- Disallowance Due to Default in TDS / Section 40(a)(ia)
The Visakhapatnam ITAT bench in Merilyn Shipping & Transports v/s ACIT, Range - 1,
Visakhapatnam, 20 taxmann.com 244 (Visakhapatnam - Trib.) (SB) has held that provisions
of Section 40(a)(ia) are applicable only to amounts of expenditure which are payable as on 31st March of every year and it cannot be invoked to disallow expenditure which has been actually paid during previous year, without deduction of TDS.
- Fees For Technical Services / Section 9, Read With Article 12 Of DTAA Between India and Singapore (Royalties and Fees for Technical Services)
The Delhi ITAT bench in Nimbus Sport International
Pte. Ltd. v/s Deputy Director of Income Tax, Circle
-2(2), International Taxation, New Delhi, 18
taxmann.com 105 (Delhi- trib.) has held that services
of production and generation of live television signal
rendered by a non - resident company, is technical
services liable to tax in India as 'fee for technical
- Assessment / Reassessment / Revision / Appeal/ Demand / Section 147
- The Mumbai ITAT bench in Tata International Ltd. vs. DCIT has held that non-supply of recorded reasons before passing reassessment order renders the reopening void u/s 147. Subsequent supply does not validate reassessment order. The Mumbai High Court in CIT vs. Pruthvi Brokers & Shareholders Pvt. Ltd. has held that assessee is entitled to raise claims before appellate authorities even if claim is not made in return of income.
- The Kolkata ITAT bench in Dongfang Electric Corporation vs. DDIT has explained the law on tax ability of "turnkey contracts" for offshore & onshore supply.
- The Kolkata ITAT bench in DIC Asia Pacific Pte Ltd vs. ADIT has held that "Education cess" is "additional surcharge" & is included in "tax" under DTAA. If DTAA caps the rate of "tax" payable, cess is not payable by foreign assessee.
- The Kolkata ITAT bench in Dy. CIT vs. Andaman Sea Food Pvt Ltd has held that consultancy fees, if not taxable as "fees for technical services", is not taxable as "other income".
Method of determining the total income not chargeable to total income / Section 14A
- The ITAT Mumbai bench in Avshesh Mercantile P. Ltd. vs. Dy. CIT clubbing 15 other appeals on same issue has held that there would be no dis allowance u/s 14A if tax-free investments are capable of taxable income.
- The Mumbai High Court in CIT vs. Delite Enterprises has held that there would be no dis allowance u/s 14A if there is no tax-free income.
- The Karnataka High Court in CCI Ltd. v/s Jt. CIT, LD/60/116 has held that where assessee had not retained shares with intention of earning dividend income and dividend income was incidental to his business of sale of shares, which remained unsold, it could not be said that expenditure incurred in acquiring shares had to be apportioned to the extent of dividend income and such apportioned part of expenditure should be disallowed from deductors.