Deduction U/s. 10A of the Income Tax Act is allowable without set off of losses of non-eligible units
Feb 9, 2010 Income Tax Case Laws
Scientific Atlanta vs. ACIT (ITAT Chennai Special Bench)
In respect of AY 2003-04, the assessee had an unit in Chennai which was engaged in software development and whose profits were eligible for deduction u/s 10A. The assessee had another unit in Delhi which was engaged in trading and had suffered a loss. The assessee claimed that it was eligible for a deduction u/s 10A on the whole of the profits of the Chennai unit without it being reduced by the losses of the Delhi unit.
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Tags: non-eligible units, section 10a, Set Off of Losses, software development
Bad debts written off cannot be a factor to determine the Arms length price under any of the Transfer Pricing methods prescribed in the Income Tax Act, 1961
Feb 9, 2010 Income Tax Case Laws
This Article summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (ITAT) [ITA no. 5420 and 5421/Mum/2006] in the case of CA Computer Associates Pvt. Ltd. (Taxpayer) on the issue of determining arm’s length price (ALP) of royalty paid by the Taxpayer to its associated enterprise for distribution of software products in India. The ITAT held that the disallowance made by the Transfer Pricing Officer (TPO) to the royalty, to the extent of the bad debts written off by the Taxpayer,
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Tags: ALP, bad debt, CA Computer Associates, Royalty, Transfer Pricing
RBI’s approval does not put a seal of approval on true character of a transaction from perspective of transfer pricing regulation
Feb 7, 2010 Income Tax Case Laws
RBI’s approval does not put a seal of approval on true character of a transaction from perspective of transfer pricing regulation, Lending or borrowing money between two associated enterprises come within the ambit of international transaction and whether the same is at arms length price has to be considered.
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Tags: Perot System, Transfer Pricing
Recourse to the power under Section 147 cannot be sustained on a mere change of opinion
Feb 7, 2010 Income Tax Case Laws
Recourse to the power under Section 147 cannot be sustained on a mere change of opinion where there is no failure of the assessee to disclose fully and truly, all material facts necessary for assessment.
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Tags: Change of opinion, Reassessment, Section 142(1), section 147, section 148
If company constructed structure on shareholders land then rent there from will be taxable in the hand of company
Feb 7, 2010 Income Tax Case Laws, Others
CASE LAW DETAILS
Decided by: HIGH COURT OF KARNATAKA, In The case of: CIT v. Monarch Citadel Pvt. Ltd., Appeal No.: ITA No. 1183 of 2006, Decided on: January 13, 2010
RELEVANT PARAGRAPH
In so far as the rents received from “Samsung” are concerned., the finding recorded by the Assessing Officer is that, the structure is constructed by the Company itself with its own funds and not that the super structure has been constructed by the shareholders on the land belonging to the Company or a case where the investments have been made on behalf of the shareholders.
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Tags: HUF, karta, samsung, section 27(3)
Co-operative Bank entitled to deduction u/s 80P(2)(a)(i) on amount of interest received u/s 244A on Income tax Refund
Feb 7, 2010 Income Tax Case Laws
CASE LAW DETAILS
Decided by: ITAT, SPECIAL BENCH, MUMBAI, In The case of: The Maharashtra State Co-operative Bank Limited v. ACIT, Appeal No.: ITA NO. 7108/Mum/2004, Decided on: January 22, 2010
RELEVANT PARAGRAPH
8.4. We have heard the arguments put forth by both the sides along with the case law relied upon. Having held above that the interest on income-tax refund does not fall under the head `Profits and gains of business or profession’, it remains to be examined as to whether deduction u/s.80P is restricted only to the income falling under this head.
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Tags: Income Tax Refund, Section 244A, section 80P
The assessing authority cannot act on the dictates of the Commissioner to reopen the concluded assessment
Feb 7, 2010 Income Tax Case Laws
CASE LAW DETAILS
Decided by: HIGH COURT OF KARNATAKA, In The case of: CIT v. Aslam Ulla Khan , Appeal No.: ITA Nos. 448 to 451 of 2004, Decided on: January 4, 2010
RELEVANT PARAGRAPH
8. The appeal had been admitted to examine the following question of law :
(1) Whether, the Tribunal was correct in holding that the Assessing officer had to record his reasons and based on those reasons form his opinion that the income has escaped assessment by relying on two judgments of this Hon’ble Court in 133 JTJ? 199 and 155 ITR 748 before reopening assessments when Section 147 has been amended
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Tags: Reassessment, reopening, section 147
Even employees’ contribution to PF paid before due date of filing ROI is allowable u/s 43B
Feb 6, 2010 Income Tax Case Laws
S. 2 (24) (x) provides that amounts received by an assessee from employees towards PF contributions etc shall be “income”. S. 36 (1) (va) provides that if such sums are contributed to the employees account in the relevant fund on or before the due date specified in the PF etc legislation, the assessee shall be entitled to a deduction. The second Proviso to s. 43B (b) provided that any sum paid by the assessee as an employer by way of contribution to any provident etc fund shall be allowed as a deduction only if paid on or before the due date specified in 36(1)(va).
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