Year: 2020

Archive for 2020


CIT v. Gigabyte Technology (India) Ltd. (2020) 421 ITR 21/ 195 DTR 334 / 273 Taxman 184(Bom.)(HC)

S. 28(i) : Business loss-Business expenditure-Obsolescence allowance-Write of off obsolete stock-Allowable as business loss. [S. 37(1), 145A]

Nirved Traders Pvt. Ltd. (2020) 421 ITR 142 (Bom.)(HC)

S. 14A : Disallowance of expenditure-Exempt income- Disallowance cannot exceed assessee’s exempt income. [R. 8D]

CIT v. HSBC Invest Direct (India) Ltd. (2020) 421 ITR 125 (Bom.) (HC)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance cannot exceed exempt income earned-Tribunal restricting disallowance to extent offered by assessee is held to be proper. [R. 8D]

CIT v. Apollo Infrastructure Projects Finance Co. Ltd. (2020) 421 ITR 162 (Mad.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-No non-taxable income in relevant assessment Year-No disallowance can be made.

CIT v. Fine Line Circuits Co. (2020) 421 ITR 225/ 189 DTR 301/ 317 CTR 929 (Guj.)(HC)

S. 10B : Export oriented undertakings-Manufacture-Conversion of copper clad glass epoxy laminate into smaller pieces-Processes amounted to manufacture-Entitled to exemption.

CIT v. Mphasis Ltd. (2016) 74 taxmann.com 274 (Karn.)(HC) Editorial : SLP of revenue is dismissed; CIT v. Mphasis Ltd. (2020) 269 Taxman 3 (SC)

S. 10B : Export oriented undertakings-Total turnover-Foreign currency expenditure incurred for providing software development services outside India cannot be excluded from export turnover for purpose of computing deduction-When expenditure incurred in foreign currency on account of telecommunication expenses is excluded from export turnover, said expenditure has to be excluded from total turnover also for purpose of computation of deduction. [S. 80HHC, 80HHE ]

Gujarat Rajya Kamdar Sabha Union Machiwadi v. ITO (2020) 421 ITR 341/312 CTR 313 / 185 DTR 336(Guj.)(HC)

S. 10(24) : Association of trade unions-Amount received on settlement of dispute between company and its workers-Amount disbursed to workers-Amount not assessable in hands of trade union.

Infineon Technologies (P) Ltd. v. Dy.CIT (2019) 112 taxmann.com 401 / 269 Taxman 53 (Karn.)(HC) Editorial: SLP is granted to the assessee Infineon Technologies (P) Ltd v. Dy. CIT (2020) 269 Taxman 52 (SC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty Payments made for import of software for imparting of information concerning technical industrial commercial or scientific knowledge etc-Assessable as royalty-Liable to deduct tax at source. [S. 9(1)(vii), 195]

Nippon Steel Engineering Co. Ltd. (2020) 269 Taxman 243 / ( 2019) 112 taxmann.com 132 (AAR)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Amount received/receivable by applicant under equipment supply contract awarded by an Indian company for off shore supply of Coke Dry Quenching (CDQ) units would not be chargeable to tax in India-DTAA-India-Japan. [Art. 7]

Hitachi High Technologies Singapore Pte Ltd. (2019) 202 TTJ 273 / (2020) 180 ITD 861/ 187 DTR 223 (Delhi)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Liaison office-Involved in preparatory and auxiliary activities but also involved in ascertaining customer requirements, price negotiations obtaining of purchase orders etc- Constituted PE in India and profit attribution has to be done-DTAA-India-Singapore. [S. 92, Art. 5]