Archive for December, 2009

Simply because some incidental activity of the assessee is revenue generating, does not provide any justification to hold that it is tainted with "commerciality" and reaches a point where relationship of mutuality ends and that of trading begins. Full Article

The income by way of royalty accruing to the Japanese company is liable to be taxed in terms of Article 12 of the DTAA between India and Japan at a rate not exceeding 10 per cent from the assessment year 2008-09 onwards. Full Article

The burden of proving an understatement or concealment is on the revenue; this burden may be discharged by the revenue by establishing facts and circumstances from which a reasonable inference can be drawn that the assessee has not correctly declared or disclosed the consideration received by him and there is an understatement or concealment of the consideration in respect of the transfer. Full Article

Brief facts relevant for the purpose of deciding this issue are that the defendant no.1 company was a tenant in property no. 3 Amrita Shergill Marg, New Delhi. This property was leased by defendant no.5 M/s H.G.Gupta & Sons (HUF) to defendant No. 1 Company for residence of its officers. The company by a resolution in the meeting of Board of Directors held on 27.2.1974 allotted this property to late Lala Hansraj Gupta in his capacity as CEO/Chairman of the company. Late L.. Full Article

Draft Bank Branch Auditors' Panel 2009-10. MEF00001 to MEF10000, MEF10001 to MEF20000, MEF20001 to MEF30000, MEF30001 to MEF40000 http://www.meficai. org/mef_draft_ panel.jsp? list=list4 Full Article

Income of foreign companies providing technical services and data to oil exploration and production companies in India will be taxed at a concessional rate, the Authority for Advance Rulings (AAR) on income tax has said in a recent decision. The ruling will be a big help to oil prospecting companies in India as they step up exploration activities, allowing them to avail of technical services and data more easily. Full Article

19 PwC tax partners have resigned following the resignation of the PwC tax head Dinesh Kanabar on Saturday December 26. Among the people who quit today are H Kotak, G Mistry and R Dhume - all of whom have joined KPMG. All the resigning partners were originally from RSM. Full Article

The US watchdog has charged Ernst & Young and six of its current and former partners for their roles at a fitness business, for failing to know about its fraudulent financial accounting and disclosures. E&Y in the US issued unqualified audit opinions stating that Bally’s 2001 to 2003 financial statements confirmed with GAAP, and its audit conformed with accepted auditing standards. Full Article