HC dismisses Revenue's appeal, upholds ITAT order deleting levy of penalty; Holds that when the additions made by the AO pursuant to search u/s. 132 are set aside by ITAT, and consequentially the penalty u/s.271(1)(c) is set aside, no substantial question of law arises for HC to consider u/s. 260-A; Distinguishes SC decision in MAK Data (which held that explanation by assessee that surrender of income was made to buy peace was not sufficient to satisfy Explanation-1 to Sec. 271(1)(c)) on the ground that  in the present case, there is no finding to the effect that no explanation was offered by assessee; Notes that ITAT set aside both the additions made by the AO pursuant to search u/s. 132  following decision of co-ordinate bench in Tata Elxsi as far as issue of Sec. 10B is concerned and on the issue of excess stock, being tax neutral; Revenue argued in support of levy of penalty that surrender of income after a search is conducted cannot be treated as voluntary surrender; HC makes note of assessee's reliance on coordinate bench decision in  Manjunatha cotton & ginning factory wherein it was held that imposition of penalty is not automatic and depends on facts and circumstances of each case.

 Click here to read facts and download copy of HC judgment reported in [TS-5513-HC-2018(Karnataka)-O]

Ministry of Finance : Indian Advance Pricing Agreement regime moves forward with signing of three UAPAs by CBDT in May and June, 2018 

Dated: 04 JUL 2018

The Central Board of Direct Taxes (CBDT) has entered into three Unilateral Advance Pricing Agreements (UAPA) during the past couple of months. With the signing of these Agreements, the total number of APAs entered into by the CBDT has gone up to 223, which inter alia include 20 Bilateral APAs. 

The UAPAs entered into during the past couple of months pertain to consumer industry, automobile and precious stones & metals sectors of the economy. The international transactions covered in the agreements pertain to provision of corporate guarantee, purchase of brand, availing of grading services, availing of management services and payment of royalty.  

The progress of the APA scheme strengthens the Government’s resolve of fostering a non-adversarial tax regime. The Indian APA programme has been appreciated nationally and internationally for being able to address complex transfer pricing issues in a fair and transparent manner. 

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 DSM/RM/KA
(Release ID :180403)

F.NO.225/270/2017/ITA.II

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North-Block, ITA.II Division New Delhi

Dated the 30^th of June, 2018

Order under Section 119 of the Income-tax Act, 1961

Vide its orders dated 31.07.17, 31.08.17, 08.12.17 & 27.03.18, in file of even number, CBDT had allowed time till 30^th June, 2018 to link PAN with Aadhaar while filing the tax-returns. Upon consideration of the matter, the CBDT further extends the time for linking PAN with Aadhaar till 31^st March, 2019.

ITAT - Interest expenditure on loan availed for purchasing a property to be included as cost of acquisition at the time of computing capital gains u/s 48

Click here to read facts and download copy of ITAT Order reported in [TS-5184-ITAT-2017(Kolkata)-O]

Instant e-PAN allotment (Beta version) in near to real time is available free of cost for limited period. Individuals (other than minors) with a valid Aadhaar number (with updated Mobile number) can avail the e-PAN allotment facility.

Click here to read more on and access the instant e-PAN allotment facility