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Issuance of Shares under Amalgamation Scheme is Not Transfer of Property: ITAT

The Rajkot Bench of ITAT recently ruled that issuance of shares under a scheme of amalgamation does not amount to transfer of capital assets under IT Act, 1961. The Assessing Officer had applied Sec 56(2)(vii)(c)(ii) of the IT Act, 1961 to assert that a skewed swap ratio was applied for transfer and… Read More »Issuance of Shares under Amalgamation Scheme is Not Transfer of Property: ITAT

Taxation of Perquisites: SC Rules on Constitutionality

Challenge  In a recent judgment, the Supreme Court ruled on constitutionality of Section 17(2)(viii), IT Act, 1961 and Rule 3(7)(i), IT Rules, 1962 which include concession loans under perquisites and provided for their valuation respectively.   Section 17(2) defines perquisites to include various perks under different clauses. Section 17(2)(viii) is a residuary… Read More »Taxation of Perquisites: SC Rules on Constitutionality

Not Providing Opportunity of Being Heard Vitiates Order Imposing Penalty: Raj HC

In a recent decision, the Rajasthan High Court held that the petitioner’s representation – filed under Section 270AA, IT Act, 1961 – for waiving the penalty imposed under Section 270A, IT Act, 1961 was wrongly rejected without providing an opportunity of being heard. And since the impugned orders did not specifically… Read More »Not Providing Opportunity of Being Heard Vitiates Order Imposing Penalty: Raj HC

Delhi HC Disallows Disclosure of PM Cares Fund Documents Under RTI Act, 2005

The Delhi High Court in a recent judgment allowed the Income Tax Department’s appeal against the Central Information Commission’s (‘CIC’) order directing the respondent be provided copies of all documents submitted by PM Cares Fund to obtain exemption under Section 80G of the IT Act, 1961. The Delhi High Court’s main reason… Read More »Delhi HC Disallows Disclosure of PM Cares Fund Documents Under RTI Act, 2005

Fee Attributable to Transmission of Non-Live Feed Not Royalty: Delhi HC

The Delhi High Court in a recent decision[1] held that the fee attributable to ‘non-live’ feed cannot be categorized as royalty under Section 9(1)(vi) of the IT Act, 1961. The High Court relied on the observations in Delhi Race Club case to support its conclusions.  Facts  The assessee entered into a tripartite agreement… Read More »Fee Attributable to Transmission of Non-Live Feed Not Royalty: Delhi HC

Section 194N of IT Act, 1961 is Constitutional: Madras HC

The Madras High Court recently[1] upheld constitutionality of Section 194N of the IT Act, 1961. Section 194N inserted via Finance Act, 2019 was argued by the petitioners to be unconstitutional on the grounds of it being illegal, arbitrary, and violative of their fundamental rights under Article 14 and 19(1)(g) of the Constitution. Section… Read More »Section 194N of IT Act, 1961 is Constitutional: Madras HC

Employment Includes Self-Employment: ITAT Interprets Section 6, IT Act, 1961

ITAT, Mumbai recently[1] interpreted the term ‘employment’ used in Explanation 1(a), Section 6, IT Act, 1961 and held that the term includes within its remit self-employment such as business or profession. ITAT relied on CBDT’s Circular and the Kerala High Court’s decision on a similar issue which also held that the term employment includes self-employment.  … Read More »Employment Includes Self-Employment: ITAT Interprets Section 6, IT Act, 1961

Issuance of Share Capital Not Taxable: Delhi High Court cites Precedents

The Delhi High Court recently pronounced a decision[1] wherein it adhered to the ratio of Vodafone and Nestlecases that investment by a foreign company via shares in its Indian subsidiary company is not income of the latter and not taxable under IT Act, 1961. The High Court relied on the Press Release by the Union of… Read More »Issuance of Share Capital Not Taxable: Delhi High Court cites Precedents