Friday, November 11, 2011

Direct tax law Oct 06

Direct Tax Laws
A taxation Statute for reasons of functional expediency and even otherwise, can pick and choose to tax some - [2011] 15 taxmann 59 (SC)

Where amount due represented 'rebates and discounts' asked for by parties and it was not allowed as 'bad debts being not written off', alternate plea that it could be allowed as trading loss was to be examined - [2011] 15 taxmann 57 (MAD.)

Section 80-IB deduction on export incentive being debatable issue, levy of penalty under section 271(1)(c) is not warranted - [2011] 15 taxmann 54 (CHD. - ITAT)

There is no difference between voluntary contributions and involuntary contributions, only distinction is that voluntary contributions are to be treated as income under section 12 and corpus donations are to be treated as capital receipt under section 11 - [2011] 15 taxmann 53 (MAD. - ITAT)

Assessing Officer cannot assess an income which is not taxable as per law though shown in return - [2011] 15 taxmann 52 (KOL. - ITAT)

Payment made by assessee towards non-compete fee to its employee in USA, was to be treated as salary not taxable in India under article 16 of Indo-US DTAA and, thus, assessee was not liable to deduct tax at source while making said payment - [2011] 15 taxmann 51 (BANG. - ITAT)

Sale proceeds of old and unyielding rubber trees credited by assessee in profit and loss account prepared under provisions of Companies Act cannot be excluded in computation of book profit under section 115JA - [2011] 15 taxmann 50 (KER.)

Where technical collaboration agreement between assessee and foreign company is approved by Government under section 10(6A), income of foreign company cannot be grossed up under section 195A to cover tax component - [2011] 15 taxmann 49 (KER.)

Profit earned by a company during period of its sickness has to be deducted while computing book profits under section 115JA, however, said deduction cannot go beyond year in which said company ceases to be a sick unit - [2011] 15 taxmann 48 (HYD. - ITAT)

When Form No. 10 is available with Assessing Officer before passing assessment order, assessee's claim for exemption under section 11 cannot be rejected merely on ground that Form No. 10 was filed at time of assessment proceedings - [2011] 15 taxmann 47 (RAJKOT - ITAT)

In purchasing a loss making plant, no value can be assigned to goodwill from being reduced from cost of plant to disallow depreciation - [2011] 15 taxmann 46 (MAD.)

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