ITAT : No Sec 194I TDS on half-circuit payments for standard facility usage 
Global One India P.Ltd.
April 17 2014
ITAT deletes Sec. 40(a)(ia) disallowance, holds payment by assessee (a licensed internet provider) to telecom service providers for availing half circuit facility, not subject to TDS; Rejects AO&rsquo...View more

ITAT : Deletes concealment penalty; AO informed of NR payments through CA certificates 
HDFC Asset Management Company Ltd.
April 17 2014
ITAT sets-aside CIT(A)’s order levying Sec 271(1)(c) penalty for not complying with Sec 195, Sec 40(a); Assessee had informed AO as well as RBI before making payment to its associated enterprise...View more

ITAT : Tata Communications' share investment write-down due to bankruptcy not revenue expense 
Tata Communications Ltd
April 17 2014
ITAT upholds CIT(A)’s orders disallowing Tata Communications’ (assessee) revenue expenditure claim, on account of devaluation in share investment due to bankruptcy; No direct and proximate...View more

ITAT : PE not confined to top management location, hotel-rooms use constitutes fixed PE 
Renoir Consulting Ltd.
April 16 2014
ITAT rules that extensive services rendered to Indian company by Mauritian assessee (a non resident), for improving management performance quotient, work methods/ service etc constitutes fixed place P...View more

ITAT : Explains applicability of Sec 80P(2)(a)(i) to credit co-operative societies, interprets Sec 80P(4) embargo 
The Dhanashree Co-operative Credit Society Ltd.
April 16 2014
ITAT allows deduction u/s 80P(2)(a)(i) on income from business of banking or providing credit facilities to members to assessee co-operative society ; Assessee’s case not hit by embargo u/s 80P(...View more

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Sec 234B liability position needs to be settled once for all, says SC

April 17 2014
SC grants leave in appeal filed by Revenue in Inmarsat Ltd’s case; SC says issue raised in appeal is directly under consideration in SLP filed by Alcatel Lucent USA Inc; In view of differing HC ...View more

SC: Admits Revenue's SLP on inland haulage inclusion as shipping income under treaty

April 09 2014
SC admits Revenue’s appeal against Bombay HC decision in Safmarine Container Lines, Belgium (assessee) case; SLP admitted on issue of inclusion of income received from inland haulage within scop...View more

Delhi HC issues notice on Oracle's writ challenging reopening of TDS order

April 01 2014
Delhi HC issues notice to Revenue over writ petition filed by Oracle India Pvt. Ltd. challenging reopening of TDS assessment concluded u/s. 201(1) / 201(1A); HC says "conscious" about issue of re...View more

Mitsubishi challenges vires of Sec. 254(2A) amendment restricting ITAT's stay extension powers

March 21 2014
Delhi HC to hear Mitsubishi Corporation’s writ challenging constitutional validity of amendment to third proviso to Sec 254(2A); Grants stay of demand in interregnum; Third proviso to Sec. 254(2...View more

HC: Division bench admits MindTree's writ challenging constitutional validity of MAT/DDT on SEZ

March 07 2014
Division bench of Karnataka High Court admits MindTree’s writ appeal against single judge ruling upholding constitutional validity of MAT and DDT levy on SEZ; Single judge rejected application o...View more

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HC : Rules on Sec 80IA(9) and Sec 80HHC deduction interplay; Rejects double deduction benefit 
Atul Intermediates
April 14 2014
HC rules that Sec 80HHC deduction claim cannot be made ignoring deduction already claimed and allowed u/s 80IA in view of Sec 80IA(9); Restricting its application only to limiting maximum permissible ...View more

HC : Upholds disallowance on cross cheque payment; Account payee cheque mandated u/s 40A(3) 
Rajmoti Industries
April 11 2014
HC upholds ITAT order confirming disallowance u/s 40A(3) on account of payment otherwise than by account payee cheque; RBI circular dated January 23, 2006, directs banks that 'account payee cheques' t...View more

HC : Quashes Sec. 158BD proceedings against 'other person' citing un-sustained case of 'searched person' 
Narvirsinh Parmar, LH of Late Ramaben D Zala
April 11 2014
HC quashes second round of proceedings u/s. 158BD in respect of 'other person', when proceedings u/s. 158BC on searched person initiated on very same ground were quashed; AO proceeded with block asses...View more

HC : Sale of un-utilized FSI, mere 'land sale', not eligible for Sec 80-IB deduction 
Moon Star Developers
April 10 2014
HC reverses ITAT’s order, denies Sec. 80IB(10) benefit [available to developer of housing projects] on profit earned from sale of un-utilized Floor Space Index (‘FSI’); Not utilizing...View more

ITAT : SB : 'Month' u/s 54EC means calendar month not 30 days, Allows capital gains exemption 
Alkaben B. Patel
April 06 2014
ITAT Special Bench allows exemption u/s 54EC against long term capital gains, holds assessee invested in specified bonds within prescribed time limit of 6 months from the date of transfer of long term...View more

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CBDT lays down Standard Operating Procedure ('SOP') for verification / correction of tax-demand

April 18 2014
CBDT issues instructions to AOs laying down Standard Operating Procedure (‘SOP’) for verification and correction of tax-demand; By virtue of SOP, taxpayers to get their outstanding tax dem...View more

'New digital economy rules shouldn't discard old principles', say stakeholders on BEPS draft

April 17 2014
OECD releases stakeholders’ comments on BEPS Action Plan 1 – Addressing the Tax Challenges of the Digital Economy discussion draft ; Stakeholders caution that special legislation for &lsqu...View more

Ex-IRS officer Ajit Jain joins BMR

April 17 2014
Ex-IRS officer Ajit Kumar Jain has joined as Partner with BMR & Associates LLP in direct tax practice. With 23 years of experience in corporate and international tax, Mr Jain specializes in transf...View more

BEPS Treaty abuse draft receives 'cautious' reactions; OECD releases stakeholders' comments

April 14 2014
OECD releases stakeholders’ comments on Action Plan 6 – Prevent Treaty Abuse discussion draft under BEPS project; Proposed “three pronged approach” related to preventing treaty...View more

'OECD Taxing Wages 2014' report shows increase in personal income tax burden

April 14 2014
OECD releases Taxing Wages 2014 Special report, highlights increase in tax burden in 21 countries, decline in 12; Personal income tax burden rises in 20 out of 34 countries; Over period from 2002 to 2...View more

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ITAT : PE not confined to top management location, hotel-rooms use constitutes fixed PE 
Renoir Consulting Ltd.
April 16 2014
ITAT rules that extensive services rendered to Indian company by Mauritian assessee (a non resident), for improving management performance quotient, work methods/ service etc constitutes fixed place P...View more

ITAT : Bulk-SMS transmission payment to foreign vendor not FTS absent human intervention 
Velti India Pvt. Ltd.
April 15 2014
ITAT confirms CIT(A)’s order holding that payment to non-resident carrier for transmission of bulk-SMS not FTS, no consequent TDS u/s 195 applicable; Services mere transmission of data which req...View more

CBDT lays down Standard Operating Procedure ('SOP') for verification / correction of tax-demand
April 18 2014
CBDT issues instructions to AOs laying down Standard Operating Procedure (‘SOP’) for verification and correction of tax-demand; By virtue of SOP, taxpayers to get their outstanding tax dem...View more

ITAT : Lease premium for acquiring substantial rights in land not rent u/s 194-I 
Dhirendra Ramji Vora
April 14 2014
'Lease-premium’ paid by assessee-developer to CIDCO, not subject to TDS; ‘Lease-premium’ represents transfer price of land on lease hold basis, and not rent u/s. 194-I of the Act; Re...View more

ITAT : 99 year lease-hold rights in land, a capital asset transfer, attracts Sec 50C 
Hari Om Gupta
April 15 2014
Lease-hold rights for 99 years in land a capital asset; Provisions of Sec 50C (dealing with applying higher stamp duty valuation in computing capital gains) apply to such transfer; ITAT reverses CIT(A...View more