{"id":425,"date":"2015-11-02T07:02:17","date_gmt":"2015-11-02T07:02:17","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=425"},"modified":"2020-10-16T11:33:16","modified_gmt":"2020-10-16T11:33:16","slug":"corporate-law-update-for-the-month-of-nov-2015","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-law-update-for-the-month-of-nov-2015\/","title":{"rendered":"CORPORATE LAW UPDATE FOR THE MONTH OF OCT 2015"},"content":{"rendered":"

CORPORATE LAW UPDATE FOR THE MONTH OF OCT 2015<\/strong><\/p>\n

S<\/strong>ection. 32: Even prior to the insertion of “intangible assets” in s. 32, intellectual property rights such as trademarks, copyrights and know-how constitute “plant” for purposes of depreciation. The department is not entitled to rewrite the terms of a commercial agreement<\/strong><\/p>\n

Mangalore Ganesh Beedi Works vs. CIT (Supreme Court)<\/strong><\/a><\/p>\n

The question is, would intellectual property such as trademarks, copyrights and know-how come within the definition of \u2018plant\u2019 in the \u2018sense which people conversant with the subject-matter with which the statute is dealing, would attribute to it\u2019? In our opinion, this must be answered in the affirmative for the reason that there can be no doubt that for the purposes of a large business, control over intellectual property rights such as brand name, trademark etc. are absolutely necessary. Moreover, the acquisition of such rights and know-how is acquisition of a capital nature, more particularly in the case of the Assessee. Therefore, it cannot be doubted that so far as the Assessee is concerned, the trademarks, copyrights and know-how acquired by it would come within the definition of \u2018plant\u2019 being commercially necessary and essential as understood by those dealing with direct taxes<\/p>\n

    \n
  1. 147: Reopening only on the basis of information received that the assessee has introduced unaccounted money in the form of accommodation entries without showing in what manner the AO applied independent mind to the information renders the reopening void<\/strong><\/li>\n<\/ol>\n

    Pr. CIT vs. G & G Pharma India Ltd (Delhi High Court)<\/strong><\/p>\n

    Without forming a prima facie opinion, on the basis of such material, it was not possible for the AO to have simply concluded: \u201cit is evident that the assessee company has introduced its own unaccounted money in its bank by way of accommodation entries\u201d. In the considered view of the Court, in light of the law explained with sufficient clarity by the Supreme Court in the decisions discussed hereinbefore, the basic requirement that the AO must apply his mind to the materials in order to have reasons to believe that the income of the Assessee escaped assessment is missing in the present case<\/p>\n

      \n
    1. 263: Claim that notional interest on funds placed by the s. 10A eligible unit with the H.O. is allowable as a deduction to the H.O. and is exempt in the hands of the s. 10A unit is an \u201cunsustainable view\u201d justifying revision action<\/strong><\/li>\n<\/ol>\n

      Thomson Press (India) Ltd vs. CIT (Delhi High Court)<\/strong><\/a><\/p>\n

      The Assessee has not derived any interest income. Therefore, reducing such notional income \u2013 which has neither been accrued nor received \u2013 from the Assessee\u2019s total income is completely alien to the scheme of the Act. Such notional interest could never form a part of the Assessee\u2019s income and thus the Assessee\u2019s claim that the same is to be excluded under Section 10A of the Act is flawed and wholly unsustainable in law. The view as canvassed on behalf of the Assessee is not, even remotely, plausible<\/p>\n

      \u00a0Law on applicability of Article 24 of the India-Singapore DTAA (Limitation of Benefits) to a case where the income is not remitted to, or received in Singapore, explained<\/strong><\/p>\n

      Alabra Shipping Pte Ltd vs. ITO (ITAT Rajkot)<\/strong><\/p>\n

      The benefit of treaty protection is restricted to the amount of income which is eventually subject matter of taxation in the source country. This is all the more relevant for the reason that in a situation in which territorial method of taxation is followed by a tax jurisdiction and the taxability for income from activities carried out outside the home jurisdiction is restricted to the income repatriated to such tax jurisdiction, as in the case of Singapore, the treaty protection must remain confined to the amount which is actually subjected to tax. Any other approach could result in a situation in which an income, which is not subject matter of taxation in the residence jurisdiction, will anyway be available for treaty protection in the source country<\/p>\n

      The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact:info@caindelhiindia.com<\/a>\u00a0or call at\u00a0011-23343333<\/p>\n

      \n","protected":false},"excerpt":{"rendered":"

      CORPORATE LAW UPDATE FOR THE MONTH OF OCT 2015 Section. 32: Even prior to the insertion of “intangible assets” in s. 32, intellectual property rights such as trademarks, copyrights and know-how constitute “plant” for purposes of depreciation. The department is not entitled to rewrite the terms of a commercial agreement Mangalore Ganesh Beedi Works vs. …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[555,502,501,569,572,299,561,541,537,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/425"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=425"}],"version-history":[{"count":2,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/425\/revisions"}],"predecessor-version":[{"id":456,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/425\/revisions\/456"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}