Direct Tax Laws Sept 2011

Whether services rendered by assessee is a technical service or not, require scrutiny by Court; no final assessment order should be passed till scrutiny is over - [2011] 13 taxmann 123 (Uttarakhand)

Before order of TPO determining transfer price is passed, opportunity of hearing is to be given to assessee - [2011] 13 taxmann 122 (Bombay)

Where assessee did not disclose salary of 8 months received from former employer and showed salary of only 4 months received from new employer, provisions of section 271(1)(c) were attracted - [2011] 13 taxmann 115 (Calcutta)

Addition under section 68 could not be made where assessee had explained receipt of loan by cheques with help of bank statements and income-tax returns of creditors - [2011] 13 taxmann 114 (Delhi)

Where assessee branch office of German company received order from Indian client and negotiations and conclusion of contract were done in Germany by head office, allocation of income at 40 per cent for role played by head office was justified - [2011] 13 taxmann 124 (Delhi - Trib.)

Where difference between sale consideration in transactions with AE and ALP determined by TPO is less than 5 per cent, no addition is required - [2011] 13 taxmann 121 (Mumbai - Trib.)

Reserve created under section 80HHC can be distributed amongst partners - [2011] 13 taxmann 113 (Ahmedabad - Trib.)
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In case assessee fails to explain source & nature of cash credits, AO would

In case assessee fails to explain source & nature of cash credits, AO would be justified in invoking provisions of section 68 - [2011] 10 taxmann.com 98 (Coch. - ITAT)

Where assessee submits details for loan taken

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IT : Where assessee had taken loan from certain concern and had submitted confirmation of said concern along with their PAN, copy of bank statement as well as cash book, it could be said that assessee had proved genuineness of said loan and no addition could be made under section 68 - [2011] 12 taxmann.com 5 (Agra - ITAT)(TM)

Cash Credits [Section 68] : Where assessee had received share appli

Income-tax - Cash Credits [Section 68] : Where assessee had received share application money from investors/share applicants and had submitted list of all shareholders giving their full names, addresses, details of payment made by cheque and had also submitted confirmations from all shareholders giving complete particulars in form of address, cheque numbers and name of bank, PAN and place of assessment, etc. it could be said that assessee had discharged its primary onus as per law in proving identities of all shareholders and accordingly, no addition could be made under section 68 - [2011] 9 taxmann 305 (Delhi)