NR liable to tax in all AYs wherein its project exceeding threshold limit for creation of PE falls: AAR

Tiong Woon Project & Contracting (P.) Ltd., In re - [2021] (AAR - Mumbai) 

Applicant-Tiong Woon Project & Contracting (P.) Ltd is a corporation formed in Si...

Deduction for bad debt doesn’t prerequisite money lending licence; writing off in books of account is sufficient

Pranava Electronics (P.) Ltd. v. DCIT - [2021] (Karnataka) 

Assessee was engaged in the business of manufacturing and trading of electronic goods and developmental activities. ...

Ignorance of material on record on part of ITAT is a mistake apparent on record; rectification was justified

CIT v. Shree Ganesh Ventures - [2021] (Madras) 

Assessee purchased scraps from two sundry sellers. Assessment Officer (AO) sent notice pursuant to section 133(6) to one of these ven...

Sec. 40(a)(i) disallowances attract only in respect of expenses which are claimed u/s 30 to 38

Interactive Avenues (P.) Ltd. v. DCIT - [2021]  (Mumbai - Trib.) 

Assessee made certain payments to Facebook Ireland Limited (FIL) towards the cost of advertis...

Receipts from sales out of stocks that were accepted during scrutiny can’t be treated as unexplained income

PCIT v. Akshit Kumar -[2021] (Delhi) 

Assessee was engaged in the business of textiles. All sales undertaken by assessee were in cash only. Noting such particulars, Reve...

No sec. 40A(2) disallowances on payment made to sister-in-law as she isn’t relative as per sec. 2(41): ITAT

Rajesh Bajaj v. DCIT - [2021] (Allahabad - Trib.) 

Assessee was engaged in the business of dealing in the paper. He filed his return of income and his case was chos...

Sec. 54 exemption available even if capital gains arising from sale of multiple properties invested on 1 residential house

Vijay Kumar Wanchoo v. ITO - [2021] (Delhi - Trib.) 

The assessment sold two residential flats and purchased one residential flat. Assessee calculated gross amount ...

Voluntary retirement compensation paid to employees took over by joint venture is deductible u/s 37

CIT v. GE Medical Systems (I) (P.) Ltd. - [2021]  (Karnataka) 

Assessee was engaged in the business of manufacturing and marketing of x-ray medical equipment a...

Noting in a diary couldn’t be ground for sec. 69A additions unless same is supported by corroborative evidence

During a search conducted at assessee’s premises, a diary was found. Such a diary had nothing which showed an amount received as consideration for the transfer of property by assessee.  Cons...

Replacing machinery part is revenue exp. if there was no increase in production capacity after such replacement

Jaya Hind Industries Ltd. v. DCIT (Pune - Trib.) 

Assessee was engaged in the business of manufacturing pressure and gravity die casting, H.T. coils etc. Assessee incurr...

Sum received by Honda-Japan for offshore supply of CR-V cars and components not taxable in India: AAR

Applicant Honda Motor Company Limited, was a company established under the laws of Japan. It was holding 97.4% shares in its Indian subsidiary (HSCI) which was incorporated to manufacture and sale ...

No sec. 195 TDS on demurrage charges paid to non-resident shipping company

Assessee’s case was selected for verification of foreign remittance made by it towards demurrage charges. Assessing Officer (AO) was of view that aforesaid payment made by assessee to non-residen...

No bar in filing application before AAR where notice was issued based on CASS selection

Assessee was a company incorporated in and was a tax resident of Korea. It was involved in the business of building and operating 4D movie theaters around the globe.  It has entered ...

Pay from cloud facilitating and its subordinate services neither eminence nor FTS: ITAT

Assessee-company was incorporated in the USA. It was a tax resident of the USA. Assessee earned income from cloud services including cloud hosting and other supporting and ancillary servi...

No denial of LTC exemption even if travel is not undertaken through shortest route: Mumbai ITAT

During the search conducted at the assessee’s premises, it was found that certain employees have claimed the Leave Travel Concession (LTC) facility, wherein travel to places outside India was als...

AAR has power to decline to pronounce advance ruling even after 30 days of admitting it

Alstom Grid-UK Limited (the Applicant) had filed an application under section 245Q(1) on 05-11-2015. The said request was accepted by vide order dated 30-01-2017.  Later, on 19-09-2019, the Ap...

Delayed in filing application for grant of Sec. 10(23C) exemption cannot be condoned by CIT(E): Bombay HC

Assessee filed an application in Form No. 56D for availing exemption under Section 10(23C)(vi). The assessment explained that due to a certain exceptional situation, there was a delay in the comple...

Hire charges paid to cab drivers liable for sec. 194C TDS even if no written contract exists

Assessee was engaged in the business of providing vehicles on hire. During scrutiny proceedings Assessing Officer (AO) observed that the assessee had not incurred payment towards drivers. AO held t...

Key challenges on application of withholding tax provisions on Cash withdrawals

In order to discourage cash transactions and move towards a cashless economy, Section 194N of the Income-tax Act 1961 (ITA) Vide Finance (No 2) Act 2019, which mandates tax withholding on cash...

No sec. 263 amendment simply on ground that AO passed a request depending on ITAT administering which was turned around by HC

Assessee filed a return of income and its case was selected for scrutiny. During assessment proceedings, out of provision made by assessee for depreciation on investment,  Assessment Officer (...

Start-ups forced to cut their losses?

The Start-up India campaign introduced by the Prime Minister in January 2016 completed its 5th year in December 2020. The campaign aimed at making India one of the largest Start-up eco-systems in t...

Arrangements of sec. 50C not applicable on exchange of leasehold rights in land and building

During the assessment proceedings, the Assessing Officer (AO) noticed that Stamp Duty value of the property transferred by assessee was more than its sale consideration.  AO required assessee ...

No TDS u/s 194H on service charges paid to companies for routing transactions of payments

Assessee was a nationalised bank. During assessment proceedings, revenue submitted that a third partly viz., National Financial Switch and Cash Tree were acting as agents and were collecting charge...

AO ought to allot purposes behind award of lower derivation declaration if assessee has applied for nil allowance certificate

Assessee filed an application seeking issuance of a certificate for nil deduction of tax. In this connection, assessee was asked to provide certain details which were provided by it. The applicatio...

Once composite installment made in regard of 90 years rent is suitable over time of rent in equivalent extent

Assessee took a plot on lease for a term of 90 years. It had an option to pay the advanced annual rent on an annual basis or commuted one-time lease lease for the period of lease. Assessee opted fo...

CBDT assign all punishment cases to National Faceless Penalty Center besides in 3 cases

In exercise of power conferred pursuant to paragraph 3 of the Faceless Penalty Scheme, 2021, the Central Board of Direct Taxes (CBDT) has directed that all penalty cases,  

pending as we...

Onus is on AO to create similar cases in order to demonstrate that installment made to directors were immoderate

During the scrutiny proceedings, the Assessing Officer (AO) asked the assessee-company to explain remuneration paid to its directors. The assessment furnished the details of remuneration paid to di...

Sec. 40A(3) disallowances couldn't be attracted if identity of sellers & source of cash payment were established

A notice was issued to assess under Section 153A. In response to such a notice the assessee filed a return of income declaring nil income.  

Thereafter, a notice was issued for scru...

ITAT will undoubtedly choose claim on benefits regardless of whether assessee was absent during hearing : Bombay High Court

Assessee-challenged the assessment orders passed by the Assessing Officer (AO) by assessing income of assessee under section 144 read with section 147 of the Income-tax Act.CIT(A) excused the allur...

Advantage of Sec. 54G exception isn't accessible if land was advised as metropolitan land after its deal: High Court

Assessee had a factory at Anekal, Bangalore. It decided to shift its operations from a district in the State of Andhra Pradesh. The plot held by the assessee was sold on 26-9-1997 and the sale proc...

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