Income Tax – Revision of Assessment – Appellant sought revision of assessments for 2007-2008 and 2009-2010 to treat losses on the sale of shares as business losses – Appellant contended for uniform treatment of income by the Department – Revision petitions dismissed for delay – High Court upheld the dismissal, noting statutory limitations and lack of timely action by ...
Income Tax – Transfer Pricing Adjustments – Royalty Payments – The ITAT deleted the TP adjustments of INR 1,99,57,161/- related to royalty payments made by Samsung India to its parent company – ITAT found that Samsung India operates as a full-fledged licensed manufacturer and not as a contract manufacturer – Royalty payments were made for technical know-how and expert...
Foreign Exchange Regulation – Contravention Allegations – ITC Limited challenged proceedings initiated under FERA for alleged unauthorized foreign exchange transactions – Key allegations include remittance of funds generated through counter trade and failure to repatriate amounts to India – Searches at ITC premises and recording of statements of executives supported allegat...
Income Tax – Bogus Share Application Money – ITAT deleted additions made by AO regarding unexplained share application money by verifying documentary evidence of identity, genuineness, and creditworthiness of the amounts received, which was upheld by the High Court due to lack of contrary material evidence from the Revenue. [Paras 13-14]
Real Estate Transactions – Un...
Taxation Law - Jurisdiction of Assessing Officer – Assessee challenges jurisdiction of non-jurisdictional AO, who proceeded with assessment in the absence of a valid transfer order under Section 127 – Initial centralization of assessee's case was not properly decentralized or officially transferred as per mandated legal process – Held, actions of the AO without proper transfe...
International Taxation – Taxability of Guarantee Charges – Indo-UK DTAA – Income Accruing in India – The appeal involves the issue of whether the guarantee charges received by the appellant, a UK-based company, from its Indian subsidiaries for providing parental corporate guarantees to foreign banks can be taxed in India. The appellant contended that since the source of the...
Income Tax Law – Assessment under Section 153C of the Income Tax Act, 1961 – Appeals against ITAT’s deletion of additions under Section 68 – Assessments based on voluntary disclosure of unaccounted income during a search operation – ITAT quashed additions due to lack of incriminating material found during the search – Held, assessment cannot be based solely on s...
Customs Law – Burden of Proof – Seizure of Gold and Currency – Voluntariness of Statements – Section 123 of Customs Act – Appeal by Revenue challenging CESTAT order which reversed confiscation of gold and Indian currency from respondent – Tribunal held the seized gold to be made from old jewellery and not smuggled – Tribunal accepted respondent’s ret...
Income Tax Law – Appeal against ITAT order – Submission of Audit Report – High Court dismisses Revenue's appeal challenging ITAT's decision to allow assessee's exemption under Section 11 of Income Tax Act despite late filing of audit report in Form 10B – Tribunal's reliance on CBDT Circulars clarifying deadlines for returns accepted – No substantial qu...
Master Circular on Wilful Defaulters – Interpretation and Application – Forensic Audit Report – Validity and Reliance – Writ petitions challenging the decision of the Willful Defaulter Identification Committee and the Review Committee (RC) of the Central Bank of India declaring the petitioners as willful defaulters. The main evidence relied upon by the First Committee was a...