SLP - Condonation of delay – Delay in filing Appeal

1. D.D. Foundation Trust Society vs ITO (Delhi- ITAT)

     Dated: 11^th Feb 2011

S. 11 – Charitable trust- Income from property- If the assessee trust either itself uses any part of its income for charitable purposes or donates the same to any other charitable trust, such income is exempt from inclusion in the total income of the assessee trust for the relevant year.

Reported in (2011) 005 TaxCorp (A.T.) 24909 (DELHI)

2. CIT vs INDIAN HOTELS CO LTD (SC)

    Dated: 9^th May 2011

SLP - Condonation of delay – Delay in filing Appeal - Whether condonation of 656 days delay can be granted to revenue on grounds ranging from procedural formalities involved in the Department, administrative difficulties such as shortage of staff, where the same was rejects by HC. Held, No

Reported in (2011) 005 TaxCorp (DT) 48679 (SC)

3. ABC International Inc, In re

    Dated: 3^rd May 2011

Article 7- DTAA of India- USA

ABC International Inc., the applicant is a company incorporated under the laws of United States of America (USA) and is a tax resident of USA. The applicant as part of its regular finance business carry out bill discounting activities for ABC India without having any physical presence in India. ABC India proposes to transact with the applicant for purchase of bills of exchange drawn by them on the buyer in pursuance of goods sold under normal/merchanting trade as well as purchase of promissory notes (PN) issued by such buyer. The PN is more frequently used instrument by ABC India. The applicant will enter into a discounting agreement with ABC India for purchase of the PN at a discount specifying the details of PN to be discounted, face value, discounted value, rate of discount, name of the company who issued the PN, date of maturity of PN, bank details for payment etc. The discount for purchasing the PN will be calculated on the basis of various factors such as prevalent LIBOR plus certain margin depending upon the market condition.

Income arising from discounting of promissory note is business income of applicant but having regard to fact that applicant does not have a permanent establishment in India; discounting income so received would not be taxed in India by virtue of article 7.