Archive for November, 2009

The quantum of deduction under section 80-1A is not dependent upon the assessee claiming or not claiming depreciation, because, under section 80-1A the quantum of deduction has to be determined by computing total income from business after deducting all deductions allowable under section 30 to 43D. Full Article

Refund on appeal, etc. – Where, as a result of any order passed in appeal or other proceeding under this Act, refund of any amount becomes due to the assessee, the Assessing Officer shall, except as otherwise provided in this Act, refund the amount to the assessee, without his having to make any claim in that behalf: Full Article

The amount disbursed by a chit fund company to the members from their contribution cannot be treated as `interest'; as the payments made/disbursed to the subscribers/ members are not `interest', therefore, the question of deducting any tax at source therefrom would not arise; in the case of a chit fund, there is no borrowing of moneys nor any debt is incurred and as such the provisions of section 2(28A) are not attracted. Full Article

If the LO is having decision making authority on behalf of the HO and also empowered to conclude the contract and to secure purchase orders. Then considering the activities carried on LO is to be treated as permanent establishment and will not be excluded from the definition of permanent establishment as per Article 5(4)(e) of DTAA. Full Article

unless an allowance or deduction has been made as per Income Tax Act and records, the same will not come under the sweep of Section 41(1). A return treated as non est and `invalid' can by no stretch of imagination be treated as allowance or deduction as per Income Tax Act and records. Full Article

It is within the power of the AO not to add that particular item based on which the AO has formed a belief that income has escaped assessment; when the AO is satisfied that there was no reason for an addition on the matter based on which the notice u/s 148 was issued, does not mean that he cannot bring to tax any other income which has escaped assessment and which has come to his notice subsequently, in the course of proceedings u/s 147. Full Article

In exercise of the powers conferred under clause (b) of sub rule (2A) of Rule 12 of the Central Excise Rules, 2002, the Central Government being satisfied that it is necessary and expedient in the public interest so to do, hereby exempts the assessees, from the submission of the Annual Installed Capacity Statement, who manufacture the following goods, namely,- Full Article

The Telecom Regulatory Authority of India (Trai) today fixed at Rs 19 the reference rate for portability fee -- charged from users for changing operator while retaining the number. Full Article