International Tax

ITAT: Software payment not taxable under treaty; Microsoft ruling not binding precedent

Payment of software not taxable as ‘royalty’ under India-Israel treaty; Motorola SB ruling followed; Delhi ITAT ruling in Microsoft case not binding precedent: Mumbai ITAT 

Aug 26,2011

HC: Reopening of assessment to deny concessional tax rate u/s 44BB invalid

Reopening of assessment to deny concessional tax rate u/s 44BB, to income from ‘oil exploration activity’, invalid; Re-opening on the basis of prospective amendment in Finance Act or subsequent judgement

Aug 25,2011

HC: Interest on 'self asst tax' refund available from date of tax payment

Interest on refund of excess self assessment tax available from 'date of payment of tax’ and not from 'date of assessment order' u/s 244A

Aug 23,2011

ITAT: Onsite expenses not to be reduced from 'export turnover' for Sec 10A deduction

Expenses incurred by a software developer in foreign currency for ‘onsite projects’ not to be reduced from ‘export turnover’ for computation of deduction u/s 10A  

Aug 22,2011

ITAT: Redemption of pref shares amounts to 'transfer' and capital loss allowable

Redemption of preference shares not taxable as 'deemed dividend' u/s 2(22)(d), Capital loss on redemption allowable – Mumbai  ITAT

Aug 22,2011

HC: Assessment on amalgamating company invalid after merger is effective

Framing of assessment against a non-existing entity a ‘jurisdictional defect’ & not procedural defect; Sec 292B not applicable

Aug 20,2011

HC: Interest on refund cannot be denied due to bank's delay

Interest on tax refund available from date of debit to assessee’s bank account and not the date of credit to Govt account

Aug 19,2011

ITAT: ITAT - Consulting fees paid to non-resident for earning income from 'source outside India' not taxable in India

Foreign Consultant's fees for 'acquiring new business abroad' not taxable u/s 9(1)(vii); No TDS required on fees

Aug 18,2011

HC: Can't hold Genpact as representative assessee just because its shares transferred by GE

Representative Assessee not automatically liable for paying tax, merely because it is an agent of the non-resident; Income earned by non-resident and sought to be taxed, must have some connection

Aug 17,2011

HC: Sec 80HHC deduction available on supply of F&B at Indian airports to international flights

Supply of food and beverages to international flights leaving India, are 'exports' qualifying for deduction u/s 80HHC

Aug 17,2011