CBDT withdraws circular no. 2 on Profit Split Method (PSM) and amends Circular No. 3 on Development centres

CBDT withdraws circular no. 2 on Profit Split Method (PSM), says circular appeared to give impression that PSM was most preferred method in cases involving unique intangibles; Amends Circular no. 3 to clarify meaning of phrases such as ‘economically significant functions’ and ‘low or no tax jurisdiction’; Rescission of circular No.2 and amendment and reissue…

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Assessing Officer bound to accept value determined by Valuation Officer, if lower than stamp duty valuation, as per Sec. 50C.

Assessing Officer bound to accept value determined by Valuation Officer, if lower than stamp duty valuation, as per Sec. 50C r.w.s 16A of Wealth Tax Act; Assessee contended for higher rebate over market value due to irregular shape of plot transferred; ITAT rejects assessee’s contention for further reduction in the value determined by Valuation Officer…

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Judgement: I. C. D. S. Ltd vs CIT (Supreme Court)

):- S. 32 requires that the asset must be “owned, wholly or partly, by the assessee and used for the purposes of the business”. The Department’s argument that the assessee is not the “owner” of the vehicles is not acceptable because thelease agreement specifically provided that the assessee was the exclusive owner of the vehicle…

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Judgements: Satya Nand Munjal vs CGT (Supreme Court)

The fundamental question is whether there was in fact a gift of 14,000 bonus shares made by the assessee to the transferee. The answer to this question lies in s. 4(1)(c) of the Gift-tax Act which provides that “where there is a release, discharge, surrender, forfeiture or abandonment of any debt, contract or other actionable…

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IT department allowed to claim Rs 1,090cr from IBM India

The Karnataka High Court on Tuesday paved the way for the income tax department to collect Rs 1,090 crore from IBM India as tax dues for assessment year 2008-09. On January 7, the Income Tax Appellate Tribunal had stayed the demand to pay the full amount subject to IBM paying Rs 50 crore. The high…

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