ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))--PRINT AND ONLINE EDITION
PRINT EDITION
Volume 35 : Part 5 (Issue dated : 3-11-2014)
SUBJECT INDEX TO CASES REPORTED
Appeal to Appellate Tribunal --Power to admit additional evidence--International transactions--Transfer pricing--Payment of corporate charges--Assessee not able to furnish complete break up of allocation of cost before completion of proceedings before Transfer Pricing Officer or Dispute Resolution Panel--Detailed invoice has important bearing for resolving transfer pricing dispute--To be admitted in interest of substantial justice and equity--Addl. evidence to be verified by Transfer Pricing Officer--Matter remanded--Income-tax Act, 1961-- Contitech India P. Ltd. v. Deputy CIT (Delhi) . . . 526
Assessment --Notice--Validity of service--Notice served by affixture--Nothing to justify service by affixture--Notice invalid--Assessment invalid--Income-tax Act, 1961, ss. 143(2), (3), 282, 292BB--Code of Civil Procedure, 1908, O. V, rr. 17 to 20-- Sanjay Badani v. Deputy CIT (Mumbai) . . . 536
Business expenditure --Provision for damages--Contracts for execution of work--Completion guarantee clause providing for liquidity damages to be discharged in event of delay in completion of work--Provision made by assessee in accordance with agreement--Assessee entitled to deduction--Income-tax Act, 1961-- Motorola Solutions India P. Ltd. v. Asst. CIT(Delhi) . . . 546
Capital or revenue expenditure --Software expenses--Assessing Officer to decide on basis of guidelines laid down by Special Bench in Amway India Enterprises v. Deputy CIT [2008] 301 ITR (AT) 1 (Delhi) [SB]--Matter remanded-- Motorola Solutions India P. Ltd. v. Asst. CIT(Delhi) . . . 546
----Sweat equity shares--Sweat equity shares issued for value addition provided by two persons in form of experience in new business concepts and professional experience--Value addition an intangible asset in hands of assessee--Expenditure on issue of shares is capital expenditure--Income-tax Act, 1961, s. 37-- Future Agrovet Ltd. v. Addl. CIT (Mumbai) . . . 519
Income --Disallowance of expenditure in relation to exempt income--Dividend--Assessee incurring indirect expenses such as management establishment expenses and other office overheads for making investment in shares and for earning dividend income--Disallowance justified--Income-tax Act, 1961, s. 14A--Income-tax Rules, 1962, r. 8D-- Contitech India P. Ltd. v. Deputy CIT (Delhi) . . . 526
International transactions --Arm’s length price--Determination--Transactional net margin method--Advertising, marketing and promotion expenses--Guidelines laid down by Special Bench in L. G. Electronics India P. Ltd . v. Asst. CIT [2013] 22 ITR (Trib) 1 (Delhi) [SB] to be considered--Failure by Transfer Pricing Officer to consider request of assessee for inclusion of comparables and determine value of international transaction--Order set aside and matter remanded for consideration afresh--Income-tax Act, 1961-- Motorola Solutions India P. Ltd. v. Asst. CIT (Delhi) . . . 546
----Computation of arm’s length price--Transactional net margin method--Adoption of filters--Selection of comparables--Failure by assessee to provide earlier years’ data--Transfer Pricing Officer justified in using current year’s data--Loss-making companies excluded from comparables--Quantitative filters applied to reach reasonable conclusion regrading functional similarity--Companies generating more than 75 per cent. of export revenues from on-site operations--Excluded from comparables--Companies having branded/proprietary software to be excluded--Companies having more than 15 per cent. related party transactions--Not to be taken as comparable--Transfer Pricing Officer to consider inclusion or exclusion of comparable depending upon findings of related party transactions--Matter remanded--Companies functionally dissimilar cannot be treated as comparable--Matter remanded--Income-tax Act, 1961-- Motorola Solutions India P. Ltd. v. Asst. CIT (Delhi) . . . 546
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Code of Civil Procedure, 1908
O. V, rr. 17 to 20 --Assessment--Notice--Validity of service--Notice served by affixture--Nothing to justify service by affixture--Notice invalid--Assessment invalid-- Sanjay Badani v. Deputy CIT (Mumbai) . . . 536
Income-tax Act, 1961
S. 143(2) --Assessment--Notice--Validity of service--Notice served by affixture--Nothing to justify service by affixture--Notice invalid--Assessment invalid-- Sanjay Badani v. Deputy CIT(Mumbai) . . . 536
S. 143(3) --Assessment--Notice--Validity of service--Notice served by affixture--Nothing to justify service by affixture--Notice invalid--Assessment invalid-- Sanjay Badani v. Deputy CIT(Mumbai) . . . 536
S. 282 --Assessment--Notice--Validity of service--Notice served by affixture--Nothing to justify service by affixture--Notice invalid--Assessment invalid-- Sanjay Badani v. Deputy CIT(Mumbai) . . . 536
S. 292BB --Assessment--Notice--Validity of service--Notice served by affixture--Nothing to justify service by affixture--Notice invalid--Assessment invalid-- Sanjay Badani v. Deputy CIT(Mumbai) . . . 536
S. 37 --Capital or revenue expenditure--Sweat equity shares--Sweat equity shares issued for value addition provided by two persons in form of experience in new business concepts and professional experience--Value addition an intangible asset in hands of assessee--Expenditure on issue of shares is capital expenditure-- Future Agrovet Ltd. v. Addl. CIT(Mumbai) . . . 519
S. 14A --Income--Disallowance of expenditure in relation to exempt income--Dividend--Assessee incurring indirect expenses such as management establishment expenses and other office overheads for making investment in shares and for earning dividend income--Disallowance justified--Income-tax Rules, 1962, r. 8D-- Contitech India P. Ltd. v. Deputy CIT(Delhi) . . . 526
Income-tax Rules, 1962
R. 8D --Income--Disallowance of expenditure in relation to exempt income--Dividend--Assessee incurring indirect expenses such as management establishment expenses and other office overheads for making investment in shares and for earning dividend income--Disallowance justified-- Contitech India P. Ltd. v. Deputy CIT (Delhi) . . . 526
