INCOME TAX
Mobile Number Mentioned In ITR Turned Out To Be A Fraud Number On True Caller Can't Be A Ground To Refuse Tax Treaty Benefit: ITAT
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, Abu Dhabi Investment Authority, is liable to benefit provided under Article 24 of the India-UAE Double Taxation Avoidance Agreement (DTAA), which provides that the government of one contracting state shall be exempt from tax in other contracting states in respect of any income derived by such income from those other contracting states.The bench of Amit Shukla (Judicial Member) and Amarjit Singh (Accountant...
Delivery Cost And Warranty Expenses Are Post Sales Activities Doesn't Form The Part Of AMP Expenditure For Amazon India: ITAT
The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that delivery costs and warranty expenses are not part of advertising, marketing, and promotion (AMP) expenditures.The bench of George George K. (Vice President) and Laxmi Prasad Sahu (Accountant Member) has observed that during the course of TP proceedings, the TPO made a detailed inquiry on these issues, but it was not considered part of AMP expenditure. These expenditures cannot be regarded as having been incurred for the...
TDS Under S.194-H Income Tax Act Won't Apply To Business Transactions Where Assessee Is Not Responsible For Paying Income : Supreme Court
In a significant development, the Supreme Court recently held that under Section 194-H of the Income Tax Act, 1961, cellular mobile service providers are not liable to deduct tax at source on income/profit component in payments received by their franchisees/distributors from third parties/customers. “…we hold that the assessees would not be under a legal obligation to deduct tax at source on the income/profit component in the payments received by the distributors/franchisees from the...
Notion Of Earning 90% Profit Is Unimaginable, Is Contractual Loot Under Guise Of Alleged Development Activities: ITAT
The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the notion of earning 90% profit is unimaginable and is contractual loot under the guise of alleged development activities.The bench of R.K. Panda (Vice President) and Laliet Kumar (Judicial Member) has observed that the government funds meant for development should be used for development and not for the growth or enrichment of any individual. Though it is correct that the assessee disclosed the entire receipts and...
Possession Of Transport Vehicles Is Sufficient Than Legal Ownership For S. 194C-TDS Exception: ITAT
The Jodhpur Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee, the legal owner, is not required to TDS under Section 194C, where a declaration under Section 194C(6) along with a PAN is obtained from the payees who are in possession of the vehicle, though they are not registered owners.The bench of S. Seethalakshmi (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) has observed that for the purpose of Section 44AE of the Income Tax Act, the term owner means...
Direct Tax Cases Weekly Round-Up: 18 To 24 February 2024
Supreme Court 'Enemy Property' Not Exempt From Municipal Taxes As It Is Not Vested With Union Govt : Supreme Court Case Details: Lucknow Nagar Nigam & Others Versus Kohli Brothers Colour Lab. Pvt. Ltd. & Others Citation : 2024 LiveLaw (SC) 156 The Supreme Court held that the 'enemy property' vested in the possession of the Union Government-appointed 'custodian', as per the Enemy Property Act, 1968, cannot be considered a property of the Union Government to claim...
TDS Can't Be Isolatedly Taken In Any Assessment Year Without Offering Corresponding Income For Taxation: ITAT
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS cannot be isolatedly taken in any assessment year without offering the corresponding income for taxation.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the assessee shall be entitled to TDS credit corresponding to the income reported in the AY 2017-18 itself, provided credit for TDS is reflected in Form No. 26AS in the relevant AY and is not claimed in any other AY,...
Stamp Value As On Date Of Agreement Of Sale Of Property Has To Be Considered For Applicability Of Section 56(2)(vii)(b): ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that stamp value as on the date of agreement of sale of the property, in the year 2010 (i.e., Rs. 1.4 Cr), has to be considered for the applicability of Section 56(2)(vii)(b) of the Income Tax Act.The bench of Challa Nagendra Prasad (Judicial Member) and B. R. R. Kumar (Accountant Member) has deleted the addition of Rs. 40.45 lakhs made under Section 56(2)(vii)(b). The bench noted that the assessee entered into an agreement fixing...
Direct Tax Cases Weekly Round-Up: 11 To 17 February 2024
Supreme Court Reopening Of Income Tax Assessments : Supreme Court Refuses To Interfere With Delhi High Court's Guidelines To Tax Dept. Case Title: Asst. Commissioner Of Income Tax Versus Sabh Infrastructure Ltd. The Supreme Court has refused to interfere with a 2017 Delhi High Court judgment which issued a set of guidelines to the Income Tax Department regarding the reopening of assessments. Calcutta High Court Provisions Of Section 148 Under Old Regime Including TOLA Can't...
OYO Not Liable To Deduct TDS On Minimum Guarantee Payments Made To Hotels: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee OYO is not liable for TDS under Section 194C of the Income Tax Act on the minimum guarantee payments made to hotels.The bench of Kul Bharat (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that the assessee, for the purpose of carrying on its business operations, enters into merchant agreements with various hotels for facilitating the reservation and booking of hotel rooms through the platform...
Reopening Of Income Tax Assessments : Supreme Court Refuses To Interfere With Delhi High Court's Guidelines To Tax Dept
The Supreme Court has refused to interfere with a 2017 Delhi High Court judgment which issued a set of guidelines to the Income Tax Department regarding the reopening of assessments.A bench comprising Justice PS Narasimha and Justice Aravind Kumar dismissed a Special Leave Petition filed by the Income Tax Department in 2018 against the 2017 High Court verdict.The Delhi High Court bench of Justice S. Muralidhar and Justice Prathiba M. Singh issued the guidelines to ensure that the...
Direct Tax Cases Weekly Round-Up: 04 To 10 February 2024
Bombay High CourtHSBC Bank Carrying On Bona Fide Banking Business In Mauritius Exempt From Tax In India: Bombay High Court Case Title: Commissioner of Income Tax Versus M/s. HSBC Bank (Mauritius) Ltd. The Bombay High Court has held that HSBC Bank carrying on bona fide banking business in Mauritius is exempt from tax in India. Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court Case Title: M/s. Johnson and...