Monday 1 December 2014

Five Important Verdicts On Charity, Search Assessment, Transfer Pricing, Carbon Credits And Software

ACIT vs. The Tribune Trust (ITAT Chandigarh)

S. 2(15) Proviso/ 10(23C) (iv): Meaning of expression "not involving the carrying of any activity of profit" explained in detail
(i) The assessee trust is doing only one activity of printing and publishing of newspaper. This activity was held to be of charitable in nature by the Privy Council in the Trustees of The Tribune Press Lahore 7 ITR 415. In this decision it was observed that though the assessee cannot be termed as an […]


R. L. Allied Industries vs. ITO (ITAT Delhi)

As per proviso to s. 153C, the date of receiving books of account or documents shall be considered the date of search. Therefore, under proviso to s. 153C and s. 153A(1)(b), in the case of person in whose case action is required u/s 153C, the AO is empowered to take action u/s 153C for the year in which the seized document is received by him and the preceding six years
As per Section 153A(1)(b), the Assessing Officer is empowered to assess or reassess the total income of the six assessment years immediately preceding the assessment year relevant to the assessment year in which search is conducted. Thus, in other words, he has to assess the search year and six preceding years. As per proviso to […]

Tianjin Tianshi Biological Development Company Ltd vs. DCIT (ITAT Delhi)

DRP’s stand that determination of ALP by the TPO is of no relevance in deciding the issue of suppressed sale by the assessee is not correct. Fact that products are sold below MRP does not mean the sales are suppressed
(i) The DRP held that the determination of ALP is of no relevance in deciding the issue of suppressed sale by the assessee and went on to estimate the value of suppressed sale on account of difference between the value of MRP declared to the custom authorities and MRP altered on the products sold to […]

Subhash Kabini Power Corporation Ltd vs. CIT (ITAT Bangalore)

Profits on sale of carbon credits is not a taxable revenue receipt
Carbon credit is in the nature of “an entitlement” received to improve world atmosphere and environment reducing carbon, heat and gas emissions. The entitlement earned for carbon credits can, at best, be regarded as a capital receipt and cannot be taxed as a revenue receipt. It is not generated or created due to carrying on […]

ADIT vs. Bartronics India Ltd (ITAT Hyderabad)

Consideration for use of software is not assessable as royalty under Article 12 of DTAA and s. 9(1)(vi)

(i) In order to qualify as royalty payment, it is necessary to establish that there is transfer of all or any rights (including the granting of any licence) in respect of copyright of a literary, artistic or scientific work. In order to treat the consideration paid by the Licensee as royalty, it is to be […]

No comments:

HC quashes Customs Instruction mandating review of MOOWR licenses granted for solar power generation

  This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the validity of the Instruction [2]  insofar a...