S. 90 :Double taxation relief – Book Profit – The fact that profits of foreign branches of a resident are taxed outside India under tax treaties does not imply that the said income is not taxable in India. The entire global income has to be taxed in India- The assesseee is entitled to credit for taxes paid abroad, as admissible under the treaty or the domestic law – Even profits of foreign branches which are taxed under the tax treaties are also liable for MAT. [ S.115JB ]
Bank of India v. ACIT (Mum)(Trib), www.itatonline.org
Digest of case laws
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This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
Click here to download the pdf versions of the Digest of case laws S. 90 :Double taxation relief – Foreign Tax Credit – One has to take a judicious call as to whether the view adopted by the source jurisdiction of taxing the income is a reasonable and bonafide view, which may or may not be the same as the legal position in the residence jurisdiction- The view of the treaty partner should be adopted unless it is wholly unreasonable or manifestly erroneous- Entitle for Foreign Tax Credit -. DTAA -India -Japan [ Art 12 , 22 ]
Amarchand & Mangaldas & Suresh A Shroff & Co. v. ACIT (2021)85 ITR 49 ( SN)/197 DTR 19/ 209 TTJ 1 /187 ITD 750 (Mum)(Trib), www.itatonline.orgS. 40(a)(ia): Amounts not deductible – Deduction at source – When no deduction is claimed while computing business income , no disallowance can be made for failure to deduct tax at source [ S.30, 38 ]
Interactive Avenues Pvt Ltd v DCIT ( 2020) 196 DTR 249// 208 TTJ 945 ( 2021 ) 187 ITD 463 www.itatonline.org Mum) (Trib)Contempt of Courts Act , ( 70 of 1971 )
S. 12 : Punishment for contempt of Court – Advocate – Deliberately using haste / scandalous speech against Supreme Court and entire judicial system – Guilty of criminal contempt of Supreme Court [ Constitution of India , Art. 19 (1) , 129 ]
S. 271G : Penalty-Documents-International transaction-Transfer pricing-Department must mention document and information required to be furnished but not furnished by assessee within specified time-Levy of penalty is held to be not valid.
Procter and Gamble Hygiene And Health Care Ltd. v Dy. CIT (2020) 83 ITR 9 (SN) (Mum.)(Trib.)S. 271F : Penalty – Return of income-Failure to furnish-Depression and under continuous medical treatment-Reasonable cause-Levy of penalty is held to be not valid. [S. 139(1), 271(1)(b)]
Rupali Sanjay Bedmutha (Smt.) v. ITO (2020) 83 ITR 30 (SN) (Pune)(Trib.)S. 271D : Penalty-Takes or accepts any loan or deposit-Wife, son and daughter-Penalty not leviable-Transactions with business associates- Running account-Matter remanded to the Assessing Officer. [S. 269SS, 269T, 271E]
Gopal S. Pandith v. JCIT (2020) 83 ITR 66 (SN) (Bang.)(Trib.) Rajeshwari Pandith (Smt.) v. JCIT (2020) 83 ITR 66 (SN) (Bang.)(Trib.)S. 271C : Penalty-Failure to deduct at source-Non-Resident- Deducting the tax at one percent and before conclusion of proceedings depositing correct amount of tax at 20.6 % with applicable interest-Reasonable cause-Levy of penalty is held to be not valid. [S. 194(IA) 195, 273B]
Jitendra Sharma and Bharat Sharma and Shatrughan Sharma v. JCIT (IT) (2020)83 ITR 71 (SN)/( 2021 ) 187 ITD 352/201 DTR 246 /211 TTJ 510 (Indore)(Trib.)S. 271C : Penalty-Failure to deduct at source-Assessee in default-Fixed deposit-Form 15G-Reasonable cause-Levy of penalty is not valid. [S. 201(1), 201(IA), Form 15G]
Bank of India v. JCIT (2020) 83 ITR 412 (SN.) (Jaipur)(Trib.)S. 271AAB : Penalty-Search initiated on or after Ist day of July 2012-
Charge not specified in the notice-Penalty not sustainable-Returned income accepted-Levy of penalty is not justified. [S. 132(4), 143(3) & 274]