2012 news alerts



December

Ref: Press Release on 26 December 2012

Ref: ITO v.SABMiller India Ltd. (ITA No. 1011/Del/2012)

Ref: CIT v. S.K.Tekriwal [TS-902-HC-2012 (Cal)]

Ref: WNS North America Inc. v. ADIT [TS-895-ITAT-2012(Mum)]

Ref: The Competition (Amendment) Bill, 2012 (Bill No. 136 of 2012)

Ref: http://www.mofa.go.jp/mofaj/gaiko/treaty/shomei_75.html

Ref: DIT v. OHM Limited [TS-879-HC-2012(Del)]

Ref: http://www.epfindia.com/Circulars/Y2012-13/CirQJA_345.pdf

Ref: CBDT notifies valuation methodology for computing FMV under section 56(2)(viib) of the Act

Ref: ACIT v. Charon Tec P. Ltd [TS-841-ITAT-2012(CHNY)]

November

Ref: Everest Kanto Cylinder Ltd. v. DCIT [TS-714-ITAT-2012(Mum)-TP

Ref: A.P. (DIR Series) Circular No. 54 dated 26 November, 2012

Ref: http://www.epfindia.com/IntWorkersNew/IWU_UpdtdFAQs_19112012.pdf

October

Ref: Ministry of Labour and Employment Notification No. F.No.S-35025/09/2011-SS-II dated 5 October, 2012

Ref: DP World Pvt Ltd v. DCIT [TS-767-ITAT-2012(Mum)]

Ref: Suresh Industries Pvt Ltd v. ACIT [TS-771-ITAT-2012 (Mum)]

 

Ref: CIT v. Usha International Ltd. [TS-259-HC-2012(DEL)]

Ref: CIT v. Schmetz India Pvt. Ltd. [TS-702-HC-2012 (Bom)]

September

Ref: GAP International Sourcing (India) Pvt. Ltd v. ACIT [ITA Nos. 5147/Del/2011(AY 2006-07) and 228/Del/2012 (AY 2007-08)]

Ref: CIT v. Bongaigaon Refinery and Petrochemical Ltd. [TS-695-SC-2012]

Ref: ICICI Prudential Insurance Co. Ltd. v. ACIT (ITA No. 6854, 6855, 6856 and 6059 of 2010), ACIT v. ICICI Prudential Insurance Co. Ltd. (ITA No. 7765, 7766, 7767 and 7213 of 2010)

Ref: RBS Equities (India) Ltd, (Formerly known as ABN AMRO Asia Equities (India) Ltd. v. ACIT  [I.T.A. No. 3077/Mum/2009] for AY 2003-04 and [I.T.A. No. 1236/Mum/2010] for AY 2005-06

Ref: Court on its own motion v. CIT [TS-677-HC-2012(Del)]

Ref: DIT v. Nokia Networks OY [TS-700-HC-2012 (Del)]

Ref: A.P. (DIR Series) Circular No. 26, 27, 28 dated 11 September, 2012

Ref: ACIT v. Biraj Investment Pvt. Ltd. [2012] 24 Taxmann.com 273 (Guj)

Ref: CIT v. TEI Technologies Pvt. Ltd. [TS-665-HC-2012(Del)]

Ref: CIT v. Nadatur Holdings and Investments Pvt. Ltd. [TS-656-HC-2012 (KAR)]

Ref: Taj Sats Air Catering Ltd. v. CIT [TS-682-HC-2012(Bom)]

Ref: DCIT v. Dodsal Pvt. Ltd. [TS-675-ITAT-2012(Mum)]

Ref: Dishnet Wireless Ltd., In re [2012] 24 taxman.com 298 (AAR)

Ref: Nahar Spinning Mills Ltd. v.JCIT [TS-622-ITAT-2012(Chandi)]

Ref: AAR rejects application as the share arrangement flouted the SEBI guidelines and impaired public interest even though no tax avoidance motive existed

Ref: http://www.epfindia.com/Circulars/Y2012-13/IWU_16266.pdf

Ref: Channel Guide India Ltd. v. ACIT [TS-662-ITAT-2012(Mum)]

Ref: Armstrong World Industries Mauritius Multiconsult Ltd., In re[TS-628-AAR-2012]

August

Ref: NetApp BV, Sin Oceanic Shipping ASA. In re., [TS-619-HC-2012 (Del) ]

Ref: CIT v.Smifs Securities Ltd. [TS-639-SC-2012]

Ref: Apollo Hospital Enterprises Ltd. v. DCIT [TS-609-ITAT-2012(CHNY)]

Ref: Credit Suisse (International) Holding AG, In re[TS-626-AAR-2012]

Ref: ADIT v. BHEL-GE-Gas Turbine Servicing Pvt. Ltd. [TS-576-ITAT-2012 (Hyd.)]

Ref: CIT v. Western Outdoor Interactive Pvt. Ltd. [TS-614-HC-2012(Bom)]

Ref: Hyundai Rotem Company v. Asst. DIT [TS-612-ITAT-2012 (DEL)]

Ref: Castleton Investment Ltd, In re [TS-607-AAR-2012]

Ref: Orient Green Power Pte Ltd. In re [TS-608-AAR-2012]

Ref: Mumbai Cricket Association v. DIT(Exemption), Mumbai [TS-590-ITAT-2012- (Mum)]

Ref: DIT (IT) v. Sedco Forex International Drilling Inc & others [TS-603-HC-2012 (UTT)]

Ref: Moody’s Analytics Inc, USA., In re [2012] 24 taxmann.com 41 (AAR)

Ref: John Wyeth & Brother Ltd. v. ACIT [TS-567-ITAT-2012 (Mum)]

Ref: Columbia Sport swear Company v. DIT [TS-549-SC-2012]

Ref: Bholanath Pal v. ITO [ITA No 10/Bang/2011, order dated 30 May 2012]

Ref: Emilio Ruiz Berdejo, C/o Tetra Pak India Ltd v DCIT [TS-547-ITAT-2012 (PUN)]

Ref: Ajay Guliya v. ACIT [TS-520-HC-2012 (Del)] & ITO v. Indira R Shete [TS-562-ITAT-2012 (Mum)]

July

Ref: Abbey Business Services (India) Pvt. Ltd. v. DCIT [TS-532-ITAT-2012(Bang)]

Ref: CIT v. PVP Ventures Ltd [TS-514-HC-2012(Mad)] & CIT v. Spray Engineering Device Ltd. [TS-516-ITAT-2012(Chand)]

Ref: Renuga Textiles Mills Ltd. v.CIT [TS-517-HC-2012 (Mad.)]

Ref: AVM Capital Services Pvt. Ltd. [TS-512-HC-2012 (Mum)]

Ref: CIT v. CA Computer Associates India Pvt. Ltd. [ITA No. 20 of 2011]

Ref: Dynamic India Fund I, In re[TS-513-AAR-2012]

            Ref: Euro RSCG Advertising Pvt. Ltd. v. ACIT [TS-496-ITAT-2012 (Mum)]

Ref: Spencer and company Ltd. v. ACIT [ITA No. 440/Mds/2011, order dated 1 May,2012]

Ref: Poompuhar Shipping Corporation Ltd. v. ADIT [ITA No 145 to 148/ 2012, order dated 29 June 2012]

Ref : RBI’s AP(DIR Series) Circular No. 1 dated 5 July 2012

Ref : Citatin: All Cargo Global Logistics Ltd v. DCIT [TS-345-ITAT-2012(Mum)]

Ref : Notification F. No. S-35025/09/2011/Ss-II dated 24 May, 2012 -  Ministry of Labour and Employment. [Source : http://www.epfindia.com/Circulars/Y2012-13/Coord_EPFSch_IW_3927.pdf]

Ref : Sumeet Taneja v. ACIT [TS-412-ITAT-2012 (Chandi)]

Ref : Premier Synthetic industries v ITO  [TS-444-HC-2012 (Mad)]

Ref :  Dongfang Electric Corporation v. DDIT [TS-434-ITAT-2012 (Kol)]

Ref : http://www.pib.nic.in

June

Ref : Durga Rice & Gen Mills v. AO [TS-446-ITAT-2012(Chandi)]

Ref : DCIT v.  TVS Electronics Ltd. [TS-421-ITAT-2012 (Chny)]

 

 

Ref : R Natarajan v. ACIT [TS-386-ITAT-2012(CHNY)]

Ref : OPG Energy Pvt. Ltd. v DCIT, Chennai [TS-382-ITAT-2012 (CHYN)]

 

Ref : http://www.oecd.org/document/41/0,3746,en_2649_33753_50509929_1_1_1_1,00.html

Ref : Reliance Industries Ltd v. ACIT [TS-368-ITAT-2012(Mum)]

Ref : Meditap Specialities Pvt. Ltd. v. ACIT [TS-393-ITAT-2012 (Mum)]

Ref : Alstom Transport SA, In re [TS-387-AAR-2012]

Ref : Aramex International Logistics Pvt Ltd, In re [TS-388-AAR-2012]

Ref : Cadila Healthcare Ltd. v. ACIT [TS-354-ITAT-2012 (Ahd)]

Ref : Avion Systems Inc v. DDIT [TS-370-ITAT-2012 (Mum)]

Ref : Solar Turbines International Company, In re [TS-367-AAR-2012]

Ref : DDIT (IT) v. B4U International Holdings Ltd. [TS-358-ITAT-2012 (Mum)]

Ref : CIT v. P N Panjawani [TS-351-HC-2012(Kar)]

 

Date Subject Reference
31 May 2012 Payment to foreign company for R&D cost allocation taxable under the Income-tax Act, 1961 and the India-Germany Tax Treaty “A” Systems [AAR No. P of 2010]
31 May 2012 No PE created by liaison office in absence of any violation noted by RBI Metal One Corporation v. DDIT [TS-356-ITAT-2012(DEL)]
29 May 2012 Internal guidelines and updated FAQs released on the Indian provident fund and pension scheme applicable to international workers  
24 May 2012 Revenue cannot question the business/commercial expediency behind transactions; it can only ascertain whether the transaction is at arm’s length Ericsson India Pvt. Ltd. v. DCIT [TS-319-ITAT-2012 (DeL)]
23 May 2012 Payment made for airborne geophysical survey services is not FTS CIT v. De Beers India Minerals Pvt. Ltd. [TS-312-HC-2012 (Kar)]
21 May 2012 Benefit of indexation available on redemption of redeemable preference shares CIT v. Enam Securities Pvt Ltd [TS-324-HC-2012 (Bom)]
21 May 2012 Mean of advertising spend of companies in same industry cannot be ALP for advertising expenditure to be incurred by taxpayer, and is also not correct application of TNMM ACIT v. Genom Biotech Pvt. Ltd. [TS-326-ITAT-2012(Mum)]
16 May 2012 Only “controlled” transactions of tested party and only “similar” “uncontrolled” transactions of comparables to be considered Microsoft Corporation, Inc. v. Office of Tax and Revenue ; Case No. 2010-OTR-00012 (1 May 2012)
15 May 2012 Recent amendments notified by the Reserve Bank of India  
11 May 2012 Subscription fees received for social media monitoring services for market intelligence taxable as royalty ThoughtBuzz Pvt. Ltd., In re [TS-300-AAR-2012 (Del)]
11 May 2012 "Ordinary profits" v. "Arm's length price" for tax holiday units Visual Graphics Computing Services (India) Pvt. Ltd. v. ACIT [TS-274-ITAT-2012 (Chny)]
9 May 2012 Additional depreciation cannot be denied to the assessee merely on the ground that electricity is not an article or thing N.T.P.C. Ltd. v. DCIT [TS-291-ITAT-2012 (DEL)]
4 May 2012 RPM (not TNMM) appropriate for distribution; losses are on account of business strategy; & no motive to shift profits as margins of associated enterprises are reasonable ITO v. L’oreal India Pvt. Ltd. [TS-293-ITAT-2012 (Mum)]
4 May 2012 Commission for reinsurance of risk not taxable as fees for technical services DIT v. International reinsurance broker [TS-271-HC-2012(Del)]
2 May 2012 Itemised sale of assets, in substance, held to be  a slump sale taxable under section 50-B Mahindra Engineering & Chemical Products Ltd v.ITO [TS-253-ITAI-2012 (Mum)].
30 April 2012 Revenue sharing under a franchisee agreement not liable to withholding tax CIT v. Career Launcher India Ltd. [TS-257-HC-2012 (Del)]
27 April 2012 Deduction under section 10A of the Act is to be allowed at business profits level CIT v. Black and Veatch Consulting Pvt. Ltd. [TS-260-HC-2012(BOM)]
27 April 2012 No withholding tax on reimbursement of salary costs of personnel under a secondment agreement ITO v.PQR India [TS-258-ITAT-2012(Bang)]
26 April 2012 Liberalistaion in External Commercial Borrowing guidelines A.P. (DIR Series) Circular No. 111 and 112 dated April 20, 2012 and Circular No. 113 dated 24 April 2012
24 April 2012 Deeming provisions under section 50C applicable only on capital assets and not on sale of land held as stock-in-trade CIT v. Kan Construction and Colonizers Pvt. Ltd. [TS-252-HC-2012(ALL)]
23 April 2012 Benefit granted to a charitable institution cannot be automatically extended to the substantially amended objects of the institution The Board of Control for Cricket in India v. ACIT [TS-251-ITAT-2012]
23 April 2012 Taxability of income in the hands of a non-resident not a relevant consideration for treating a resident to be an agent of a non-resident ADIT v. Jet Airways (India) Pvt. Ltd. [2012] 19 taxmann.com 37 (Mum)
19 April 2012 Transfer of business undertaking under a Court approved scheme taxable as slump sale and hence liable to capital gain tax  
13 April 2012 Transfer of shares or other interests pursuant to a family arrangement is not a transfer and hence not liable to capital gains tax CIT v. R Nagaraja Rao [TS-222-HC-2012(KAR)]
12 April 2012 High Court’s decision on royalty discussing criteria for allowability and taxpayer’s commercial prudence CIT v. EKL Appliances Ltd [TS-206-HC-2012(Del)]
12 April 2012 Gains on sale of Compulsory Convertible Debentures by a Mauritian entity re-characterised as 'interest' Z , In re  [AAR No. 1048 of 2011]
5 April 2012 Option lies with the taxpayer to be governed by the provisions of the Act or that of the tax treaty, whichever is more beneficial    
5 April 2012 Business and commercial rights acquired on slump sale are eligible for tax depreciation Areva T & D India Ltd. v. CIT [TS-189-HC-2012(DEL)]
5 April 2012 Payment towards dredging operations does not constitute royalty and no withholding tax applicable DDIT v. Dharti Dredging and Infrastructure Ltd. [2012-TII-22-ITAT-HYD]
4 April 2012 Key requirements of new tax return forms for financial year 2011-12 CBDT Notification No. S.O. 626 (E) dated 28 March 2012 for tax year 2011-2012
3 April 2012 India Exchange Control - Liberalisation A.P. (Dir Series) Circular No. 98, 99 and 100 dated 30 March 2012
30 March 2012 Overseas direct investment by an Indian party– rationalisation A.P. (DIR Series) Circular No. 96 dated 28 March, 2012
30 March 2012 Overseas direct investment by an Indian party– rationalisation A.P. (DIR Series) Circular No. 96 dated 28 March, 2012
28 March 2012 Power sector reforms- SEZ guidelines revised

1. Vide Notification No P.6/3/2006-SEZ dated 21 March, 2012

2. Notification No.P.6/3/2006-SEZ.1 dated 27 February, 2009

28 March 2012 Tax Holiday under section 10A available post slump sale as change in ownership is not to be construed as reconstruction CIT v. Sonata Software Ltd. [TS-164-HC-2012(BOM)]
27 March 2012 Tax reassessment invalid where the assessee has made requisite disclosures in the tax return Indivest Pte Ltd. v. ADIT [2012-TS-166-BOM(HC)]
27 March 2012 ‘Looking at’ the nature of transaction, consortium bidding and executing a turnkey project is taxable as association of persons, the contract cannot be dissected for tax purposes Linde AG, Linde Engineering Division v.DCIT [TS-170-AAR-2012]
26 March 2012 Secondment agreement gives rise to a service PE and withholding tax despite no economic employment relationship Centrica India Offshore Private Ltd In. re.[TS-163-AAR-2012]
22 March 2012 Income of a foreign university from distance learning course is not treated as royalty Hughes Escort Communications Ltd. v. DCIT [TS-158-ITAT-2012(DEL)]
21 March 2012 Tax holiday available to a developer involved in mere development of infrastructure facility GVPR Engineers Ltd. Hyd. v. ACIT [TS-143-ITAT-2012(HYD)]
20 March 2012 Key amendments in TP Regulations by the Union Budget 2012 Finance Bill 2012
20 March 2012 Buy-back of shares by wholly-owned subsidiary taxable as capital gains RST, In re [AAR. No. 1067 of 2011]
15 March 2012 Report of the Standing Committee on Finance on DTC 2010 – Analysis of key recommendations Standing Committee on Finance (the Committee or SCF)
14 March 2012 No tax withholding on remittance by Indian head office to foreign branch; Tax holiday available on sales made by Indian head office to foreign branch Semantic Space Technologies Ltd, v. DCIT,[TS-144-ITAT-2012(HYD)]
12 March 2012 Negative net worth to be added to sale consideration for determining capital gains on slump sale DCIT v. Summit Securities Limited [TS-140-ITAT-2012 (Mum)]
1 March 2012 Furnishing of annual statement to tax department in relation to Liaison Offices of non-residents CBDT Notification No. 5/2012 dated 6 February, 2012
1 March 2012 Ruling on characterisation and reward for selling activity and other transfer pricing matters Mastek Ltd. v. ACIT [ITA. No. 3120/Ahd/2010]
29 February 2012 Competition Commission of India amends Combination Regulations  
27 February 2012 Court order sanctioning a scheme of amalgamation or demerger is an instrument and conveyance liable to stamp duty Emami Biotech Ltd. and others v. State of West Bengal [Company Application No. 777 of 2011]
24 February 2012 Write off of urban advances by a bank is available without any limit Catholic Syrian Bank Ltd. v. CIT [TS-91-SC-2012]
23 February 2012 Liberalisation in procedures relating to export and import Source: A.P. (DIR Series) Circular No.81 and 82 dated 21 February 2012
20 February 2012 IT support services provided by foreign company using hardware in India taxable as business profits AREVA T&D India Ltd. In re [TS-81-AAR-2012]
9 February 2012 Simplification of procedure for External Commercial Borrowings A.P. (DIR Series) Circular No. 75 dated 7 February, 2012
9 February 2012 Tax issues relating to assignment of keyman insurance policy to a keyman In the case of three assesses namely, Escorts Heart Institute & Research Centre Ltd, Rajan Nanda, Naresh Trehan [TS-809-HC-2011 (DEL)]
8 February 2012 Convention on Mutual Administrative Assistance in Tax Matters as amended by the 2010 Protocol signed by India on 26 January 2012  
8 February 2012 Trading by way or re-export of imported goods from an Special Economic Zone eligible for tax holiday DCIT v. Goenka Diamonds and Jewellers Ltd [TS-57-ITAT-2012(JPR)]
7 February 2012 Business support services of advisory nature under a cost contribution agreement are consultancy services liable to tax withholding Shell India Markets Pvt. Ltd., In re  [TS–58–AAR-2012]
7 February 2012 Attribution of profits to permanent establishment in India in addition to arm's length remuneration paid to Indian agent upheld ADIT v. MTV Asia LDC [TS-52-ITAT-2012 (Mum)]
2 February 2012 Overseas subsidiary with single shareholder is a separate legal entity for tax purposes AIA Engineering Ltd v. Add CIT [TS-30-ITAT-2012 (Ahd)]
1 February 2012 Sharing of net revenues consistently in controlled and uncontrolled transactions held as a valid comparable uncontrolled price Agility Logistics Pvt. Ltd. [ITA No. 2000/Mum/2010, ITA No. 6004/Mum/2010 and ITA No. 8146/Mum/2010]
1 February 2012 Tax withholding applicable for payment towards manufacture of goods based on specification, know-how and brand CIT v. Nova Nordisk Pharma India Ltd. [TS-29-HC-2012 (Kar)]
21 January, 2012 Landmark Supreme Court verdict in the Vodafone case S.L.P. (C) No. 26529 of 2010
19 January, 2012 Liberalisation in hedging commodity price risks on overseas exchange/markets A.P. (DIR Series) Circular No. 68 dated 17 January, 2012
19 January, 2012 Restrictions on deductibility of expenses to apply even if income assessable as business income and not as fees for technical services under tax treaty DIT v. Rio Tinto Technical Services TY Ltd. [2012-TII-01-HC-DEL-INTL]
17 January, 2012 Gains arising on equity share transactions carried out by a portfolio manager taxable as business income Radials International v.  ACIT (ITA No.: 1368/Del/2010)
17 January, 2012 Qualified Foreign Investors regime for investment in equity shares  
17 January, 2012 Acceptance of forwarders’ cargo receipt in lieu of bill of lading in export transactions A.P. (DIR Series) Circular No. 65 dated 12 January 2012
16 January, 2012 No dependent agent permanent establishment where Indian agents have independent business without authority to conclude contracts DDIT v. Western Union Financial Services Inc. [TS-5-ITAT-2012 (Del)]
13 January, 2012 No penalty for inadvertent reporting of income Thomas Garbarek & others, C/o. Daimler Chrysler India v. DCIT [TS-798-ITAT-2011 (PUN)]
12 January, 2012 Ruling on jurisdiction of DR; TPO's duty to expressly show incomparability (or else comparability presumed); and other matters ACIT v. Indian group company of a foreign MNC
10 January, 2012 Loss on sale of shares of wholly owned subsidiary deductible as business loss DCIT v. Colgate Palmolive India Limited (ITA No: 5485/Mum/2009)
09 January, 2012 Amendment / Clarification to external commercial borrowing guidelines under automatic route A.P. (DIR Series) Circular No. 64 dated 5 January 2012
06 January, 2012 Comparable uncontrolled price is the most appropriate method for determining the arm’s length price of interest on loans Aithent Technologies Pvt. Ltd. v. ITO [2010-TII-134-ITAT-DEL-TP]
05 January, 2012 Income received by a foreign company for granting film distribution rights not 'royalty' ADIT v. Warner Brothers Pictures Inc. [TS-787-ITAT-2011(Mum)]
05 January, 2012 Application for advance ruling by the payer not maintainable when the same issue is pending in proceedings for the payee Nuclear Power Corporation of India Ltd., In re  [TS-761-AAR-2011]
04 January, 2012 Payment for back-office finance support services not fees for technical services Shell Technology India Private Limited [TS-760-AAR-2011]
04 January, 2012 No ‘business connection’ constituted in India for sale of GSM systems and payment for embedded software held as not in the nature of ‘royalty’ DIT v. Ericsson Radio System AB [TS-769-HC-2011 (DEL)]
03 January, 2012 Section 10A deduction is available to a new unit even though STPI approval refers to it as expansion of existing unit ACIT v. Symantec Software India Pvt. Ltd. [TS-765-ITAT-2011(PUN)]
02 January, 2012 External Commercial Borrowings denominated in Indian Rupees - hedging facilities for non-resident lenders A.P. (Dir Series) Circular No. 27 dated 23 September 2011

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