TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 329
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....ssed 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 incurred on behalf of customer, the same is to be inc....
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....y 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 415 , wherein the Tribunal held that reimbursement of expense will not be taxable if the recipient incurred the expenses on behalf of the....
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....e 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 by the appellant on account of income tax refund is taxable at Maximum Marginal Rate of 40 per cent. 16. Before us, the ld. AR submitted that it is a tax re....
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.... 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 analogous to the provisions contained in the Act regarding computation of income under the residuary head. It was argued that the expression used was to the effect t....
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....said 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 source State from the rigors of paragraphs nos. (1) and (2) in case the interest is found to be effectively connected with the PE, even if it is not in the nature of bu....
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....s 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 the other Contracting State, a political sub-division or local authority thereof, the Reserve Bank of India, or the Federal Reserve Bank of the United States, as the case may be, and such other institut....