1. CIT Vs NIIT Ltd (Dated: September 22, 2009)- 194I- TDS liability. DELHI HIGH COURT;

In this case it has been held that the amount of payments made to franchisees was in the nature of profit sharing and not rent and hence the assessee is not liable to deduct the TDS on the amount paid to its franchisees.

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2. CIT Vs M/s Creative Dyeing & Printing Pvt Ltd (Dated: September 22, 2009) DELHI HIGH COURT;

Income tax - Sec 2(22)(e)   It has been held that - the 'advance' given for commercial purpose of expansion of business to the sister concern cannot be treated as loan or dividend income in the hands of the shareholders of the assessee company as the shareholders also contributes the pool of funds required for expansion - no flaw in the Tribunal's decision - Revenue's appeal dismissed :

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3. Indo Rama Synthetics (I) Ltd Vs CIT (Dated: September 22, 2009) Income tax -   MAT provisions - Sec 115JB : DELHI HIGH COURT;

Assessee is into manufacture of yarn and polyester - computes book profit after reducing the net profit by the sum withdrawn from the revaluation reserve created on revaluation of the fixed assets - AO disallows - held, there is no infirmity in the Tribunal's order. After the insertion of the proviso to clause (i) of explanation to section 115JB of the Act, the assessee has been deprived of the benefit by clearly mandating that in case the amount of such reserve has not been added back by the assessee in AY 2000-01, i.e. when the assessee company created the revaluation reserve while computing the book profit for that year, then the amount is statutorily to be included while computing the book profits under section 115JB of the Act. Assessee's appeal dismissed;

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"Voice of CA"

CA. Kapil Goel, Moderator-Direct Taxes, Mob:9910272806, cakapilgoel@gmail.com

CA. Sidharth Jain, Co-Moderator, Mob: 9810418700, sidhjasso@yahoo.com

CA. Mukesh K Bansal, Co-Moderator-FEMA, mkak@rediffmail.com