The case involved a dispute over the taxability of reimbursement ...

Levy of penalty: ITAT ruled in favor of assessees on taxability of secondment receipts, citing bonafide belief & full disclosure.

June 8, 2024

Case Laws Income Tax AT

The case involved a dispute over the taxability of reimbursement of salary expenses of seconded employees as Fees for Technical Services (FTS) and levy of penalty u/s 271(1)(c) or 270A. The Appellate Tribunal found that the Assessee had a bonafide belief regarding the taxability of the receipts and eventually offered them for taxation. The Tribunal referred to a judgment stating that such reimbursements are not liable to tax deduction at source. The Assessee had disclosed the receipts in Form 3CB and provided explanations to lower authorities. The Tribunal held that there was no concealment of income and no penalty should be levied u/s 271(1)(c) or 270A. The penalty was deleted in favor of the Assessee.

View Source

← Previous Next →

The case involved a dispute over the taxability of reimbursement ...

Levy of penalty: ITAT ruled in favor of assessees on taxability of secondment receipts, citing bonafide belief & full disclosure.

June 8, 2024

Case Laws Income Tax AT

You may also like:

Accrual of income in India - PE in India or not? - UK DTAA - Taxability of receipts from offshore supply on presumptive basis u/s 44BB - Dispute Resolution Panel (DRP)...

The Income Tax Appellate Tribunal (ITAT) held that the receipts received by the assessee, a foreign associated enterprise (AE), from HCLT for providing software,...

Nature of receipt - Profits in lieu of salary or capital receipt - Receipt on termination of employment - Taxability u/s 17(3)(iii) - The Tribunal considered precedents...

The ITAT held that identical issues arose in the assessee's own case for AY 2019-20 which was decided in favour of the assessee, thus there is no justification in...

Taxability of hardship compensation received by an assessee from a builder for vacating an existing flat for redevelopment purposes. The assessee claimed that such...

The High Court considered the taxability of royalty receipts for obtaining computer software paid to a foreign resident. Citing relevant legal precedents, the Court held...

Unexplained cash deposits in bank account were found genuine based on evidence of sale of land agreement, disclosure in audited books, and statements from involved...

Taxability of Cash compensation received – capital receipt vs Revenue receipt - Capital receipt in principle is outside the scope of income chargeable to tax. .... - AT

Onus on Revenue to establish taxability of alleged receipts reflected in Form 26AS but not recorded in assessee's audited books. Assessee denied transaction with...

Secondment of employees - reimbursement of salary - Manpower Recruitment or Supply Agency Service - Business Auxiliary Service - prima facie case is in favor of assessee - AT

Taxability of receipts from the welfare trusts - the said receipt being the unutilized portions, received back from the welfare trusts by the assessee company would not...

Taxability in India - amount received by the assessee from offshore supplies of plants and equipments - PE in India or not? - The Tribunal questioned the differential...

Offshore unit in Dubai treated as proprietary concern, profits taxable in assessee's hands. AO's addition disallowed based on ITAT's consistent rulings favoring assessee....

Penalty levied u/s 274 read with Section 270A - assessee computed tax on disallowed depreciation amount at maximum marginal rate and levied 200% penalty on payable tax -...

ITAT partly allowed assessee's appeal. On revenue recognition issue, ITAT held AO made due enquiries, no lack of enquiry, decided in favour of assessee. On disallowance...

Quick Updates: