5% (now 1% for wholesale traders & 3% for others for AY 2013-14) tolerance margin under 2nd proviso to section 92C(2) for variation between ALP & actual price is not standard deduction Continue reading →
LTC is exempt from tax only when employee has utilized LTC for travel within India. Nothing in Rule 2B provides assessee a liberty to claim exemption where part of his total ticket package is spent on his overseas travel and part of his journey being within India Continue reading →
When books of account of assessee firm found and seized from place of partner of firm Assessing Officer is fully empowered to initiate proceeding under section 153C against firm, i.e. ‘other person’ Continue reading →
Payments for advertising services to Google and Yahoo are not FTS as human intervention is missing. In absence of location of server in India, presence of Google and Yahoo through website cannot constitute its fixed place PE in India. Continue reading →
RBI Guidelines have been issued for FEMA purposes. No additions for violation of RBI’s norms on valuation of shares sold by non-resident to resident Continue reading →
Where assessee Convent has failed to prove that it is an independent institution, having its own bye-laws and regulations, registration under section 12A could not be granted to it Continue reading →
Where assessee-company itself provided IT enabled services, company outsourcing its activities could not be taken as comparable for computing arm’s length price Continue reading →
Assessees carrying on business can’t be penalized under section 271A for not maintaining accounts since CBDT hasn’t prescribed minimum books of account in case of businesses of civil contract and has done so only for professionals. Further, if no books of account maintained by businesses, no question of audit arises and hence section 271B can’t be invoked for not complying with section 44AB (compulsory tax audit) Continue reading →
Entity acquiring land by compulsory acquisition route not liable to deduct TDS under section 194LA on remittance to Competent Authority Continue reading →
