Allowability of Salary Exemptions: Form 16 entries can substantiate HRA and other salary exemptions, and home loan interest is deductible for a self-o...
Capital gains exemption: payment for plot, architect fees and bona fide commencement of construction can satisfy utilisation requirement and secure re...
Explanations 4 to 6 to section 9(1)(vi) were held to expand the definition of royalty and to operate prospectively from 01.04.2012, following the Supreme Court ruling in Engineering Analysis and the assessee's earlier case. On that basis, remittance for IPLC and related bandwidth services to a non-resident was not taxable as royalty for the years in question, so no obligation to deduct tax at source under section 195 arose. Consequently, disallowance under section 40(a)(i) and consequential action under section 201, including interest liability, could not be sustained. The Court also noted that the law does not require an impossible act, and the questions of law were answered for the assessee.
Explanations 4 to 6 to section 9(1)(vi) were held to expand the definition of royalty and to operate prospectively from 01.04.2012, following the Supreme Court ruling in Engineering Analysis and the assessee's earlier case. On that basis, remittance for IPLC and related bandwidth services to a non-resident was not taxable as royalty for the years in question, so no obligation to deduct tax at source under section 195 arose. Consequently, disallowance under section 40(a)(i) and consequential action under section 201, including interest liability, could not be sustained. The Court also noted that the law does not require an impossible act, and the questions of law were answered for the assessee.
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