Wednesday, November 15, 2006


Lower rate of tax under DTAA
Hon’ble Madras High Court in the matter of CIT vs. Reiter Ingolsteadt Spimereimaschinenbau AG held that benefit of lower tax rate will go to assessee even when the DTA Agreement was informal by exchange of notes only. [285 ITR 199].

Withdrawal of registration u/s 12A of the Income Tax Act Hon’ble Uttaranchal High Court in the matter of Welham Boys’ School Society vs. Central Board of Direct Taxes, held that once registration is granted u/s 12A there is no inherent power to the registering authority to rescind it on the ground that the institution was running for profit. There is no power in the statute available to the registering authority to cancel the registration. Even assuming that it is possible, it cannot be cancelled, unless the original registration was obtained by practicing fraud or forgery. [285 ITR 74 ].

Attachment of bank account in respect of disputed tax by Income tax officials Hon’ble Bombay High Court in the matter of Coco Cola India Pvt. Ltd. Vs. Addl. CIT cautioned the revenue to advise its officers strictly to follow the appropriate procedures and take such coercive action in case where it is so required after observing the requirement of law. Where an appeal has been filed, no coercive action can be taken till the time the appeal is over and after such period, consider coercive action, if no application is filed and if filed, deal with the same only on merit after considering the parameter set out by the Court. [285 ITR 419].

Revisional Jurisdiction u/s 263 of the Income Tax Act Hon’ble Rajasthan High Court in the matter of CIT Vs. Mangilal Didwania found that once assessing officer made enquiries into various aspects of the case and applied his mind before framing the assessment, there is no jurisdiction for the Commissioner who holds assessment order as erroneous and pre-judicial to the interest of revenue. [286 ITR 126].

Non-resident NGO’s are liable to pay fringe benefit tax Hon’ble Authority for Advance Ruling (Income Tax) in the matter of Population Council Inc. given a ruling that the applicant of non-resident non-profit making organization, having a regional office in India, which carried on charitable, scientific and educational activities, was liable to pay fringe benefit tax u/s 115WA of the Income Tax Act, 1961, in relation to fringe benefits provided to its employees. [286 ITR 243]. 


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