Section 144C was inserted by the Finance Act, 2009 w.e.f. from 01 April 2009. Section 144C(1) provides that on or after 01 October 2009 the AO shall issue draft assessment order in case of eligible assessee. The taxpayer can file objections before the DRP against the proposed draft order. Under sub-s (5), the DRP can […]
VALIDITY OF TP PROCEEDINGS POST ASSESSMENT ORDER
Section 92CA provides that the AO may refer a case to the TPO if the taxpayer has entered into international transactions or SDT and the AO considers it necessary or expedient so to do. While making a reference, the AO has to take prior approval of the Commissioner. The reference to TPO shall be for […]
TDS LIABILITY CANNOT BE FASTENED BY RETROSPECTIVE AMENDMENT OR SUBSEQUENT DECISION
The payer of income does tax deduction as per the law in force when she makes remittance. The Indian legislature has powers to make retrospective amendment to the statutes. Similarly, a judicial decision, which is always retrospective, may reverses a settled position on taxability of income in the hands of payee. A question arises as […]
SPECIAL WARRANTY PROVISION – WHETHER OPERATING OR NON-OPERATING FOR PLI COMPUTATION
Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. Rule 10B(1)(e)(i) provides for considering “net profit margin realised by the enterprise from an international transaction or SDT entered into with an associated enterprise”. Rule 10B(1)(e)(ii) provides for computation of ‘net profit […]
LOCAL AREA TAXES – WHETHER OPERATING OR NON-OPERATING FOR PLI COMPUTATION
Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. Rule 10B(1)(e)(i) provides for considering “net profit margin realised by the enterprise from an international transaction or SDT entered into with an associated enterprise”. Rule 10B(1)(e)(ii) provides for computation of ‘net profit […]
SANCTION FOR ISSUE OF NOTICE UNDER SECTION 147
With effect from 01.06.2015, as per section 151(1), Notice under section 148 cannot be issued by the AO after expiry of four years from end of the relevant AY without prior approval of PCCIT or CCIT or PCIT or CIT. The authority should, on the reasons recorded by the AO, sanction that it is a […]
INCOME TAX REFUND – WHETHER OPERATING OR NON-OPERATING FOR PLI COMPUTATION
Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. Rule 10B(1)(e)(i) provides for considering “net profit margin realised by the enterprise from an international transaction or SDT entered into with an associated enterprise”. Rule 10B(1)(e)(ii) provides for computation of ‘net profit […]
ONE TIME JOINING BONUS – WHETHER OPERATING OR NON-OPERATING FOR PLI COMPUTATION
Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. Rule 10B(1)(e)(i) provides for considering “net profit margin realised by the enterprise from an international transaction or SDT entered into with an associated enterprise”. Rule 10B(1)(e)(ii) provides for computation of ‘net profit […]
INSURANCE CLAIM RECEIVED – WHETHER OPERATING OR NON-OPERATING FOR PLI COMPUTATION
Rule 10B of Income Tax Rules provides methodology for computation of ALP. Under TNMM, ‘net profit’ is used as benchmark for ALP computation. Rule 10B(1)(e)(i) provides for considering “net profit margin realised by the enterprise from an international transaction or SDT entered into with an associated enterprise”. Rule 10B(1)(e)(ii) provides for computation of ‘net profit […]
CIT v GRACE COLLIS [2001] 115 TAXMAN 326 (SC)
The assessees were shareholders of Ambassador Steamship (P.) Ltd. Ambassador Steamship Pvt. Ltd. (‘the amalgamating company’) was amalgamated with Collis Line Pvt. Ltd. (‘the amalgamated company’). As per the scheme, the members of the amalgamating company, were issued 14 equity shares of Rs. 100 each, credited as fully paid-up, in the amalgamated company for each […]