Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
ITAT allowed assessee's appeal in part. It held that reimbursement of foreign exchange fluctuation loss on repayment of external commercial borrowing, received in monetary form from an associated enterprise, is not taxable as business income under s.28(iv), following SC precedent that the provision applies only to non-monetary benefits/perquisites. Consequently, the addition of Rs. 4,88,50,000 was directed to be deleted. On disallowance under s.40(a)(iii) relating to payments to an Indonesian entity under a secondment arrangement, ITAT remanded the matter to AO for fresh examination of agreements, invoices, employee relationships and taxability in India. ITAT also deleted addition of Rs. 9,41,162 reversed provision, as corresponding expenditure had already been disallowed.
ITAT allowed assessee's appeal in part. It held that reimbursement of foreign exchange fluctuation loss on repayment of external commercial borrowing, received in monetary form from an associated enterprise, is not taxable as business income under s.28(iv), following SC precedent that the provision applies only to non-monetary benefits/perquisites. Consequently, the addition of Rs. 4,88,50,000 was directed to be deleted. On disallowance under s.40(a)(iii) relating to payments to an Indonesian entity under a secondment arrangement, ITAT remanded the matter to AO for fresh examination of agreements, invoices, employee relationships and taxability in India. ITAT also deleted addition of Rs. 9,41,162 reversed provision, as corresponding expenditure had already been disallowed.
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TaxTMI 
TaxTMI 
of 4916 
