The assessee was incorporated under the Companies Act, 1956 and is engaged in the business of designing, manufacturing and marketing various auto components. The company is on the stock exchange. In 2012-13, 75% of the shares of the Appellant were held by Clayton Dewandre (“CD”) and the balance 25% were held by public. In 2013-14, […]
NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY AND ORS. vs. CIT AND ORS. (2018) 406 ITR 209 (SC)
The Respondent Rajesh Projects (India), a private limited company engaged in the business of real estate activities of constructing, selling residential units etc. It entered into a long-term lease for 90 years with the Greater Noida Industrial Development Authority for Plot No. GH-07A for development and marketing of Group Flats. As per terms of the […]
M.K. MOHAMMED KUNHI (1969) 2 SCR 65; 71 ITR 815 (SC 3J)
The genesis of the stay provision contained in Section 254 of the Income Tax Act is in the celebrated judgment of this Court in Income Tax Officer v. M.K. Mohammed Kunhi (1969) 2 SCR 65. In this judgment, Section 254 of the Income Tax Act, as originally enacted, came up for consideration before Supreme Court. […]
DCIT V PEPSI FOODS LTD [2021] 126 taxmann.com 69 (SC)
The appeals before the SC raised an important question as to the constitutional validity of the third proviso to Section 254(2A) of the IT Act. The assessee filed a return of income for the AY 2008-2009 declaring a total income of INR 92,54,89,822. A final assessment order was passed on 19.10.2012, which was adverse to […]
M/S PEPSI FOODS LTD. V. ACIT (2015) 376 ITR 87 (Delhi High Court)
The judgment in the case of M/s Pepsi Foods Ltd. v. ACIT (2015) 376 ITR 87 dealt with the challenge to the constitutional validity of the third proviso to Section 254(2A) of the Income Tax Act, as amended by the Finance Act, 2008. The Delhi HC after referring to SC judgments in Mardia Chemicals Ltd. […]
EPRSS PREPAID RECHARGE SERVICES INDIA P. LTD. vs. ITO [2018] 100 taxmann.com 52 (Pune – Trib.); TS-623-ITAT-2018 (Pune);
Article 12 of India-USA DTAA and Explanation 2 to section 9(1)(vi). The ITAT held that payments made towards web hosting charges (server space) to Amazon is not taxable as royalty under the Act as well as the DTAA Facts The Assessee, an Indian company, is engaged in distribution and sale of recharge pens of various […]
SECTION 2(47) – CONVERSION OF CCPS INTO EQUITY SHARES DOES NOT AMOUNT TO TRANSFER
Convertible preference shares (CPS)/Cumulative Convertible Preference Shares (CCPS) are issued with the specific terms and conditions that after a certain period the CPS/CCPS shall be converted into equity shares (or other asset) at a pre-determined price or the price to be determined as per the prescribed formula. On conversion of a CPS/CCPS, preference shares are […]
SECTION 194A – CIT (TDS) vs. CANARA BANK (2018) 406 ITR 161 (SC)
Payment of interests by the banks to the State Industrial Development Authority is not liable to TDS in terms of section 194A(3)(iii)(f) The New Okhla Industrial Development Authority (NOIDA) (“Authority”) was constituted by Notification dated 17.04.1976 issued u/s. 3 of the Uttar Pradesh Industrial Area Development Act, 1976 (“1976 Act”). The Canara Bank made a […]
SECTION 254(1) – POWERS OF TRIBUNAL – SMT. SARIKA JAIN VS. CIT 407 ITR 254 (ALL HC)
The assessee had inducted capital in the firm in which she was a partner. During reassessment proceedings u/s. 147 of the IT Act, the assessee explained the source of the amounts received as gifts through banking channels and also produced the gift deeds. The statements of the two donors were also recorded u/s. 131. However, […]
SECTION 48 – MEANING OF FULL VALUE OF CONSIDERATION
Sec. 48 of the Act deals with the methodology to compute capital gains. Section 48 provides that the income chargeable under the head “Capital gains” shall be computed, by deducting cost of acquisition/improvement and expenditure incurred wholly and exclusively in connection with transfer from the full value of the consideration received or accruing as a […]