February 2021
- Appeal to High Court Territorial jurisdiction Section 260A of ITA, 1961 and Article 226 of Constitution of India Company located in Karnataka and assessed in Karnataka Appeal to Appellate Tribunal in Bombay Appeal from order of Tribunal Bombay High Court had no jurisdiction to consider appeal
- Business expenditure Section 37(1) Capital or revenue expenditure Payment made by assessee under agreement to an entity for additional infrastructure for augmenting continuous supply of electricity No asset acquired Expenditure revenue in nature and allowable
- Capital gains Sections 2(14), (42A), (47) and 45 (i) Capital asset Stock option is a capital asset Gains on exercising option Capital gains; (ii) Salary Stock option given to consultant No relationship of employer and employee Gains on exercising stock option Assessable as capital gains
- Disallowance of expenditure relating to exempt income Section 14A r/w/r 8D of ITR, 1962 Condition precedent for disallowance Proximate relationship between expenditure and exempt income Onus to establish such proximity on Department A.O. must give a clear finding with reference to the assessees accounts how expenditure related to exempt income
- Export Exemption u/s 10A (i) Conditions precedent for claiming exemption u/s 10A Separate accounts need not be maintained Undertaking starting manufacture on or after 1st April, 1995 must have 75% of sales attributed to export; (ii) Sub-contractors giving software support to assessee on basis of foreign inward remittance Claim by sub-contractors would not affect assessees claim u/s 10A
- Export Exemption u/s 10A Effect of section 10A and notification of CBDT issued u/s 10A Assessee providing human resources services Entitled to deduction u/s 10A
- Housing project Special deduction Sections 80-IB(10) and 80-IB(10)(c) Eligibility for deduction Condition precedent Single approval from local authority for development and construction of residential units more than and less than 1,500 sq. ft. in area Development permission which includes residential units more than 1,500 sq. ft. irrelevant for deciding eligibility for deduction Assessee entitled to deduction
- Income from undisclosed sources Bogus purchases A.O. disallowing entire purchases Estimation by Commissioner (Appeals) of profit element embedded in purchases at 17.5% affirmed by Tribunal based on facts Justified
- Section 36(1)(iii) Interest on funds borrowed for acquisition of land held as inventory is allowable u/s 36(1)(iii) The provisions of Accounting Standards and the provisions of the Act are two different sets of regulations. It is well settled that if there is a contradiction between the two, the provisions of the Act shall prevail There is no restriction in the provisions of section 36(1)(iii) that the interest can be disallowed if incurred for the purpose of inventory as provided in AS 16
- Section 56(2) The A.O. was erroneous in mechanically applying the provisions of section 56(2) to the difference between the stamp duty value and the actual sale consideration The addition made by the A.O. without making a reference to the DVO despite the assessee submitting valuation report was unjustified
- Section 54 Exemption from capital gains cannot be denied where the assessee sold more than two residential properties and made reinvestment in one residential property
- Section 54F Where possession of flat was taken within period of two years from date of transfer of original asset, assessee was entitled to benefit of section 54F irrespective of the date of agreement
- Section 115JB Where additional revenue was not shown by assessee in books of accounts, the A.O. could not tinker with book profit by adding additional revenue on account of subsequent realisation of export while computing book profit u/s 115JB
- Section 56(2)(vii) Prize money received in recognition of services to Indian Cricket from BCCI is exempt
- Third proviso to section 50C(1) Insertion of the proviso and subsequent enhancement in its limit to 10% is curative in nature to take care of unintended consequences of the scheme of section 50C, hence relate back to the date when the statutory provision of section 50C was enacted, i.e., 1st April, 2003
- Article 12(4), Article 14, Article 23(2) of India-Japan DTAA The words tax deducted in accordance with the provisions of Article 23 of DTAA mean taxes withheld by source state which are in harmony, or in conformity, with provisions of DTAA Article 12(4), read with Article 14, of DTAA as exclusion of FTS in Article 12(4) is attracted only if services were covered under Article 14, scope of which is limited to individuals Income earned by partnership firm was plausibly taxable under Article 12 and bona fide view adopted by a source country is binding on country of residence while evaluating tax credit claim
- Article 15, India-UAE DTAA Section 5, section 17(2)(vi) of the Act ESOP benefit had accrued at the stage of grant when assessee was resident Section 17(2)(vi) provides time when ESOP is to be taxed Hence ESOP benefit will be taxable notwithstanding that assessee is non-resident on exercise date ESOP benefit is taxable in country where services are rendered Residential status at the time of exercise of ESOP is not relevant
Keywords Search
HTML View Search
Current Issue
