HC: Software sale by Infy to US subsidiary a trading receipt, eligible for Sec 10A benefit

Gain on sale of software by Infosys to subsidiary taxable as trading receipt and not as ‘capital gains’; Sec 10A benefit available on software sold through STP unit even though

Dec 21,2011

HC: Foreign currency expenses to be excluded from turnover for Sec 80HHE deduction; Infy engaged in providing technical services

Foreign currency expenses to be excluded from turnover in computing Sec 80HHE deduction; Infosys engaged in providing technical services outside India and not export of software as per CA certificate

Dec 21,2011

HC: Cost allocation for Sec 10A unit based on employee head-count upheld

IT Department not to reject cost allocation method which is reasonable and followed consistently, unless any defects are pointed; Assessee's common cost allocation between Sec 10A unit and domestic unit

Dec 20,2011

HC: Payment for import of software, later integrated with hardware, amounts to ‘royalty’ 

Payment for import of software, which is integrated separately with imported hardware, amounts to ‘royalty’ u/s 9(1)(vi) in hands of non-resident; Contract for importing software an independent contract 

Dec 15,2011

HC: Sec 163 proceedings against Ingram India on offshore deal time barred

Notice for assessing Ingram India as an agent u/s 163 issued beyond two years from assessment year; Sec 163 proceedings  to recover Rs 575 cr capital gains tax time barred;

Dec 15,2011

HC: Reassessment to deny Sec 10 exemptions to GIC invalid  

Reassessment proceedings constituted ‘change of opinion’ of AO since Sec 10 exemption was granted during assessment based on communication from CBDT to IRDA; AO could not ignore binding precedents of Bom HC in

Dec 14,2011

HC: Actual use of asset by lessee not relevant for lessor's depreciation claim

Actual date on which asset was put to use by lessee, not relevant for lessor’s claim for depreciation on leased assets; Lessor entitled to depreciation, once assets installed at the

Dec 14,2011

HC: Assessment notice served on last day by affixure on changed address valid

Notice for regular assessment, served by way of affixture on the last day of limitation period, held to be valid service; ITAT order annulling the assessment set aside; ITAT directed

Dec 14,2011

HC: Trust registration cannot be denied u/s 12AA for mere non-commencement of activities

CIT required to examine genuineness of objectives of Trust and not income of the trust at the stage of considering application for trust registration u/s 12AA; Registration cannot be denied

Dec 13,2011

HC: Madras HC directs AAR to re-examine taxability of deputation payment as FIS under US treaty

Writ petition against AAR ruling is maintainable; HC directs AAR to re-examine Verizon ruling on whether managerial services rendered by deputed employees qualify as fees for included services under India-US tax treaty

Dec 13,2011