ITAT

ALP has to be the Arithmetic mean of all prices arrived through various methods

Ratio of the Case: If more than one price is determined by the most appropriate method, the ALP has to be the arithmetical mean of such prices CLR Editorial Notes: The assessee was engaged in providing software development support services by which it developed software upon the instructions of its parent associated enterprise (IKOS Systems Inc).… Read More

Tags: ALPArm's length principleITATOrganisation for Economic Co-operation and DevelopmentTPOTribunal

Special Bench verdict on TDS deduction u/s 40(a)(ia) binding despite suspension by High Court

CLR Editorial Note: This case refers to the non-acceptance of a TDS deduction claim U/s 40(a)(ia) made by an assessee on hiring charges paid to a dumper and subsequent appeal made by the assessee to the Kolkata Bench of the ITAT. The assessing had officer disallowed the claim on the ground that the assessee had not… Read More

Tags: Andhra Pradesh High CourtAppealIncome taxIncome Tax Case LawIndiaITATKolkataSupreme CourtTDSWest Bengal

Mandatory for Cooperative societies claiming deduction under section 80P to file Returns

CLR Edictorial Notes:- In view of mandatory provisions of section 139(1) (Return of Income) of the Income Tax Act, 1961, read along with section 80A(5) (Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading "C.”Deductions… Read More

Tags: Case LawsITAT

Section 43(1) of IT Act cannot be invoked if extra price paid for acquiring Assets

CLR Editorial Notes:- Explanation 3  to section 43(1) can't be invoked for computing actual cost of assets merely because assessee has paid some extra price for acquiring that asset unless other conditions of such explanation stand satisfied References: Section 43 (1) Definitions of certain terms relevant to income from profits and gains of business or profession.… Read More

Tags: Case LawsITAT

HC order in the case of denial of benefits under Double Taxation Avoidance Agreement

CLR Editorial Notes: Hon'ble High Court of Bombay has passed an order in this particular case, saying that there is no merit in the submission by the Director of Income Tax (International Taxation) that the assessee (respondent) - an organization in Germany - cannot be considered as a taxable entity in view of the Organisation for… Read More

Tags: DTAAITATOECD

Income Tax Appellate Tribunal Case regarding an International Transaction and related issue arising from Transfer Pricing

2013-ITS-47-ITAT-L.G. Electronics India (P.) Ltd. -Vs- Assistant Commissioner of Income-tax, Circle 3 , On. JANUARY 23, 2013 IN THE ITAT NEW DELHI BENCH (SPECIAL BENCH) L.G. Electronics India (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle - 3 G.D. AGARWAL, VICE PRESIDENT, R.S. SYAL, ACCOUNTANT MEMBER AND HARI OM MARATHA, JUDICIAL MEMBER IT APPEAL NOS.… Read More

Tag: ITAT

Transfer Pricing: Loss-making & Super-Profit companies are not comparable

Sapient Corporation Pvt Ltd vs. DCIT (ITAT Delhi) Brief History of the Case:- The assessee is a subsidiary company of M/s Sapient Corporation, USA and was set up under the Software Technology  Park  Scheme of the Government of India. The assessee renders customized software development services to associated enterprises and also renders post sales support services. The assessee in the… Read More

Tags: ITATtransfer pricing

Exemption under section 10B of Income tax denied to undertaking on lease

Synergies Casting Ltd. v. DCIT (ITA No. 864 & 1364/Hyd/2010) The Hyderabad Tribunal has held in the above ruling that Exemption under Section 1 0B of the Act is not available to undertaking taken over on lease but the manufacturing activity has to be carried on by the taxpayer itself by using its own plant… Read More

Tag: ITAT

Only Operating Profit of Comparables to be considered for Transfer Pricing – ITAT

DHL Express (India) Pvt Ltd vs. ACIT (ITAT Mumbai) Brief Facts :- The assessee company is engaged in the business of couriers mainly International couriers and is belongs to DHL group.  The assessee company  had entered into an agreement with DHL for access the DHL network for transportation and delivery of consignment. For this purpose, the assessee company… Read More

Tags: ITATtransfer pricing

Compensatory Fines allowable as deduction under Income Tax

While Penalties have always been disallowed under the Income Tax Act, the recent judgment clarifies on allowability of compensatory fines paid to authorities. In a recent order, Income-tax  Appellate Tribunal, (ITAT) has held that fines paid to RTO is an allowable expenditure under the Income-tax Act. According to the provisions of the Income-tax Act, if… Read More

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