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“liable to tax”

Chapter I - PreliminarySection 2 - DefinitionsSection 2(29A)2,645 judgments

The decision most relied on for liable to tax is DIT v. NGC Network Asia LLC (313 ITR 187), cited in 144 judgments on BharatTax.

Leading authorities on liable to tax

DIT v. NGC Network Asia LLC
313 ITR 187 · 2009 · High Court
144
citing judgments

Where a duty is cast on the payer to deduct and pay tax at source under Section 195, the payee-assessee cannot be levied interest under Section 234B for failure to pay advance tax if the payer defaults on its TDS obligation. This principle may also extend to interest under Section 234C.

CIT v. Nestle India Ltd.
14 Taxmann 99 · 1983 · High Court
125
citing judgments

Club entrance fees, if incurred wholly and exclusively for business purposes, are allowable as revenue expenditure under Section 37(1). Furthermore, an order holding a deductor liable for TDS defaults under Section 201 must be preceded by an inquiry into the deductee's actual tax payment.

CIT v. Karnataka Power Corporation
247 ITR 268 · 2001 · Supreme Court
124
citing judgments

Income earned during the project construction stage, which has a direct nexus or is inextricably linked to the project's setting up, constitutes a capital receipt not liable to tax and reduces the project cost.

CIT v. Rasoi Ltd.
335 ITR 438 · 2011 · High Court
107
citing judgments

Sales tax subsidies and Industrial Promotion Assistance received under the West Bengal Incentive Scheme are capital receipts and therefore not liable to tax. The ruling clarifies the inapplicability of the Sahney Steel judgment to such subsidies.

(supra), Rama Bai v. CIT
181 ITR 408 · 1990 · Supreme Court
84
citing judgments

Interest received on delayed payment or enhanced compensation awarded under compulsory acquisition is a revenue receipt and is liable to income tax.

Bank Vs. ACIT (2005) 142 Taxman 98 (Kerala) (v) CIT(TDS) v. Director, DPS
115 ITD 411 · ITAT
81
citing judgments

The case is an authority regarding the conditions under which an assessee can be held liable, and orders confirmed, under Section 201(1) of the Income-tax Act for failure to deduct tax at source (TDS). It clarifies the circumstances for deeming an assessee to be in default for non-deduction or non-payment of TDS.

CIT v. Chaphalkar Brothers
351 ITR 309 · 2013 · High Court
77
citing judgments

A subsidy or incentive provided by the government for meeting capital expenditure, to achieve a national objective or public interest, is a capital receipt and thus not liable to income tax. The nature of the subsidy is determined by applying the 'purpose test'.

CIT v. Wipro Ltd. (
70 Taxmann.com 129 · Reported
77
citing judgments

Payments are liable for deduction of tax at source when they are in the nature of royalty. The withholding tax liability can be worked out by applying a proportion to the total remittance.

Judgments citing liable to tax

DCIT Circle- 1(2)(1), International Taxation, New Delhi vs. Ceva Asia Pacific Holdings Company Ltd, Singapore

In the result, the appeal of the Revenue is dismissed and

ITA 8111/DEL/2019[2010-11]Status: DisposedITAT Delhi25 Sept 2023AY 2010-11

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.4879/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Dcit Ceva Asia Pacific Holdings Circle 1(1)(1), Vs. Company Pte. Ltd., International Taxation, No.15, Changi South Street-2, Room No.410, E-2 Block, Singaporre, Singapore. 4Th Floor Civic Centre, New Delhi. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.4847/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(1)(1), Singapore, International Taxation, C/O B B Shah & Co., New Delhi. Rajguru Apartments, Ground Floor, Baburao Parulekar Road, Dadar West, Mumbai, Maharashtra. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.712/Del/2015 िनधा"रणवष"/Assessment Year:2011-12 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(2)(1), Kpmg, Building No.10-B, International Taxation, 8Th Floor, Dlf Cyber City, New Delhi. Phase-Ii, Gurgaon. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent

that the receipts for these services attract “make available” clause as per Article 12(4) of Indo Singapore DTAA and, therefore, they are liable to tax under FTS. 6. The Ld. DR submits that analysis of the services rendered by the assessee to its group entities through Administrative Support Agreement ... following services the “make available” clause as per clause IV of article 12 of DTAA is not satisfied and, therefore, they are not liable to tax as FTS: 1. Management Support; 2. Finance & Treasury functions; 3. Information Technology Support; 4. Human Resources and Administrative Support; and 5. Legal Support

DCIT, Circle- 1(1)(1), International Taxation, New Delhi vs. Ceva Asia Pacific Holdings Company Pte. Ltd., Singapore

In the result, the appeal of the Revenue is dismissed and

ITA 4879/DEL/2018[2014-15]Status: DisposedITAT Delhi25 Sept 2023AY 2014-15

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.4879/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Dcit Ceva Asia Pacific Holdings Circle 1(1)(1), Vs. Company Pte. Ltd., International Taxation, No.15, Changi South Street-2, Room No.410, E-2 Block, Singaporre, Singapore. 4Th Floor Civic Centre, New Delhi. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.4847/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(1)(1), Singapore, International Taxation, C/O B B Shah & Co., New Delhi. Rajguru Apartments, Ground Floor, Baburao Parulekar Road, Dadar West, Mumbai, Maharashtra. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.712/Del/2015 िनधा"रणवष"/Assessment Year:2011-12 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(2)(1), Kpmg, Building No.10-B, International Taxation, 8Th Floor, Dlf Cyber City, New Delhi. Phase-Ii, Gurgaon. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent

that the receipts for these services attract “make available” clause as per Article 12(4) of Indo Singapore DTAA and, therefore, they are liable to tax under FTS. 6. The Ld. DR submits that analysis of the services rendered by the assessee to its group entities through Administrative Support Agreement ... following services the “make available” clause as per clause IV of article 12 of DTAA is not satisfied and, therefore, they are not liable to tax as FTS: 1. Management Support; 2. Finance & Treasury functions; 3. Information Technology Support; 4. Human Resources and Administrative Support; and 5. Legal Support

Ceva Asia Pacific Holdings Company Pte. Ltd., Singapore vs. DCIT, Circle- 1(1)(1), International Taxation, New Delhi

In the result, the appeal of the Revenue is dismissed and

ITA 4847/DEL/2018[2014-15]Status: DisposedITAT Delhi25 Sept 2023AY 2014-15

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.4879/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Dcit Ceva Asia Pacific Holdings Circle 1(1)(1), Vs. Company Pte. Ltd., International Taxation, No.15, Changi South Street-2, Room No.410, E-2 Block, Singaporre, Singapore. 4Th Floor Civic Centre, New Delhi. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.4847/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(1)(1), Singapore, International Taxation, C/O B B Shah & Co., New Delhi. Rajguru Apartments, Ground Floor, Baburao Parulekar Road, Dadar West, Mumbai, Maharashtra. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.712/Del/2015 िनधा"रणवष"/Assessment Year:2011-12 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(2)(1), Kpmg, Building No.10-B, International Taxation, 8Th Floor, Dlf Cyber City, New Delhi. Phase-Ii, Gurgaon. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent

that the receipts for these services attract “make available” clause as per Article 12(4) of Indo Singapore DTAA and, therefore, they are liable to tax under FTS. 6. The Ld. DR submits that analysis of the services rendered by the assessee to its group entities through Administrative Support Agreement ... following services the “make available” clause as per clause IV of article 12 of DTAA is not satisfied and, therefore, they are not liable to tax as FTS: 1. Management Support; 2. Finance & Treasury functions; 3. Information Technology Support; 4. Human Resources and Administrative Support; and 5. Legal Support

Ceva Asia Pacific Holdings Company Pte. Ltd., Singapore vs. DCIT (International Taxation), New Delhi

In the result, the appeal of the Revenue is dismissed and

ITA 1389/DEL/2016[2012-13]Status: DisposedITAT Delhi25 Sept 2023AY 2012-13

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.4879/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Dcit Ceva Asia Pacific Holdings Circle 1(1)(1), Vs. Company Pte. Ltd., International Taxation, No.15, Changi South Street-2, Room No.410, E-2 Block, Singaporre, Singapore. 4Th Floor Civic Centre, New Delhi. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.4847/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(1)(1), Singapore, International Taxation, C/O B B Shah & Co., New Delhi. Rajguru Apartments, Ground Floor, Baburao Parulekar Road, Dadar West, Mumbai, Maharashtra. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.712/Del/2015 िनधा"रणवष"/Assessment Year:2011-12 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(2)(1), Kpmg, Building No.10-B, International Taxation, 8Th Floor, Dlf Cyber City, New Delhi. Phase-Ii, Gurgaon. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent

that the receipts for these services attract “make available” clause as per Article 12(4) of Indo Singapore DTAA and, therefore, they are liable to tax under FTS. 6. The Ld. DR submits that analysis of the services rendered by the assessee to its group entities through Administrative Support Agreement ... following services the “make available” clause as per clause IV of article 12 of DTAA is not satisfied and, therefore, they are not liable to tax as FTS: 1. Management Support; 2. Finance & Treasury functions; 3. Information Technology Support; 4. Human Resources and Administrative Support; and 5. Legal Support

Ceva Asia Pacific Holdings Company Pte Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal of the Revenue is dismissed and

ITA 712/DEL/2015[2011-12]Status: DisposedITAT Delhi25 Sept 2023AY 2011-12

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.4879/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Dcit Ceva Asia Pacific Holdings Circle 1(1)(1), Vs. Company Pte. Ltd., International Taxation, No.15, Changi South Street-2, Room No.410, E-2 Block, Singaporre, Singapore. 4Th Floor Civic Centre, New Delhi. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.4847/Del/2018 िनधा"रणवष"/Assessment Year:2014-15 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(1)(1), Singapore, International Taxation, C/O B B Shah & Co., New Delhi. Rajguru Apartments, Ground Floor, Baburao Parulekar Road, Dadar West, Mumbai, Maharashtra. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent आ.अ.सं/.I.T.A No.712/Del/2015 िनधा"रणवष"/Assessment Year:2011-12 बनाम Ceva Asia Pacific Holdings Dcit Company Pte. Ltd., Vs. Circle 1(2)(1), Kpmg, Building No.10-B, International Taxation, 8Th Floor, Dlf Cyber City, New Delhi. Phase-Ii, Gurgaon. Pan No.Aaecc1885A अपीलाथ" Appellant ""यथ"/Respondent

that the receipts for these services attract “make available” clause as per Article 12(4) of Indo Singapore DTAA and, therefore, they are liable to tax under FTS. 6. The Ld. DR submits that analysis of the services rendered by the assessee to its group entities through Administrative Support Agreement ... following services the “make available” clause as per clause IV of article 12 of DTAA is not satisfied and, therefore, they are not liable to tax as FTS: 1. Management Support; 2. Finance & Treasury functions; 3. Information Technology Support; 4. Human Resources and Administrative Support; and 5. Legal Support

Shruti Vinimay Limited, Nagpur vs. DCIT, Central Circle 4(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 223/MUM/2023[2010-11]Status: DisposedITAT Mumbai20 Sept 2023AY 2010-11

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.223/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2010-11) Shruti Vinimay Private बिधम/ Dcit, Central Circle-4(3) Limited Room No.1921, 19Th Vs. 502, Mahalaxmi Apartment Floor, Air India Building, Shivaji Nagar, Nagpur Nariman Point, Mumbai- (Urban) Nagpur-440010, 400021. Maharashtra, India. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aajcs4629R (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Bhupendra Shah Revenue By: Shri Ganesh Shah (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 22/08/2023 घोषणा की तारीख /Date Of Pronouncement: 20/09/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax-52 [Hereinafter Referred To As “The Cit(A)], Mumbai Dated 15.12.2022 For Assessment Year 2010-11. 2. At The Outset, The Ld. Ar Of The Assessee, After A Preliminary Hearing Has Not Pressed Ground No. 1 & 2 Raised In The Revised/Additional Ground Of Appeal Filed Before Us Viz Action Of The Transfer Of The Case From Kolkata To Mumbai U/S 127 Of The Income Tax Act, 1961 (Hereinafter “The Act) As Well As The Action Of Ao First Of All, Dropping The Proceedings Initiated U/S 153C Of The Act & Instead Resorting To The Impugned Re-Opening Of Assessment, Which According To Assessee Is Bad In Law. Since The Aforesaid Two (2) Grounds Have Not Been Pressed By The Ld. Ar Both Grounds Stands Dismissed. 3. Coming To The Next Ground Of Appeal Of The Assessee, Which Is Against The Action Of The Ao To Have Reopened The Assessment U/S 147 Of The Act By Issuance Of Notice U/S 148 Of The Act Which According To The Assessee Is Bad In Law. Since It Is A Legal Issue The Same Is Dealt With.

For Appellant: Shri Bhupendra ShahFor Respondent: Shri Ganesh Shah (Sr. AR)
Section 127Section 147Section 148Section 153C

such receipts. it is, therefore, held that the amount shown in the books of account of the assessee as share premium was liable to taxed in accordance with the provision of section 68. 6. further, the Hon'ble [TAT Delhi in the case of Zars Trading Pvt Ltd (2010) TIOL