RECENT CASE LAWS UNDER DIRECT TAX

1. Nagarjuna Fertilizers and Chemicals Limited vs. ACIT (ITAT Hyderabad) (Special Bench) – S. 206AA does not have an overriding effect over the other provisions of the Act. By virtue of s. 90(2), the provisions of the Treaty override s. 206AA to the extent they are beneficial to the assessee. Consequently, the payer cannot be […]

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Recent Case Laws AY2016 under Transfer Pricing

  I. Pass through costs to be excluded from operating costs while computing the Profit Level Indicator  [McDonalds India (P) Ltd (TS-236- ITAT-2016 (DEL)-TP) dated 12th April, 2016] The Income Tax Appellate Tribunal (‘ITAT’) held that collection of royalty/ franchise fees from the sub-licensees for onward transmission to the Associated Enterprise (‘AE’) does not create […]

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Recent case Laws AY 2016 under International Taxation

  Case Law 1  Refund due and payable to Assessee is ‘debt-owed’ and payable by revenue. Consequently, interest arising on such refund is also a debt claim payable by revenue and, thus, it shall be exempt from tax in India by virtue of specific provisions contained in Indo-Italy Double Taxation Avoidance Agreement  [Ansaldo Energia SPA […]

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