Acche Din! No More Tears For Taxpayers. No More Bogus & High Pitched Assessments: Arun Jaitley, FM, To Dept Top Brass
The Hon'ble Finance Minister Shri. Arun Jaitley has cautioned the heads of the income-tax department that the policy of the Government is that the department has to be prompt in redressing the grievances of the tax payers and not harass honest tax payers. Ms Anita Kapur, Chairperson, CBDT, endorsed this stance by stating that "Even a single tear matters". Instructions have also been sent to the field officers to make realistic assessments and not raise frivolous and high-pitched tax claims.
Joshi Technologies International Inc vs. UOI (Supreme Court)
S. 42: Scope of deduction available in the context of a Production Sharing Contract entered into with the Govt explained
First and foremost aspect which has to be kept in mind while answering this issue is that the Income Tax Authorities while making assessment of income of any assessee have to apply the provisions of the Income Tax Act and make assessment accordingly. Translating this as general proposition contextually, what we intend to convey is that the Assessing Officer is supposed to focus on Section 42 of the Act on the basis of which he is to decide as to whether deductions mentioned in the said provision are admissible to the assessee who is claiming those deductions
Coal India Limited vs. ACIT (ITAT Kolkata)
S. 14A Rule 8D(2)(iii): Even strategic investment in group concerns for purposes of control & not for earning dividend attracts disallowance. Plea that no expenditure is incurred to earn dividend is not acceptable because earning dividend is not an automatic process.
The term 'expenditure' as per section 14A would include the expenditures that are related to investments made i.e. expenditures on administration, capital expenses, travelling expenses, operating expenses etc. It is difficult to accept that the assessee company was making investments decisions to the tune of Rs.6,31,637 lakhs of public money without incurring a single penny out of its pocket. Such decisions are highly strategic in nature and are required to be made by highly qualified and experienced professionals. The same would also require market research and analysis. The assessee company by acquiring controlling interest in the subsidiary companies would also be required to attend board meetings and make policy decisions with regard to the aforesaid huge amount of investments made. By no stretch of imagination, it can be assumed that such activities were done without incurring any expenditure
ITO vs. Earnest Towers (P) Ltd (ITAT Kolkata)
S. 194-I applies only to amounts paid for "use" of the land and not for amounts paid to "acquire" the rights. Distinction between "lease premium" and "rent" explained
The purport of section 194 I of the Act is not to bring in its purview payments of any or every kind. Only those payments which are in the nature of "use" of land come within the ambit of section 194 I of the Act. The word "use" is therefore of prime importance for transactions where the consideration paid for the property would be termed as "rent". The term "use "according to us has to be interpreted keeping in mind the relationship between the landlord and the tenant. The same cannot be extended to bring within its purview exploitation of any kind with reference to the property by changing its identity for its own benefit and thereafter selling it for profit
DCIT vs. Artemis Medicare Service Ltd (ITAT Delhi)
S. 192 vs/ 194-J: Tests to determine whether there is an employer-employee relationship explained
Determination of the vexed questions as to whether a contract is a contract of service or contract for service and whether the employees concerned are employees of the contractors has never been an easy task. No decision of this Court has laid down any hard-and-fast rule nor is it possible to do so. The question in each case has to be answered having regard to the fact involved therein. No single test – be it control test, be it organisation or any other test – has been held to be the determinative factor for determining the jural relationship of employer and employee
Regards,
Editor,
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