CA Terminal

Wednesday, 9 December 2015

Antenna and installation cable are parts of Base Transreceiver Station; to classified as such

Excise & Customs: 'Antenna and installation cable/mini-link' are inseparable parts of Base Transreceiver Station (BTS); hence, antenna etc. imported along with BTS would be classified as BTS and would be eligible for concessional rate of duty applicable to BTS

Selling exp. are distinct from AMP exp.; ITAT directs to follow Sony Ericson's case to compute ALP

IT/ILT : Selling expenses incurred for making sales are distinct from AMP expenses and, hence, should not be included in base amount for computing ALP of AMP expenses

Assessment order rightly set-aside as penalty was imposed by authorities without recording any satis

IT: Where pursuant to directions issued by Commissioner (Appeals), Assessing Officer passed a fresh assessment order wherein no satisfaction was recorded for initiating penalty proceedings under section 271E, impugned penalty order passed under said section deserved to be set aside

Tuesday, 8 December 2015

New norms for granting of mining leases to Govt. Companies notified

CORPORATE LAWS/INDIAN ACTS & RULES : Mineral (Mining by Government Company) Rules, 2015

Bidder couldn't cry foul on terms of spot e-auction of Coal India as it didn't satisfy itself about

Competition Act: Where before participating in e-auctions, it is was duty of potential bidders to satisfy themselves about quality of coal being offered from a source; bidders not having done that could not now complain that conditions of spot e-auction scheme framed by Coal India Limited were arbitrary and unfair, no contravention of section 4 was made out

Investment in 'HDFC Retirement Saving Fund' eligible for Sec. 80C deduction from AY 2016-17

IT : Section 80C of The Income-Tax Act, 1961 – Deduction – in Respect of Insurance Premium, etc. - Notified Scheme Under Section 80C(2)(xiv)

Larger Bench to be constituted to decide levy of interest on differential excise duty: Apex Court

Central Excise: Assessee was public sector undertaking, manufacturing iron and steel products. It paid excise duty on clearance of goods and differential duty due to price escalation. Department demanded interest on late payment of differential duty. Apex Court observed that when goods were cleared, there was no certainty of price escalation. It was difficult to accept that price was understated on date of removal of goods. Hence, the larger bench should be constituted to decide the impugned iss

Question as to whether exp. on renovation of temple could be considered as CSR exp. referred to Spec

IT : Where assessee invested its own funds in shares resulting in earning of dividend income exempt from tax, impugned disallowance made by Assessing Officer by invoking provisions of section 14A, read with Rule 8D was not sustainable

Sec. 44BBA can't be applied to tax presumptive income of foreign Airlines if it has produced books r

IT : When there is no taxable income, section 44BBA cannot be applied to bring to tax presumptive income constituting 5 per cent of gross receipts

Commission paid to agent for services rendered outside India wasn't taxable if he didn't have any PE

IT/ILT: Assessee was not liable to deduct tax at source when non-resident selling agents provided services outside India on payment of commission

National Herald's case: 5 top office bearers of congress to face criminal proceedings

CL : Delhi HC orders 5 Top Office-bearers of Congress Party to face criminal proceedings for forming and misusing a section 25 company as SPV for clandestine acquisition of 99% stake in Old defunct real-estate rich newspaper publication company (AJL) and for misappropriating funds of Congress Party for the purpose

Attachment of property isn't restricted only in hands of accused involved in money laundering

Fema : There is no restriction in respect of person in possession of proceeds of crime. Section 5 of Money Laundering Act does not restrict that property in hands of persons involved in Money Laundering alone can be attached pending confiscation. Thus, provisional attachment of property is not restricted in hands of accused persons alone

Pre-deposit is to be made in cash if issue of utilization of Cenvat credit is challenged by dept.

Excise & Customs : Where department has challenged validity of utilization of credit balance for payment of duty, 7.5 per cent pre-deposit as a condition for filing appeal has to be made separately and 'disputed utilization' of credit cannot be regarded as sufficient pre-deposit for purpose of section 35F

Tribunal rightly ordered to check whether import duty was calculated on basis of identical goods: SC

Excise & Customs : Where revenue had submitted that goods in Chart D were identical to goods in Charts A and B and taken value of goods in Charts A and B as basis for valuation, Tribunal was right in remanding matter back for verification whether goods in Chart D were identical to goods in Charts A and B

No transfer on handing over possession of land on directions of Govt. if sales consideration wasn't

IT : Where assessee was directed to handover possession of its property to revenue, in absence of written contract between assessee and State regarding quantification of consideration to be paid by assessee it could not be held that there was a transfer in terms of section 2(47)(v)

ITAT doesn’t have powers to accept appeal against orders of DRP if it isn’t accompanied by a fee

IT : The Tribunal can exercise its discretion to accept the memorandum of appeal even if same is deficient in enclosures but not when appeal is not accompanied by fee

Leasing of factory along with employees under compromise scheme doesn't amount to man power services

Service Tax : Where assessee had leased its factory under compromise scheme, then, sums received from lessee towards reimbursement of salary payable to employees working in factory, could not be regarded as 'manpower supply services' to lessee and was, therefore, not liable to service tax

CBEC extends due date for payment of excise duty/ST and filing of excise returns in Tamil Nadu

EXCISE : Extension Of Date For Filing Of Central Excise Return And Payment Of Central Excise Duty And Service Tax

CBEC revises jurisdiction of Commissioners

EXCISE : Jurisdictions Of Principal Chief Commissioner, Chief Commissioner, Principal Commissioner And Commissioner – Amendment In Notification No.27/2014-C.E. (N.T.), Dated 16-9-2014

Tribunal allows credit of inputs which was used to manufacture capital goods aiding in manufacturing

Cenvat Credit: Since CENVAT Scheme is a beneficial legislation, 'input' should be given widest meaning to cover 'anything put into stream of manufacture'; therefore, inputs used for manufacture of capital goods viz. 'moulds' are eligible for credit

Monday, 7 December 2015

No disallowance of late payment interest just because assessee kept cash balance in hand

IT: Merely because there was some cash balance in hands of assessee, Assessing Officer could not disallow interest on belated payment of purchases made by assessee

IRDA asks insurers to take immediate steps to expedite settlement of claims in flood affected States

INSURANCE : Guidelines on Insurance Claims for Losses Due to Flood in State of Tamil Nadu, Puducherry and Neighbouring Districts of Andhra Pradesh

IRDA outlines roadmap on Applicability of Ind-AS in insurance sector; exempts certain Standards

INSURANCE/AAA : Discussion Paper on Convergence to Ind-as in Insurance Sector

Payment made by hospital to doctors would not attract sec. 192 in absence of employer-employee relat

IT : Where assessee, running a hospital, availed services of some doctors, since there did not exist employer-employee relationship between parties, assessee was justified in deducting tax at source under section 194J while making payments of professional fee to doctors

No service-tax credit on sub-broker services if brokerage was paid at unrealistic rates

Cenvat Credit: Where assessee-broker had passed-on brokerage to sub-brokers at rates higher than rate earned by itself and even goods involved were not tallied, sub-broker's services could not be regarded as 'input services'.

If direction under sec. 150 to reopen assessment itself was set aside, reassessment notice deserved

IT : Where on direction of Commissioner (Appeals), reassessment notice beyond four years period was issued to assessee, but said direction was set aside by Tribunal as well as High Court, reassessment notice deserved to be quashed

CCI couldn't inquire into unfair trade practice on complaint made by person who wasn't a customer or

Competition Act: Complaint made by a person who is not a consumer or a trade association cannot be made basis for making an inquiry under section 36-B

Delhi HC quashed reassessment on 'Oriental Insurance' as reason to believe of AO was found erroneous

IT : Where in case of assessee carrying on general insurance business, assessment order was passed accepting assessee's claim that in view of omission of clause (b) of rule 5 of First Schedule of Income-tax Act w.e.f. 1-4-1989, profit from sale of investment was exempt from tax, Assessing Officer subsequently could not reopen assessment merely on basis of change of opinion that aforesaid income was liable to tax

Only income which is in violation of Sec. 13 would be subject to maximum marginal rate; SLP dismisse

IT : SLP dismissed against High Court's ruling that in case of a trust registered under section 12AA, only such part of income which is violative of section 13(1)(d) can be brought to tax at maximum marginal rate and entirety of income cannot be denied exemption under section 11

Cutting and conversion of trees into billets isn't liable to service-tax if it amounts to manufactur

Service Tax : Cutting of trees and converting 'cutwood' into 'billets' for use in 'pulp plant' amounts to 'processing of goods' and if said activity does not amount to manufacture under Central Excise laws, it would be liable to service tax under Business Auxiliary Services

SLP granted to decide whether trust eligible for exemption if it earned rentals by letting out educa

IT : SLP granted against High Court's ruling that where assessee-trust generated income by giving hall and premises of its educational institution on rentals and said income was used for educational institution itself, such income could not be brought to tax

No interest on AED(GSI) due to retro-amendment denying credit if credit was paid or reversed in time

Cenvat Credit : Even in case of retrospective amendment barring use of credit of AED(GSI) accrued prior to 1-4-2000 for payment of BED, interest on credit used in contravention of said bar would be payable from date of wrong utilization, not from date of such retrospective amendment

Delhi ITAT rejects bright line test to determine ALP of AMP exp; directs TPO to follow ratio of Sony

IT/ILT: Where details of advertising, marketing and promotion functions performed by assessee were not available on record and functions of comparables had also not been analyzed by TPO and he applied bright line test for determining value of International transaction, matter be reconsidered afresh

Delhi ITAT rejects bright line test to determine ALP of AMP exp; directs TPO to follow ration of Son

Execution of welding and gas cutting work can't be regarded as manpower supply services

Service Tax : Work of welding, and gas cutting on various locations of service recipient cannot be regarded as 'manpower supply service', as it involves execution of work, not merely supply of manpower

No denial of refund claim just because supporting docs are filed late

Service Tax : In case of refund claim filed under rule 5 of the CENVAT Credit Rules, 2004, read with Notification 17/2009-ST, 'date of filing of refund claim' would be 'date on which refund claim in filed with department in proper form' and not 'date on which documents called for by Department, are furnished'

Chennai ITAT denies to disallow outstanding exp. for TDS default; follows ratio of Merilyn Shipping'

IT : Only an amount outstanding at end of close of assessment year can be disallowed under section 40(a)(ia)

Magistrate's rightly ordered to take possession of secured assets when tenancy agreement not placed

SARFAESI Act: Order passed by Chief Metropolitan Magistrate under section 14, appointing Court Commissioner to take possession of secured assets could not be faulted as in absence of any registered agreement of tenancy being placed on record, Chief Metropolitan Magistrate had no knowledge of any valid and lawful tenancy in favour of petitioners with respect to said assets and equally Bank could not be said to be guilty of suppression for not having made a declaration on that behalf

Assessee had to pay interest from beginning if refund order was vacated and original demand was revi

IT : Where pursuant to High Court's order, impugned order passed by Tribunal granting refund to assessee was set aside and demand of tax was restored, assessee was liable to pay interest under section 220(2) on unpaid tax liability from date of original order to order passed by Assessing Officer giving effect to order of High Court

No reassessment to curtail sec. 10A benefit when revenue had adequate time to file appeal against or

IT: Where Assessing Officer issued notice for reassessment on ground that excessive deduction was taken by assessee under section 10A and said action was not confirmed by Tribunal, since revenue did not file appeal against order of Tribunal and still revenue had time to file an appeal, reassessment proceedings could not be sustained till filing of an appeal

Sunday, 6 December 2015

Refund claim is time barred if it is filed beyond time limit provided in notification

Service Tax: A refund claim of service tax filed beyond time-limit specified in concerned exemption notification is time-barred and not maintainable, even if same is within time-limit specified in section 11B of the Central Excise Act, 1944

CAT directs investigation as contract was awarded to cartel instead of lowest bidder

Competition Act : Where findings recorded by Supreme Court clearly established that respondent Nos. 3 to 5 had formed a cartel for procuring contract of liaisoning work for procurement of Coal for state power generation company, cancellation of contract awarded to lowest bidder would make a prima facie case warranting an investigation into matter

ITAT treats 25% of income from selling of sun dried coffee seeds as business income as per Rule 7B

IT : Where assessee was selling only sun dried coffee seeds and was not engaged in other processing activities, its income from coffee estate had to be computed by applying Rule 7B

Voyage of vessel between Indian ports during course of international voyage deemed as international

IT : Journey of a vessel between two Indian ports is "international traffic" under Art 8 of India-Singapore DTAA if the same is part of a larger journey between two foreign ports. It is only when a ship or aircraft is operating 'solely' between places in a contracting state that the transport is excluded from scope of "international traffic". It is not the case of the Revenue that the journey being undertaken by such vessels in question were confined between the two ports in India either routine

AO can't impose penalty under sec.271(1)(c) once penalty proceedings are initiated under sec. 271AAA

IT: Provisions of sections 271AAA and 271(1)(c) are mutually exclusive and, thus, once penalty is initiated under section 271AAA for 'specified previous year', there cannot be any occasion to impose penalty under section 271(1)(c)

Importer not guilty for wrongly declaring Country of origin if it was made as per supplier's asserti

Excise & Customs : Where importer declared country of origin as USA as per supplier's declarations, importer's assessment cannot be reopened alleging misdeclaration on ground that goods bore Australia marking, especially when department had not raised such objection at time of import

Saturday, 5 December 2015

No TDS liability on reimbursement of exp. incurred by C&F agent if separate bill was raised by him

IT : Where assessee paid interest for term loan obtained for purchasing assets for business and claimed deduction of same under section 36(1)(iii) and Assessing Officer disallowed interest partly on plea that assessee had given interest free loans to three parties, since term loan had entirely been used for purpose of purchasing assets and assessee had sufficient interest free funds to take care of advances, disallowance of interest was not justified

Stock broker to pay registration fees on monthly turnover basis after enforcement of Schedule IIIA

SEBI : After Schedule IIIA became applicable, Registration fee payable by a stock-broker for any future period since 1-10-2006 could be calculated or demanded only on basis of monthly turnover and payable each month

Private scheduled banks are instrumentality of the State amenable to the Writ jurisdiction: HC

SARFAESI Act : Whether a private scheduled bank is an instrumentality of the State amenable to the Writ jurisdiction of High Court under Article 226 of Constitution of India- Held Yes

'Milk-n-Nut' candy can't be treated as sugar confectionary, rules Supreme Court

Excise & Customs: Milk-n-nut which was preparation of vegetables, fruits, nuts and parts of plants was classifiable under Chapter Heading 2001.10; and it could not be treated as sugar confectionery classifiable under Chapter Heading 1704.90

Time-limit to deposit TDS/TCS extended to 20th Dec. 2015 in the state of Tamil Nadu

IT/ILT : Section 119 of the Income-tax Act, 1961 – Income-tax Authorities – Instructions to subordinate authorities – Extension of time for deposit of tax deducted at source and tax collected at source for State of Tamil Nadu

Repayment of loan in cash due to compulsion of financiar to do so doesn't attract penalty

IT: Where repayment of loan in cash was made out of compulsion by financier as he did not lend or receive back loan amount in cheque or draft from anybody, penalty under section 271E was to be deleted

Hiring cricketers for endorsing client’s brands is advertisement services, not business auxiliary se

Service Tax : Engaging cricketers to endorse products and brand of Hero by such cricketers through various mediums viz. television, radio, display on cricket bats etc., amounts to 'advertisement services' and is liable to service tax

A software development service provider isn't comparable with software product developer

IT/ILT: Assessee being engaged in business of captive provision of software development services, is not comparable to companies being engaged in software product development, bio-informatics, KPO services, product design and product analysis services, engineering services and companies which had substantial R&D activity and owned significant intangibles

Sale of assets of liquidating Co. by a secured creditor without Court's leave was to be set aside

Companies Act: Where once a company is in winding up and workers have a pari passu charge on secured assets, secured creditor would be entitled to enforce its security by sale only with consent of Official Liquidator and under directions of Company Court

SLP granted to decide whether payment of tax liabilities of contract manufacturer could be claimed a

IT : SLP granted against High Court's ruling that where contract manufacturers were carrying out manufacturing activity for assessee and it was in assessee's business interests that all tax liabilities of manufacturers were duly satisfied, payment towards tax liabilities of contract manufacturers was to be regarded as 'business expenditure'

Goods liable to confiscation if condition prescribed for its free import is violated

Excise & Customs: When relevant DGFT Notification allowed 'free import' of marble blocks/tiles for CIF value at USD 60 and above per square metre, if assessee declared same below USD 60 per square metre, confiscation of such goods would be justified

No denial of SSI exemption on exclusive usage of brand name of foreign Co. in India under assignment

Excise & Customs: Use of brand name of foreign company under assignment agreement for exclusive use in India, is use of brand name in assessee's own right and not use of 'other's brand'; therefore, SSI-exemption cannot be denied

No ST on activity of boiling, cleaning and freezing of vegetables and fruits

Service Tax: Sorting, cleaning, boiling and freezing vegetables/fruits and subsequently packing it in unit packing to be sold by their customers under brand name, amounts to 'processing in relation to agriculture' and is exempt from service tax

During course of international voyage traffic between Indian ports deemed as 'international traffic'

Income earned by oil manufacturer from sale of DEPB and focus market incentives not eligible for sec

IT : Where in support of deduction claimed under section 54G, assessee produced third party independent evidences such as confirmations from transport contractor, engineering contractor etc. for first time before Tribunal, matter was to be remanded back for disposal afresh after taking into consideration aforesaid evidences

Activity of consultancy and software implementation services couldn't be deemed as sales; liable to

CST & VAT: Karnataka VAT - Where assessee was engaged in development and sale of software, etc., activities of business consultancy services and enterprise resource planning software implementation services carried on by assessee could not be considered as sale, as there was no transfer of any goods involved and entire consideration received from customer had been subjected to service tax

Friday, 4 December 2015

SEBI proposes to make e-book mandatory for private placement of debt issue

SEBI : Consultation paper on primary market debt offering through private placement on electronic book

High Court unhappy with revenue authorities for rejecting stay application by passing a perfunctory

IT : Where assessee filed an application seeking stay of tax demand, in view of fact that revenue authorities did not consider relevant factors while disposing of said application, impugned order passed in perfunctory manner directing assessee to pay amount demanded in monthly instalments was not sustainable

RBI lays down operational procedure for banks to pass on benefit of interest equalization to exporte

BANKING : Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit

Pre-emptive rights relating to transfer of shares can't be enforced in case of duly sanctioned Amalg

CL: The pre-emptive provisions of Article of Association with respect to transfer of shares cannot be enforced in case of amalgamation

Committee headed by Dr. Subramanian recommends GST rate between 15% and 15.5%

VAT : Chief Economic Adviser submits his report to Finance Minister on possible tax rates under GST

Rule 58(1B) of Maharashtra VAT on works contract isn't unconstitutional; HC

CST & VAT: Maharashtra VAT: Where by notification dated 29-1-2014, a proviso was added to sub-rule (1A) of rule 58 and a new sub-rule (1B) was inserted into rule 58 and simultaneously Commissioner had issued two circulars dated 21-2-2014 and 17-4-2014, since rule 58(1A) and (1B) had link and nexus with essential character of tax being levied and circulars were clarificatory in nature, it could not be said that impugned rule and circulars were bad or illegal or unconstitutional

Dept. can't look beyond declared MRP alleging extra collections by manufacturer: SC

Excise & Customs : In absence of any specific provision in exemption Notification providing concessional rate of duty based on MRP, department cannot look beyond MRP to re-determine MRP by adding alleged extra collections made by manufacturer

A co. providing engineering design and information technology services isn't comparable with ITES

IT/ILT : A company in which extraordinary events took place during previous year cannot be considered as comparable

CBDT directs AOs to speed up refunds below Rs. 50,000

IT : Section 237 of the Income-Tax Act, 1961 – Refunds - Expeditious Issue of Refunds Below Rs.50,000 in Non-Cass Cases for Assessment Years 2013-14 and 2014-15

No reassessment to treat rent receipt as house property income as flats weren't owned by assessee

IT: Where assessee-company took flats on tenancy basis, income earned from flats was to be treated as business income and not income from house property

Now RBI can prescribe norms on borrowing or lending foreign exchange under automatic route and appro

FEMA/ILT/INDIAN ACTS & RULES : FEM (Borrowing or Lending in Foreign Exchange) (Amendment) Regulations, 2015 – Amendment in Schedule I & II

Transfer of shareholding on basis of disputed MOU was clear act of oppression by respondent

CL: Where respondent group on basis of a disputed MOU with appellant group had held board meeting, issued duplicate shares and transferred shareholding of appellant group in its favour at valuation which was not acceptable to appellant group, action of respondent group was a clear calculated act of grossest oppression

Milk Shake Mix and Soft Serve doesn't cease to be dairy products due to addition of stabilizers

Excise & Customs : Milk Shake Mix and Soft Serve Mix are classifiable as 'dairy products' and mere addition of stabilizers to improve their shelf-life does not mean that said products cease to be dairy produce

Now RBI can prescribe or amend norms for issuance of FCCBs and FCEBs

FEMA/ILT/INDIAN ACTS & RULES : FEM (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2015 – Amendment in Regulation 21

No exclusion of leasing income on detection of bogus lease transaction as actually it was a financia

IT : Where pursuant to search proceedings, Assessing Officer rejected assessee's claim for depreciation on a leased out assets on ground that leasing transaction was bogus, rectification application filed by assessee raising a plea that income from leasing of said equipment should also be excluded from taxable income, could not be allowed

Clearing and forwarding charges excludible from total turnover to compute sec. 10B relief

IT : Where assessee claimed deduction under section 10B in respect of port handling/clearing and forwarding charges and lorry freight charges, said charges should be excluded from export turnover as well as from total turnover while computing deduction

Disallowance made under sec. 14A has to be added back to book profit to compute MAT

IT: In terms of clause (f) to Explanation 1 to section 115JB(2), disallowance made by Assessing Officer under section 14A, read with rule 8D of Income-tax Rules 1962, has to be added back for purpose of arriving at figure of book profit

Banking companies are liable to pay MAT only w.e.f 1/4/2013

IT : Amendment brought about in section 115JB vide Finance Act 2012, to bring all companies (Including Banking Companies) within its ambit with effect from 1-4-2013 is applicable only with effect from Assessment year 2013-14 onwards.

SLP granted to decide whether co-operative society, claiming sec. 80P relief, could be treated as co

IT : SLP granted against High Court's order where it was held that assessee-co-operative society could not be regarded as 'Co-operative Bank' on, mere fact that an insignificant proportion of revenue was coming from non-members, and thus, was entitled for deduction under section 80P(2)(a)(i)

Sec. 50C can't be invoked on transfer of 'Kashtkari' right in land

IT : Where assessee held mere 'Kashtkar' right in a land allotted by State Government, it could not be equated with ownership of land and, thus, in case of sale of said piece of, land, long term capital gain could not be calculated by invoking deeming provisions of section 50C

No penalty due to non-supply of docs without establishing that they had any revenue implication

Service Tax: Before levying penalty for non-supply of documents, department must show that: (a) specific documents were demanded; (b) said documents were relevant or had revenue implication; and (c) assessee failed to supply same

Draft model of GST Act, 2016 released

GST : Report of Sub-Committee-II on Model Gst Law

Thursday, 3 December 2015

Amendment to NI Act regarding place of filing cheque bounce compliant has retro-effect

Negotiable Instruments Act : The amendments made to the Negotiable Instruments Act,1882 by the Second Ordinance of 2015, as regards territorial jurisdiction for filing cheque bounce complaints, retrospectively apply to pending cases filed before the Ordinance came into force. The words "….as if that sub-section has been in force at all material times…."used wrt new section 142(2) in new section 142A(1) gives retrospective effect to new section 142(2)

Sec. 80-IB relief also available on disallowance of exp. due to TDS default

IT: Where Assessing Officer had disallowed certain expenditure under section 40(a)(ia) and added back same to income of assessee, deduction under section 80-IB(10) claimed by assessee needed to be allowed on entire gross total income of assessee

SEBI releases consultation paper on issuance of Green Bonds

SEBI : Concept Paper for Issuance of Green Bonds

SLP dismissed to decide whether rental income from commercial complex could be taxable as income fro

IT : SLP dismissed against High Court's ruling that where assessee was not engaged in any business activity, rental income earned from letting out commercial complex would be assessed as income from house property and not as business income

VCES benefit available even if SCN issued before March 3, 2013 but served after that date

Service Tax : Words 'issued to a person' in section 106 of Finance Act, 2013 have to be construed as 'served to a person'; hence, where a show-cause notice had been 'issued' prior to 1-3-2013 but not 'served' before 1-3-2013, assessee was eligible for Service Tax Voluntary Compliance Encouragement Scheme

A software developer can't be compared with a software development service provider for TP study

IT/ILT: A comparable which owns significant intangibles and is earning revenue from software products cannot be considered as a good comparable to software development service provider

Govt. notifies Rules to facilitate electronic communication with taxpayers

IT/ILT/INDIAN ACTS & RULES : Income-Tax (Eighteenth Amendment) Rules, 2015 – Insertion of Rule 127

Refund can't be adjusted against pending demand without giving hearing opportunity to assessee

IT: Where revenue seeks to set off refund due to assessee against tax demand pending for another assessment year under section 245, it must give an opportunity of hearing to assessee

Interest on interest having an element of default isn't permissible deduction under sec. 36(1)(iii)

IT: When principal amount borrowed stood repaid while interest remained payable, interest on interest, having an element of default, is not a permissible deduction as it cannot be said to be a benefit extended in carrying on business

No disallowance of cash payment above Rs. 20,000 if its genuineness wasn't questioned by revenue

IT: Where genuineness of transactions made in cash in excess of Rs. 20,000 was not disbelieved by authorities, same cannot be disallowed under section 40A(3)

Date of seizure is excludible for computing initial period of 6 months for seizure of goods

Excise & Customs : In computing initial time-period of 6 months for seizure under section 110, date of seizure would be excluded

HC directs AO to make re-assessment as notice of imposing concealment penalty wasn't served upon ass

IT : Where notice of hearing for imposing penalty under section 271(1)(c) was not served upon assessee, order passed by Tribunal setting aside penalty so imposed, was to be set aside and matter be remanded back to Assessing Officer to make assessment afresh

TNMM adopted by TPO in earlier year to be used in later years if facts remained unchanged

IT/ILT: Where assessee had followed TNMM in respect of its international transactions and no change had been proposed by TPO in earlier years as well as in subsequent years in said method, on similar facts, TNMM should be taken as most appropriate method