Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (2005)94TTJ(Delhi)53
..... sales and marketing improvement team (smit) undertook a 4 months' smit exercise in india as a part of major global initiative of nestle to enhance sales and marketing productivity on a worldwide basis.following three critical areas were identified from the point of view of the growth objectives of the sales : - expand distribution to reach one million retail outlets on a regular basis; the aim was to access and evaluate various operations with a view to optimize the ..... of india had in terms of indian industrial policy announced in 1991 and still in force allowed indian companies to pay royalty up to 5 per cent on domestic sales and 8 per cent on export sales whereas the royalty paid by the assessee was only 3.5 per cent on domestic sales and 5 per cent on export sales.according to the assessee, the payment of fixed amount for technical assistance fee was not the best thing ..... the said royalty were fully covered by the provisions of section 40a(2)(b) and section 92 of the it act, 1961.although gross payment of 4.2 per cent on domestic sales and 6 per cent on export sales had actually been paid by the assessee, a comparison of net payment (after tds) of 3.5 per cent and 5 per cent for domestic sales and export sales, respectively, was made against overall gross limits of 5 per cent and 8 per ..... product specific information, like recipes and manufacturing instructions, all operational aspects of factory operations as well as safety, environment protection and quality assurance.45. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT
Reported in : (2007)104ITD234(Bang.)
..... 2001-02.7.1 learned counsel for assessee submitted that the learned cit(a) ought to have held that in the light of the method of accounting consistantly followed by the appellant the application of section 145a of the act was incorrect and even assuming that section 145a was to be applied the valuation of the closing stock/opening stock as done by the assessing authority was incorrect and accordingly, the impugned addition in this ..... the appellant having not been doubted, the disallowance of expenditure of royalty on mere surmises was uncalled for and the same is liable to be deleted.5.1 it is seen that the expenses are claimed under section 37(1) of the act.it is not open to the department to adopt a subjective standard of reasonableness and disallow a part of business expenditure as being unreasonably large, or decide what type of expenditure the assessee should incur and in what circumstances ..... could be disallowed.for this purpose the assessing authority has to prove that the consideration paid by the appellant to grisa was excessive and over and above the prevailing market value of the services obtained from grisa.here again it has to be examined as to whether grisa comes within the susceptible character as contemplated under section 40/4(2) of the act.the appellant company is a subsidiary company of m/s givaudan roure (india) ltd. ..... one of the conditions was that the royalty payment should not exceed 5% of the domestic sales and 5% of the export (net of taxes) for the period of .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2005)96ITD417(Ahd.)
..... (supra) in which the court has said that the principle of adoption of a liberal interpretation which advances the purpose and object of beneficiant provisions cannot be carried to the extent of doing violence to the plain and simple language used in the enactment as it was neither reasonable or permissible for the court to rewrite the section or substitute words of its own for the actual words ..... issue in the present appeals of the assessee-company relates to the denial of deduction under section 80-i of the income tax act, 1961 ('act' hereinafter), which have been decided by the cit(a)-v, ahmedabad vide his consolidated order dated 27-12-1996, for the assessment years 1991 ..... industrial undertaking during the previous year relevant to the assessment year 1990-91, for the 'manufacture' of 'demineralised water' in the brand name 'bisleri', though claimed deduction under section 80-i of the act in respect of its profits for the first time only for the assessment year 1991-92 as it had no positive income in the first year. ..... and thus, removes the assessee's end product from the purview of excise (heading 22.01 covers "natural or artificial mineral water and aerated waters, not containing added sugar or other sweetening matters, not flavoured ice") nor is it covered under chapter 22.02 which include 'sweetened or flavoured mineral water'; and (c) that if such products are to be considered as excisable, tap water for domestic use supplied by the municipal corporation could also get .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2005)279ITR106(Ahd.)
..... has said that the principle of adoption of a liberal interpretation which advances the purpose and object of beneficent provisions cannot be carried to the extent of doing violence to the plain and simple language used in the enactment as it was neither reasonable nor permissible for the court to rewrite the section or substitute words of its ..... manufacture of a different commercial article with a different class of consumers, and which in the instant case purchased it for manufacturing of biscuits.it was on these considerations that the tribunal departed from its earlier view of the refining of oil as not amounting to manufacture, which was taken in respect of groundnut oil and rice bran oil which were edible even in the unrefined ..... that it is not the assessee's case that it has produced drinking water but manufactured one from raw water and as it is not article or thing specified in the list in the eleventh schedule (to the act), the same would qualify the assessee for deduction under section 80-i of the act.further on, even if the process were to be regarded as only of purification of water for ..... 's end product from the purview of excise (heading 22.01 covers "natural or artificial mineral water and aerated waters, not containing added sugar or other sweetening matters, not flavoured ice") nor is it covered under chapter 22.02 which includes "sweetened or flavoured mineral water"; and (c) that if such products are to be considered as excisable, tap water for domestic use supplied .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2005)96TTJ(Kol.)1041
..... view is possible, it is futile to go into the question whether the proviso to section 24(1) operates as a substantive provision or only by way of an exception to section 24(1)".the words of proviso to section 40(a)(i) also being clear and being free from any ambiguity, and in view of the principle so laid down by the hon'ble supreme court in the case of jagannath mahadeo prasad (supra), this proviso is to be viewed as a substantive provision and as, to repeat my words in ..... and gains of business or profession",-- (i) any interest (not being interest on a loan issued for public subscription before the 1st day of april, 1938), royalty, fees for technical services or other sum chargeable under this act, which is payable,-- (b) in india to a non-resident, not being a company or to a foreign company, on which tax is deductible at source under chapter xvii-b and such tax has not been deducted ..... ." the following explanation was inserted by the finance act, 2001, with retrospective effect from 1st april, 1962 : "explanation : for the removal of doubts, it is hereby declared that the charge of tax in respect of a foreign company at a rate higher than the rate at which a domestic company is chargeable, shall not be regarded as less favourable charge or levy of tax in respect of such foreign company, where such foreign company has not ..... . there are occasions when, to protect its reputation and credibility, a bank has to bear a loss which, strictly ..... cannot afford protection against such .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT
Reported in : (2005)96TTJ(Bang.)211
..... as exempt under section 10a.___________________________________________________________________________________ 20.6 in order to examine the relevance of the claim of the assessee-company, it would be useful to refer to the following explanation below sub-section 5 of section 80hhe of the it act; (a) 'convertible foreign exchange' shall have the meaning assigned to it in clause (a) of the explanation to section 80hhc; (i) any computer programme recorded on any disc, tape, perforated media or other information storage device; or ..... issue.5.1 the next issue on which the assessee is in appeal before us is on the following issues and as all the issues are common and arising on account of exclusion made from profits of the section 10a units, while computing the deduction under section 10a by the ao, we are disposing them of together, though separate grounds have been taken by the assessee : ..... cases relied on by the revenue, the issue was that the assessee had both export turnover and domestic sales of products of the same business and consequently, the question addressed by the above authorities was whether export profit could be determined in a manner other than provided by the act by maintaining separate books of the account.the issue in this case is what is the total ..... if a restricted meaning is given to the words then, it would be doing violence to the express language of the sub-section which will be impermissible by the established ..... 2005) 94 ttj (pune) 113 : (2005 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT
Reported in : (2005)96TTJ(Bang.)221
..... the issue as to whether such amounts can be considered to be falling within the ambit of section 10a of the income tax act- in relation to liquidated damages recovered from suppliers, write back of retention money and sales-tax recoveries, apart from the finding of the assessing authority, the appellate commissioner of income tax has also pointed out that the appellant has failed ..... computed under the sub-section (3) of the said section (3-4*5) export turnover, deduction in respect of which will be claimed by a supporting software developer in accordance with proviso to sub-section (1) of section 80 hhe.profit from the export turnover mentioned in item 7 above calculated in accordance with proviso to sub-section (1) of section 80hhe deduction under section 80hhe to which the assessee is entitled (item 6-itern 8) the expressions : "export ..... on by the revenue, the issue was that the assessee had both export turnover and domestic sales of products of the same business and consequently, the question addressed by the above authorities was whether export profit could be determined in a manner other than provided by the act by maintaining separate books of the account.the issue in this case is what is ..... . learned counsel further submits that if a restricted meaning is given to the words then, it would be doing violence to the express language of the sub-section which will be impermissible by the established canons of interpretation.the argument is undoubtedly extremely attractive ..... ( .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT
Reported in : (2006)5SOT805(Bang.)
..... with the issue as to whether such amounts can be considered to be falling within the ambit of section 10a of the it act.in relation to liquidated damages recovered from suppliers, write back of retention money and sales-tax recoveries, apart from the finding of the assessing authority, the appellate commissioner of income tax has also pointed out that the appellant has failed to ..... section seeks to provide that where an assessee, being an indian company or a person (other than a company), resident in india, is engaged in the business of export out of india of computer software or its transmission from india to a place outside india by any means or in providing technical services outside india in connection with the development of production of computer software, he shall be allowed a deduction in the computation of his total income of ..... on by the revenue, the issue was that the assessee had both export turnover and domestic sales of products of the same business and consequently, the question addressed by the above authorities was whether export profit could be determined in a manner other than provided by the act by maintaining separate books of the account, the issue in this case is what is ..... . learned counsel further submits that if a restricted, meaning is given to the words then, it would be doing violence to the express language of the sub-section which will be impermissible by the established cannons of interpretation.the argument is undoubtedly extremely attractive ..... [ .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2005)97TTJ(Ahd.)985
..... fact that one business can be conveniently closed down without affecting the other business is a strong indication that both the businesses are distinct and separate, but no decisive inference can be drawn from that; (iii) the decisive test is the unity or control which is indicated by interlacing, interdependence and interconnections between the business and that should be shown to exist by reason of ..... foreign exchange contract had no connection whatsoever with the purchase of any assets; that the gain was not utilised for repayment of loan obtained in connection with purchase of assets from abroad; that the gain from cancellation of foreign exchange contract was in rupee which, therefore, could not have been utilised to liquidate any of the foreign exchange liability including those incurred in connection with ..... whether forest land covered by trees of spontaneous growth could be held to be "agricultural lands" within the meaning of section 5 of the estate duty act and in that connection their lordships of the supreme court held that the burden of establishing the exemption from estate duty on the ground that the lands are agricultural lands lies upon the accountable person claiming the exemption. ..... the purpose of earning profits, nor for the purpose of furthering, protecting or continuing its business which was to be carried on from day-to-day.8.3 in the case of anglo india jute mills co. ..... counsel which in fact would cause grave violence to the language of the provision. ..... domestic ..... 2005 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2005)97ITD125(Ahd.)
..... exchange contract had no connection, whatsoever with the purchase of any assets; that the gain was not utilised for repayment of loan obtained in connection with purchase of assets from abroad; that the gain from cancellation of foreign exchange contract was in rupee which, therefore, could not have been utilised to liquidate any of the foreign exchange liability including those incurred in connection with ..... amount of receipt on cancellation of foreign exchange contract, (ix) depreciation on items on which deduction under sections 35d and 35ab was allowed in the earlier years, (xi) incorrect computation of income from house property by taking the estimated annual letting value.the first ground against the revision order is that the cit has no jurisdiction and made order without considering the record, only considering the ..... whether forest land covered by trees of spontaneous growth could be held to be "agricultural land" within the meaning of section 5 of the estate duty act and in that connection their, lordships of, the supreme court held that the burden of establishing the exemption from estate duty on the ground that the lands are agricultural lands hes upon the accountable person claiming the exemption. ..... the purpose of earning profits, nor for the purpose of furthering, protecting or continuing its business which was to be carried on from day-to-day.in the case of anglo india jute mills co. ..... which in fact would cause grave violence to the language of the provision. ..... domestic ..... 2005 .....
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