| 2016-TII-INSTANT-ALL-332 | 30 May 2016 |
The Week That Was - Episode 40 (May 27, 2016) NOTIFICATION CBDT notifies rules for Equalisation Levy CASE LAW BABA GLOBAL LTD Vs DCIT : DELHI ITAT (Dated: May 5, 2016) Income Tax - Sections 14A, 143(3), 144C & 153A. Keywords: notional interest - foreign currency loan - foreign subsidiaries - Prime Lending Rate - ALP - Safe Harbour Rules - search - incriminating material - concluded assessments. Whether the AO has the authority to made addition in the assessment years without there being any incriminating material and in absence of the abatement of assessment orders already framed - NO: ITAT Whether in case an advance has been given to AEs, the same has to be evaluated by applying arm's length price, such advances having been made in the foreign currency, the rate of interest has to be with reference to the interest rate on loans and advances in respect of foreign currency - YES: ITAT Whether in case advance given to its subsidiary company stand converted into share application money, can such amount still be considered as loan, even if it is known that the TPO is not permitted under the law to re-characterize the transaction - NO: ITAT Assessee's appeal partly allowed |
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