II. Direct Tax Case laws:
1. Dynatron Private Limited Vs. Dy. CIT, I.T.A. No. 2415/Mum/2011, Date of pronouncement: 29.05.2013, ITAT - Mumbai
Decision: In favor of assessee
Section: 40(a)(ia) r.w. 271(1)(c) of Income Tax Act, 1961
Assessment Year: 2003- 04
Whether
late payment of TDS on payment made to non- residents would amount to
disallowance of such payment u/s 40(a)(ia) of the Act and thereby
attracts penalty u/s 271(1)(c) of the Act?
Held No
Penalty
u/s 271(1)(c) of the Act cannot be levied merely on the basis of late
payment of TDS, only the payment may be allowed in the succeeding year.
The assessee unintentionally did not deduct TDS on payment made to a
non- resident. Later, during tax audit it came to knowledge of the
assessee that TDS was to be deducted and paid to Govt., which was later
paid accordingly before the due date of filing of return. Also correct
particulars were disclosed in the ROI.
(Please click here for judgment)
2. M/s Vijai Electricals Ltd. Vs. Addl. CIT, ITA No. 842/HYD/2012, Date of pronouncement: 31.05.2013, ITAT - Hyderabad
Decision: In favor of assessee
Section: 92A & 92B of Income Tax Act, 1961
Assessment Year: 2007- 08
Whether
investment made in share capital of subsidiaries outside India are in
the nature of international transaction u/s 92B of the Act?
Held No
The
assessee during a year made an investment in share capital in its
subsidiaries outside India, which CIT, considered as International
transaction as per section 92B and AO was asked to refer to TPO, to
examine whether the transactions took place the arm’s length price. The
Appellate Tribunal allowing the appeal and setting aside the order of
CIT u/s 263 held that investment in share capital of the subsidiaries
outside India are not in the nature of transactions referred to section
92-B of the IT Act and the transfer pricing provisions are not
applicable as there is no income.
(Please click here for judgment)
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