Capital Gain Deductibility: proportionate IPO and PMS expenses held allowable against capital gains where netting and nexus to transfer are establishe...
Admissibility of Documentary Evidence: appellate authority may admit self explanatory documents on first production and uphold deletion of unexplained...
Payments to a non-resident under a Production Sharing Contract were treated as taxable unless the claimed reimbursement was supported by item-wise expenditure particulars and, where necessary, a chargeable proportion determination under the withholding regime. The arm's length clause did not create a presumption that every reimbursement was non-taxable. Because the assessee had filed only a consolidated reimbursement claim without furnishing details or seeking determination of the chargeable portion, tax at source was required and liability under the deeming provisions was upheld. The alternative double taxation relief argument failed because, for the relevant years, relief applied only to agreements with foreign Governments, not the private consortium arrangement.
Payments to a non-resident under a Production Sharing Contract were treated as taxable unless the claimed reimbursement was supported by item-wise expenditure particulars and, where necessary, a chargeable proportion determination under the withholding regime. The arm's length clause did not create a presumption that every reimbursement was non-taxable. Because the assessee had filed only a consolidated reimbursement claim without furnishing details or seeking determination of the chargeable portion, tax at source was required and liability under the deeming provisions was upheld. The alternative double taxation relief argument failed because, for the relevant years, relief applied only to agreements with foreign Governments, not the private consortium arrangement.
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