| 2017-TII-INSTANT-ALL-470 | 24 July 2017 |
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CASE LAWS DIT Vs ATOMSTROY EXPORT: SUPREME COURT OF INDIA (Dated: July 21, 2017) Income tax - offshore service contract - fees for technical service & reasons for reopening The Revenue preferred the present SLP challenging the judgment, whereby the High Court had held that it was not open to the AO to reopen an assessment on the reasons which were set aside by the CIT(A) in the preceding year and the same had attained finality in favour of assessee by the ITAT. Having heard the parties, the Supreme Court condoned the delay and issued notices to respective parties to appear for further hearing on the issue of reopening. Notice issued DIT Vs SUMITOMO MITSUI BANKING CORPORATION: SUPREME COURT OF INDIA (Dated: July 14, 2017) Income tax - Section 260A(4) Keywords - framing of substantial question - recording of reasons - admission of appeal The Revenue preferred the present SLP seeking clarification as to whether at the stage of final hearing, the High Court could consider the question of law not formulated by it in terms of the proviso to sub-section (4) of Section 260A of the Income Tax Act. Having heard the parties, the Supreme court held that, Whether High Court has power to frame substantial question of law at the time of hearing of appeal other than those on which the appeal was admitted, subject to provisional conditions - YES: SC ++ it is seen that this question has been answered by a three Judge Bench of this Court in Commissioner of Income Tax-II, Ahmedabad v. Mastek Ltd. - 2013-TIOL-20-SC-IT-LB, wherein this Court has held that the High Court has power to frame the substantial question of law at the time of hearing of the appeal other than the questions on which the appeal was admitted. This power is, however, subject to two conditions; namely, 1. The Court must be satisfied that appeal involves such questions; and 2. The Court has to record reasons therefor. Since the matter is covered by the aforesaid judgment, this special leave petition stands dismissed. Revenue's SLP dismissed DIT Vs CREDIT AGRICOLE INDOSUEZ: SUPREME COURT OF INDIA (Dated: July 21, 2017) Income tax - Sections 9(1)(vi), 14A, 40(a)(i) & 44C Keywords - data processing charges - interest income - overseas expenses & royalty The Revenue preferred the present SLP challenging the judgment, whereby the High Court had held that when the interest income received from overseas branches were held to be taxable, then the interest paid by assessee to its overseas branches would also be deductible to bring to tax the net interest income. Having heard the parties, the Supreme Court condoned the delay and granted leave to the Revenue Department to defend their case on the issue of treatment of 'interest paid to overseas branches'. Leave granted PR CIT Vs MITSUI PRIME ADVANCED COMPOSITES INDIA PVT LTD: SUPREME COURT OF INDIA (Dated: July 21, 2017) Income Tax - Sections 92C, 92CA & 271(1)(C) Keywords - penalty - TNMM - CUP method - adverse order - presumptive application & error of law The Revenue preferred the present SLP challenging the judgment, whereby the High Court had held that the assessee's failure to record his international transaction which was introduced for the first time in the subject A.Ys, per se, would not attract the automatic presumptive application of 7th Explanation of Section 271(1)(c). Having heard the parties, the Supreme Court condoned the delay and dismisses the SLP, thus concurrng with the opinion of High Court regarding automatic presumptive application of 7th Explanation of Section 271(1)(c). Revenue's SLP dismissed |
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