Payment made by a member to its stock exchange for VSAT/Lease line/BOLT/Demat charges is not fee for technical services u/s194J
Jan 24, 2010 Income Tax Case Laws
CASE LAW DETAILS
Decided by: ITAT, MUMBAI BENCH `A’, In The case of: DCIT v. Angel Broking Ltd. , Appeal No.: ITA No. 7031/Mum./08, Decided on: December 9, 2009
RELEVANT PARAGRAPH
7. We have heard the rival submissions. The relevant provisions of law may be referred to for the purpose of clarity.
194-J FEES FOR PROFESSIONAL OR TECHNICAL SERVICES.
(1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of -
(a) fees for professional services, or
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Tags: 44aa, accountancy, angel broking ltd, architectural profession, case law, consultancy services, dcit, hindu undivided family, Income Tax, interior decoration, lump sum, medical engineering, payee, professional services, provision of services, section 9, technical consultancy
Use of Cash Profi t / Sales and Cash Profi t / Cost emphasized as an appropriate PLI for use of TNMM
Jan 14, 2010 Income Tax Case Laws
In the case of Schefenacker Motherson Ltd v. ITO, ITA No. 4459/DEL/07 for AY 2003-04 and schefenacker Motherson Ltd v. DCIT, ITA No.4460/DEL/07 for AY 2004-05, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal), held that cash profit on sales “CP/Sales” or cash profit on total cost excluding depreciation “CP/TCdep” can be adopted as an appropriate profit level indicator (PLI) under Transactional Net Margin Method (TNMM),
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Tags: aggregate basis, associated enterprises, automobile industry, cable assemblies, capacity utilization, cash profit, comparable companies, component industry, dcit, group companies, international transactions, level indicator, motherson sumi, numerator, operating profit, profit level, rule 10b, schefenacker, technical engineering
Transfer of trade mark is not transfer of goodwill
Jan 8, 2010 Income Tax Case Laws
The Bangalore Income Tax Appellate Tribunal (the Tribunal) in the case of Associated Electronic & Electrical Industries Pvt. Ltd. v. DCIT (2009-TIOL-263- ITAT-BANG) held that transfer of trade mark is not transfer of goodwill as the goodwill of a business cannot be sold without selling business itself. Thus, the trade mark and goodwill are two different assets. Further, since the capital gains on sale of trade mark came into effect from 1 April 2002 there was no capital gain on sale of trade mark for the year under consideration.
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Tags: appellate tribunal, brand name, CAPITAL GAIN, capital gains, dcit, electrical appliances, electrical industries, goodwill, Income Tax, itat, Royalty, settlement agreement, sharp corporation, tripartite agreement
In case of gifted Assets, indexation benefit is available from the year of acquisition of the previous owner
Dec 30, 2009 Income Tax Case Laws
This article summarizes a recent ruling of the Special Bench (SB) of the Mumbai Income Tax Appellate Tribunal (ITAT) [ITA No. 7315/Mum/2007] in the case of DCIT vs. Manjula Shah (Taxpayer) which held that, in the case of gifted capital asset, indexation benefit is available to a donee from the year of its acquisition by the previous owner. The SB adopted a purposive construction of the definition of ‘Indexed Cost of Acquisition’ (ICOA) by looking at the scheme of the Indian Tax Law (ITL), which seeks to grant the benefit of cost and holding period of the previous owner to the donee.
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Tags: acquisition, capital asset, consumer price index, dcit, donee, financial assets, holding period, Income Tax, indexation, inflation index, itat, itl, long term capital, long term capital gains
Transfer of trade mark cannot be considered as transfer of goodwill as they are two separate assets
Dec 21, 2009 Income Tax Case Laws
The Bangalore Income Tax Appellate Tribunal (the Tribunal) in recent case of Associated Electronic & Electrical Industries Pvt. Ltd. v. DCIT (2009-TIOL-263- ITAT-BANG) held that transfer of trade mark is not transfer of goodwill as the goodwill of a business cannot be sold without selling business itself. Thus, the trade mark and goodwill are two different assets. Further, since the capital gains on sale of trade mark came into effect from 1 April 2002 there was no capital gain on sale of trade mark for the year under consideration.
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Tags: appellate tribunal, brand name, CAPITAL GAIN, capital gains, dcit, electrical appliances, electrical industries, goodwill, Income Tax, itat, Royalty, settlement agreement, sharp corporation, sole license, tripartite agreement
Interest expense cannot be claimed if TDS not deducted
Dec 20, 2009 Income Tax Case Laws
RELEVANT PARAGRAPH
15. It will also be relevant to mention that in the Memorandum explaining the provisions relating to direct taxes in the Finance Act, the above clause has been described under the head `Measures to plug revenue leakages’ and the relevant portion of Memorandum Explaining the Provisions Relating to Direct Taxes is reproduced below:-
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Tags: brokerage fees, case law, central government, dcit, direct taxes, finance act, leakages, memorandum, professional services, royalty fees
Consideration for permission to use TDR / FSI not chargeable to tax: ITAT Mumbai
Dec 19, 2009 Income Tax Case Laws
The assessee co-op housing society gave permission to a developer to construct 2 floors and 8 flats on the building belonging to the society by using the TDR / FSI available to the developer. In consideration, the developer paid Rs. 26 lakhs to the assessee and Rs. 66 lakhs to its members aggregating Rs. 92 lakhs.
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Tags: acquisition, chs, co op housing, dcit, development contracts, housing society, hsg, itat, judgement, long term capital, long term capital gains, shailaja, shanti, srinivasa, tdr
Payments made by telecasting companies to satellite companies for telecommunication or broadcasting constitutes royalty
Dec 18, 2009 Income Tax Case Laws
Background :-Conflicting decisions of the Income-tax Appellate Tribunal (the Tribunal) concerning similar payments in the case of Asia Satellite Telecommunications Co. Ltd. v. DCIT [2003] 85 ITD 478 (Delhi ITAT) and DCIT v. Pan AmSat International Systems Inc. [2006] 9 SOT 100 (Delhi ITAT) led to the constitution of the Special Bench of the Delhi Tribunal. It was held that payments made by telecasting companies to satellite companies for telecommunication or broadcasting constitutes royalty under provisions of the Income-tax Act, 1961 (‘the Act’) as well as various tax treaties.
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Tags: amsat, appellate tribunal, asia satellite telecommunications, dcit, income tax act, income tax act 1961, indian tv channels, itat, new skies satellites, relevant tax, satellite companies, shin satellite, tax treaties, Tax Treaty, telecommunications co, telecommunications ltd, television channel
Deduction U/s. 80HHC allowable while computing book profit even if there are no normal profits
Nov 26, 2009 Income Tax Case Laws
ITAT Mumbai recently held in the case of DCIT vs. Glenmark Laboratories that deduction Deduction U/s. 80HHC is allowable while computing book profit even if there are no normal profits.
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Tags: ajanta pharma, bombay high court, Book Profit, book profits, dcit, Glenmark, judgement, sun
Liability can not be added to income just because they are old or not proved genuine
Sep 11, 2009 Income Tax Case Laws
SUMMARY OF CASE LAW
Section 41(1) concerns with only trading liability and not with any other type of liability; every liability standing in the balance sheet cannot be presumed to be a trading liability; where the assessee has not written off a trading liability in its books then the Assessing Officer cannot invoke section 41(1) merely because the liabilities standing in the books are old or they could not be proved to be genuine by the assessee.
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Tags: balance sheet, bench, cessation, conscious act, contractual agreement, creditor, creditors, dcit, judgment, liabilities, paragraph 17