Income Tax Update

CASE LAW

• While setting off losses relating to other non- eligible units (Deduction u/s 10A) – the stage of deduction would be while computing the gross total income of the eligible undertaking under chapter IV of the act and not at the stage of computation of the total income under chapter VI. WNS Global Services Pvt. Ltd. V/s IncomeTax Officer, Mumbai.
• While computing capital gain, if Expenditure incurred is wholly and exclusively in connection with transfer of shares of Indian subsidiary, it is deductible u/s 48(i). AIG offshore system service, Delloite Haskins v/s Assistant Commissioner of Income Tax.

• Liability to pay interest u/s 234B(2A) – retrospective legislation would be applicable to all proceedings in which orders are pending and /or in which orders u/s 245D(4) are passed on or after 1st June, 2015. Orchid Infrastructure Developers Pvt. Ltd. V/s Union of India & Ors.

• Excise Duty paid in advance In the Personal Ledger Account – whether amount of advance deposit did not represent actual payment of duty to entitle the assessee benefit under section 43B? Such Deduction is allowed holding that the advance deposit of Central Excise duty constitutes actual payment of duty within the meaning of Section 43B of the Act and that the assessee would be entitled to benefit of deduction of the said amount. M/s Glaxosmithkline consumer healthcare Ltd. v/s Assistant Commissioner of Income Tax, Punjab & Haryana court.