Landmark tribunal ruling hits tax authority Landmark tribunal ruling hits tax authority

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The Tribunal was correct in law in cancelling the penalty imposed by the Assessing Officer under Section 158 BFA (2) of the said Act
It cannot be said that by the issue of bonus shares, the Company had distributed its reserve fund to the shareholders even though it had retained the entire amount with it in the share capital account
The effect of fluctuation of foreign exchange rate resulting in increase of cost of plant and machinery
Entitlement of benefit in terms of Section 32AB, Section 80HH and Section 80I of the I T Act
Notional Liability: Loss due to fluctuations in foreign exchange rates
Business loss: Business expenditure - Notional Liability: Loss due to fluctuations in foreign exchange rates
Duty of Tribunal - Passing ex-parte order
Exemption-Deduction: Export oriented unit - Export of software purchase from others
The Supreme court finally ruled that the mandatory penalty under section 11AC of the central excise act is really mandatory
Larger Bench of SC Ruling-whether the revenue can be precluded from filing an appeal even though in respect of some other years involving identical dispute no appeal is filed


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Landmark tribunal ruling hits tax authority
May, 23rd 2008
In a major ruling which will have widespread implications for transfer pricing inquiries in India, a tribunal has set limits on the scope of transfer pricing officers (TPOs) to demand company documentation. The Indian subsidiary of Cargill has won an appeal against a $10.1 million penalty issued by the tax authorities after they said the company had failed to provide adequate documentation. The Income Tax Appellate Tribunal also threw out the TPO’s demands for more detailed documentation. It restricted which classifications of documents can be requested in particular circumstances. Advisers in India say the ruling is a victory for common sense and a step in the right direction.