*ITR'S TRIBUNAL TAX REPORTS (ITR (Trib)) HIGHLIGHTS*** *ISSUE DATED 25-1-2010** ** **Volume 1 : Part 4** ***
* *** *REPORTS** *** ** *>>*Arm's length price : International comparables cannot be accepted as relevant data required to make requisite adjustments difficult to obtain in relation to foreign comparables : *Global Vantedge P. Ltd. v. Dy. CIT (Delhi) p. 326* *>>*Interest earned on fixed deposits and miscellaneous income not entitled to deduction under s. 10A : *Global Vantedge P. Ltd. v. Dy. CIT (Delhi) p. 326* * * *>>*Set off of unabsorbed losses or unabsorbed depreciation from AY 2002-03 against profit of same unit for determining deduction in AY 2004-05 justified : *Global Vantedge P. Ltd. v. Dy. CIT (Delhi) p. 326* * * *>>*Excise duty on closing stock not cleared from factory not includible while valuing closing stock* :* *Ashwin A. Shah v. Asst. CIT (Ahd) p. 356* * * *>>*Where computation statement along with annexure disclosing assessee's claim of deduction under s.80-I, penalty cannot be imposed : *Dy. CIT v. Gujarat State Fertilizer and Chemicals Ltd. (Ahd) p. 361* * * *>>*Tribunal has no power to examine validity of search in an appeal against block assessment : *CIT (Asstt.) v. Chilka Vyankatesh Sidram (Pune) p. 369* * * *>>*Where failure on part of Department to controvert finding of fact of Commissioner (Appeals), deletion of disallowance justified : *ITO (Exemption) v. Cellular Operators Association of India (Delhi) p. 382* * * *>>*No material on record establishing investment in shares by assessee out of his unaccounted money, deletion of addition justified : *ITO v. Hanuman Prasad Shukla (Delhi) p. 385* * * *>>*Where assessee having branch office in India, amount received for allowing use of software is business profits under art.7 of DTAA (UK) and not taxable in India :* **Infrasoft Ltd. v. Asst. DIT (Delhi) p. 390 * *NEWS-BRIEFS** *** ** *>>**Joint study on convergence of accounting standards* Central Board of Direct Taxes (CBDT) and accounting rule-maker Institute of Chartered Accountants of India (ICAI) have jointly constituted a study group to identify and address direct tax issues that will affect convergence of India's accounting standards with International Financial Reporting Standards (IFRS). With IFRS convergence due for April 2011 and the Government coming up with the new Direct Taxes Code (DTC), the suggestions of the study group finds relevance. Many provisions in the DTC need to be amended for a smooth transition to IFRS. According to reports, the Finance Ministry is looking to introduce the DTC in the forthcoming budget session. Apart from many aspects that are being discussed, one aspect that will particularly come as a hurdle for IFRS convergence is towards tax treatment of mark-to-market (MTM) provisioning on derivative transactions, he explained. MTM or fair value accounting assigns a value to a position held in a financial instrument based on the current fair market price for the financial instrument. An executive director of a private company remarked about the ambiguity existing between IFRS and taxation aspect in the Indian context. For example, mark-to-market provision on derivatives. Whatever accounting changes are going to happen, which of these changes should flow through from tax deductibility perspective and which are the changes that require any special provision in direct taxes code as a disallowable or non-taxable item until realisation. [*Source : www.economictimes.com dated January 9, 2010*] * * *>>**FM tips Income-tax Department to revise tax collection target* The Finance Minister has directed the Income-tax Department to make all efforts to achieve the revised direct tax target of Rs. 4 lakh crores. Addressing the All India Conference on Tax Deduction at Source (TDS) here today, the Minister congratulated the department on reaching tax collection figure of Rs. 2.50 lakh crore by December 2009 showing a growth rate of around 8.5 per cent. In order to achieve the revised target, the field formations may consider of taking steps which include identification of new areas for tax collection ; indepth scrutiny of cross-border transactions ; regular interactions with the Central Government and other State Government Departments who are responsible for deduction of TDS; monitoring of TDS at the district level where the massive social expenditure and infrastructure expenditure are incurred by the Government. The Minister observed that globalization of the Indian economy had created opportunity in terms of a global market for movement of capital, goods, services and human resources as well as greater risk in terms of sophisticated tax planning tools for avoiding tax liabilities in developing countries. In this context the role of tax havens and low tax jurisdictions had become an area of great concern for a country like India, which needed to mobilize resources to attack poverty and illiteracy, he added. The Finance Minister said that the Indian economy in the aftermath of global financial crisis has started moving in the right direction due to sustained fiscal stimulus provided by the Government in three phases. The role of tax havens and low tax jurisdictions has become an area of great concern for a country like India which is putting its all acts together to mobilize resources to attack on poverty and illiteracy. [*Source : www.pib.nic.in dated January 8, 2010*] -- Me on net : > >>>>>>>>>>>>>>>>>>>>> http://rajkumaratthenet.blogspot.com/ Virus Warning: Although the I have taken reasonable precautions to ensure no viruses are present in his email, sender (I) cannot accept responsibility for any loss or damage arising from the use of this email or attachment."--
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