17 May 2016
As per Procotol signed on 10-5-2016, India and Mauritius have agreed to certain amendments in the ‘Agreement for avoidance of double taxation and prevention of fiscal evasion with Mauritius’ (DTAC) between the two countries. The DTAC originally signed on 24-8-1982 had been subject to much debate and India was trying to re-negotiate...
24 July, 2015
The Bombay High Court has held that demand beyond 5 years cannot be confirmed by invoking bond in case of EOUs. It was observed that even if fraud is of great magnitude and there is admission of involvement, it does not mean that recovery of duty, because of such fraud, can be made at any time under Section 11A of the Central Excise Act, 1944. The High Court b...
17 July, 2015
Corporate guarantees have often been examined for transfer pricing adjustment. While there are number of judgements on how to determine the ALP and that bank rates are not to be applied, whether the transaction is an international transaction is always intriguing.
ITAT, Hyderabad in its decision in Four Soft P Ltd v. DCIT...
11 June, 2015
To come within the ambit of transfer pricing, there has to be an international transaction. The two requirements of international transaction are that there must be a transaction between associated enterprises and either or both parties should be non-residents (prior to the amendment by Finance Act, 2014). In an interesting decision [Novo ...
22 May, 2015
Does the Income Tax Appellate Tribunal (ITAT) have power to extend stay beyond 365 days? The Delhi High Court in Pepsi Foods Pvt. Ltd v. ACIT, WP(C )1334/2015 decided on 19-5-2015 held that when the delay in disposing of the appeal is not attributable to the assessee, the Tribunal has the power to grant extension of stay beyond 365 days.
7 August, 2014
India’s food security programme has been in focus in WTO since the Bali Session and thereafter till 31-7-2014. Much of the recent debate revolved around why India should not link the Trade Facilitation Agreement (TFA) with the Ministerial Declaration on public stockholding for food security purpose.
Earlier India and other developing nations had put forth a proposal to amend ...
28 March, 2014
The importance/ impact of terms in agreements and terms of the agreement were brought to fore in the recent ruling of ITAT, Delhi in DDIT v. JC Bamford Excavators Ltd. [Order dated 14-3-2014]. The assessee had entered into an agreement with its subsidiary JCB India, deputing certain personnel who received payment for services rendered (claimed to be technical services), which ...
4 February, 2014
Dealing with an interesting basket of disputes, the ITAT, Jaipur, on 27th January, 2014, decided two important questions. One related to the ‘market price’ of power purchased (consumed) calculated at ‘arm’s length’ by the assessee, and other relating to carbon credits.
The facts in Shree Cement v. ACIT
Power produced by the assessee in its power undertaking was consumed b...
16 January, 2014
In its recent decision dated 10-1-2014, [Tesco International Sourcing v. DDIT] the ITAT (Bangalore) had occasion to examine ‘Purchase of goods in India for the purpose of export’. Earlier this year the Karnataka High Court in Nike Inc, had observed that the purpose of the said clause was to encourage exports and the activity of the assessee in assisting Indian manufacturers ...
13 December, 2013
Is loss on derivative transactions assessable as business loss? This was the question before the Tribunal in Platinum Asset Management Ltd v. DDIT. The department treated loss from derivative transactions as business loss as against the assessee’s claim of the same being capital loss. The assessee argued that was eligible to set off the same against short-term capital gains ...
9th December, 2013
Bali witnessed a meeting of minds and WTO members managed to agree on certain items of the vast agenda which was on the table. The relaxation in respect of public stock-holding of food grains for food security by members, trade facilitation and Preferential Rules of Origin for LDCs are some of the highlights.
Agreement on public stock holding for food security
15th November, 2013
Reinforcing, perhaps, the significance of finer distinctions in fact situations and observing that tax laws have to be interpreted at times with a touch of equity, the Delhi High court in DIT –I v. Alcatel Lucent held that interest under Section 234 B of Income Tax Act was payable by the assessee, since tax was payable and neither payment had been made nor TDS deducted.
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