HC : No Sec 263 jurisdiction on NTPC's bonafide revenue estimate pending CERC regulation revision 
NTPC Ltd.
April 25 2014
HC sets aside CIT’s erroneous exercise of revision powers u/s 263 in NTPC’s case; Pursuant to appropriate enquiry, AO affirmed provisional downward sales revision by NTPC, causing no error...View more

ITAT : No Sec 194H TDS on recharge coupon sales; Distinguishes Bharti, Idea, Vodafone rulings 
Gurpreet Singh Sethi
April 25 2014
ITAT holds assessee (franchisee of BSNL) not liable u/s 201(1) and u/s 201(1A), no TDS u/s 194H attracted on sale of recharge coupons to sub-franchisee / sub-distributor absent principal-agent relatio...View more

HC : Holds share income as capital gains, weighs 'investment' approach over short duration 
Devasan Investment Pvt. Ltd.
April 24 2014
HC holds income from share sale-purchase transaction as capital gains considering entire facts, applying frequency, object, volume etc tests; Reiterates that no straight jacket formula available to de...View more

ITAT : Allows capital gains indexation on flat qua each purchase payment instalment 
Anuradha Mathur
April 24 2014
ITAT rejects extreme stands of Revenue and assessee on allowance of indexation benefit while computing capital gains on sale of flat; ITAT instead allows indexation benefit for each instalment paid by...View more

ITAT : Adjusting expenditure against receipt amounts to 'constructive payment', liable to TDS u/s 195
Right Tunnelling Co.Ltd.
April 23 2014
Machinery hire charges paid by non-resident sub-contractor (assessee) to non-resident contractor without TDS liable for Sec 40(a)(i) disallowance; Contract terms provided for net payment to assessee a...View more

Read All

Karnataka HC grants partial relief to Vodafone South against Single Judge order

April 23 2014
Karnataka HC division bench (‘HC’), pursuant to appeal against the Single Judge order in writ-petition, provides marginal relief to Vodafone South Ltd. (‘VSL’) in a stay matter...View more

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

Read All
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

ITAT : Sec 40(a)(ia) Merilyn ratio not approved by jurisdictional HC's Vector Shipping ruling 
Ama Medical & Diagnostic Centre
April 16 2014
ITAT holds that disallowance u/s 40(a)(ia) would also cover amounts paid at any time during the year; Reverses CIT(A)’s finding following special bench decision in Merilyn Shipping, operation of...View more

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

Read All

"Significant digital presence" potential game-changer for digital economy - Akhilesh Ranjan on BEPS

April 24 2014
The aim of the BEPS Action Plan is to ensure that profits are taxed where the economic activities that generate them are carried and where value is created. This is easier said than done and the digit...View more

CBDT prescribes amortization for BOT road development expense, no depreciation absent ownership

April 23 2014
CBDT clarifies that cost of construction on development of infrastructure facility of roads/ highways under Build-Operate-Transfer (BOT) projects, with right to collect toll, may be amortized and clai...View more

India-USA agree on 'in substance' FATCA model IGA

April 22 2014
India concludes an ‘in substance' agreement on FATCA, says US Treasury Department; USA states India has consented to Model 1 -Intergovernmental Agreement (IGA) ...View more

CBDT investing in international training on transfer pricing and assessments

April 22 2014
CBDT has invited IRS officers of the level of additional CIT/JCIT/DCIT to be nominated for the OECD Global Relations Training Programme. Transfer pricing & customs valuation and advanced auditing ...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

Read All
SC : Dismisses Revenue SLP; No TDS default for employer if employees mis-utilise allowance
ONGC Ltd.
April 21 2014
SC dismisses Revenue’s SLP against Gujarat HC order, ONGC Ltd. (‘assessee’ and employer) not an ‘assessee in default’ u/s. 201(1)/(1A); Conveyance maintenance reimburseme...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

India-USA agree on 'in substance' FATCA model IGA
April 22 2014
India concludes an ‘in substance' agreement on FATCA, says US Treasury Department; USA states India has consented to Model 1 -Intergovernmental Agreement (IGA) ...View more

HC : Applies Mak Data ratio; Taxpayer taking chance liable to concealment penalty 
Kalindi Rail Nirman Engg. Ltd.
April 21 2014
HC reverses ITAT’s order, concealment penalty u/s. 271(1)(c) attracted on income determined applying profit percentage; Assessee failed to discharge onus to report correct income in return or pr...View more

ITAT : Adjusting expenditure against receipt amounts to 'constructive payment', liable to TDS u/s 195
Right Tunnelling Co.Ltd.
April 23 2014
Machinery hire charges paid by non-resident sub-contractor (assessee) to non-resident contractor without TDS liable for Sec 40(a)(i) disallowance; Contract terms provided for net payment to assessee a...View more