Case Laws

Employment contract has nothing to do with the market of providing outsourced legal solutions

By | Type: | November 12, 2013

CLR Editorial Note: A case was filed with the Competition Commision of India by an ex-employee working with an organization providing Legal Outsourcing Services. According to the terms of the employment contract with the organization, a clause barred him from accepting employment with a competitor for a year after the resignation. This was challenged by the ex-employee, Larry Lee Mccallister, wh...
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Accrual Of Income – Supreme Court Lays Down Important Law

By | Type: | October 10, 2013

CLR Editorial Note The question for consideration in this appeals is whether the benefit of an entitlement to make duty free imports of raw materials obtained by the assessee through advance licences and duty entitlement pass book issued against export obligations is income in the year in which the exports are made or in the year in which the duty free imports are made. Hon'ble Supreme C...
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Section 234D of the IT Act does not apply to assessments prior to June 2003

By | Type: | October 3, 2013

CLR Editorial Note: This case law refers to a Petition(s) for Special Leave to Appeal which is in respect of retrospectivity of Section 234D of the Income Tax Act, 1961. For the Assessment Year 1998-99, the Assessing Officer passed an assessment order prior to 01st June 2003, in which interest under section 234D was not levied. The assessee filed an appeal against the said order on certain oth...
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TDS Credit has to be given despite TDS Certificate entry is not displayed in Form 26AS

By | Type: | October 3, 2013

CLR Editorial Note: In this case or TDS credit, the assessee claimed credit for TDS which was denied by the Assessing Officer on the ground that the claim did not match the entries shown in Form No. 26AS and that there was a discrepancy. On appeal by the assessee, the CIT(A) held that the assessee would be entitiled to credit to the extent shown in the computer system of the department. This meant...
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HC issues strict guidelines in order to end CBDT’s TDS credit & refund adjustment harassments

By | Type: | October 3, 2013

CLR Editorial Note: A letter dated 30th April 2012 was addressed to the High Court, by Anand Parkash, FCA, in which numerous problems were highlighted which mentioned about the hassles being faced by assesses across the Country owing to the faulty processing of the Income Tax Returns and non-grant of TDS credit & refunds. It was claimed that due to the fault of the department, the assessees ...
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Delhi High Court judgment issues seven Mandamus for action by the Income Tax Department

By | Type: , | September 11, 2013

INSTRUCTION NO. 12/2013 DATED 9-9-2013 Hon'ble Delhi High Court vide its judgment in case Court On Its Own Motion v. UOI in W.P.(C) 2659/2012, dated 14.3.2013 has issued seven Mandamus for action by the Income Tax Department. One Mandamus is on compliance of section 245 of the Income-tax Act, 1961. 2. The Hon'ble High Court in this context had issued interim directions vide its order dated...
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Case Laws :: Sham transaction :: Finance lease designed as a sale and leaseback to avoid taxation

By | Type: | September 3, 2013

CLR Editorial Notes: The assessee, an investment company, had bought some electric meters from the Gujarat State Electricity Board (GSEB) which were then leased back to GSEB in a simultaneous transaction. The assessee then claimed 100% depreciation on the purchase cost of the meters. This was ruled by the Assessing Officer and CIT(A) as "sham" and they rejected the claim on the ground that the cir...
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Case Laws :: Sec 192 explains TDS obligation on Medical Reimbursement & LTC components of a CTC of an employee

By | Type: | September 3, 2013

CLR Editorial Notes: In this case related to TDS and LTC of an employee, it was noticed that the assessee (in this case - Infosys BPO, Bangalore) had recruited employees under a contract of employment which provided the salary as a ‘cost to company’ or ‘CTC’. Once the employee had determined the CTC, he/she was permitted to choose the various components of the salary. For this purpose a ...
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Case Laws :: Transfer Pricing :: Consequences of an assignment and novation of contract are different

By | Type: | September 3, 2013

CLR Editorial Notes: In this case, the assessee’s (Tellabs India) associate enterprise, Tellabs Denmark, was awarded a contract by the Power Grid Corporation for the supply, installation and commissioning of telecommunication equipments. The work was to be performed both within India (customs clearance in India and installation termed as "onshore") as well as outside India (where manufacture an...
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HC directs CBDT to investigate whether AO did not act in a bonafide manner

By | Type: | August 26, 2013

CLR Editorial Note: The assessee in this case, had sold an agricultural land for a value of Rs. 1.20 crore and deposited the cash proceeds in his bonafide bank account. With respect to this transaction, he filed a return in which the transaction was disclosed and claimed to be not chargeable to tax. However, as the sale deed showed the transaction at Rs. 22 lakh and because the purchasers claimed ...
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