HC : Quashes reassessment being re-appreciation of record; Relies on Kelvinator HC dismisses Revenue’s appeal, quashes reassessment being based on mere change in opinion; Upholds lower authorities view that reassessment notice was based on re-appreciation of original records; HC holds “Reassessment, if permitted in such instances would be a route which “unlocks the gate which shuts” the A.O’s review on merits”; Relies on SC rulings in Honda Seil Power Products Ltd. and Kelvinator India Ltd [TS-14-HC-2015(DEL)] HC : CIT u/s 264 duty bound to revise AOs order in light of retro amendment HC allows assessees writ, holds CIT duty bound to revise assessment owing to retrospective amendment made after AOs order; By virtue of retrospective amendment, assessee qualified for Sec 80HHC deduction, thus upholds validity to assessees revision application u/s 264; Rejects Revenue’s contention that power of revision is restricted to examining correctness of law considered by AO as on the date of assessment; Directs CIT to consider assessees claim of deduction on merits and in accordance with the amended law; Relies on Coordinate bench rulings in Kamla S. Asrani and Sanchit Software and Solutions P.Ltd. [TS-826-HC-2014(BOM)] ITAT : Cant tax NOR assessees stock option proceeds not relatable to India Stock Option Transfer Proceeds (‘SOTP’) received by assessee (not ordinarily resident) not taxable, as not accruing / arising in India; Observes assessee received Stock Options from former employer while he served in USA, hence it was relatable to services rendered outside India; Therefore, in view Sec 5(1) r.w.s 9(1)(ii) of the Act and Article 16 of India-US DTAA, holds SOPT not taxable in India; Observes “without ascertaining how much of the SOTP is attributable to services rendered in India, the entire amount cannot be made taxable only because the money was received in India.”; As lower authorities failed to examine assessee’s facts in this regard, remits matter back to AO in light of above [TS-15-ITAT-2015(HYD)] ITAT : FTS by HO; No proof of LO /PE involvement; Expenses allowed ITAT allows deduction for expenses under heads salary, rent, travelling, conveyance and postage & telecommunication, claimed by assessee (an LO of a Japanese company); Observes that during reassessment proceedings, AO held that technical services were also rendered through LO (ie. PE) and therefore, he disallowed proportionate amount of expenses in ratio of FTS to business profit; Rejects Revenue’s stand that such expenses were incurred for rendering technical services assessed under head ‘FTS’ and hence deduction as LO expenses should be denied ; Observes that technical services was rendered by personnel of Head Office who came to India and AO failed to establish that such technical personnel operated through LO; Holds “AO has simply disallowed expenses on proportionate basis without establishing any link between these expenses and rendering of technical services.” [TS-827-ITAT-2014(DEL)] ITAT : Grants Sec 12A registration; Enquiry at registration stage confined to trusts objects ITAT quashes CITs order, grants Sec 12A registration to assessee education society; CIT had denied registration holding expenditure incurred on advertisement and publicity as unwarranted and against charitable nature of activities ; Relies on Allahabad HC ruling in Red School to hold that enquiry at the stage of registration has to be confined to the objects of the trust; Further relies on SC ruling in Americal Hotel and Lodging Association Educational Institute wherein it was held that relevant factor for conferring registration is object of society and quantum of profits/ surplus is irrelevant; Distinguishes Revenues reliance on Uttarakhand HC ruling in Queen Educational Society [TS-17-ITAT-2015(DEL)]
Posted on: Fri, 23 Jan 2015 12:49:56 +0000
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