CORPORATE AND PROFESSIONAL UPDATE MARCH 30, 2016 DIRECT TAX INCOME TAX: Where assessee claimed deduction of secret commission paid to employees of different companies who had given business to assessee, since assessee had not kept any accounts as to where and to whom such commission was paid, Tribunal was justified in allowing assessee’s claim to extent …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 23, 2016 DIRECT TAX Income Tax: Attachment of bank account – any action to recover taxes adopting coercive means is not permissible till the petitioner’s application for stay under Section 220(6) of the Act is disposed of. – HC Income Tax: Reopening of assessment – AO has no power to review; …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 22, 2016 DIRECT TAX Income Tax: Wherever under the DTAA’s. Make available clause is found, then as there is no imparting, the payment in question is not ‘FTS’ under the Treaty and when there is no ‘FTS’ clause in the treaties, the payment falls under Article 7 of the Treaty …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 15, 2016 DIRECT TAX EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME: Tribunal faced strong criticism for not following the judgment of jurisdictional High Court given in the case of the petitioner itself for an earlier Assessment Year on identical issue of applicability of Section 14A …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 14, 2016 INCOME TAX ACT SECTION 2(47) CAPITAL GAINS – TRANSFER Sale of partnership business as going concern to company : Sale of business of assessee-firm as a going concern to company for consideration of paid up share capital does not amount to transfer liable to tax as capital gains …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 12, 2016 DIRECT TAX Income Tax: Computation of MAT u/s 15JB – Book Profit – Once it is realized that the assessee had correctly debited the profit and loss account for the loss arising out of the transfer of investment division, there remains no difficulty in realizing that the CIT …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 11, 2016 DIRECT TAX Income Tax: Qualification for exemption u/s 10(5) – LTC paid to the employees involving foreign travel – TDS on the payment of LTC to the employees – Revenue has rightly held the assessee to be in default, as the assessee has not deducted TDS intentionally on …
CORPORATE AND PROFESSIONAL UPDATE MARCH 8, 2016 INCOME TAX ACT SECTION 92C TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE Where assessee had benchmarked its international transactions on TNMM basis and TPO had neither disputed assessee’s claim that TNMM was most appropriate method, nor comparables selected by assessee, it was not open for TPO to …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 5, 2016 Direct Tax Clarification issued on taxability of surplus on sale of shares and securities-Capital Gains or Business Income-Instructions in order to reduce litigation vide circular no. 06/2016 – Clarification issued by clarifying TDS provisions by television channels and publishing houses to advertisement companies for procuring or canvassing …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 4, 2016 INCOME TAX ACT SECTION 36(1)(iii) INTEREST ON BORROWED CAPITAL Expansion of business : Where assessee paid interest on borrowed capital which was used for acquisition of windmill for extension of existing business of generation of electricity through windmill, interest could not be allowed till capital asset acquired by …