Corporate Law Reporter - The Daily Journal

PMO reviews CAPEX/Investment Plans of Central PSEs for 2013-14

The Prime Minister™s Office has been monitoring the CAPEX and investment plans of selected Central Public Sector Enterprises (CPSEs) since FY 12-13. The purpose of this exercise was to enhance investment in the economy, utilizing the substantial cash surpluses that are available with some of the CPSEs to drive economic growth. 2. In FY 12-13,… Read More

Featured Event | ASSOCHAM National Seminar on “Due Diligence – Key to Successful Business Deals”

National Seminar on Due Diligence -Key to Successful Business Deals- Friday, 7th June, 2013, Hotel Le Meridien, New Delhi Greetings! For acquiring companies, due diligence is a critical process that cannot be overlooked. Due diligence not only nets the hard data you need to assess potential financial, legal, and regulatory exposures, but also gives insights… Read More

Mumbai – Two days Intensive Annual Program on Taxation aspects of Salary Components, Perquisites & Remuneration planning – May 17 & 18

Two days Intensive Annual Training Program on Taxation aspects of Salary Components, Perquisites & Remuneration planning Date & Time : Friday & Saturday, May 17 & 18, 2013 (Registration & breakfast: 9.00 to 9.30 am) Venue : VITS Hotels, Andheri-Kurla Road, Beside Trade Star Building, Kondivita Lane, Mumbai - 400059 Benefits/ learning objectives of the… Read More

CLR Snippets | Finance Bill gets enacted as Act No.17 of 2013

The Finance Bill presented in the Parliament earlier this year gets enacted as Act No.17 of 2013, as the President has given his assent on 10th May,2013. ***** Read More

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

CLR Snippets | Kapil Sibal is the New Law Minister

Eminent Senior Advocate and tax expert Shri Kapil Sibal has been appointed the Law Minister of India, after Shri Ashwani Kumar resigned from his post in the wake of the Coalgate issue. Shri. Kapil Sibal™s father, Shri. H. L. Sibal, was an eminent tax counsel and has appeared in hundreds of tax matters. Shri. Kapil Sibal has… 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