ITAT deletes TP addition as impugned transactions were made between two resident persons

IT/ILT : Where assessee-company and company providing management services to it were both resident in India, transaction between them would not fall within definition of international transaction; requiring ALP computation under TP provisions

Reprinting of revised price before packing isn't violation of weight & measurement norms

Standards of Weights and Measures Act: Where a revised price was required to be printed on wrapper before packing contents and it was under such circumstances that initial label was blacked out and a separate MRP was printed same was not in derogation of or inconsistent with sub-clause (7) of rule 23; penalty proceedings imposed on this ground were to be set aside

No penalty if assessee had bonafide belief that charitable institutions not covered under commercial

ST : Where appellant-institution was under bonafide belief that being a charitable trust it was not covered by expression 'Commercial Training and Coaching Centre', though related notification was amended retrospectively to cover such institution, longer period of limitation could not be invoked for raising demand; further, benefit of waiver of penalty would be available to appellant

Cos having huge turnover and excess related party transactions are excludible from list of comparabl

IT/ILT : In case of assessee, rendering software development services to its AE, companies having functional dissimilarities, excess RPT and huge turnover, were to be excluded from list of comparables while determining ALP

Question of change of opinion didn't arise if return of income was accepted under sec. 143(1); reass

IT: There being no assessment under section 143(1)(a), question of change of opinion, does not arise and, reassessment can be made

Apex Court discuss scope of ‘commercial expediency’ to allow deduction of interest to Hero Cycles

Once it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and to decide how much is reasonable expenditure having regard to the circumstances of the case.

CBEC exempts excise duty on raw material and parts used in manufacturing of shipping vessels

EXCISE/NT : Omnibus general exemption to goods specified in Chapters 1 to 98 of Tariff – Amendment in Notification No. 12/2012-C.E., dated 17-3-2012

SC draws distinction between exempted goods and exempted units for allowing input tax credit

Rajasthan VAT- Assessee could claim input tax credit of raw material used in manufacturing of Asbestos Cement Sheets when assessee was specifically exempted from paying VAT due to exemption notification.

Apex Court discus’s scope of ‘commercial expediency’ to allow deduction of interest to Hero Cycles

Once it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and to decide how much is reasonable expenditure having regard to the circumstances of the case.

Dept. can't raise issue of ineligible input service for the first time without raising it in show-ca

Service Tax : Show-cause notice is foundation of demand and order-in-original and subsequent orders passed by appellate authorities under statute would be confined to show cause notice; hence, department cannot challenge order of Tribunal on grounds not mentioned in notice/adjudication order

No service-tax on service portion of works contract for period prior to June 1, 2007

Service Tax: Despite contract giving break-up of price for materials as well as services separately, if contract is treated as 'turnkey contract'/'works contract', no service tax is payable on service portion thereof prior to 1-6-2007

Seized gift couldn't be treated as unexplained if no incriminating material was found during search

IT: Where Authorised Officer conducted search under section 132 upon assessee and thereafter Assessing Officer framed assessment under section 143(3) read with section 153A, whereby he treated amount of gifts received by assessee from two individuals an unexplained cash credit and added same in his income, since there was nothing on record to suggest that gifts were ingenuine, impugned addition was beyond scope and ambit of an assessment envisaged under section 153A

Notional interest on surplus funds can't be deemed as profit of eligible undertaking under sec. 10A

IT : An assessee cannot include notional interest on surplus funds as income in computation of profits and gains derived by its undertaking from export of articles or things, for purpose of claiming exemption under section 10A

Stamp duty value won't apply if value of property adversely affected due to its usage for industrial

IT : Stamp duty value won't apply if value of property adversely affected due to its usage for industrial purposes only

Service-tax is payable on amount of service charges and wages in case of manpower supply services

Service Tax: In case of manpower supply to shipping companies, service tax is payable under 'manpower supply services' on value inclusive of service charges and wages of labour

RBI postpones date of issue of Gold Bonds to Nov 30, 2015

BANKING : Sovereign Gold Bonds, 2015-16 – Shifting of Issue Date Thereof

Comparable chosen in earlier draft order could be used later if such order was set-aside without dec

IT: Where earlier draft assessment order was not dealt on merits, but set aside only on ground of violation of principles of natural justice, there was nothing wrong in adopting comparables selected by TPO in earlier order by revenue in determining arm's length price in international transaction of assessee