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Receipt of Software license amounting to Rs.86,05,13,407/- cannot be charged to tax as ‘Royalties’ under the DTAA. In the same manner, the amount will escape taxation as ‘Business profits’ under Article 7 also because of it not having any PE in India. Albeit Explanation 4 to section 9(1)(vi) is applicable to the year under consideration, but section 90(2) of Act states that where the Central Government has entered into an agreement with the Government of any country outside India under sub-section (1), then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall apply to the extent they are more beneficial to that assessee. ANSYS INC. vs. ACIT (INTERNATIONL TAXATION) ITAT PUNE Jun 15, 2021 Section 9(1)(vi) and Article 12 of India-US DTAA. AY 2009-10 & 2014-15.Decision in favour of: Assessee
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Consequences when AO reopen the case only on the basis of valuation report or when no addition is made on account of reason recorded? ITAT CHANDIGARH passed the order in the case of FATEH HOMES PVT. LTD. vs. ITO ON 16.6.2021. IN FAVOUR OF ASSESSEE. IT-CASES-246-2021.
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Section 147,148, 151 Consequences when the A.O. mentioned wrong Section, wrong facts in the reasons for reopening of the assessment and acted in a mechanical manner without application of mind. ITAT Delhi in the case of Maheshwari Roller Flour Mills Pvt … vs Ito on 17 December, 2020 AY 2009-10. In favour of assessee. ITA.No.4257/Del./2019.
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Section 147,148, 151. Consequences when the Ld. AO failed to provide the complete Annexures which are the basis for reopening ? The ITAT Delhi passed the order on 15 January, 2020 in the case of Behat Holdings Ltd., New Delhi vs Ito Ward-4(3), New Delhi Order in the favour of the assessee. ITA.No.8066/Del./2019.
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What are the consequences if Notice u/s 148 is issued before approval under section 151(1)? ITAT Ahmedabad passed the order on 4 June, 2021. in the case of OMPRAKASH KANAYALAL SHAH vs. ITO Section 147,148,151(1). https://www.bpmundraca.com/it-cases-243-2021/
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Section 69: NO ADDITION CAN BE MADE ONLY ON THE BASIS OF INFORMATION RECEIVED When affidavit is filed and statement on oath is submitted by the assessee unless proved otherwise. ITAT- Mumbai. Shri Mohan Thakur, Mumbai vs A.C.I.T. Cent. Cir. 8(4), Mumbai on 24 May, 2021. https://www.bpmundraca.com/it-cases-242-2021/
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Consequences when the Assessing Officer was not specific as to on what basis the Assessing Officer has the reason to believe that the income of the assessee has escaped assessment. Answer was given in the case of DUGGAL ESTATES PVT. LTD. & ANR. vs. ITO ITAT DELHI, May 24, 2021, Section 147, 148 AY 2009-10. https://www.bpmundraca.com/it-cases-241-2021/
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The question in the present case is as to whether the information received from the investigation wing/search team would constitute ‘reason to believe’ empowering the Assessing Officer to reopen the assessment u/s 147/148. Answer is given by ITAT Ahmedabad on 12/11/2020 in the case of Hitesh Ashok Vaswani Vs DCIT. https://www.bpmundraca.com/it-cases-240-2021/
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Can Ld. AO disallow the certain percentages of expenses when the expenses are supported only by self made vouchers and AR agreed to disallowance without pointing out any specific instances of unverifiable element therein? ITAT Kolkata decided on Apr 28, 2021. Section 143(3). Kindly click the link to get the order. https://www.bpmundraca.com/it-cases-239-2021/
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To take the benefit of section 54F, unutilized portion of the capital gain on the sale of property used for residence should be deposited before the date of furnishing the return of tax under Section 139 as mentioned in section 54(2). Therefore, Section 139 cannot be confined only to the provisions of the Section 139(1), but it includes all the sub section of Section 139. In the case of DIPAL SURESHBHAI PATEL vs. INCOME TAX OFFICER. ITAT AHMEDABAD on Apr 15, 2021. Section 54F, 139, 143(3), 54(2). In favour of the assessee. Ca BPMUNDRA