MCA Knowledge Centre

Hon’ble Supreme Court holds amendment to Section 40(a)(ia) of the Act to be retrospective in nature

In a recent decision, the Hon’ble Supreme Court has upheld a ruling of the Hon’ble Calcutta High Court to the effect that amendment by Finance Act, 2010 to Section 40(a)(ia) of the Income Tax Act, 1961 (“Act”) is retrospective in nature. The judgement has the effect of relaxing the rigours of Section 40(a)(ia) of the Act to some extent. The decision has been rendered in the case of CIT Kolkata X v/s. M/s. Calcutta Export Company.

ITAT holds that Permanent Establishment is not created merely on secondment of employees to Indian subsidiary

Brief facts:

The Assessee is Samsung Electronics Co. Ltd. (“Samsung”) which is a company established in Korea. Principle activity of the company is manufacturing and sales of wide range of electronic items globally. Samsung has a wholly owned subsidiary in India named Samsung India Electronics Private Limited (‘SIEL’). A survey was conducted by the income-tax department at the premises of SIEL. Consequently,  a notice u/s 148 of the Act was issued to Samsung for initiating re-assessment proceedings for AY 2004-05 to 2009-10. On the request of Samsung the income-tax department provided the following reasons for issuance of notice u/s 148 of the Act:

CBDT Notifies Cost Inflation Index for FY 2015-16

Cost Inflation Index notified for Financial Year 2015-16

Recently the Central Board of Direct Taxes ( CBDT ) has notified the Cost Inflation Index (CII) for the current financial year (2015-16) at 1081. This index figure is essential for computing long term capital gains on transfer of any long term capital asset.

Sword Global India Private Limited vs ACIT

The Assessee filed its return for AY 2007-08 after claiming deduction u/s 10B.The AO after verification of income filed by the Assessee completed assessment u/s 143(3) and accepted return furnished by the assesssee.The DCIT initiated reassessment u/s 147 by issuing notice u/s 148. The said notice did not state whether necessary sanction was obtained and the reason for reassessment proceedings. On assessee's request reasons for the same was furnished.The Assessee subsequently filed writ petition before Madras HC.

PAN made mandatory in many cases

The Ministry of Finance has, via a Press Release issued on 15^th December, amended Rule 114B of the Income Tax Rules, 1962. This amendment will come into effect from 1^st January, 2016.The Rule is in relation to quoting of PAN for various specified transactions. This tax alert highlights the amendments.