Tax bonanza for Telecom companies?
Delhi High Court in a recent decision has held that the deduction under Section 80-IA(2A) for telecommunication companies is also available with respect to various ancillary income such as liquidated damages, interest, sale of directories and extra-ordinary items of income. However, the interpretation that sub-section (2A) of Section 80-IA is a stand-alone provision and the narrow phrase ‘derived from’ present in sub-section (1) cannot be imported into sub-section (2A) in which deduction is in respect of ‘profits and gains of the eligible business’, may not be free from challenge.
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- CUP method followed by sole distributor – Change of method permissible – ITAT, Delhi
- ALP consideration is not required for issuing Letter of Comfort in favour of AE – ITAT, Chennai
- Dealings in shares ‘allotted’ is not a speculative dealing – ITAT, Delhi
- Buy back of shares held by Mauritius Company is not a colourable device – ITAT, Mumbai
Notifications & Circulars
- Taxation Laws Amendment Bill, 2016 providing for reduction of period of employment in section 80JJA to 150 days for assesse manufacturing apparels and deeming ‘demerger’ in case company which ceases to be a public company, passed
- Certain clarifications regarding Income Declaration Scheme and notification of new dates.