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Madras High Court Allows Assessee's Appeal in TDS Dispute on Internet Charges Paid to Non-Resident — Payments for Telecom Connectivity Not Royalty or Fees for Technical Services. Section 40(a)(i) Disallowance Set Aside as Payments Were Not Chargeable to Tax Under the Income Tax Act, 1961.

The appellant, M/s. Cognizant Technology Solutions India Private Limited, is engaged in the development and export of computer software. For the asses...

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High Court of Bombay at Goa Allows Appeal in Income Tax Case — Commission Payment to Non-Resident Not Liable to TDS Under Section 195 of Income Tax Act, 1961. Disallowance Under Section 40(a)(ia) Cannot Be Sustained When Income Is Not Chargeable to Tax in India.

The appellant, M/s Zephyr Biomedicals, a partnership firm, filed its return of income for Assessment Year 2006-2007 declaring total income of Rs.8,35,...

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Bombay High Court Allows Depreciation on Original Cost in Amalgamation Case Under Rule 10 of Income Tax Rules. Notional Depreciation to Non-Resident Parent Does Not Reduce Written Down Value for Successor Company.

The case involves an Income Tax Reference under section 256(1) of the Income Tax Act, 1961, arising from the assessment years 1976-77, 1977-78, and 19...

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Bombay High Court Upholds Penalty for FERA Violation in Foreign Exchange Remittance Case. Directors and Company Held Liable for Making Payment to Non-Resident Without RBI Permission Under Section 9(1)(a) and 9(1)(d) of Foreign Exchange Regulation Act, 1973.

The case involves three appeals filed by Associated Capsules Private Limited and its two directors, Jasjit Singh and Ajit Singh, against an order of t...