High Court rescues Liaison office of 'Columbia Sportswear' from being treated as PE in India

IT/ILT : Liaison Office of foreign MNC established in India for sourcing goods for exports to its overseas customers as per their requirements will not be treated as PE under the DTAA merely because it engages in activities necessary for purchase such as identifying a competent manufacturer, negotiating a competitive price, helping in choosing material to be used, ensuring compliance with quality of the material and getting material tested to ensure quality. Nor will the LO lose tax exemption

Co. can't refuse to register share transfer if transfer deed and succession certificate are furnishe

CL: Where respondent group had furnished succession certificate as well as transfer deed executed in their favour, they were clearly entitled to have rectification made by getting shares registered in their favour

No reassessment due to TDS default on royalty payment if its details were available at assessment st

IT : No reassessment due to TDS default on royalty payment if its details were available at assessment stage

Sec. 158BD notice was invalid if issued after one year of completion of block assessment of searched

IT : Where assessee, was issued with notice under section 158BD in respect of assessment of other persons, in a year after completion of assessment, notice could not be held to be a valid notice as same was to be issued immediately

ITAT allows sec. 80-IB relief on sum surrendered during survey as it was received for booking of hou

IT : Where certain amount was received for booking flat in house project developed by assessee and assessee did not have any other business activity during year under consideration, Assessing Officer was not justified in holding that said amount was income from other sources and deduction was to be allowed under section 80-IB(10) on said sum

Unexplained Jewellery placed in locker shall be assessed in year of opening of locker by revenue

IT: In terms of section 69A, assessee would be treated in possession of jewellery, from date of opening of locker, i.e., when jewellery was found and seized by revenue, and would be added to his income accordingly

Unabsorbed depreciation to be set-off even if business isn't carried on if income is taxable under s

IT : Where once amount realized by assessee by sale of building, plant and machinery was treated as income arising out of profits and gains from business by virtue of sub-section (2) of section 41 notwithstanding fact that assessee was not carrying on any business during relevant assessment year, provision contained in sub-section (2) of section 32 would become applicable and, consequently, set-off had to be given for unabsorbed depreciation allowances of previous year brought forward in terms o

Unabsorbed depreciation to be set-off even if business isn't carried on if income is taxable

IT : Where once amount realized by assessee by sale of building, plant and machinery was treated as income arising out of profits and gains from business by virtue of sub-section (2) of section 41 notwithstanding fact that assessee was not carrying on any business during relevant assessment year, provision contained in sub-section (2) of section 32 would become applicable and, consequently, set-off had to be given for unabsorbed depreciation allowances of previous year brought forward in terms o

No concealment by treating share capital as income of assessee if its details were furnished in regu

IT: Where assessee furnished all information relating to increase in share capital in regular proceedings, levy of concealment penalty was unjustified

Plea to investigate into alleged bid rigging rejected as it wasn’t proved that entities were owned b

Competition Act: Where appellant alleged that respondent No. 1 along with two other bidders had indulged in cartelization and was guilty of bid rigging, however, he did not produce any document to prima facie prove that all three entities were owned by one person or same family, Commission rightly observed that no case for ordering an investigation into allegations contained in complaint was made out

Even in case of large scale fraud, recovery can't be made beyond 5 years of relevant date

Excise & Customs : Merely because fraudulent availment of exemption/bond is of great magnitude and is admitted does not mean that recovery can be made at any time; recovery can be made within 5 years from relevant date and there is no provision to consider 'date of knowledge of department' as relevant date

COMPAT rejected plea to investigate into alleged bid rigging as appellant failed to prove that entit

Competition Act: Where appellant alleged that respondent No. 1 along with two other bidders had indulged in cartelization and was guilty of bid rigging, however, he did not produce any document to prima facie prove that all three entities were owned by one person or same family, Commission rightly observed that no case for ordering an investigation into allegations contained in complaint was made out

Cutting of lengthy conveyor belt into smaller isn't manufacture

Excise & Customs : Mere cutting of lengthy conveyor belt into smaller sizes would not amount to manufacture; more so, as revenue failed to show that as a result of said cutting, it was transformed into a new product which was a marketable product

Tribunal can't examine validity of review order passed by Committee of Chief Commissioners

Service Tax : Tribunal cannot examine validity of review order, beyond factum as to whether or not a decision has been taken by a Committee of Commissioners/Chief Commissioners to institute appeal; if decision has been taken, Tribunal cannot examine why and how was said decision taken, as such a review is an administrative act

Income from display of rough diamonds in Special Notified Zone won't be taxed : FinMin

INCOME FROM DISPLAY OF ROUGH DIAMONDS IN SPECIAL NOTIFIED ZONE CARRIED OUT ON OR AFTER 1-4-2015 NOT TO BE TAXABLE UNDER PROVISIONS OF INCOME-TAX ACT, 1961

A trust can’t be taxed as an AOP in respect of income which is already clubbed in hands of its benef

IT : Where assessee-trust claimed that pursuant to provisions of sections 61 to 63 income earned by it had been included in returns of income of beneficiaries of trust and offered to tax directly by them and, therefore, effective income taxable in its hands was to be considered as nil, Assessing Officer was wrong in concluding that assessee and beneficiaries constituted an association of persons and assessing assessee as an association of persons

Dept. must specify default committed by assessee in SCN without which demand is invalid

Excise & Customs : Mere passing reference to a section in show-cause notice, without any supporting omissions or commissions by assessee supporting invocation of said section, cannot validate demand under said section