Taxability of Salary paid to Non Resident director for services rendered outside india

Salary paid to NR director for services rendered to US based branch of Co. wasn't taxable in India

IN THE ITAT MUMBAI BENCH 'I'

Deputy Commissioner of Income-tax-2(3) Mumbai

v.

Swift Freight India Ltd

R.C. SHARMA, ACCOUNTANT MEMBER
AND VIJAY PAL RAO, JUDICIAL MEMBER

IT APPEAL NO. 5598 (MUM.) OF 2009
[ASSESSMENT YEAR 2006-07]

JANUARY  14, 2015 

Section 9, read with section 40(a)(i), of the Income-tax Act, 1961 - Income-Deemed to Accure or Arise in India (Salary) - Assessment year 2006-07 - Whether where MD was a non resident and salary was received by him outside India for services rendered outside India, no TDS need to be deducted and disallowance under section 40(a)(i) for salary payment - Held, yes [Para 4.5] [In favour of assessee]

Can the interest on House Loan be Set off from House Property upto 150000 and balance from Interest Income

Interest on housing loan disallowed due to maximum limit of Sec. 24 couldn't be set-off against interest income

IN THE ITAT MUMBAI BENCH 'A'

Akansha Ranju Pilani

v.

Income-tax Officer (I.T) Ward 4(1) Mumbai

IT APPEAL NO. 3597 (MUM.) OF 2013
[ASSESSMENT YEAR 2010-11]

JUNE  12, 2015 

Housing loan interest in respect of Self Occupied Property in excess of Rs.1,50,000 shall be disallowed u/s 24(b) and shall not be allowed to be deducted from interest income from loan given shown under income from other sources head. It cannot be argued that if own savings had not been given as loan and been invested in house instead, there would have been no income from loan given nor there would have been interest liability on housing loan and thus both should be netted off

TDS return :whether Penalty will be levied if PAN of Deductee not Mentioned ?

Failure to mention PAN of a few deductees in TDS return due to their non-availability won't invite penalty

IN THE ITAT DELHI BENCH 'SMC'

Income-tax Officer (TDS), Rohtak

v.

Executive Engineer

R.S. SYAL, ACCOUNTANT MEMBER

IT APPEAL NOS. 492 TO 495 (DELHI) OF 2014
[ASSESSMENT YEAR 2010-11]

JUNE  15, 2015 

No penalty imposable u/s 272B if deductor fails to mention correct PAN of a few deductees in quarterly e-TDS return Form 26Q which in fact were not available with deductor at the material time and deductor had nevertheless deducted TDS and deposited the same with Govt and obtained correct PAN numbers and filed revised statement on receiving show cause notice from the Department. These circumstances come within the scope of "reasonable cause" for non-compliance u/s 273B. Also, absent contumacious conduct, deductor entitled to relief in terms of Supreme Court's ruling in Hindustan Steel Ltd. v. State of Orissa [1972] 83 ITR 26

Taxability of Profits from High Sea Sale

Profit arising to a German Co. from high sea sale of equipment to Indian Customer isn’t taxable in India

[2015] 58 taxmann.com 232 (Kolkata - Trib.)

IN THE ITAT KOLKATA BENCH 'C'

Qutotec GmbH

v.

Deputy Director of Income-tax,(International Taxation)-2(1), Kolkata

 Profit arising to a German Co. from high sea sale of equipment to Indian customer couldn't be taxed in India even if equipment was subjected to inspection in India.

Facts

ITAT Allowed set-off of long-term capital loss from sale of STT paid equity shares

Mumbai ITAT allows set-off of long-term capital loss arising from sale of STT paid equity shares

Long-term capital loss of sale of equity shares attracting STT is allowed to be set off against long term capital gain on sale of land in accordance with section 70(3)

[2015] 58 taxmann.com 115 (Mumbai - Trib.)

IN THE ITAT MUMBAI BENCH 'D'

Raptakos Brett & Co. Ltd.

v.

Deputy Commissioner of Income-tax, Mumbai

• Section 10(38) excludes in expressed terms only the income arising from transfer of Long term capital asset being equity share or equity fund which is chargeable to STT and not entire source of income from capital gains arising from transfer of shares.

• It does not lead to exclusion of computation of capital gain of Long term capital asset or Short term capital asset being shares.

• Accordingly, Long term capital loss on sale of shares would be allowed to be set off against Long term capital gain on sale of land in accordance with section 70(3).

Section 69 :Exp. incurred via credit card couldn't be held as unexplained

Exp. incurred via credit card couldn't be held as unexplained if credit card bill was paid through banking channel

[2015] 58 taxmann.com 66 (Delhi - Trib.)

IN THE ITAT DELHI BENCH 'F'

Income-tax Officer

v.

Pallavi Srivastava

Section 69 of the Income-tax Act, 1961 - Unexplained investments (Credit card expenses) - Assessment year 2007-08 - Assessing Officer made additions on account of unexplained expenditure of sum spent through credit card and Rs. 28 lakhs on account of unexplained investment under section 69 - On appeal, Commissioner (Appeals) found that assessee made all her credit card expenses and investments out of her bank account by cheque and invested Rs. 12.30 lakhs in mutual fund and not Rs. 28 lakhs as claimed by Assessing Officer - Commissioner (Appeals) deleted additions - Whether there was a mistake in information received through annual information returns and transaction reported in annual information returns was wrongly reported by department and all investments made by assessee stood explained, deletion made by Commissioner (Appeals) was proper - Held, yes [Paras 11 & 12] [In favour of assessee]

APA : CBDT clarifications on rollback provisions

CBDT releases 14 clarifications on rollback provisions of APA in Q&A format

SECTION 92CC OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - ADVANCE PRICING AGREEMENT (APA) - CLARIFICATIONS ON ROLLBACK PROVISIONS OF ADVANCE PRICING AGREEMENT SCHEME

CIRCULAR NO.10/2015 [F.NO.500/7/2015-APA-II], DATED 10-6-2015

The Advance Pricing Agreement provisions were introduced in 2012 through insertion of sections 92CC and 92CD in the Income-tax Act, 1961 by the Finance Act, 2012. Subsequently, the Advance Pricing Agreement Scheme was notified vide S.O. 2005 (E), dated 30/8/2012, thereby inserting Rules 10F to 10T and Rule 44GA in the Income-tax Rules, 1962.