Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Fees for Included Services under Article 12(4)(a)/(b) of the India-USA DTAA were examined: consultancy and support services receipts were held not to constitute FIS where the foreign supplier did not make available technical expertise or skills but transferred commercial information or provided non-manufacturing support; accordingly additions were deleted. Subscription fees were held not to be 'royalty' as they provide use of a copyrighted article rather than a right to exploit copyright. TDS credit is allowable to the taxpayer provided the corresponding income is offered to tax and the AO considers available TDS proof when determining liability.
Fees for Included Services under Article 12(4)(a)/(b) of the India-USA DTAA were examined: consultancy and support services receipts were held not to constitute FIS where the foreign supplier did not make available technical expertise or skills but transferred commercial information or provided non-manufacturing support; accordingly additions were deleted. Subscription fees were held not to be 'royalty' as they provide use of a copyrighted article rather than a right to exploit copyright. TDS credit is allowable to the taxpayer provided the corresponding income is offered to tax and the AO considers available TDS proof when determining liability.
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