ITAT: Pre-2001, export income from SAP software customization eligible for Sec 10B benefit

Pre-2001, customization of SAP software amounts to ‘production’ of computer program for the purpose of Sec 10B; Export income from customization activity eligible for tax holiday u/s 10B; The term ‘production’ wider than

Mar 07,2012

ITAT: Taxability of non-resident’s income not relevant for Sec 163 proceedings 

Assessee held to be agent of non-resident u/s 163(1)(b); Taxability of receipts in the hands of non-resident not relevant to treat a person as agent u/s 163; Assessee had a

Mar 06,2012

ITAT: Failure to initiate action against Payee absolves Payer though TDS not deducted 

Payer not 'an assessee in default' for failure to deduct tax at source u/s 195 if no action taken against payee and time limit for initiating re-assessment u/s 147 for

Mar 06,2012

ITAT:'s payment for website hosting not 'royalty'

Website hosting charges paid to Rackspace US by not 'royalty' u/s 9(vi) or India-USA DTAA; No physical access or right to operate equipment situated outside India to assessee; Payment not for use of equipment but for hosting services; Delhi

Mar 02,2012

ITAT: Transfer Pricing relief to Mastek India; UK subsidiary a 'distributor', not 'marketing front office' 

Based on FAR, TPO wrongly characterized UK AE as captive marketing office instead of 'distributor', TPO's benchmarking using 'cost plus' basis using US comparables not correct; Secondment of employees to

Mar 02,2012

ITAT: Commission for marketing support on foreign projects not taxable

Agency commission paid to non-resident for procuring contract to construct borewell outside India not taxable; Commission for marketing support not in the nature of 'consultancy' charges; No deemed accrual of

Mar 01,2012

ITAT: Sec 80HHC computation to include Sec 10B unit's turnover, depreciation allowed on non-compete

Export turnover of unit eligible for Sec 10B benefit can also be added in computing Sec 80HHC deduction; Turnover to be included in export turnover and total turnover applying principle of

Mar 01,2012

ITAT: Compensation for waiver of right to acquire shares taxable as capital gains

Compensation received for waiver of right to acquire equity shares against capital advances taxable; 'Right to acquire shares' a property right which has been relinquished by the assessee; SC ruling

Mar 01,2012

ITAT: Sec 50C not applicable to transfer of ‘tenancy rights’ 

Sec 50C applicable only to transfer of capital asset being land or building or both; Sec 50C cannot be invoked where tenancy rights or leasehold rights in land or building

Mar 01,2012

ITAT: Reinsurance brokerage not taxable as 'fees for included services' under India-UK DTAA 

Reinsurance brokerage income of non-resident not taxable as fees for technical services/ fees for included services under India-UK DTAA; Revenue's reliance on AAR ruling in Verizon Data Services rejected; AAR

Feb 27,2012