Facts The assessee is engaged in the business of manufacturing automobiles, which are chargeable to Excise Duty under the Central Excise Act, 1994. The assessee acquires exiceable raw materials and inputs which are used in the manufacturing of the vehicles. The assessee had also been taking benefit of MODVAT credit on the raw material and […]
DIMENSION DATA ASIA PACIFIC PTE LTD. VS. DCIT [2018] 99 taxmann.com 270 (Mumbai); TS-604-ITAT-2018 (Mumbai Tribunal)
The Tribunal held that presence of employees is to be tested separately for each type of service for computing Service PE threshold. The Tribunal further held that application of beneficial provisions of the Act for one source of income and treaty for another source of income is permissible FACTS The Assessee is a private limited […]
DALMIA POWER LTD v ACIT (2019) 420 ITR 339 (SC), [2019] 112 taxmann.com 252 (SC)
Facts As per the Scheme, about 9 companies merged with 2 companies. The Appointed Date of the Schemes was 01.01.2015. The Schemes were duly approved and sanctioned by the NCLT, Guwahati vide Orders dated 18.05.2017 and 30.08.2017. NCLT, Chennai sanctioned the Schemes vide Orders dated 16.10.2017, 20.10.2017, 26.10.2017, 28.12.2017, 10.01.2018, 20.04.2018 and 01.05.2018. Transferee Companies […]
GE CAPITAL MAURITIUS OVERSEAS INVESTMENTS v. DCIT – [2021] 127 taxmann.com 235 (Delhi)
Section 241A provides that where refund of any amount becomes due to the assessee under the provisions of section 143(1) and the Assessing Officer is of the opinion, having regard to the fact that a notice has been issued under section 143(2) in respect of such return, that the grant of the refund is likely […]
EXEMPTION u/s 54EC/54/54F AVAILABLE IN RESPECT OF STCG u/s 50
According to section 50 of Income tax Act if an assessee has sold a capital asset forming part of block of assets (building, machinery etc) on which the depreciation has been allowed under Income Tax Act, the income arising from such capital asset is treated as short term capital gain. Section 50 modifies the provisions […]
GIFT OF AGRICULTURAL LAND WHETHER COVERED BY PROVISIONS OF SECTION 56(2)(x)/56(2)(vii)
Section 56(2)(x)(b) provides for taxation of immovable property received by any person under certain circumstances. These circumstances are: (A) immovable property received without consideration and the stamp duty value of such property exceeds Rs.50,000. In such circumstances, the stamp duty value of such property is taxable. (B) immovable property received for a consideration and the […]
WHETHER REVENUE SHOULD BE CONSISTENT IN FILING APPEAL BEFORE HIGHER FORUM
Revenue is party to all tax litigations. An issue has arose before the Courts as to whether Revenue can file appeal before higher or superior forums assailing the correctness of the order in one case and not doing so in another identical case. Can Revenue pick and choose while filing appeals. There is also another […]
CIT v. RELIANCE ENERGY LTD – [2021] 127 taxmann.com 69 (SC)
In a recent decision, the Supreme Court allowed deduction under section 80IA from gross total income, which included other income and rejected the action of AO of restricting the deduction to ‘business income’ only. The decision is analysed below. Facts The Assessee is engaged in the business of power generation and also deals with purchase […]
TAXABILITY OF EMPLOYMENT INCOME OF NON-RESIDENT FOR SERVICES RENDERED OUTSIDE INDIA
Taxability of salary or employment income depends on the physical presence of the employee. The place where employees are physically present is generally considered as the place where the salary income is taxable. A Company in India may pay salary to non-resident employees, who have rendered services from outside India. The salary may be credited […]
EXPENDITURE CAPITALISED – 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 […]