Income Tax Tribunal Rulings


Buy-back providing shareholder exit not reorganisation, Article 13(5) of India-Netherland DTAA inapplicable 

Capital gains arising to a non-resident (a Dutch entity) on transfer of shares held in an Indian Company under a High-Court approved buy-back scheme taxable in India for AY 2006-07, exemption provided...View More

Lays down law on exclusion of period in computing interest on refund u/s 244A

ITAT quashes rectification order u/s 154 for assessee (a non-resident bank) reducing claim of interest on refund u/s 244A for AY 2002-03, says no mistake apparent on record; ITAT notes that assessee c...View More

Transfer of subsidiary's shares not 'slump-sale' of undertaking; Rejects Revenue's Sec 50B application

ITAT sets aside CIT(A) order, holds that UTV Software Communications' transfer of shareholding in its subsidiary to Disney would not amount to slump sale u/s 2(42C) and t...View More

Rules on Sec 194H TDS applicability on discounts to hospitals by Diagnostic Labs

ITAT rules on applicability of Sec 194H TDS on discount allowed to hospitals / laboratories by assessee (running a diagnostic centre for providing various testing services); Dismissing assessee’...View More

Upholds penalty for 'bogus' sale & lease-back arrangement; Depreciation claim withdrawal irrelevant

ITAT confirms levy of penalty u/s 271(1)(c) on assessee - Bank of Madura Ltd. (now merged with ICICI Bank) for making false depreciation claim on ‘bogus’ sale and lease back transactions f...View More

Loan to shareholder under 'self-serving' MoU without project visibility, 'deemed dividend' u/s 2(22)(e)

ITAT rules that unsecured loan advanced by a closely held sister concern to assessee (who is also a beneficial shareholder in lender company) towards purchase of commercial space under the Memorandum ...View More

Clubbing provisions u/s 64 inapplicable on non-resident's capital gains from share-transfer outside India

ITAT deletes income addition u/s 64 (clubbing provisions) in case of non-resident individual-assessee, holds that capital gains arising from sale of shares registered in name of resident-wife cannot b...View More

No TDS on reinsurance premium absent operations by non-resident reinsurer in India

ITAT dismisses Revenue’s appeal, upholds CIT(A) order that assessee (an Indian company & IRDA-registered insurance broker ) was not liable to withhold TDS u/s 192 to 195 on payment of reinsu...View More

Non-charging of partners' expenses results in extra-ordinary profits u/s 80IA(10), restricts tax holiday

ITAT dismisses assessee’s appeal, upholds invoking of Sec 80IA(10)  [which empowers AO to recompute reasonable profits & restrict the tax holiday] with respect to profits declared by&nb...View More

Surrounding circumstances outweigh government record, holds land “non-agricultural”; Sale-consideration taxable as LTCG

ITAT holds that consideration received upon land-sale taxable as Long Term Capital gains (‘LTCG’), rejects assessee’s stand that land was ‘agricultural land’ and hence wa...View More