I.  Useful Contrubitions:

An article - "Time limit of One Year to claim Refund does apply to Duty paid under Protest"

(Click here for detail)

 II.  Whats New:

1. Submission of information in form T-2 has been extended to 01.01.2013  (Click for detail)

2. The last date of filing of online returns for the second quarter 2012-13 extended upto 16-11-2012. The last date of filing of hard copy is also extended upto 19-11-2012  (Click for detail) 
   

3. CL - Filing of Balance Sheet and Profit and Loss Account in Extensible Business Reporting Language (XBRL) Mode for the financial year commencing on or after 1.4,2011  (Click for detail)

4. RBI - Facilities for Persons Resident outside India – FIIs  (Click for detail)

 III.  Useful Case Laws: 

1.   Sumitomo Mitsui Banking Corporation Vs. DCIT,  IT Appeal Nos. 2720 to 2722 & 2864 to 2866 & 6495 (Mum.) of 2006, Dated: 12-10-2012, ITAT - Mumbai

Whether the provision of section 40(a)(i) applies to Indian branch for interest paid to its head office and other overseas branches?

Held:

That a Special Bench in assessee’s own case has decided these aspects in Sumitomo Mitsui Banking Corporation v. DDIT [(147 TTJ 649 (Mum.)] in relation to assessment year 2003-2004. The finding of the Special Bench can be summarized as under:-

(i) Principle of mutuality applies under the Act. As such, there can be no deduction of interest paid by Indian branch to head office/other overseas branches.

(ii) However, the assessee is entitled to deduction of interest paid to head office/other overseas branches as per the terms of the DTAA.

(iii) Mutuality applies in relation to income earned by the Indian branch from head office/other overseas branches. As such the interest income so earned cannot be charged to tax.

(iv) Consequently, the provisions of section 40(a)(i) cannot apply.

In view of the ratio of the above discussed Special Bench decision, it becomes manifest that the assessee is entitled to deduction of interest paid to its head office and other overseas branches.

(Please click herefor judgment)

2.  Qualcomm Incorporated Vs. ADIT, ITA No. 3696 to 3702/DEL/2009, Dated: 28-09-2012, ITAT - Delhi

Whether the assessee is entitled to a stay of the demand after the expiry of the period of 365 days?

In Narang Overseas (P) Ltd vs. ACIT 114 TTJ 433 (SB), it was held by the Special Bench that if there is a cleavage of opinion amongst different High Courts and there is no decision of the jurisdictional High Court on the issue, then the view favorable to the assessee has to be followed.

As the view of the Bombay High Court in Ronuk Industries 333 ITR 99 (Bom) & that of the Special Bench in Tata Communications Ltd vs. ACIT 138 TTJ (Mum) 257 is favorable to the assessee, that has to be followed and it has to be held that the assessee is entitled to a stay of the demand even after the expiry of the period of 365 days if the delay in disposal of the appeal is not exclusively attributable to it.

(Please click here for judgment)

  Golden Rules:

"You will never reach your destination if you stop 
and throw stones at every dog that barks
                                                Winston Churchill"

  Thanks & Regards

  Team - Voice of CA