HC : Calcutta HC disagrees with Delhi HC on limitation u/s 158BE; Revocation of restraint order relevant 
May 22 2015
HC upholds block-assessment u/s 158BC, block assessment order not barred by limitation u/s 158BE (which prescribes two years’ time-limit from end of search); Rules that search proceedings ends o...View more

HC : Interest on borrowings for strategic investment covered u/s 36 (business) and not u/s 57 
May 22 2015
HC rules that where interest expenditure is incurred for the purpose of business promotion, it should be considered for business expenditure deduction u/s 36 (1) (iii) and not u/s 57, despite dividend...View more

HC : Discharging contract manufacture's excise liability, 'tax-neutral', expense allowable u/s 37 
May 21 2015
HC reverses ITAT’s order, allows deduction u/s 37(1) to assessee for additional excise duty incurred on plastic moulds, given free of cost to contract manufacturers for manufacture of Tupperware...View more

ITAT : “Protective addition” permissible when income certainty established, deletes adjustment on embezzlement 
May 21 2015
ITAT deletes ‘protective addition’ in hands of assessee-employee, made merely on the basis of corresponding substantive disallowance to employer-company’s income; Company had alleged...View more

ITAT : Supply of “contact-solutions”, not royalty, applies Ericsson; Reiterates Morgan-Stanley ratio on profit-attribution 
May 21 2015
ITAT rules that receipts from supply of “contact solutions” comprising sale of hardware and license of embedded software to end customers in India by assessee (a US co. providing hardware,...View more

Read All

SC directs Castleton's MAT appeal for August hearing before tax bench

May 08 2015
Chief Justice led Supreme Court bench directs Castleton MAT appeal to be listed before tax bench in August; Attorney General Mukul Rohatgi & Sr. Advocate Harish Salve both urge expeditious hearing...View more

Karnataka HC reserves judgment on writ challenging constitutional validity of Sec 234E fee

April 20 2015
Karnataka HC reserves judgment on writ petition challenging constitutional validity of Sec 234E for delay in filing of TDS returns; Assessees’ argued that to levy ‘fee’, there must b...View more

Revenue takes Copal judgment to SC; Assails arbitrary 50 % threshold, alleges tax evasion

April 14 2015
IT Dept. files SLP before Supreme Court against the Delhi HC ruling in Copal case, pleads that transactions were designed prima facie to avoid tax; Revenue submits 50% asset threshold set by HC, erron...View more

Judgement in Wipro's foreign tax credit issue likely next week

February 18 2015
Wipro case posted for hearing before a new Bench (comprising of Justice Vineet Saran and Justice Mrs S Sujatha) today, due to change in roster; Last week, division Bench of Karnataka HC (comprising of...View more

Wipro rebuts Yokogawa, context different, inapplicable to tax credit u/s 90(1)(a)(ii)

February 11 2015
Rebutting Revenue Counsel’s reliance on Yokogawa ruling, Senior Advocate N. Venkatraman for Wipro contends Yokogawa would not apply to S.90(1)(a)(ii) scenario; Highlights S.90(1)(a)(ii) specific...View more

Read All
HC : Quashes Re-assessment u/s148; Issues discussed during DRP proceedings part of normal assessment 
May 20 2015
HC allows assessee’s writ, quashes reassessment proceedings u/s 148 to tax cross-border business restructuring, citing ‘change of opinion’; Revenue argued that DRP raised query regar...View more

OECD releases revised discussion draft on BEPS Action 7 (Artificial avoidance of PE status)
May 18 2015
OECD releases revised discussion draft on BEPS Action 7, which stresses the need to update treaty definition of permanent establishment (PE), in order to prevent artificial avoidance of PE status in r...View more

SC : 'Hospital' building not 'office' for business purpose; Upholds wealth-tax levy 
May 14 2015
SC confirms Kerala HC order, holds hospital building subject to wealth tax u/s 40(3) of Finance Act, 1983 (being charging section for levy of wealth tax) for AYs 1987-88 to 1990-91; Rejects assessee&r...View more

HC : Upholds goodwill valuation approach; Identifies key factors - duration, orders , product monopoly 
May 12 2015
HC upholds ITAT orders, allows valuation of goodwill by assessee- company (for take over arrangement) for AY 1987-88; Analyses 3 key factors relevant for valuation of goodwill - duration of functionin...View more

HC : Lays down law on "rent" u/s 194I; Wheeling charges neither rent nor service 
May 08 2015
Bombay HC upholds ITAT ruling in assessee's favour ; Payment for transmission or wheeling charges neither qualify as rent (u/s 194I) nor as fees for technical service (u/s 194J) & hence TDS not ap...View more

Read All

CBDT releases Central Action plan for FY 2015-16; Aims 14.6% tax collection growth

May 22 2015
CBDT releases 100+ pages Central Action Plan for FY 2015-16; Sets the KRAs, target activities alongwith deadlines for all areas including cash collections, assessments, international taxation, TDS; Ac...View more

Govt. constitutes 3 members panel on FII-MAT controversy, requests recommendation 'expeditiously'

May 20 2015
Govt. constitutes 3 member panel led by Justice A.P. Shah to examine matter relating to levy of MAT on FIIs for the period prior to April 1, 2015; Committee to examine " ... all the related legal prov...View more

CBDT announces transfers/postings of 3 officers at DGIT/CCIT level

May 20 2015
CBDT announces transfers/postings of 3 officers at DGIT/CCIT level with immediate effect; 2 DGITs (at Delhi and Lucknow) and CCIT (at Kanpur) to hold additional charge Click below to read and downloa...View more

CBDT issues circular on 'verification/correction' of outstanding tax demands, facilitates taxpayers to view/respond online

May 20 2015
To address grievances of taxpayers, CBDT issues comprehensive circular (No 8, dated May 14, 2015) for “verification and correction” of outstanding tax demands; Taxpayers can view their out...View more

India re-iterates FATCA compliance intent; FinMin explains rationale, hopeful of reciprocity

May 20 2015
Finance Ministry 2014-15 Annual Report details India’s stand on USA’s FATCA compliance and on Automatic Exchange of Information; India already agreed to the text of Inter-Governmental Agre...View more

Read All
CBDT orders transfers of over 100 Assistant / Deputy Commissioners
May 19 2015
CBDT orders transfers in the grade of Assistant/ Deputy Commissioners; 104 officers transferred with immediate effect ...View more

HC : Copy of Bombay HC order staying FII's MAT assessment order 
May 18 2015
Bombay HC admits writ petition by FIIs and FPIs against IT department orders issued imposing MAT liability for previous assessment years; HC notes taxpayer's contention that no effective alternate rem...View more

SC : Lays down law on set-off sequence for un-absorbed depreciation & investment allowance 
May 19 2015
SC holds that “Once the unabsorbed carried forward depreciation has become a part of the depreciation of the current year, it is not open to the assessee to bifurcate the two again and exercisin...View more

HC : Strikes-down amendment restricting Tribunal's power to extend stay beyond 365 days 
May 19 2015
HC rules that where delay in disposing appeal is not attributable to the assessee, Tribunal has power to grant extension of stay beyond 365 days in deserving cases; Delhi HC strikes down amendment mad...View more

CBDT issues circular on 'verification/correction' of outstanding tax demands, facilitates taxpayers to view/respond online
May 20 2015
To address grievances of taxpayers, CBDT issues comprehensive circular (No 8, dated May 14, 2015) for “verification and correction” of outstanding tax demands; Taxpayers can view their out...View more