UPDATES FROM TAX GURU

AAR on taxability of payments made by applicant to a British company for rendering telecom services in India

SUMMARY OF CASE LAW The payments made by the applicant to the British company are in the nature of business profits; in the absence of there being any permanent establishment of the British company in India, this income is not at all taxable here;...

Settlement Commission has jurisdiction over the case which involves search assessments where block assessments are to be completed under section 158BC

CASE LAW DETAILS Decided by: INCOME TAX SETTLEMENT COMMISSION ADDITIONAL BENCH, MUMBAI, In The case of: Varinder K. Arora, In re, Appeal No.: Settlement Application No. MH/MUC-22/008/ 2008-09/IT ,Decided on: May 27, 2009 RELEVENT PARAGRAPH 19. The...

MAT credit should be allowed before calculating Interest U/s. 234B and 234C of the Income Tax Act, 1961

SUMMARY OF CASE LAW Explanation as substituted by Finance Act, 2006 in sections 234B and 234C does not say that tax credit should not be allowed as a set off while computing assessed tax prior to the date of such substituted Explanation coming into...

Section 271(1)(c) can be invoked only if there is a "concealment of particulars of income"

SUMMARY OF CASE LAW Section 271(1)(c) can be invoked for imposing a penalty on an assessee, only if there is a "concealment of particulars of income" or alternatively if an assessee furnishes "incorrect particulars of income. ...

Profit on transfer of Indira Vikas Patras before maturity is capital gain and tax is chargeable

SUMMARY OF CASE LAW The Indira Vikas Patras are capital asset as per provisions of section 2(14) of Income-tax Act, 1961; the tax leviable on transferable/ tradable assets prior to the maturity is under the head capital gain tax in the case of the...