International Tax

ITAT: Delhi ITAT reignites ESOP taxation debate, holds income from share sale not STCG

'Right' to exercise an option to sell ‘stock’, a capital asset; Right in shares acquired on the date of acceptance of offer though 'distinctive' shares not allotted to the assessee; Transfer

Oct 07,2011

HC: Waiver of working capital loan a 'deemed business profit'

Waiver of principal amount of working capital loan not a capital receipt; Amount waived off taxable as deemed business profit u/s 41(1)

Oct 05,2011

AAR: Software payments taxable as Royalty

Payment for use of ‘Licensed Program’ taxable as Royalty; tax withholding provisions u/s 195 attracted: AAR

Oct 04,2011

ITAT: Income of non-resident from production of TV signals for broadcasting in India taxable as FTS

Income of non-resident from Prasar Bharti for production of television signals for broadcasting of cricket matches in India, taxable as FTS on gross basis; Assessee did not have PE in

Oct 04,2011

ITAT: Reduction of Equity share capital not subject to Capital Gains provisions

Reduction of Equity share capital not subject to Capital Gains provisions; loss on reduction not allowable as capital loss: Mumbai ITAT Special Bench

Oct 03,2011

HC: Payment to hospitals by TPA attract TDS; CBDT circular upheld  

Delhi HC upholds CBDT circular requiring TPAs to deduct TDS u/s 194J while making payment to hospital; Circular set aside to the extent it provides for levy of penalty u/s

Oct 02,2011

ITAT: Portfolio management services fees not deductible, KRA Holdings decision bad law

Portfolio management services fees not deductible; Pune ITAT decision in  KRA Holding & Trading not good law: 

Sep 30,2011

ITAT: Interest on refund from IT Dept fully taxable without reducing interest paid

Interest paid on delayed payment of income tax not allowable as deduction u/s 36(1)(iii) or 37(1); Interest paid cannot be set off against interest received on tax refund; Gross amount

Sep 29,2011

HC: Capital gains u/s 48 to be calculated on full value of consideration, not market value

Capital gains on built-up area received under JDA, cannot be computed using market price of the property; Act consciously adopts two different concepts - ‘full value of consideration’ u/s 48

Sep 28,2011

SC: Additional liability arising on account of exchange rate fluctuation, deductible u/s 37(1); Actual cost of imported assets, adjustible u/s 43A

Additional liability in respect of revenue loans, arising on account of fluctuation in the exchange rate, allowable as deduction u/s 37(1) in the year of fluctuation; Actual cost of imported

Sep 26,2011