Payment to a UAE service provider for design services was non-taxable under the India-UAE DTAA as no FTS clause and no PE of the service provider in India.

The Ahmedabad Income Tax Appellate Tribunal (ITAT) recently issued a ruling in a case involving an Indian company, Kalpataru Power Transmission Ltd., and a UAE-based service provider, Oilstone UAE. The case centered on whether payments made by the Indian company to the UAE service provider for design services were subject to Indian taxation. The ITAT …

ITAT Rules in Favor of Sambhav Energy Ltd: Depreciation Cannot be Disallowed if Business Assets are Kept Ready for Use During Unfavorable Market Conditions

In the case of Sambhav Energy Ltd. v. ACIT, the issue before the Income Tax Appellate Tribunal (ITAT) was the disallowance of a depreciation claim of Rs. 52.48 lakhs made by the assessee for Assessment year 2014-15. The Assessing Officer had disallowed the claim on the grounds that the assessee had not carried out any …

Assessee’s application seeking immunity from penalty proceedings under income tax

The Delhi High Court has overturned an order that rejected an application made by an individual Assessee seeking immunity from penalty proceedings under Section 270AA. The Court found that the Assessee was not given an opportunity to be heard, as mandated by Section 270AA(4), before their application was dismissed. The Assessee had filed a return …

Introduction and Detailed Insight on One Person Company

Introduction: A one-person company (OPC) is a type of business entity where a single individual can operate a company as a separate legal entity. It is a hybrid between a sole proprietorship and a private limited company that provides the benefits of limited liability while allowing the entrepreneur to retain complete control of the business. …

Reasons Why NRI Should Hire CA in Faridabad

Non-Resident Indians (NRIs) often face unique tax and financial challenges due to their status as non-residents. They may not be familiar with the tax laws and regulations of India, and may face difficulties in managing their finances and investments in India. This is where the services of a Chartered Accountant (CA) in Faridabad can be …

Why NRIs should hire the services of a CA in Gurgaon.

Non-Resident Indians (NRIs) are individuals who live and work outside of India but maintain strong ties to their home country. As an NRI, it can be challenging to navigate the complex Indian tax laws and financial regulations. This is where a Chartered Accountant (CA) in Gurgaon can be of great assistance. In this article, we …

Section 50C is Not Applicable Where The Sale of Immovable Property held With Commercial Intent and Taxable as Business Income

The Income Tax Appellate Tribunal (ITAT) in Chennai has ruled in favor of the assessee in the case of A. Jesu Rajendran v. ITO. The dispute arose when the revenue authorities assessed the profit derived from the transfer of property as short-term capital gains and invoked Section 50C to determine the value of the property …

Financial Implications on Becoming an NRI: What You Need to Know

Working abroad can be an exciting opportunity, but before leaving your home country, there are important things to consider. If you are an Indian citizen working overseas for more than 181 days, you will be classified as a Non-Resident Indian (NRI). This classification has implications for your financial accounts and investments back in India. In …

The Income Tax Return (ITR) cannot be deemed invalid as long as the assessee’s request for condonation of delay in submitting the ITR-V

In the case of Anagha Vijay Deshmukh v. DCIT, the assessee had filed her income tax return electronically for the relevant assessment year claiming carry forward of long-term capital loss. She later filed a revised return claiming the same loss at a higher amount. However, the lower authorities denied her claim on the grounds that …

Capital Gains on Inherited Property: Indexed Cost of Acquisition Benefit Available from First Owner’s Acquisition Date

The Mumbai Income Tax Appellate Tribunal (ITAT) has held that while computing capital gains on the transfer of a capital asset received under a will, the indexed cost of acquisition has to be computed with respect to the year in which the first owner held the asset. The ITAT relied on a jurisdictional High Court …

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