No PE even if place of business falls under inclusive definition of PE if permanency test isn't satisfied and more

INCOME TAX ACT

SECTION 10(38)

CAPITAL GAINS - INCOME ARISING FROM TRANSFER OF LONG-TERM SECURITIES

Illustrations : Where shares were acquired personally by settlor of trust and he treated same as an investment and not as stock-in-trade till same were contributed towards corpus of trust, if those shares were sold within a week of settlement to secure investment because of down trend of price of shares, activity could not be said to be a business activity or an adventure in nature of trade; profit on sale was assessable as capital gain exempt under section 10(38) - [2016] 65 taxmann.com 304 (Mumbai - Trib.)

SECTION 90

DOUBLE TAXATION RELIEF - WHERE AGREEMENT EXISTS

PEs specified in Art 5(2) of Indo-UAE DTAA would be PEs only if essential conditions of Art 5(1) are met - [2016] 66 taxmann.com 16 (Delhi)

SECTION 92C

TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE

Comparables and adjustments/Methods - CUP method : In absence of similarity of product purchased from AE and non-AE, CUP method could not be applied as MAM for determining ALP - [2016] 65 taxmann.com 296 (Bangalore - Trib.)

Comparables and adjustments/Comparables – Illustrations : Semi-conductor assembly and test facility activity of comparable company was comparable with assessee's activity of opto-electronic equipment which was manufactured and assembled as well as tested by assessee - [2016] 65 taxmann.com 296 (Bangalore - Trib.)

Comparables and adjustments/Comparables – Illustrations : Company manufacturing high precision, special purpose motors for surgical and dental instrument which were entirely different from image enhancement equipment manufactured by assessee, could not be considered as functionally comparable with assessee - [2016] 65 taxmann.com 296 (Bangalore - Trib.)

SECTION 245D

SETTLEMENT COMMISSION - PROCEDURE ON APPLICATION UNDER SECTION 245D

Findings of Settlement Commission on fulfilment of requirements of a valid offer in orders passed under sections 245D(1) and 245D(2C) are merely tentative and it will be open for Settlement Commission to examine these aspects before passing final order under sub-section (4) of section 245D - [2016] 65 taxmann.com 309 (Gujarat)

COMPETITION ACT

SECTION 3

PROHIBITION OF AGREEMENTS - ANTI-COMPETITIVE AGREEMENTS

Where appellant buyers had already availed remedy under Consumer Protection Act, 1986 by filing complaint, however, they could not demonstrate that cause of action for filing a complaint under 1986 Act was different from cause of action for filing an information under Competition Act, Commission rightly held that appellants had not been able to show prima facie violation of section 3 - [2016] 65 taxmann.com 308 (CAT - New Delhi)

Remedy for seeking a declaration of invalidity of agreement for sale/buyers agreement or any part thereof is by way of civil suit and not by invoking provisions of Competition Act - [2016] 65 taxmann.com 308 (CAT - New Delhi)

FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT

SECTION 5

FOREIGN TRADE POLICY/EXIM POLICY - INCREMENTAL EXPORT INCENTIVISATION SCHEME (IEIS)

Duty credit scrip benefit under Incremental Export Incentivisation Scheme (IEIS) under FTP 2009-14 can be claimed even for amount exceeding Rs. 20 lakhs, but subject to greater scrutiny; clarification dated 23-9-2004 taking a contrary view was invalid and quashed accordingly - [2016] 66 taxmann.com 1 (Bombay)

SERVICE TAX

SECTION 87

RECOVERY OF ANY AMOUNT DUE TO CENTRAL GOVERNMENT

Tax dues under Voluntary Compliance Encouragement Scheme : If admitted tax dues is not remitted and deposited even under Service Tax Voluntary Compliance Encouragement Scheme, 2013 defaulter cannot fault authorities for recovering 'tax dues' by coercive means - [2016] 65 taxmann.com 303 (Bombay)

CENTRAL EXCISE ACT

SECTION 11A

RECOVERY - OF DUTY OR TAX NOT LEVIED/PAID OR SHORT-LEVIED/PAID OR ERRONEOUSLY REFUNDED - INVOCATION OF EXTENDED PERIOD OF LIMITATION

Where notice does not allege suppression, etc. with intent to evade, extended period cannot be invoked - [2016] 65 taxmann.com 300 (Mumbai - CESTAT)

Merely because assessee has voluntarily paid 'time-barred' duty cannot lead to confirmation of interest and penalty; hence, interest and penalty pertaining to time-barred duty, though paid, were set aside - [2016] 65 taxmann.com 300 (Mumbai - CESTAT)

SECTION 35

APPEALS - ORDERS OF - COMMISSIONER (APPEALS)

Where dispute of classification as per show-cause notice is between Heading 73.26 or 72.14/72.16, Commissioner (Appeals) cannot travel beyond show-cause notice to classifying product under Heading 7207 - [2016] 65 taxmann.com 302 (Mumbai - CESTAT)

CUSTOMS ACT

SECTION 130

APPEALS - MAINTAINABILITY OF - HIGH COURT

Where issue raised before High Court is not one of exemption or valuation; but, only as regards mistake/error committed by Tribunal, then, such rectification matters are appealable before High Court - [2016] 65 taxmann.com 301 (Gujarat)

STATUTES

DIRECT TAX LAWS

Section 237 of the Income-tax Act, 1961 - Refunds - Issue of refunds – Procedure to be followed in other cases where notice under section 245 has been issued for ITRs processed in Financial Year 2015-16 - OFFICE MEMORANDUM [F.NO.312/109/2015-OT], DATED 29-1-2016

Section 92CC of the Income-tax Act, 1961 – Transfer pricing - Advance Pricing Agreement (APA) – CBDT signs two Bilaterial Advance Pricing Agreements (APAs) with United Kingdom - PRESS RELEASE, DATED 1-2-2016

INDIRECT TAX LAWS (ST/CE. & CUS./CST & VAT)

Section 5A of the Central Excise Act, 1944 - Power to grant exemption from duty of excise - Omnibus general exemption to goods specified in Chapters 1 to 98 of Tarief – Amendment in Notification No. 12/2012-C.E., Dated 17-3-2012 - NOTIFICATION NO.4/2016-C.E., DATED 30-1-2016