TaxTMI 
TaxTMI 
2022 (2) TMI 329
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.... Income Tax Act, 1961 for A.Y. 2012 - 13 was passed on 03.03.2016 at a total income of Rs. 122 ,79 ,37 ,600/- as against total income of Rs. 99 ,20 ,45 ,409/- shown in the return of income. The assessee did not file objections against the draft order before the ld. DRP. The Assessment Order was thereafter passed by the Assessing Officer u/s 143 (3)/144 C(3)(b) of the Act. Aggrieved by the order of the AO, the assessee filed appeal before the ld. CIT(A). 3. The assessee has shown receipts of account of reimbursement of expenses of Rs. 27 ,60 ,40 ,906/- and claimed that the same cannot give rise to income for taxation purposes. The Assessing Officer has held that since this particular receipt is on account of reimbursement of expenses incu....
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.... CIT Vs. Industrial Engineering Projects Private Limited 202 ITR 1014 (Del.) • CIT Vs. Dunlop Rubber Company Ltd. 142 ITR 493 (Cal.) • Rolls Royce India Ltd. Vs. ITO 25 ITD 136 (Del. Trib.) 7. Further, merely because the income is determined on a presumptive basis, it was not sufficient to include any sort of receipt in the taxable income of the appellant. This is because provisions of presumptive taxation aim at merely estimating the taxable income of the appellant and any receipt not being in nature of "income", cannot be included in the taxable income of the appellant. 8. In this connection, the assessee relied on the decision of the Tribunal in the case of Sedco Forex International Drilling Inc. 72 ITD 4....
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....lying on the judgment of Hon'ble Uttrakhand High Court in Sedco Forex International Drilling Ltd. 299 ITR 238 which has been confirmed by the Hon'ble supreme Court vide order dated 30.10.2017 (87 Taxmann 29). In the absence of any material change in the facts of the case and the legal proposition, we hereby decline to interfere with the order of the ld. CIT(A). ITA No. 5896/Del/2017 : A. Y. 2013-14 Reimbursement of expenses: 14. As adjudicated above in ITA No. 5895/Del/2017. Interest Income: 15. Brief facts of the case on this issue are that appellant has received interest income of Rs. 17 ,39 ,080/- on income tax refund in the relevant year under consideration. The Assessing Officer has held that the interest income received....
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....tablishment in India and since interest income was not covered by the provision contained in section 44 BB of the Act, he held that the AO was right in taxing the interest income as business income. It was argued that the interest had not arisen out of the business transactions, and it was received in the course of the business of the PE and, therefore, there was a direct nexus of the indebtedness with the assets of the business. It was submitted that if the assessee opted to be taxed under the DTAA, the classification of income was not required to be done under the five heads. In fact, no head of income had been prescribed under the treaty. Therefore, it cannot be said that the provisions contained in paragraph no. 2 of Article XI were ana....
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....t of tax under the treaty and the under the Act, it will be found that tax payable under the Act is more than the tax payable under the treaty. Accordingly, the aforesaid provision will come to the aid of the assessee to come to an automatic conclusion, without exercise of any option, that it should get the benefit under the DTAA. No other consideration is material for this purpose as ultimately what is to be seen is whether the provisions of the Act are more beneficial to the assessee or not. Accordingly, it can be held that the assessee is entitled to the benefit under the treaty. 20. Article VII deals with taxation of business profits and also provides for mechanism to compute the profits of the business. Paragraph no. 4 relieves the ....
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....r State. 2. However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed : (a) 10 per cent of the gross amount of the interest if such interest is paid on a loan granted by a bank carrying on a bona fide banking business or by a similar financial institution (including an insurance company) ; and (b) 15 per cent of the gross amount of the interest in all other cases. 3. Notwithstanding the provisions of paragraph 2 of this Article, interest arising in a Contracting State : (a) and derived and beneficially owned by the Government of th....