HC : Confirms Special bench ratio; Interest on tax refund covered by beneficial Art 11 
DHL Operations B. V.
July 22 2014
Interest on income tax refund received by foreign entity having Indian PE, taxable at lower rate of 10% under Article 11 of India –Netherlands DTAA; Interest on income-tax refund not effectively...View more

HC : Allows interest on self-assessment tax refund, follows Modi Industries ratio 
Merck Limited
July 22 2014
HC rules that interest is payable on refund of self-assessment tax from assessment order date till the grant of refund excluding period of one month in terms of Sec 244(1A) second proviso; Applies SC ...View more

ITAT : Expansively interprets "wholly & exclusively", allows interest expense incurred for "protecting" income source 
Raj Kumari Agarwal
July 22 2014
ITAT allows deduction u/s 57(iii) to assessee in respect of interest expenditure on borrowings​against ​Fixed Deposit (‘FD’); Instead of premature encashment of FD, assessee resorted t...View more

HC : Lays down Sec 44BB, 44DA taxability law on services income; Relies on OHM ruling 
PGS Geophysical AS
July 21 2014
HC rules that Norwegian assessee’s (company engaged in business of providing services in connection with prospecting for mineral oils) FTS income for AY 2008-09 taxable u/s 44BB(1) and not u/s 4...View more

ITAT : Distinguishes Asia-Sat ruling; Reuters's forex deal-matching system's revenue qualifies as 'royalty' 
Reuters Transaction Services Ltd.
July 21 2014
Income received by Reuters UK (‘assessee’) from its Indian subscriber banks, for providing 'foreign exchange deal matching system', constitutes ‘royalty’ under Article 13 of In...View more

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Bombay HC admits MTDC's appeal on interest income classification as business vs IOS

July 18 2014
Bombay HC admits Maharashtra Tourism Development Corporation’s appeal against Mumbai ITAT ruling on interest income treatment of State / Central Govt grants deposited in fixed deposits; ITAT rej...View more

Datar invokes "basic structure" doctrine, urges SC to strike down National Tax Tribunal

July 18 2014
5 judge Constitution Bench of apex court to decide on constitutional validity of National Tax Tribunal (NTT) & the extent to which "Tribunalization of justice" is permissible under Indian Constitu...View more

After Karnataka, Kerala HCs, Orissa HC grants interim stay on Sec 234E recovery proceedings

July 16 2014
Orissa HC issues notice to IT dept. over assessee’s writ petition challenging legality and validity of Sec 234E; In the interim, HC grants stay on recovery of late fee charged u/s 234E for delay...View more

Bombay HC admits Revenue appeal against ECB interest exemption despite adverse Government order

July 09 2014
Bombay HC admits Revenue’s appeal against Mumbai ITAT ruling in Reliance Industries Ltd.’s case; ITAT had allowed Sec 10(15)(iv)(f) exemption on TDS liability for ECB interest payment stri...View more

Bom HC admits Revenue’s appeal on Set India's Sec 80HHF deduction

June 26 2014
Bombay HC admits IT Dept’s appeal against Mumbai ITAT ruling in Set India Pvt. Ltd.’s case; ITAT had allowed Sec 80HHF benefit to assessee on subscription income (collected from cable oper...View more

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ITAT : Proportionate, not full FTC available under Art 23 of India – Thailand DTAA 
Arvind Metals & Minerals (P) Ltd.
July 04 2014
ITAT dismisses assessee’s appeal, allows foreign tax credit on proportionate basis in view of Article 23(2) of India – Thailand DTAA, as against full credit claimed by assessee; As per Art...View more

HC : Mandatory interest u/s 234A/B/C unsustainable absent AO's ‘specific’ direction; Applies 'Ranchi Club' ratio 
Oswal Exports
July 04 2014
HC quashes AO’s order for charging interest u/s 234A / 234B / 234C (for AY 1990-91), as no specific direction for levying of interest given in assessment order; Though interest under above secti...View more

ITAT : Upholds McDonald’s re-assessment as lower tax rate application results in income escapement 
McDonald’s Corporation
July 03 2014
Tribunal upholds re-assessment in McDonald’s case as income escaped assessment by lower tax rate application accepted u/s 143(1); Application of 15% tax rate for royalty income under India-US DT...View more

ITAT : NR-payments for morphological studies not FTS, no ‘make available’ under India-UK DTAA 
Dholera Port Ltd. & Adani Port- Infrastructure Pvt. Ltd.
July 02 2014
ITAT quashes AO’s order u/s 201(1)/(1A) holding assessee (engaged in development of Dholera Port in Gujarat) in default, rules payment to UK company not liable to TDS u/s 195; Payments to UK com...View more

HC : “Less than full disclosure” during assessment prima facie valid for Sec 148 notice 
Rosy Blue (India) Ltd.
June 27 2014
HC dismisses assessee’s writ challenging reassessment notice u/s 148, prima-facie view suggested “less than full and true disclosure of material facts” by assessee during assessment ...View more

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J. Ramasubramanian expresses concern over regulators lagging in catching up with international structures

July 22 2014
J. Ramasubramanian expresses concern over regulators lagging in catching up with international structures ...View more

FM addresses CCITs, stresses tightrope walk between tax collection & tax facilitator role

July 21 2014
FM addresses CCITs, expresses hope that revenue target for current FY will not be achieved but also surpassed; Credibility of tax department its biggest asset, IRS officers ought to work with highest ...View more

OECD releases full-version of global standard on automatic Exchange of Information

July 21 2014
OECD releases full version of global standard for automatic exchange of information (EOI), taking an important step towards achieving greater transparency and ending banking secrecy in tax; Standard p...View more

FM defends MAT on SEZ

July 19 2014
FM says MAT levied on all companies to address inequity in taxation of corporate taxpayers; Removal of MAT from SEZ developers and units had no justification vis-à-vis other sectors of economy ...View more

2 ITAT members transferred to Mumbai and Bangalore

July 19 2014
Two Tribunal members have been transferred as follows : Shri. Joginder Singh (JM), from Indore to Mumbai and Shri. Abraham George (AM) from Kolkata to Bangalore. ...View more

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ITAT : Holds corporate gift of shares non-taxable; TP doesn't apply absent income 
Redington (India) Limited
July 16 2014
Transfer of shares in subsidiary, by way of 'gift', to an overseas step down subsidiary (in Cayman Island), not taxable as capital gains u/s 45; Such transfer 'without any consideration', a gift and e...View more

2 ITAT members transferred to Mumbai and Bangalore
July 19 2014
Two Tribunal members have been transferred as follows : Shri. Joginder Singh (JM), from Indore to Mumbai and Shri. Abraham George (AM) from Kolkata to Bangalore. ...View more

CBDT constitutes Committee to reduce litigations, study efficacy of CIT(A), ITAT
July 17 2014
CBDT constitutes committee of 6 IRS officers to appraise efficacy of existing dispute resolution forums - CIT (A) & ITAT, and to suggest ways to reduce litigation; Committee to study a sample of 3...View more

HC : Logistic service fees not ‘FTS’ absent ‘make-available’; Applies De Beers ratio 
Sun Microsystems India Pvt. Ltd.
July 17 2014
HC holds that payment to Singapore entity for providing distribution, management and logistic services, not FTS under Article 12(4) of India-Singapore DTAA; Singapore entity had not 'made available' t...View more

ITAT : Distinguishes Asia-Sat ruling; Reuters's forex deal-matching system's revenue qualifies as 'royalty' 
Reuters Transaction Services Ltd.
July 21 2014
Income received by Reuters UK (‘assessee’) from its Indian subscriber banks, for providing 'foreign exchange deal matching system', constitutes ‘royalty’ under Article 13 of In...View more