2011 news alerts

Date Subject Reference
26 December, 2011 Tribunal decision on new unit being formed by the reconstruction or splitting up of an existing business Taurus Merchandising Pvt. Ltd. v.ITO [TS-749-ITAT-2011 (Del)]
23 December, 2011 Transfer Pricing of trading v. indenting activites, use of controlled transactions for benchmarking and use of turnover as allocation key Bayer Material Science Pvt. Ltd v. ACIT [ITA No. 7977/Mum/2010]
23 December, 2011 Royalty payment approved by Reserve Bank of India under Foreign Exchange Regulation Act, 1973 considered adequate approval as per Industrial policy of the Government of India ADIT v. Aditya Vikram Global House Ltd [TS-747-ITAT-2011 (Mum)]
23 December, 2011 Consistent cost allocation method should not be disturbed unless there is a ‘just cause’ CIT v. EHPT India Pvt. Ltd.[TS-745-HC-2011(Del)]
21 December, 2011 External Commercial Borrowings for micro finance sector - liberalisation A.P. (DIR Series) Circular No. 59 dated 19 December 2011
21 December, 2011 Payment for import of software to integrate it with hardware constitutes royalty CIT v. Lucent Technologies Hindustan Ltd. & Others [TS-737-HC-2011 (KAR)]
20 December, 2011 Frequently Asked Questions relating to work related visas - an update http://mha.nic.in/pdfs/work_visa_faq.pdf
19 December, 2011 Social security agreement with Republic of Netherlands came into force on 1 December 2011 http://www.epfindia.com/Circulars/Y2011-12/IWU_Netherlands_39316.pdf
19 December, 2011 Social security agreement with Republic of Netherlands came into force on 1 December 2011 http://www.epfindia.com/Circulars/Y2011-12/IWU_Netherlands_39316.pdf
16 December, 2011 AAR ruling on taxability of reimburement of salary costs of seconded employees to group company not based on proper reasoning - Madras High Court Verizon Data Services India Pvt. Ltd. v. AAR [ TS-725-HC-2011(MAD)]
15 December, 2011 Transport within India under international voyage considered as international traffic ITO v.Tristar Logistics India Pvt. Ltd.[2011-TII-194-ITAT-RAJ-INTL]
14 December, 2011 Compounding of contraventions under the Foreign Exchange Management Act, 1999 Circular No. 57 dated 13 December, 2011
08 December, 2011 Payer cannot be treated as assessee-in-default, if tax liability has been discharged by the payee Chattisgarh State Electricity Board v. ITO [TS-707-ITAT-2011 (Mum)]
08 December, 2011 Capital gains arising on transfer of shares of a non-resident company between two non-residents taxable in India DIT v. Merieux Alliance [TS-700-AAR-2011]
07 December, 2011 Payment for commercial/market information taxable as royalty De Beers UK Ltd. v. DCIT (Intl. Taxation)  [TS-677-ITAT-2011(Mum)]
07 December, 2011 Social security agreement with the Republic of Korea came into force on 1 November, 2011 http://www.epfindia.com/Circulars/Y2011-12/IWU_Korea_19899.pdf
02 December, 2011 Software payment taxable as royalty CIT v. Samsung Electronics Ltd [TS-696-HC-2011 (KAR)]
02 December, 2011 TPO cannot take cognisance suo moto of any international transaction for adjustment in ALP CIT  v. Amadeus India Pvt.Ltd. [TS-693-HC-2011(Del)]
01 December, 2011 Guidelines on the ‘Tourist Visa on Arrival’ Scheme  
24 November, 2011 No functions, assets and risks analysis is required before AY 2002-03 for determination of profits attributable to dependent agent permanent establishment; no further attribution if dependent agent paid arm’s length commission DIT v. BBC Worldwide Ltd. [TS-674-HC-2011(DEL)]
22 November, 2011 Jurisdiction of AO and TPO ruled upon by HC – HC decides at what stage it can be held that there had been an international transaction between taxpayer and its AE Veer Gems v. ACIT [TS-670-HC-2011 (Guj)]
16 November, 2011 Capital gains exemption available under India- Mauritius tax treaty - Azadi Bachao Andolan decision followed and McDowell decision distinguished Ardex Investments Mauritius Ltd., In re [A.A.R No. 866 of 2010]
15 November, 2011 Income of non-resident for production of television signals for broadcasting of cricket matches in India, taxable as fees for technical services on gross basis Nimbus Sport International Pte. Ltd. v. DDIT [2011-TII-178-ITAT-DEL-INTL]
14 November, 2011 Payment for granting of license for ‘live broadcasting’ of cricket matches not royalty ADIT v. Neo Sports Broadcast Pvt. Ltd. [TS-649-ITAT-2011 (Mum)]
11 November, 2011 Brought forward losses and unabsorbed depreciation shall not set-off against the STPI Unit while claiming the benefit under section 10A of the Income-tax Act which retain the character of an exemption CIT v. Yokogawa India Ltd [TS-641-HC-2011 (Kar)]
11 November, 2011 Expenditure deducted from export turnover to be excluded from total turnover while computing the deduction under section 10A CIT v. Tata Elxsi Ltd. [TS-637-HC-2011 (Kar)]
10 November, 2011 For Minimum Alternate Tax computation, deduction in respect of profits from export of computer software should be based on book profit CIT v. Bhari Information Tech. Systems Pvt. Ltd. [TS-634-SC-2011]  
08 November, 2011 Social security agreement with the Kingdom of Denmark came into force on 1 May 2011 http://www.epfindia.com/Circulars/Y2011-12/IWU_Denmark_33390.pdf
04 November, 2011 CBDT amends Income-tax Rules relating to TDS procedure Notification No. 57/2011/F.No. 142/23/2011-SO(TPL)
04 November, 2011 CBDT amends Rules relating to PAN application Notification S.O. No. 1497(E) dated 01 July, 2011
03 November, 2011 Clarification on the grant of Employment Visas 1. Refer to the PwC News Alert dated 06 October, 2010
2. Refer to the PwC News Alert dated 07 December, 2010
25 October, 2011 Change in legal ownership not a bar to claim carry forward losses S-Net Freight (India) Pvt Ltd v.ITO [TS-607-ITAT-2011]
20 October, 2011 Concept Paper on Regulation of Investment Advisors  
19 October, 2011 Right to exercise an option is a capital asset and gains arising on sale are 'long term capital gains' if such right is held for more than three years Abhiram Seth v. JCIT [TS-586-ITAT-2011(Del)]
19 October, 2011 Ruling for determining the ALP of a international transaction involving sale of IPR using Tally Solutions Pvt Ltd. v.DCIT [TS-576-ITAT-2011(Bang)]
17 October, 2011 Taxability of non-compete fee as business income or capital gains Ramesh D Tainwala v. ITO [TS-594-ITAT-2011(Mum)]
ACIT v. Savita N Mandhana [TS-593-ITAT-2011(Mum)]
17 October, 2011 ALP for sourcing services - percentage of value of goods sourced rather than cost plus Li & Fung (India) Pvt. Ltd. v. DCIT [TS-583-ITAT-2011(Del)]
17 October, 2011 Right to use copyrighted software involves right to use the copyright and consideration received is royalty Millenium IT Software Ltd, In re [2011-TII-25-ARA-INTL]
13 October, 2011 Commission for reinsurance of risk not taxable as fees for technical services X Ltd. (UK) v. ADIT
10 October, 2011 Company Law Settlement Scheme, 2011- extension of time General Circular No. 65/2011 dated 4th October, 2011
05 October, 2011 Reduction of equity share capital not subject to capital gains Bennett Coleman and Co. Ltd. v. ACIT [TS-580-ITAT-2011 (Mum)
03 October, 2011 Liberalisation in External Commercial Borrowing A. P. (DIR Series) Circular No. 28, 29 and 30 dated 26 September, 2011 and 27 September, 2011
26 September, 2011 External Commercial Borrowing (ECB) – Liberalisation and Rationalisation A. P. (DIR Series) Circular No. 25, 26 and 27 dated 23 September, 2011
26 September, 2011 Construction or assembly project not to trigger Permanent Establishment merely on satisfaction of the ‘fixed place of business’ test GIL Mauritius Holdings Ltd v. ADIT (IT) [TS-546-ITAT-2011(Del)]
26 September, 2011 New Takeover Regulations Notified http://www.sebi.gov.in/cms/sebi_data
23 September, 2011 No time limit for passing withholding tax orders Bhura Exports Ltd. v. ITO [TS 507 HC 2011 (CAL)]
21 September, 2011 Taxpayer’s commercial wisdom as to the need for services from AEs cannot be questioned Dresser-Rand India Pvt. Ltd. v. ACIT [TS-510-ITAT-2011 (Mum)]
14 September, 2011 Principles of Transfer Pricing critical for determining the arm's length nature of profits attributable to a PE Rolls Royce Singapore Pvt Ltd. v. A DIT  [TS-515-HC-2011(DEL)]
08 September, 2011 External Commercial Borrowings – Simplification of procedure A. P. (DIR Series) Circular No. 11 dated 7 September, 2011
08 September, 2011 No Time Limit for Passing Withholding Tax Orders CIT(TDS) v.  H.M.T Ltd. [TS-488-HC-2011(P&H)]
06 September, 2011 EPFO releases Guidelines/clarifications on Indian Provident Fund and Pension Scheme applicable to International Workers www.epfindia.com/Circulars/Y2011-12/Compliance10235.PDF
02 September, 2011 Payment received for the use of Software cannot be regarded as 'Royalty' ADIT v. TII Team Telecom International Pvt. Ltd. [TS-490-ITAT-2011 (Mum)]
30 August, 2011 Draft guidelines for licensing of new banks in the private sector  
30 August, 2011 Report and Recommendations of the Reserve Bank of India Working Group on the Issues and Concerns in the Non-Banking Financial Companies Sector  
26 August, 2011 An agent to be assessed as a representative assessee must have some connection with the income of the non-resident sought to be taxed General Electric Company & Anr  v. DDIT  [TS-471-HC-2011 (Delhi)]
25 August, 2011 Redemption of preference shares amounts to ‘transfer’ and capital loss thereon is allowable Parle Biscuits Pvt. Ltd. v. ACIT [TS-477-ITAT-2011(Mum)]
19 August, 2011 Gains arising on sale of shares granted under stock options taxable as short term capital gains Pramod H. Lele v. ACIT [TS-463-ITAT-2011 (Mum)]
18 August, 2011 Powers of DRP restricted to variations proposed in the draft order GE India Technologies Pvt. Ltd. v. DRP [TS-462-HC-2011(KAR)]
16 August, 2011 Income of non resident attributed to its Permanent Establishment in India shall be taxable as business profits; Balance income not to be taxed as fee for technical services Nippon Kaiji Kyokoi v. ITO [TS-382-HC-2011 (Delhi)]
10 August, 2011 Reopening of assessment valid for non-disclosure of material facts Honda Siel Power Products Ltd. v. DCIT  [2011-TIOL-126-HC-DEL-IT]
10 August, 2011 Income from provision of sea logistic services taxable under presumptive scheme Siem Offshore Inc. [2011-TII-18-ARA-INTL]
09 August, 2011 Company Law Settlement Scheme, 2011  
08 August, 2011 Risk adjustment disallowed, impact of intangibles on pricing negated, taxpayer estopped from subsequently pointing facts having material bearing, application of export earnings filter approved, etc. Deloitte Consulting India Pvt. Ltd. v. DCIT [TS-401-ITAT-2011 (HYD)]
04 August, 2011 Where indexation benefit is not available on sale of listed shares by non-residents, concessional tax rate benefit not applicable Cairn UK Holdings Ltd. In re [2011] [TII-16-ARA-INTL]
04 August, 2011 Allocation of common expenses based on reasonable and conservative method more appropriate than hybrid method S.T. Micro Electronics Pvt. Ltd. v. CIT [TS-382-HC-2011-Delhi]
01 August, 2011 Applicability of Indian tonnage tax benefits to ships operating solely in Indian coastal waters ACIT v. West Asia Maritime Ltd. [2011-TIOL-479-ITAT-MAD-TM]
29 July, 2011 Mere canvassing for business of non-resident principal by an Indian agent does not lead to non-residents’ taxability in India ADIT v. Star Cruise India Travel Services Pvt. Ltd. [TS-366-ITAT-2011-Mum]
29 July, 2011 Managerial Remuneration norms liberalised  
28 July, 2011 Internal comparability to be given preference over external comparables Destination of the World (Subcontinent) Pvt. Ltd. v. ACIT [TS-318-ITAT-2011 (DEL)]
26 July, 2011 Comparable transaction prices obtained from customs authorities can be used for Arm’s Length Pricing Coastal Energy Pvt. Ltd. v. ACIT [ TS-356-ITAT-2011-CHNY]
22 July, 2011 Tax liability based on real owner and not legal owner - Bombay HC ruling in the case of Aditya Birla Nuvo Ltd. Aditya Birla Nuvo Ltd. v. DDIT [2011-TII-26-HC-MUM-INTL]
13 July, 2011 Fees for inspection/reviewing facilities of a hotel, suggesting changes and other consultancy services, etc. do not qualify as ‘fees for included services’ or ‘other income’ under the applicable tax treaties ACIT v. Viceroy Hotels Ltd. (2011-TII-97-ITAT-HYD- INTL)
13 July, 2011 Claim of deduction under section 10A by a new unit cannot be denied though STPI approval refers to new unit as expansion of existing unit JCIT v. Patni Computer Systems Pvt. Ltd. [TS-313-ITAT-2011(PUN)]
08 July, 2011 Commission paid to the employee-directors in lieu of dividend, not deductible under section 36(1)(ii) Dalal Broacha Stock Broking Pvt. Ltd. v. ACIT [2011] 11 taxmann.com 426 (Mum. - ITAT)(SB)
08 July, 2011 Maintenance of separate books of account for STP units is not a prerequisite to avail deduction under section 10A IBM India Pvt. Ltd. v. DCIT [AIT-2011-278-ITAT]
08 July, 2011 Facilities for Indian corporates to prepay or refinance FCCB - Amendments in RBI regulations A.P.(DIR Series) Circular No. 75 dated 30 June, 2011 and A.P.(DIR Series) Circular No. 1 dated 4 July, 2011
08 July, 2011 Social security agreements with France and Luxembourg http://www.epfindia.com/Circulars/Y2011-12/IWU_ASS_France14721.PDF
07 July, 2011 Determining the characterisation of an entity before the selection of most appropriate method is critical Fulford (India) Ltd v. DCIT (ITA No.8312/MUM/2010 (Assessment year : 2006-07)
29 June, 2011 Application of the amended proviso to section 92C - held to be prospective iPolicy Network Pvt. Ltd. v. ITO [TS-278-ITAT-2011-DEL]
24 June, 2011 Class of persons exempt from furnishing a tax return under section 139(1) for the AY 2011–12 Notification no. 36/2011 [F.No. 142/09/2011 (TPL)], dated 23 June, 2011
24 June, 2011 Three-year co-operation programme between OECD and India  
22 June, 2011 Rule of consistency honoured and economic adjustment allowed Brintons Carpets Asia Pvt. Ltd v. DCIT [TS-272-ITAT-2011-PUN]
20 June, 2011 Prior year royalty rate not a benchmark and CUP Method inappropriate for royalty on 'unique’ products due to lack of uncontrolled comparable data DCIT v. Cabot India Ltd. [ TS-242-ITAT-2011-Mum]
20 June, 2011 NBFC Outbound Investment Directions  
16 June, 2011 Fees paid for portfolio management services are allowable as deduction against capital gains KRA Holding & Trading Pvt. Ltd. v. DCIT [TS-251-ITAT-2011-Pune]
14 June, 2011 Lease rentals from IT Park to be taxed as business income Golflink Software Park P Ltd v. DCIT
[ 2011-TS-252-ITAT-Bang ]
08 June, 2011 Reimbursement of salary costs to Group company pertaining to seconded employees is taxable as “fee for included services” Verizon Data Services India Pvt. Ltd. ,
In re [2011-TII-13-ARA-INTL]
06 June, 2011 Introduction of the Financial Holding Company structure in India Source: www.rbi.org.in
02 June, 2011 FII income taxable as capital gains, and not as ‘speculative’ income LG Asian Plus Ltd. [TS-234-ITAT-2011 (Mum)]
27 May, 2011 Liberalisation in Outbound Investment Regulations  
23 May, 2011 Payments made to non-resident freight forwarders for services rendered outside India not taxable in India ACIT  v. Indair  Carriers Pvt. Ltd.
[I.T.A. No. 1605 (Del) of 2010]
23 May, 2011 Consideration received under a composite contract for services which are ancillary to the main objective of providing a software user license held to be in the nature of “Royalty” Lanka Hydraulic Institute Limited In re [2011-TII-09-ARA-INTL]
20 May, 2011 Payment made for services rendered pursuant to a Data Processing Services Agreement does not constitute fees for technical services under the Act R.R. Donnelley India Outsource Pvt. Ltd. In re [2011-TII-08-ARA-INTL]
20 May, 2011 Tax is required to be withheld from tips passed to employees by Hotel employers who have collected them from customers ITC Ltd v. CIT  [2011-TIOL-287-HC-DEL-IT]
20 May, 2011 Income from seismic data acquisition and processing services relating to oil exploration taxable under presumptive scheme OHM Ltd. In re [2011-TII-10-ARA-INTL]
19 May, 2011 Appropriate FAR analysis is the primary basis for selecting a comparable; loss making companies/super profit making companies should be subject to consistent treatment Sapient Corporation Pvt. Ltd. v. DCIT [2011-TII-50-ITAT-DEL-TP]
17 May, 2011 Provisions of section 50C applicable even in respect of depreciable assets being land and/or building ITO v. United Marine Academy [2011] 10 taxmann.com 320 (Mum. - ITAT)(SB)
17 May, 2011 Removal of anomaly for differential interest rates for EPF and income-tax exemption No S.O.1046(E), dated 13.05.2011
17 May, 2011 Applicability of provisions of Article 11 of the Indo-Australia DTAA for taxability of interest on income tax refund received by a non-resident ACIT v. Clough Engineering Ltd. [2011-TII-64-ITAT-DEL-SB-INTL]
13 May, 2011 The Competition Commission of India on 11 May, 2011 notified the final regulations, The Competition Commission of India (Procedure in regard to the transaction of business relating to combination) Regulations, 2011 Vide Notification No. S.O. 479(E) dated 4 March, 2011
10 May, 2011 Updated FAQs released on Indian Provident Fund and Pension Scheme applicable to International Workers http://www.epfindia.com/faq_IntWorker
09 May, 2011 Opinion from Technical experts be sought in tax and transfer pricing cases involving complex technical matters Instruction No. 5 / 2011 issued by CBDT dated 30 March, 2011
05 May, 2011 No capital gains tax in India on transfer of shares of an Indian listed company without consideration between two non-residents, under group re-organisation Goodyear Tire and Rubber Company A.A.R. Nos. 1006 of 2010 and Goodyear Orient Company (Private) Limited A.A.R. Nos 1031 of 2010
05 May, 2011 Certificate for lower rate of withholding tax under section 195/197 of the Act is provisional in nature Areva T&D v. ADIT & Ors. [2011-TII-17-DEL-INTL]
05 May, 2011 ‘Make Available’ under India-Singapore Double Taxation Avoidance Agreement vis-à-vis Technology Transfer Agreement and Services Agreement Filtrex Technologies Pvt. Ltd. v. ACIT [2011-TII-60-ITAT-BANG-INTL]
04 May, 2011 Income earned by a foreign company from business activities of its Indian liaison office taxable in India Jebon Corporation India, Liaison Office v. CIT (International Taxation) and ADIT (International Taxation) [2011-TII-15-HC-KAR-INTL]
03 May, 2011 Where the finding of facts by the lower authorities is perverse, it becomes a substantial question of law before the High Court Chevoit Company Ltd. v. CIT (ITA No. 137 of 2001) (Calcutta HC - Special Jurisdiction {Income-tax}).
03 May, 2011 Mere use of technical plan or design without absolute transfer of ownership can be Fees for Included Services even if it does not ‘make available’ technical knowledge DIT v. SNC Lavalin International Inc. [2011] 332 ITR 314 (Del)
28 April, 2011 Service tax collected from customers not to be added while computing presumptive shipping income Islamic Republic of Iran Shipping Lines v. DCIT [I.T.A. No. 8845/Mum/2010]
27 April, 2011 Interest under section 234B not payable by employee where salary income is subject to tax deduction at source under section 192 Maersk Co. Ltd. v. DIT [2011-TII-16-HC-UKHAND-LB-INTL]
25 April, 2011 Tax holiday under section 10A of the Act – Deduction available on conversion of existing DTA unit into an STP unit CIT v. Expert Outsource Pvt. Ltd. [2011-TIOl-236-HC-KAR-IT]
19 April, 2011 Basis of determining ALP using distributors of computer software as valid comparables for distributors of television channels ACIT v. NGC Network (India) Pvt. Ltd. [ITA No. 5307/Mum/2008]
Dated 23 February, 2011
19 April, 2011 Expenditure on voluntary retirement scheme is tax deductible even if the scheme is not in accordance with the exemption provision for the employees Sony India Pvt. Ltd. v. ACIT [I.T.A. Nos. 4008, 4114 & 4994(Del)/2010]
13 April, 2011 Capital loss arrived at after applying indexation can be set-off against capital gains arrived at without applying indexation Vipul A. Shah v. ACIT [I.T.A. No. 3190/MUM/2010 (A.Y. 2004-05)]
11 April, 2011 Social Security Agreement between India and Switzerland entered into force on 29 January, 2011 Source:
IWU_ SwissAgreement.pdf
11 April, 2011 Mauritius entity entitled to capital gains exemption on sale of Indian shares D. B. Zwirn Mauritius Trading No. 2 Ltd. In re
06 April, 2011 Foreign company required to file return despite no tax on share transfer VNU International B.V. v. DIT (International Taxation)
06 April, 2011 Changes in procedure relating to application for withholding tax at a lower / nil rate Notification No. 16 / 2011 dated 29 March, 2011
04 April, 2011 No income accrues or arises in India to a non-resident engaged only in purchases for the purpose of export ADIT v. M Fabrikant and Sons Ltd. [2011-TII-46-ITAT-MUM-INTL]
31 March, 2011 Consolidated FDI policy - Circular No. 1 of 2011  
25 March, 2011 Amendments to the Finance Bill, 2011 passed by Lok Sabha www.Taxindiaonline.com and loksabha.nic.in
24 March, 2011 Losses arising to Foreign Institutional Investors ('FII') on account of cancellation of foreign exchange forward contract are capital in nature Citicorp Banking Corporation, Baharain v. Addl. Director of Income Tax (I.T.)-
Range 1-[2011-TII-40-ITAT-MUM-INTL]
23 March, 2011 Payment of interest by an Indian branch of a foreign bank to its Head Office is an allowable deduction ABN Amro Bank N.V. v. CIT
23 March, 2011 Lending of shares cannot be construed as transfer within the definition of “transfer” giving rise to capital gains tax Phulchand Sons Investments Pvt. Ltd. v. ACIT (ITA No.293/Mum/2009)
21 March, 2011 Transfer of undertaking in exchange for shares held not to be a slump sale Bharat Bijlee Limited v. ACIT (ITA NO.6410/MUM/2008)
(Judgement Date: 11 March, 2011)
17 March, 2011 Non-availability of tax holiday to a non-resident amounts to discrimination Shri Rajeev Sureshbhai Gajwani v.
ACIT (ITA Nos. 1807 and 1978/Ahd/2006 and ITA No. 3111/Ahd/2007)(Ahd SB)
14 March, 2011 Ministry of Corporate Affairs issued four draft notifications relating to Combinations  
11 March, 2011 The Competition Commission of India issued draft regulations in regard to the transaction of business relating to Combinations  
10 March, 2011 Key changes made to Karnataka Stamp Act, pursuant to State Budget – 2011  
04 March, 2011 Non-availability of indexation benefit to a non-resident does not amount to non-discrimination Transworld Garnet Company Ltd.   
[2011-TII- 02-ARA-INTL]
01 March, 2011 Taxes withheld by determining the income of non-resident under special regime (section 44BB) without approaching the tax officer will not lead to violation of withholding tax provisions Frontier Offshore Exploration
(India) Ltd. v DCIT ITA No. 200/Mds/2009
01 March, 2011 Key features of recent Immigration guidelines  
01 March, 2011 Finance Bill, 2011 - Transfer Pricing Amendments  
23 February, 2011 Transfer Pricing Officer cannot propose any adjustment to a transaction in the absence of a valid reference for the transaction by the Assessing Officer Amadeus India Pvt. Ltd. v. ACIT
22 February, 2011 Fees paid for portfolio management services are not allowed as deductions against capital gains Devendra Motilal Kothari v. DCIT [2011] 50 DTR 369 (Mum)
18 February, 2011 Certificate of residence issued by the tax authorities in the country of residence is sufficient proof of beneficial ownership ADIT v. Universal International Music BV [2011-TII-22-ITAT-MUM-INTL]
17 February, 2011 Loss arising to a company on non-speculative transactions of the purchase and sale of shares held to be speculative loss Paharpur Cooling Towers Ltd. v. CIT [ITA No. 256 of 2002]
14 February, 2011 Captive unit need not be provided a profit mark-up on pre-operative expenses, incurred prior to commencement of operations DCIT v. Convergys Information Management (India) Pvt. Ltd. [ITA No. 229/H/2009, dated 31 January, 2011]
07 February, 2011 Third party valuation is an appropriate CUP for transfer of assets, and alternative valuation using tax WDV also accepted Intel Asia Electronic Inc. v. ADIT [2011-TII-14-ITAT-BANG-TP]
04 February, 2011 No PE when the branch office in India of a US subsidiary is paying salary to employees seconded to an Indian subsidiary Whirlpool India Holdings Ltd. v. DDIT [2011-TII-15-ITAT-DEL-INTL]
02 February, 2011 Comparables earning super normal profits to be excluded while computing arm's length price Adobe Systems India Pvt. Ltd. v. ACIT [2011-TII-12-ITAT-DEL-TP]
02 February, 2011 Payment to a foreign satellite operator for provision of transmission service / facility is not ‘royalty’ under the Income-tax Act, 1961 Asia Satellite Telecommunications Co. Ltd. v. DCIT [2003] 85 ITD 478 (Del.)
31 January, 2011 Inoperative Provident Fund accounts to no longer earn interest w.e.f 1 April, 2011 The Gazette of India, dated 15 January 2011 (http://labour.nic.in)
31 January, 2011 Inoperative Provident Fund accounts to no longer earn interest w.e.f 1 April, 2011 The Gazette of India, dated 15 January 2011 (http://labour.nic.in)
25 January, 2011 Withdrawal of circular dealing with income arising from business connection in India is prospective in nature Sanjiv Gupta v. DCIT [2011-TII-06-ITAT-LKW-INTL]
24 January, 2011 Presence of Foreign Banks in India - Discussion Paper  
21 January, 2011 Income from business activities by liaison office of a foreign company taxable in India Linmark International (Hong Kong) Ltd . v. DDIT
13 January, 2011 Arm’s length determination for continuing debit balances owed from associated enterprises Nimbus communications Ltd. v. ACIT [2011-TII-03-ITAT-MUM-TP]
06 January, 2011 Arm’s length price of imports of active pharmaceutical ingredients Serdia Pharmaceuticals (India) Pvt. Ltd. v. ACIT (ITA Nos:2469/Mum/063032/
Mum/ 07 and 2531/Mum/08)
06 January, 2011 Framework for Core Investment Companies operationalised DNBS (PD) CC.No.197/03.10.001/2010-11 dated 12 August, 2010
06 January, 2011 Court of Appeals in Canada confirms Tax Court decision, treating the guarantee fee paid by GE Canada to be at arm's length Her Majesty the Queen v. General Electric Capital Canada Inc. [2010] FCA 344
04 January, 2011 DRP to consider assessee’s objections to draft assessment order if assessee’s request for availing of alternative remedy of normal appellate channel is not accepted AIA Enginering Ltd. v. DRP [2010-TII-02-HC-AHM-TP]

Contact us

Frank D’Souza

Partner and Leader, Corporate and International Tax, PwC India

Tel: +91 22 6689 1144

Follow us