DCIT v TVS Electronics Ltd IT Appeal NO. 811 (MDS.) of 2010 (Chennai ITAT) Facts of the case The assessee made payment to M/s Rosewell Group Services Ltd. based in Mauritius for market survey, qualitative consumer measurement, retail store site information, etc. without deducting tax at source under section 195 of the Act The AO concluded that the payment made was nothing but fees for technical services relying on Explanation 2 to Section 9(1)(vii) of the Act.
Yearly Archives: 2012
Notification No. 21/2012 [F.No.142/10/2012-SO (TPL)] S.O. 1323(e), dated 13-6-2012 In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that no deduction of tax shall be made on the following specified payment under section 194J of the Act, namely:-
Notification: No TDS u/s 194J on “off-the-shelf” software
Nokia India (P.) Ltd. v Addln CIT [2012] 22 taxmann.com 109 (Delhi – Trib.) Facts of the case Assessee incurred certain advertisement, marketing and promotion expenditure. The AO in order to determine the arm’s length price of international transaction with associated enterprise referred the matter to TPO u/s 93CA(3) of the act. The TPO passed an order u/s 92CA(3) of the Act, wherein he determined the arm’s length price on Advertisement, Marketing and Promotion (AMP) expenses amounting to Rs. 253,48,30,000.
TP adjustments by a TPO for such international transactions which are not reported by AO ...
The Finance Bill, 2012 was introduced in Parliament on 16 March 2012. Certain official amendments have been carried out during the passage of the Bill in Parliament. A supplementary memorandum elucidating the official amendments to the Finance Bill, 2012 as reflected in the Finance Act, 2012 enacted on 28 May 2012, is attached. Click here to download
Amendments to Finance Bill, 2012 – Supplementary Memorandum
Shri Vishnu Anant Mahajan v ACIT ITA No.3002/Ahd/2009 (Ahmedabad Special Bench) Background and facts of the case The assessee is an individual and derives income by way of share of profit from the firm of M/s.Mahajan & Amar Doshi, capital gains, interest, dividend and house property. The assessee derives 76% of professional income as share from the firm and the balance amount by way of remuneration and interest income from the firm. The AO allocated the expenses to the income not includible under Section 10(2A). Thus, the business income by way of remuneration and interest from the firm has been taxed in the hands of the assessee under section 28(v) after allowing 24% of the expenditure. Thus, 76% of the expenditure has been disallowed.
14A Disallowance on Partner’s share of profit & Depreciation not an expenditure for 14A – ...
Alstom Transport SA v DIT A.A.R. No. 958 of 2010 dated 7th June 2012 Facts of the case The applicant along with three other companies, entered into a Consortium Agreement for the purpose executing a contract: “to implement the design, manufacture, supply, installation, testing and commissioning of signaling/ train-control and communication system”. The consortium was jointly and severally responsible for the work tendered. The Applicant contended that:
Dissecting a composite contract for offshore supply no longer good in law – AAR
DDIT v Toyo Engineering Corpn [2012] 22 taxmann.com 18 (MUM. – ITAT) The assessee was an engineering company incorporated in and tax resident of Japan. During the year it was, inter alia engaged in executing certain Project Management Contracts with MRPL, HPL and CFCL. On the perusal of these services, it can be seen that the assessee received consideration towards project management contracts on an overall basis towards (i) Project Management Services ; (ii) Local engineering supervision ; (iii) Construction management and supervision services and ; (iv) Start-up assistance services.
Project Management Charges are FTS u/s 9(1)(vii) and detailed explanation on business profits under Article ...
DCIT v WEIZMANN FOREX LTD ITA No.3571/Mum/2011 (Mum ITAT) Assessee Company is engaged in the business of dealing in foreign exchange, money transfer and wind power generation. During the year under consideration, the assessee company had acquired franchise from AFL Pvt Ltd (ALF) – filed its ROI claiming depreciation on franchise rights. During the course of assessment proceedings the AO took a view that depreciation was not available on such things – Aggrieved with the order of the AO assessee contended the issue before the CIT(A) who after analyzing the agreement of franchise allowed the appeal of the assessee. Held that:
Wear & tear is not an essential condition for depreciation on intangible assets
Letter [F.No.500/111/2009-FTD-1(Pt.)], dated 29-5-2012 The Finance Act 2012 has introduced certain clarificatory amendments in Section 2 clause (14), Section 2 clause (47), Section 9 and Section 195, of the Income Tax Act, 1961 (“Act”), with retrospective effect from 01.04.1962 or 01.04.1976, whereby meaning of various terms used in these sections have been clarified in order to remove any doubt regarding their interpretations. 2. These amendments have been introduced retrospectively in order to clarify the legislative intent and state the position of law from the date of coming into effect of these sections in the Act. 3. Doubts have been raised in various quarters about the implication of these amendments on the assessments that have already been completed and attained finality. 4. The Board, after due consideration, hereby directs that in case where assessment proceedings have been completed under section 143(3) of the Act, before the first day of April, 2012, and no notice for reassessment has been issued prior to that date; then such cases shall not be reopened under Section 147/148 of the Act on account of the abovementioned clarificatory amendments introduced by the Finance Act, 2012. However, assessment or any other order which stand validated due to the said clarificatory amendments in the Finance Act 2012 would of course be enforced. 5. This may be brought to the notice of all officers in your region immediately.