2018 (8) TMI 855
Exigibility of tax of the profits of the assessee from the operation of ships in international traffic - Article-22 of DTAA - the phrase other than the profits from the operation of the ships in international traffic occurring in Article-7 - Double Taxation Avoidance Agreement between India and Switzerland ( Tax Treaty ) - Held that - the issue involved in revenue s appeal is squarely covered in favour of the assessee by a series of the decision ....... + More
2018 (8) TMI 854
Reopening of assessment - Taxability of deemed interest income on deposits - DTAA between India and Singapore - it is claimed that, operations of the said banking company had been wound up in December 2003 - further, the amount on which interest was earned was in the nature of a fixed deposit and not a loan prescribed as per Article 11(2)(a) of the India-Singapore DTAA . - Held that - once the reopening has been held to be invalid and the revenue....... + More
2018 (8) TMI 853
Accrual of income in India - managed hosting services - Royalty and / or Fees for Included Services under section 9(i)(vi) / (vii) - India- USA Double Taxation Avoidance Agreement ( DTAA ). - CIT(A) observed that, the income earned by the Appellant from customers for providing managed hosting services constituted consideration for use or right to use equipment. - Held that - A payment cannot be said to be consideration for use of scientific equip....... + More
2018 (8) TMI 852
Dependent Agent Permanent Establishment in India - Article 5 of the India-USA Double Tax Avoidance Agreement ( DTAA ) - AO levied tax on the total income of DPIFI (after allowing a deduction of 5% of income for expenses) at the rate of 40% plus applicable surcharge and cess) visa- vis a rate of 15% on gross basis as per Article 12 of the India-USA DTAA pertaining to Royalty and Fees for Included Services. - Held that - DRP has noted that, Jubilan....... + More
2018 (8) TMI 851
Disallowance of deduction u/s 36(1)(va) - Provident Fund and Employees State Insurance (FP & ESI) contribution - failure to deposit before the due date of return - Held that - where assessee did not deposit employees contribution to employees account in relevant fund before due date prescribed in Explanation to section 36(1)(va), no deduction would be admissible even though he deposits same before due date under section 43B. - Additions confi....... + More
2018 (8) TMI 850
Taxability of Interest paid by the branch (PE) in India to its parent foreign bank in Japan - Deduction of interest so paid as expenditure - India-Japan Double Taxation Avoidance Agreement (DTAA) - A.O held a conviction that as the source of the interest income earned by the head office was the latters branch office in India, thus the same as per Sec. 9(1)(v)(c) of the Act having deemed to have accrued or arisen in India, was therefore taxable in....... + More
2018 (8) TMI 849
Claim of expenditure u/s 37(1) - medical insurance premium paid for the family members of the employees of the company - wholly and exclusively for the purposes of business of the assessee - Even otherwise since the employees had not offered what amounted to be perquisites in their hands u/s. 17(2)(iv), he was of the view that these were not business expenses qualifying for deduction u/s. 37(1) - Held that - The record reveals that the assessee h....... + More
2018 (8) TMI 848
Disallowance of pooja / function expenses - Held that - this is a recurring dispute between the assessee and the Department from past several assessment years and the Tribunal has decided this issue in favour of the assessee in all the preceding assessment years. - Claim of expenditure allowed - Decided in favor of assessee. - Deduction of exemptions paid towards consultancy charges for advise on civil construction - Held that - This is a recurri....... + More
2018 (8) TMI 847
Income from house property - Deemed rental income - vacant flat - The Appellant submits that since the property has not been let out and the Appellant has not derived any benefit therefrom during the year the AO ought to have granted vacancy allowance under section 23(2) and compute the Annual Value at NIL - Held that - the assessee has claimed that the said flat had remained vacant throughout the year despite assessee s reasonable effort to let ....... + More
2018 (8) TMI 846
Deemed dividend u/s 2(22)(e) - amount upto the accumulated profits of the company - rectification of an order u/s 254(2) - Appellant is a substantial shareholder in the company - the company took a loan against the Keyman Insurance Policy and this sum was advanced to the Appellant - Held that - Since the Keyman Insurance Policy is for the benefit to the assessee, it was held that the same is taxable as deemed dividend u/s 2(22)(e) of the Act. How....... + More
2018 (8) TMI 845
Levy of penalty u/s 271(1)(c) - defective notice u/s 274 - Held that - the notice issued u/s. 274 r.w.s 271 of the Act, placed on record, does not specify the charge of offence committed by the assessee viz whether had concealed the particulars of income or had furnished inaccurate particulars of income. Hence the said notice is to be held as defective. - Penalty set aside - Decided in favor of assessee........ + More
2018 (8) TMI 844
Disallowance of commission expenses paid in excess - CIT (Appeals) confirmed the addition as assessee could not substantiate the commercial exigency of such payment @ 7% as the other parties were paid commission @ 5% - Held that - This is not the first year of the payment of commission to that party. The recipient of the commission income is also not related party under provisions of section 40A(2) of the Act. - The Revenue authorities are only a....... + More
2018 (8) TMI 843
Estimation of income from contract receipt - rejection of books of accounts - CIT(A) estimated the income @10% as against 15% estimated by the AO - Held that - Both the sides are unanimous in stating that the facts in the assessment year under appeal are similar to earlier assessment years i.e. assessment years 2008-09 to 2011-12. Following the decision of Coordinate Bench, we estimate net profit of the assessee @ 9% of the total gross contract r....... + More
2018 (8) TMI 842
Levy of penalty u/s 271 - while confirming the penalty imposed by the AO, CIT(A) enhanced the penalty amount - Held that - The recording of satisfaction without mentioning of specific charge is against the principles of natural justice. The assessee should know the specific charge against which he has to defend in penalty proceedings. - It is further observed that the Assessing Officer has not levied penalty u/s. 271(1)(c) in respect of additiona....... + More
2018 (8) TMI 841
Disallowance u/s 40A(2)(a) - excessive payments made by the assessee to its sister concerns for purchase of gold ornaments - valuation of gold/silver jewellery for making payments to sister concerns. - adoption of the rate of Bombay Bullion Association - There is difference in rates of gold and silver in Jalgaon and Bombay - CIT(A) deleted the additions. - Held that - Assessing Officer in the remand report has accepted that after applying local r....... + More
2018 (8) TMI 840
Levy of penalty u/s 271C - reasonable cause for not deducting TDS on interest paid to Agra Development Authority - Held that - the Department has not been able to show that the bonafide belief entertained by the assessee bank, as above, does not constitute a reasonable cause within the meaning of section 273B of the Act. - AO, on verifying the documents filed by the bank, found that the Agra Development Authority had paid the requisite taxes for ....... + More
2018 (8) TMI 839
Levy of penalty - unintentional mistake in computation of income - assessee has explained that the error was not intentional and was prevented by circumstances beyond his control - defective notice - Held that - Following the decision in the case of Sachin Arora vs. ITO 2018 (3) TMI 1026 - ITAT AGRA , levy of penalty deleted - Decided in favor of assessee........ + More
2018 (8) TMI 768
Failure to deduct TDS - Additions made u/s 40(a)(ia) - liability of the assessee under Section 201(1) being treated as an assessee in default. - Registration u/s 12AA as a charitable institution - Held that - Notice issued - Demand stayed........ + More
2018 (8) TMI 767
Eligibility for deduction u/s 10AA - surplus amount in the freight export account and in the insurance export as derived from export activities - export turnover which has been defined in explanation 1 to section 10AA of the Act and whether the same would have any effect in the instant case. - Held that - There is no merit in this petition - Dismissed........ + More
2018 (8) TMI 766
Levy of penalty u/s 271(1)(c) - period of limitation - whether penalty is to be levied in piecemeal as and when the individual issues of an assessment are concluded - Held that - SLP is dismissed both on the ground of delay and merits........ + More
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