Held AO/DRP have erred in treating the acquisition of software under the head ‘fee for technical services/royalty’ requiring the assessee to pay the tax on the same. [para 30] IN THE ITAT DELHI BENCH ‘I-1’ SAIC India (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle 7(1), New Delhi KULDIP SINGH, JUDICIAL MEMBER AND N. K.… Read More »
Section 40(a)(ia) of Income Tax Act 1961 Disallowance of expenses for non deduction of TDS BUY Analysis of Section 40(a)(ia) relating to Disallowance of expenses for non deduction of TDS 30% disallowance of expenses for non deduction of TDS under Section 40(a)(ia) This 30% disallowance of expenses for non deduction of TDS under Section 40(a)(ia) of… Read More »
Issue The assessee is supplying software related services and in this connection has made payment of communication charges, commission charges, legal and professional charges, marketing & selling charges and business development charges. These payments were made to various entities abroad and some of which are associated concerns of the assessee company. It was also noted… Read More »
Facts of the case The assessee company has made payment to M/s Holcim Group Support Ltd, (HGSL), a resident company of Switzerland. The assessee has not deducted TDS in respect of following payments which were on account of training conducted by the Switzerland company outside India. Issue why disallowance under section 40(a)(i) should not be made… Read More »
ISSUE – Taxability of advance received from clients in the year of receipt even though the assignments were completed in the subsequent year Held We are of the opinion that when a solicitor receives money from his client, he does not do so as a trading receipt but receives money of the principal in his… Read More »
IN THE ITAT CHENNAI BENCH ‘D’ DCS BPO (P.) Ltd. v. Assistant Commissioner of Income-tax CHANDRA POOJARI, ACCOUNTANT MEMBER AND CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER IT APPEAL NO. 3114 (MDS.) OF 2014 [ASSESSMENT YEAR 2008-09] JUNE 19, 2015 Ms. K. Hemalatha, CA for the Appellant. N. Madhavan for the Respondent. ORDER Chandra Poojari, Accountant Member… Read More »
Fact that recipient has subsequently paid tax, will not absolve payee from consequence of disallowance under section 40(a)(ia). Second proviso to section 40(a)(ia) introduced with effect from 1-4-2013 is only prospective Note :Second proviso to section 40(a)(ia) is as follow:- Provided further that where an assessee fails to deduct the whole or any part of the… Read More »
Section 40a(ia): Applicability in case of capitalization of expenses ? Held- Not applicable Income Tax Officer vs. M/s Hariom Organizers Pvt. Ltd (ITAT Ahmedabad Bench ITA no. 1496/Ahd/2009) Where an expenditure has been capitalized and tds is not deducted thereon u/s40a(ia) the same is not disallowable. Section 40a(ia)- Whether Depreciation is to be disallowed on expenses capitalized on… Read More »
Hon’ble High Court of Punjab and Haryana, P.M.S Diesels Vs. CIT [ITA No. 716 of 2009] Question of Law: Whether the disallowance contemplated by Section 40(a)(ia) can be applied when payments in respect of which tax is deductible at source has already been made by the assessee to the payee at the time of computing… Read More »
Whether disallowance under section 40(a)(ia) should be made on the basis of subsequent amendment brought into the Act with retrospective effect.? Summary of Case on section 40(a)(ia) :- Where Assessing Officer on basis of amendments introduced in section 9(1)(vi) with retrospective effect held that assessee was liable to deduct tax at source from licence fee… Read More »