SOME LATEST JUDGMENTS
SECTION 22
The Gujarat High Court has decided that not only 'gross negligence', but 'due diligence' is equally relevant and important criterion in measuring and determining 'professional misconduct' in case of a Chartered Accountant
SECTION 10B/10A, READ WITH SECTIONS 2(45), 4 TO 9 AND 14
The Bangalore ITAT bench has held that losses incurred in section 10B eligible unit during tax holiday period cannot be allowed to be set off against income of non-eligible unit until tax holiday period is
SECTION 5 READ WITH SECTION 35
The Chandigarh ITAT bench has held that:
The Gujarat High Court has decided that not only 'gross negligence', but 'due diligence' is equally relevant and important criterion in measuring and determining 'professional misconduct' in case of a Chartered Accountant
SECTION 10B/10A, READ WITH SECTIONS 2(45), 4 TO 9 AND 14
The Bangalore ITAT bench has held that losses incurred in section 10B eligible unit during tax holiday period cannot be allowed to be set off against income of non-eligible unit until tax holiday period is
SECTION 5 READ WITH SECTION 35
The Chandigarh ITAT bench has held that:
- Once a liability has accrued, mere fact that it is not quantified during year by way of raising of bills would not alter fact that such liability is an accrued and allowable liability
- Only those R&D expenditure which is approved by DSIR would be eligible for weighted deduction
SECTION 80-IA (4)
The Mumbai ITAT bench has held that it is not necessary that apart from developing the infrastructure facility, assessee should also operate and maintain it in order to qualify for deduction under section 80-IA(4).
SECTION 9, READ WITH SECTION 195
The Delhi ITAT bench has held that export commission paid to a non-resident agent for services rendered outside India is not chargeable to tax in India.
SECTIONS 36(1)(iii), READ WITH SECTION 37 AND 143(3)
The Ahmedabad ITAT bench has held that where
assessee, a manufacturer of lignite, set up a power
project and product manufactured was an
altogether new product, i.e., power, expenditure
incurred in respect of power project was not
allowable as revenue expenditure
SECTION 92CA READ WITH SECTION 37(1)
The Bangalore ITAT bench has held that
- Where assessee gave interest free advances to wholly owned subsidiary AEs, TP adjustment would possible only in cases where comparable uncontrolled transactions entered into between two enterprises were established
- Payment made to unrecognized PF is prohibited by section 40(A)(9) and, consequently, not deductible under section 37(1)
- Losses of section 80-IC eligible industrial undertaking can be set off against other taxable business income
The Kolkata ITAT bench has held that services rendered to members, by Tenants' Association, though for remuneration, will be covered by principle of mutuality.course of transfer pricing proceedings, TPO has to work out ALP of international transaction by applying methods recognized under Act and, he is not competent to hold that expenditure in question has not been incurred by assessee or that assessee has not derived any benefits from said payment and, consequently, ALP has to be considered as nil.
The Bangalore ITAT bench has held that Super profit making companies and companies with functional differences are to be excluded from list of comparables while making transfer pricing adjustment.
SECTION 9
The Delhi ITAT bench has held that the royalty in respect of license granted by a non-resident to another non-resident for manufacturing of CDMA handsets cannot be taxed in India even if these handsets are sold to Indian parties. The source of royalty would be deemed as the place where patent is exploited, viz, where the manufacturing activity takes place, which is outside India. Hence, the Indian parties would not constitute source of income for the Original Equipment Manufacturers.
SECTION 5
The Mumbai ITAT bench has held that Notional gains from derivates held as stock-in-trade is taxable in the year of its actual realization.
SECTION 92C READ WITH SECTION 80HHE
The New Delhi ITAT bench has held that Deduction under Chapter VI-A cannot be allowed on enhancement made as per TPO's order.
