‘POEM’ / reporting u/s 195(6)
March 04 2015
CBDT seeks to allay fears on scope of Place of Effective Management (‘POEM’) and reporting u/s 195(6) in respect of non-resident payments ...View more

Big victory for Wipro, Karnataka HC grants Foreign Tax Credit to tax holiday entities
March 19 2015
Karnataka HC delivers significant verdict on foreign tax credits to Indian IT company in tax holiday situations; Allows foreign tax credit (‘FTC’) u/s 90 to Wipro (enjoying Sec 10A tax hol...View more

Government notifies 10 Tax Accounting Standards, effective from April 1,2015
April 01 2015
Central Government notifies Income Computation and Disclosure Standards (ICDS); Applicable to all assessees, following the mercantile system of accounting, for computing income chargeable to income-ta...View more