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2024 (4) TMI 591
Royalty receipts - income deemed to accrue or arise in India - assessee had sold software licenses to its associated enterprises and to other Indian customers - HELD THAT:- As decided in assessee own case [ 2021 (9) TMI 1542 - KARNATAKA HIGH COURT] relying on the case of Engineering Analysis Centre of Excellence Pvt. Ltd. ( 2021 (3) TMI 138 - SUPREME COURT] sale proceeds received by the assessee on sale of software licenses cannot be categorized as Royalty within the meaning of provisions of DTAA. Accordingly, we set aside the order passed by ....... + More
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2024 (4) TMI 590
Determine the nature of losses on forward foreign exchange contracts and foreign exchange derivative contracts - CIT(A) deleting the disallowances of losses made by the AO on Forward Foreign Exchange Contract and Foreign Exchange Derivative Contract by treating them as business loss and allowed them to set off and carry forward against the business income - AR as submitted that the transactions would not be covered u/s 43(5) but the losses were allowable to the assessee as business expenditure u/s 37(1) - HELD THAT:- The assessee, in the prese....... + More
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2024 (4) TMI 589
Disallowance of Provision for leave encashment - AO disallowed the same on the ground that, as per Section 43B(f) deduction for Leave Encashment is allowable only on actual payment and provision for Leave Encashment cannot be allowed as deduction - HELD THAT:- The issue is now settled against the assessee by the decision of the co-ordinate bench of this Tribunal in the assessee s own case [ 2020 (3) TMI 713 - ITAT CHENNAI] . Thus we are of the considered view that the assessee is not entitled for deduction towards the provision for Leave Encas....... + More
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2024 (4) TMI 588
Delay in filling appeals - delays of 160 days in filing present appeal - HELD THAT:- The assessee is not likely to get any benefit in filing the appeals belatedly, rather there is always chance that such delay not be condoned. Considering the submission of Ld. AR for the assessee, wherein he has fairly accepted that he could not logged on the ITBA portal due to frequent changing in password by regular CA of assessee. We find that assessee has reasonably explained the cause of delay of 160 days, hence, the delay in the appeal is condoned. Bogus....... + More
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2024 (4) TMI 587
Commission paid on bogus purchase and sales made by the assessee company - HELD THAT:- We find that the assessee has been contending right from the assessment proceedings that it has disclosed and offered to tax gross profit on bogus sales which has been accounted for in its books of accounts and the commission payment to the broker is therefore duly covered by the quantum of gross profit already offered to tax. The factum thereof has not been disputed by the Revenue and at the same time, both the lower authorities have failed to give due effe....... + More
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2024 (4) TMI 586
Estimation of income - bogus purchases - Sales Tax Department has proved beyond doubt that the parties declared as hawala traders were involved in providing accommodation entry of purchases and the assessee was one of the beneficiary of accepting accommodation entry for the purchase - CIT(A) restricted addition to 12.5% of total bogus purchases - HELD THAT:- CIT - A while confirming the addition to the extent of 12.5% of the bogus purchases directed the learned assessing officer to allow deduction of gross profit already returned by the assess....... + More
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2024 (4) TMI 585
Addition u/s 56(2)(vii)(b) - transfer under gift deed - execution of the gift deed in pursuant to the family settlement / arrangement - HELD THAT:- As it is settled proposition of law that to understand the terms of a document one has to look to the substance rather than the form of it if mere formal description is not conclusive, unless the context shows the intention of the parties. In the case in hand as evident from the relevant record the gift deed in question was executed in the process of family settlement arrangement and distribution o....... + More
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2024 (4) TMI 584
Royalty receipt - transfer of right to use a computer software - taxation @ 10% as per 115A(1)(b)(A) or @ 20% as per section 206AA - HELD THAT:- Assessee has developed a data base cloud Indix which enable the customers to structure crawled product data and a data-as-a-service business model for most consumer retail product categories. As per agreement between the assessee and M/s.Samsung R D Institute India Bangalore Pvt. Ltd., the assessee had agreed to categories and integrates data services as shopping application of the Indian Company, whe....... + More
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2024 (4) TMI 583
TDS u/s 194C - payments of purchase to various vendors - Non deduction of TDS - addition u/s 201(1) and interest u/s 201(1A) - CIT(A) came to the conclusion that the transaction on account of supply of finished goods to the assessee was principal to principal basis in pursuance of a contract for a sale and not a contract for work as alleged by the AO - Whether the transaction involving payment to various parties toward purchase of finished goods are under contract of purchase or contracts of works contract within the meaning of section 194C? -....... + More
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2024 (4) TMI 582
Exemption u/s 11 - rejection of assessee s application for registration u/s 12A - application rejected primarily on the basis that the assessee would be promoting business of manufacturing and marketing of pharmaceutical drugs of the entities who had sponsored the research work - whether the objectives of the assessee are charitable or not? - HELD THAT:- CIT(Exemption) has not doubted about the charitable nature of the objectives, but rejected the application primarily on the basis that the assessee would be promoting business of manufacturing....... + More
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2024 (4) TMI 581
Capital gain on sale of equity shares - period of holding of shares - LTCG OR STCG - short term capital gain (STCG) as held by the AO - date of transfer of shares - as argued said shares were held by the assessee for more than 12 months preceding the date of transfer - assessee company incorporated under the laws of the state of Delaware, USA is a tax resident of the Unites States of America - assessee s preposition before us is that the period of holding of equity shares to be taken from original allotment of CCPS, through which it was conver....... + More
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2024 (4) TMI 580
Revision u/s 263 - Disallowance of STCG - FMV determination of shares - assessee and eight investment companies are not directly related by virtue of shareholding - as per CIT AO has failed to verify the issue of short term capital loss declared by the assessee from sale of unquoted equity shares pertaining to eight investment companies in right perspective of law, even though, the assessee has escalated the price of the shares to derive artificial short term capital loss HELD THAT:- When Fair Market Value of the shares when allotted was not o....... + More
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2024 (4) TMI 579
TDS u/s 194C - Non deduction of TDS on payment to the persons who were not the owner of the vehicle - computing and levying amount of TDS u/s 201(1) and interest u/s 201 (1A) - as per DR vehicle owners are not having PAN and person who filed declaration are not owner of the vehicle, therefore, the assessee is liable to make TDS and on account of such default demand has rightly been confirmed in the case of the assessee - whether the term owns be taken essentially to mean registered owner under Motor Vehicles (MV) Act or should it be read to me....... + More
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2024 (4) TMI 550
Benefit of Section 10(38) - Assessee to file revised returns if he omitted to make a claim - denial of an opportunity to cross examine the entry providers - as decided by HC ITAT was justified in accepting the plea of the Assessee that the failure to adhere the principles of natural justice went to the root of the matter. Also, the CBDT circular that permitted to the Assessee to file revised returns if he omitted to make a claim was also not noticed by the AO, thus correctly dismissing the Revenue s appeal HELD THAT:- No case for interference ....... + More
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2024 (4) TMI 549
Deductions u/s 80IC - audit report in Form 10 CCB, due to inadvertence, had not been uploaded online on time - Power of CBDT to condone delay us 119 - Rectification u/s 154 - as argued inadvertence/ oversight in uploading Form No. 10 CCB by the auditor/ the Chartered Accountants of petitioner were circumstances beyond the control of petitioner and would constitute a reasonable cause for not uploading Form No. 10 CCB along with the return of income - Petitioner submitted hat refusal to exercise of powers u/s 119 of the Act by respondent no. 2 o....... + More
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2024 (4) TMI 548
Profits in lieu of salary u/s 17(3)(i) - payment received by the assessee as lump sum amount after his termination from service and sum received for the purchase of new car - assessee has argued that he received the aforesaid amount as lump sum amount as a settlement out of court with the employer (INX Media) of the assessee and voluntary settled the case as the reputation of the assessee was diminished due to extreme harassment and ill treatment caused by the employer HELD THAT:- Hon ble Madras High Court in C.N.Badami [ 1997 (10) TMI 17 - MA....... + More
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2024 (4) TMI 547
Penalty u/s 271(1)(c) - An order in the name of dead person - appeal was filed by the legal heir of the assessee and legal heir of the assessee had intimated to the ld. CIT(A) that assessee had died inspite of this, the ld. CIT(A) passed the order in the name of dead person - HELD THAT:- We note that the information about the death of the assessee was available before the ld CIT(A), despite of this, the ld CIT(A) issued the notices for hearings, during the appellate proceedings in the name of dead person, and also passed the order in the name ....... + More
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2024 (4) TMI 546
Validity of assessment order passed u/s 144C - instead of forwarding the draft assessment order, the Assessing Officer has passed a final order, thereby not following the mandatory provisions of section 144C(1) - penalty notice u/s 274 read with section 270A and 274 r/w sec 271AAC (1) of the Act and the notice of demand under section 156 of the Act - HELD THAT:- A perusal of Section 144C of the Act shows that the AO shall, at the first instance, forward a draft of the proposed order of assessment and on receiving such order, the assessee may a....... + More
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2024 (4) TMI 545
Exemption u/s 11 - assessee is a Charitable Trust registered u/s. 12A - disallowed assessee s claim of exemption on the pretext that the activities of the assessee are restricted to its members - assessee is predominantly a mutual association - HELD THAT:- Co-ordinate Bench in Assessment Year 2011-12 [ 2018 (4) TMI 1293 - ITAT MUMBAI] holding of the seminar at Bangalore by the assessee was in furtherance of the dominant object of the assessee, viz. empowerment, betterment and creating awareness amongst the industrialists of the Fragrance and F....... + More
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2024 (4) TMI 544
LTCG - deduction u/s 54F - joint ownership of more than one residential house - HELD THAT:- We find that the Hon ble Madras High Court in Dr. Smt. P.K.Vasanthi Rangarajan ( 2012 (7) TMI 563 - MADRAS HIGH COURT] held that merely because the assessee jointly owned another property on the date of transfer of the asset, its claim for deduction under section 54F of the Act could not be rejected in respect of capital gains earned from transfer of original asset. Also see MUKESH ARVINDLAL VAKHARIA, C/O ARVIND SILK MILLS [ 2023 (10) TMI 185 - ITAT SUR....... + More
