Taxation - Corporate Law Reporter

Annual Letting Value of Property – Expense by tenant on house property repairs to be excluded

CLR Editorial Notes: The case refers to an appeal filed by the concerned Assessee against the the order of CIT(A)-XVI, Ahmedabad, on the grounds that the CIT(A)-XVI Ahmedabad had erred in confirming the adhoc addition of a certain sum of money on account of low gross profit. On hearing out the facts of the matter, the ITAT bench held: "In… Read More

Transfer Pricing Laws applicable to ITES/ BPO Sector explained by ITAT

CLR Editorial Notes: The assessee, in this Transfer Pricing related case, had raised three contentious issues in support of the contention that its charges were at Arms Length: (i) that the assessee was engaged in the low end activity of voice based call centre and that the comparables chosen by the Tranfer Pricing Officer in… Read More

Interests earned & abnormal costs need to be excluded from operating profits when computing ALP

CLR Editorial Notes: The assessee had rendered marketing support services to its foreign Associated Enterprise for which it had earned a commission. In it returns, the assessee claimed that while determining the ALP, the interests earned by it on the short-term deposits arose from a core treasury function and hence had to be included in… Read More

Section 43(5) “Speculation Loss” Vs “Hedging Loss” – case explains loss on foreign currency forward contracts

CLR Editorial Notes: The assessee, an exporter, entered into forward contracts with Banks to hedge against any loss arising out of fluctuation in foreign currency. The forward contract provided that the assessee would buy some quantity of dollars at a particular rate to cover export bill payment. The contract gave delivery option dates and the assessee… Read More

Complaint Against ITAT Members – Writ to restrain Members from discharging statutory functions not maintainable

CLR Editorial Notes: The Petitioner, a Chartered Accountant practicing before the Amritsar Bench of the Tribunal, filed a Writ Petition alleging that he was facing a lot of harassment at the hands of the Judicial Member and the Accountant Member of the Amritsar ITAT Bench. He alleged that the said Members were totally prejudiced against him… Read More

Profit Level Indicator – All Related transactions cannot be considered for determining ALP

CLR Editorial Notes: In this particular case, the assessee™s parent company, Digital Microwave Corporation USA, had supplied an equipment to its Indian customers for which the assessee received a decided commission. The equipment was covered by warranty and the service relating to its installation and annual maintenance was provided by the assessee in India. It is annual… Read More

ITAT Explains Important Law On Attribution Of Profits To PE

CLR Editorial Notes: In this case related to Profit attribution to PE, the Tribunal had to consider the following legal issues: (i) whether the assessee could be said to have a PE in terms of Article 5(1) and 5(2) of the DTAA? (ii) what is the correct method to allocate profits to the PE?, (iii) whether fees… Read More

Interest Payment at 15% u/s 40A(2)(b) to related parties is not considered to be excessive

CLR Editorial Notes: This appeal was presented by the assessee for the assessment year 2007-2008 which was directed against the order of the CIT(A)-XXI. The contention of the assessee was that the CIT (A) had erred in confirming the addition u/s 40A(2)(b) of a said amount which was alleged to be an excessive payment of interest by 3%, and also overlooked the… Read More

Section 54 exemptions can be availed on Investments in plot meant for construction of house

CLR Editorial Notes: This appeal of the assessee is directed against the order of the Commissioner of Income-tax (Appeals), of Hyderabad for an assessment done earlier. The assessee along with another person, jointly acquired certain property for a consideration. Later, the other person relinquished the rights over the said property. Thereafter the assessee entered into a development agreement… Read More

CBEC Circular on classification of certain Blood Filters

Circular No. 19/2013 - Customs F. No. 528/90/2012-STO (TU) Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs Tariff Unit 229-A, North Block, New Delhi 9th May, 2013 To All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE All Commissioners of Customs / Customs (Prev.) / C&CE All Directors General… Read More

Customs Amendment Notification – exemption of SAD of Customs on imports of brass scrap

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] Government of India Ministry of Finance (Department of Revenue) Notification No. 26/ 2013-Customs New Delhi, dated the 8th May, 2013 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of theCustoms Act, 1962 (52 of 1962), the Central Government,… Read More

CLR Urgent | DVAT 51 reconciliation return Q1 to Q4 of ’11-’12 extended to 27th May 2013

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPRTMENT OF TRADE AND TAXES VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002 No.F.3(33)/P-II/ VAT/ Misc j2006/168-178 Dated: 09/05/2013 ORDER In continuation of order No.F.3(33)/P-II/VAT/Miscj2006/54-64 dated 10/04/2013, and in exercise of the powers conferred under Rule 49A of the Delhi Value Added Tax Rules, 2005, subsection (2) of section 9 of the Central Sales Tax Act, 1956… Read More

Amendment in Customs Act – Insertion of entries

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] Government of India Ministry of Finance (Department of Revenue) Notification No. 25/ 2013-Customs New Delhi, dated the 8th May, 2013 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of theCustoms Act, 1962 (52 of 1962), the Central Government,… Read More