SADRE ALAM & Associates

01/07/2023

12A OF THE INCOME-TAX ACT, 1961 - CHARITABLE TRUST - REGISTRATION PROCEDURE

Exemption : Where assessee continued to avail benefit of exemption under section 12A, solely on basis of registration in year 1987 till assessment year 2007-08 and it was never case on behalf of revenue and even Commissioner that in earlier years there was any certificate of registration or registration was not granted, order of High Court holding that assessee would not be entitled to exemption under section 12A as it failed to produce certificate of registration was to be quashed and set aside - Maharishi Institute of Creative Intelligence U.P. Lucknow v. Commissioner of Income-tax (Exemption) - [2023] 151 taxmann.com 300 (SC)

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05/05/2023

9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA

Business profits - Offshore supplies : Where assessee-company entered into a contract with ONGC in respect of offshore supply of equipment and Assessing Officer computed assessee's income under section 44BB, in view of past assessment years wherein Assessing Officer had taken a consistent approach of attributing 1 per cent of receipts from offshore supplies as profits of PE in India, addition made by Assessing Officer under section 44BB was to be deleted and directed to follow consistent approach - Vetco Gray Pte. Ltd. v. DCIT, International Taxation, New Delhi - [2023] 149 taxmann.com 386 (Delhi - Trib.)

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25/03/2023

9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA

Royalties or Fees for technical services - Broadcasting services : Where a tax resident of UK, had granted non-exclusive global right to assessee-company for distribution of news channel and assessee in turn entered into agreement with BWIPL to distribute said channel to cable operators, DTH operators, hotels and institutions in India and received a certain sum, since assessee-company itself had no right over copyright of content of news channel and it had only transferred broadcasting reproduction right through distribution agreement, distribution revenue received by assessee could not be termed as royalty either under section 9(1)(vi) or under India-UK DTAA, and hence not taxable in India - BBC World Distribution Ltd. v. ADIT, International Taxation - [2023] 148 taxmann.com 122 (Delhi - Trib.)

Taxmann is the most reliable online source for research on income tax, indirect tax & GST, Company Law, IFRS, Ind AS & International Taxation

22/03/2023

2(15) OF THE INCOME-TAX ACT, 1961 - CHARITABLE PURPOSE

Education : Where assessee, a trust registered under section 12A, performed drama for various institutes earning revenue, since it was not developing any knowledge of students by normal schooling, activity carried on by it did not fall in realm of 'education' as used in section 2(15) and hence it was not eligible for exemption under section 11 - Maharaja Shivchatrapati Pratishthan v. Income-tax Officer (Exemptions) - [2023] 148 taxmann.com 12 (Pune - Trib.)

Taxmann is the most reliable online source for research on income tax, indirect tax & GST, Company Law, IFRS, Ind AS & International Taxation

21/03/2023

SECTION 9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA
Permanent establishment - Liaison office : Where Liaison Office (LO) of assessee's subsidiary did not constitute a fixed place through which business of assessee was carried out in India and employees of LO merely acted as a communication link between assessee and airline companies, activities carried by LO were thus, preparatory (auxiliary) in nature and, therefore, said LO would not constitute PE of assessee - S.R. Technics Switzerland Ltd. v. ACIT (International Taxation) - [2023] 147 taxmann.com 568 (Mumbai - Trib.)

Taxmann is the most reliable online source for research on income tax, indirect tax & GST, Company Law, IFRS, Ind AS & International Taxation

20/03/2023

9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA

Royalties/fees for technical services - Vessel hire charges : Where assessee, a UAE based company, entered into time charter contract for transporting coal from one port to another through its ship, since control of equipment remained with assessee and there was no absolute right to use of vessel to charterer, payment received by assessee from time charter of vessel was not in nature of royalty and, hence, same was not taxable under section 9(1)(vi) - Nan Lian Ship Management LLC v. ACIT (Int. Tax) - [2023] 147 taxmann.com 524 (Mumbai - Trib.)