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II. Useful Case Laws:
1. O.B.C. Vs. CIT, ITA No. 20/1999, Date of Judgment delivered on: 14.02.2013, High Court of Delhi
Whether
provision for payment of Bonus is “ascertained liability” while
calculating MAT profit under section 115J of the said Act?
The position
in law is clear that if the provision for bonus had been computed on the
basis of Payment of Bonus Act, 1965 then it would be an ascertained
liability. However, if it was only estimation then it could not be
regarded as an ascertained liability. Since, the position is not clear
on facts, we direct that the assessing officer should determine as to
whether the computation of the provision for bonus was on the basis of
Payment of Bonus Act, 1965. If so, the said provision would have to be
treated as an ascertained liability. On the contrary, if he finds the
provision for payment of bonus was not in accordance with the provisions
of the Payment of Bonus Act, 1965 and it was merely estimation then the
original assessment of the assessing officer would hold.
(Please click here for judgment)
2. Siemens Ltd. Vs. CIT, IT Appeal No. 4356 /2010, Dated: 12-02-2013, ITAT- Mumbai
Testing services through machines are technical services, but cannot be taxed as FTS if human intervention is missing.
If any person
delivers any technical skills or services or make available any such
services through aid of any machine, equipment or any kind of
technology, then such a rendering of services can be inferred as
“technical services”. In such a situation there is a constant human
endeavour and the involvement of the human interface. On the contrary,
if any technology or machine developed by human and put to operation
automatically, wherein it operates without any much of human interface
or intervention, then usage of such technology cannot per se be held as
rendering of “technical services” by human skills. It is obvious that in
such a situation some human involvement could be there but it is not a
constant endeavour of the human in the process. Merely because
certificates have been provided by the humans after a test is carried
out in a Laboratory automatically by the machines, it cannot be held
that services have been provided through the human skills. Therefore,
the contention raised by the learned CIT (DR) does not appeal much to
us.
(Please click here for judgment)
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