2016-TII-INSTANT-ALL-299
12 March 2016   

CASE LAWS

2016-TII-57-ITAT-MUM-INTL

HASSAN ALI KHAN Vs DCIT: MUMBAI ITAT (Dated: February 29, 2016)

Income tax - Sections 68, 69, 69A, 143(3) & 153A - PMLA Act - Sections 3 & 4.

Keywords - consultancy fees - cros border transactions - charges of money laundering - offshore bank accounts - repayment of bank loan - transfer instruction to foreign bank - unexplained deposit & UBS report

Whether an issue pertaining to consultancy fees received by offshore companies which are operated by an assessee in India, requires readjudication, where the documents showing receipt of such fees does not bear the name of the assessee - YES: ITAT

Whether it is for the assessee to exhibit so in explanation of the nature and source of acquisition of the money he is found to be in possession of, as statutory obliged to u/s 69/69A, lest the deposit be deemed as his unexplained income for the relevant year - YES: ITAT

Whether the charges under PMLA shall only obtain where the assessee is found to have maintained bank account/s abroad, holding substantial sums therein - YES: ITAT

Whether it would be proper to, pending the proceedings under PMLA, which in fact the Revenue is only aware of, conclude the proceedings under the Income tax Act - NO: ITAT

Whether where the assessee is found to be staying outside India during the relevant previous year, transacting businesses and entering into deals toward investment in real estate and even appointing consultant at an exorbitant cost to represent him internationally, it is sufficient to infer that the assessee has interests internationally - YES: ITAT

Whether any addition can be made to the income of assessee merely on the basis of disclosure of transfer instructions given to offshore bank, where the said transfer instruction does contain either signature or certification by the assessee - NO: ITAT

Case remanded

 

2016-TII-56-ITAT-MUM-INTL

CAPGEMINI BUSINESS SERVICES INDIA LTD Vs ACIT: MUMBAI ITAT (Dated: February 29, 2016)

Income tax - Sections 9(1)(vi), 40(a)(i) & 195 - India Singapore DTAA - Article 12.

Keywords - branch profit tax - corporate membership - club entrance fees - computer software - off the shelf software purchase - royalty & tax credit.

Whether the expenses incurred on club entrance fees for obtaining corporate membership is an allowable expenditure, if the said expenditure has been incurred for building better relationship with clients with a view to prduce profit - YES: ITAT

Whether an assessee is entitled to the claim of tax credit on the branch profit taxes paid in USA under the Indo USA DTAA - YES: ITAT

Whether the sale of shrink wrapped/off the shelf computer software by the non-resident to the resident assessee amounts to the transfer for the ‘use of’ or the right ‘to use’ any copyright in a literary work - NO: ITAT

Whether the sale of shrink wrapped software can be said to be sale of 'good' - YES: ITAT

Whether the consideration paid for acquiring such off the shelf computer software, would amount to royalty within the definition of Article 12 of the India Singapore DTAA - NO: ITAT

Assessee's appeal allowed

 

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