Monday, August 14, 2006

INCOME TAX DECISIONS

 Acceptance and repayment of loan in cash-No Penalty: Hon'ble Madras High Court in the matter of Commissioner of Income Tax Vs. Ratna Agencies held that penalty for acceptance of loans in cash exceeding the specified limit if transactions entered in books of account and amount involved was not very high, penalty u/s 271D and 271E cannot be imposed.[284 ITR 609]

Hon'ble Mumbai High Court in the matter of CIT Vs. Mahindra & Mahindra Limited held that notification of Central Board of Direct Taxes cannot curtail deduction granted by Income Tax Act. In the same case Hon'ble Court also held that if there was no deliberate understatement of advance tax, interest under section 216 cannot be charged. [284 ITR 679]

 Sub-letting of Building taken on Lease : Hon'ble Andhra Pradesh High Court in the matter of Mrs. Seetha Kamrajj Vs. Commissioner of Income Tax held that difference between cost of acquisition of leased building and thereafter subletting it within 36 months is assessable as short-term capital gain.[284 ITR 54].

 Hon'ble Authority for Advance Ruling in the matter of ABC Limited given a ruling that payment received by UK Company for permission to download the business related information is not royalty or fees for technical service and as such not taxable in India. [284 ITR1]

0 comments:

Post a Comment