| 2017-TII-INSTANT-ALL-488 | 07 September 2017 |
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PR.CIT Vs GE MONEY FINANCIAL SERVICES PVT LTD: SUPREME COURT OF INDIA (Dated: September 4, 2017) Income Tax - maintenance of books - accrual of income - interest on NPAs The Revenue preferred the present SLP challenging the judgment, whereby the High Court had held that the income in the form of interest on NPAs, though not received, but still accrued to the assessee under the provisions of the Income-tax Act, would be exigible to tax. Having heard the parties, the Supreme Court condones the delay and issued notices to respective parties directing their appearences for further hearing on the issue of chargeability of 'interest on NPAs'. Notice issued BROWN AND SHARPE INC Vs CIT : SUPREME COURT OF INDIA (Dated: September 1, 2017) Income tax - Sections 9(1)(i), 32, 143(3) - India-USA DTAA - Articles 5 & 7. Keywords - Attributable to - business profits - deeming fiction - FAR analysis - HO - Incentive Plan - LO - PE - prospective buyer - marketing activities - reimbursement of expenses. The Assessee preferred the present SLP challenging the judgment, wereby the High Court had held that when the activities of the LO also include sales promotion by putting an incentive plan in place, discussion of commercial issues pertaining to the contract and hiring of technical personnel to help the customers, it could be concluded tht LO was engaged in business activities in India. The High Court in its impugned judgment also held that when the liaison office receives from its head office more amount than the expenses actually incurred, the amount received over and above in excess year after year should be treated as its income. Having heard the parties, the Supreme Court grants leave to the Revenue Department to defend their case on the issue of taxability of liasion office in India. Leave granted |
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