P&H HC: Bail Petition Rejected of Travel Agent Accused of Defrauding a Man for Processing Visa  ||  SC: Conviction for Stalking Quashed Due to Marriage Between Convict and Complainant  ||  All HC: S. 33-G UP Sec. Education Act a Benefi. Prov. for Teachers Serving for More Than 2 Decades  ||  All HC: SI Fixed at 6% p.a On Excess/Less Determination of Provi. Tariff Ultra Vires Electricity Act  ||  Del. HC: Entities Restrained from Infringing Personality Rights of Actor Jackie Shroff  ||  Bom HC: Authorisation to Export Necessary Even if Exporter has License to Sell Drugs for Med. Purpose  ||  Constitution Bench Judgment Not Considered, Supreme Court Recalls Judgement Passed in 2022  ||  SC: Full Ownership of Property Under S.14 (1) Can be Claimed by Hindu Woman Only if She Possesses it  ||  Supreme Court: Can’t Apply CrPC Retrospectively to Jammu & Kashmir Before 31.10.2019  ||  Mad. HC: Ritual of Devotee Rolling Over Leaves on Which Food Was Eaten by Others, Allowed    

The Commissioner of Income Tax v. HCL Infosystems Ltd - (High Court of Delhi) (21 Dec 2015)

Terminated venture between HP and HCL not chargeable to capital gains tax

Direct Taxation

The Delhi High Court ruled in favour of HCL Infosystems in a long running tax case arising from termination of a joint venture agreement between HCL and Hewlett Packard. Though it agreed with Department’s assessment that receipt of Rs 60.80 crores by HCL upon termination was a capital receipt, however it could not be charged to capital gains tax because there had existed no such provision at the time of transacting. Amendments to Section 55(2) of the Income Tax Act, 1961 regarding ‘right to manufacture’ were effected prospectively from 1998, whereas the joint venture between the companies was terminated in 1997.

Relevant : Section 55 Income Tax Act, 1961 Act

Tags : CAPITAL GAINS   JOINT VENTURE   RIGHT TO MANUFACTURE   SECTION 55  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved