Income Tax Cases

1

Income Tax - 2008 - TMI - 3825 - AUTHORITY FOR ADVANCE RULINGS

The applicant is a foreign company acquired a 26 per cent stake in an Indian company - In course of time, bonus shares were allotted to the applicant and it also subscribed to right issues - The entirety of shares was sold to an Indian individual - Held that fair market value prevailing on 1st April, 1981 ought to be taken as the cost of acquisition in the case of bonus shares held by the applicant on 1-4-1981 - For TDS and refund, applicant asked to follow the normal procedure.

2

Income Tax - 2008 - TMI - 3824 - AUTHORITY FOR ADVANCE RULINGS

The applicant is a company incorporated in Australia entered into a contract with Gas Authority of India Limited to monitor the project known as 'Dehej - Vijaipur Gas Pipeline Project' - held that - The receipts under the contract with GAIL are not in the nature of royalties as defined in Article 12 of the DTAA between India and Australia. - The income from such receipts are liable to be taxed as business profits in India only the profits attributable to the P/E are liable to be taxed.

3

Income Tax - 2008 - TMI - 3823 - AUTHORITY FOR ADVANCE RULINGS

The applicant is conducting and offering three certification programmes, namely, CPIM, CIRM and CSCP and other activities like corporate training, open public training, management consultancy, publishing and trading in educational material, etc under an agreement with a foreign non-profit company - The question raised about applicability of TDS on on examination fees remitted - Since the applicant can not be deemed permanent establishment (P/E), not required to deduct TDS on fees so remitted.

4

Income Tax - 2008 - TMI - 3801 - High Court Punjab and Haryana

Enhanced compensation along with interest against compulsory acquisition of land - when the Government has appealed against the award the additional amount of compensation was deposited in the court, it was not taxable at that stage as the additional compensation would not accrue as income when it was specifically disputed by the Government in appeal - therefore enhanced compensation and interest thereon cannot be charged to tax until the same had attained finality from the highest court

5

Income Tax - 2008 - TMI - 3800 - HIGH COURT PUNJAB AND HARYANA

Assessing Officer has initiated the re-assessment proceedings u/s 147 and 148 within the prescribed period of limitation but the same were initiated only to circumvent the earlier order of the Tribunal vide which the assessment dated 14.2.2003 was held to be time barred. Thus, the Assessing Officer cannot be allowed to initiate fresh proceedings on identical facts as the first assessment proceedings had failed to result in a valid assessment due to lapse on the part of the Income-Tax Authority.