| 2016-TII-INSTANT-ALL-291 | 24 February 2016 |
simply inTAXicating - Budget Expectations in Social Sectors TII BRIEF Cabinet okays DTAA with Maldives for income from air transport... OECD invites all jurisdictions to join G20 efforts to plug international tax loopholes... CASE LAWS GALATEA LTD Vs DCIT : MUMBAI ITAT (Dated: February 24, 2016) Income Tax - Sections 9(1)(vi), 143(3), 144C(13), 271(1)(c) & DTAA between India and Israel - Article 12(3). Keywords: royalty - TDS - dominant character - copyrights - overriding provisions - composite service - penalty for concealment - machine - equipment. Whether if hardware and software constituted one integrated system, part of the payment thereof cannot be earmarked towards sale of hardware and the other part towards “Royalty” for use of software as such, the amount received by the assessee can be segregated for tax computation purposes - NO: ITAT Whether if the dominant character and essence of the transaction entered into by the assessee is sale of machine and the software, independently, had no value for the customer, the revenue from such composite product be taxed in the hands of assessee as Royalty - NO: ITAT Whether if the assessee cannot be fastened with the tax liability taking shelter of provisions of tax treaty, then the same cannot be imposed by applying the provisions of the Act by disregarding and overriding the provisions of the treaty - YES: ITAT Assessee's appeal partly allowed ACIT Vs SURESH NANDA : DELHI ITAT (Dated: February 22, 2016) Income Tax - Sections 54, 68, 132 & 143(3). Keywords: deemed dividend receipt - consent form - affidavit - search - seizure - suo moto acceptance - undisclosed bank accounts - peak deposits - investigations. Whether when AO has not brought on record any evidence to link the money brought into India or kept in foreign accounts by the assessee have a link with any Indian defense contract payment, the income has not accrued or arisen in India, can it still be made to tax in the hands of Indian assessee - NO: ITAT Whether in absence of any evidence, the remittances made by an assessee from its non resident bank accounts for expenses incurred in India could be considered as unexplained expenditure or investment in the hands of Indian assessee - NO: ITAT Whether the consideration received by the assessee as refund of security deposits in the nature of commercial expediency can be taxed as income in the hands of recipient as deemed dividend u/s 2(22)(e) - NO: ITAT Whether when CIT(A) has himself deleted the additions relating to the balances in HSBC account, the assessee is still liable to pay any tax or any interest thereon when it is held that this amount cannot be taxed under the Act - NO: ITAT Whether if the total expenditure incurred by assessee for construction of new house property exceeds the capital gains accrued on sale of property, the amount lying in the account of the assessee should have been deemed to have utilized for acquiring the new asset, in such case, can the Revenue make any addition on this account - NO: ITAT Revenue's appeal dismissed |
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