Income Tax, Wealth Tax and Direct tax Code Related News

  • Feb
  • 05
  • 2016

Foreign Exchange Management (Realisation, repatriation and surrender of foreign exchange) Regulations, 2015

Added In Income Tax
A.P. (DIR Series) Circular No.46/2015-16 [(1)/9(R)] Attention of Authorised Dealers (ADs) is invited to Foreign Exchange Management (Realisation, repatriation and surrender of foreign exchange) Regulations, 2015 notified vide Notification No. FEMA. 9(R)/2015-RB dated December 29, 2015, c.f. G.S.R. No.1005(E) dated December 29, 2015, which supersedes the Foreign Exchange Management (Realisation, repatriation and surrender of foreign exchange) Regulations, 2000 and all amendments thereto.

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  • Feb
  • 05
  • 2016

Steps taken by Income Tax Department for safeguarding taxpayers from Phishing email – regarding

Added In Income Tax
The Income Tax Department has been at the forefront of using technology in implementing its – e-Governance initiatives. Most of its routine communication to taxpayers is through email and SMS. Therefore, the Department is very sensitive and alert to attempts made by fraudsters to spoof the Department’s identity to send phishing emails.

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  • Feb
  • 05
  • 2016

Procedure, Formats and Standards for ensuring secured transmission of electronic communication to taxpayer

Added In Income Tax
Notification No. 2/2016 a. The email address of the assessee to be used for the purpose of electronic communication shall be as specified in Sub-Clause (b)(i) or(ii) or(iii) of Sub Rule 2 of Rule 127 of Income Tax Rules 1962. b. The assessee may furnish a letter to the Assessing Officer (hereinafter referred to as “AO”) providing any other email address as specified in Sub-Clause (b)(iv) of Sub Rule 2 of Rule 127 of Income Tax Rules 1962.The email address so provided shall be the primary email address for the purpose of issuing electronic communication under this notification once such letter is received by the AO. Otherwise, the existing email as per (a) above would be the primary email.

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  • Feb
  • 05
  • 2016

Union Budget 2016 will be presented on February 29

Added In Income Tax
The Budget Session of Parliament will commence on February 23 that will focus largely on the financial business of the government, which will present the general budget on February 29.  The budget session of parliament will commence on February 23.

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  • Feb
  • 04
  • 2016

Rule 26 of CE Rules, 2002 – Penalty not sustainable where actual involvement of parties in clandestine removal of goods not established – HC

Added In Income Tax
Delhi High Court held In the case of Rakesh Kumar Garg & others vs. CCE that the SCN which proposed the penalty would have to make out a case for how Rule 26 is attracted. In the present case, apart from merely stating that the three Appellants were in control of the affairs of the company engaged in manufacturing pan masala and gutka of ‘Rajdarbar’ brand, there is nothing in the SCN which points to how they were actually involved in the transporting, removing or clearing of excisable goods.

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  • Feb
  • 04
  • 2016

Income from temporary letting of Property taxable as Income from House property if letting is not the main object

Added In Income Tax
ITAT Delhi held In the case of G.R. Commercial Pvt. Ltd. vs. ITO that the Supreme Court in the case of Chennai Properties and Investments Ltd. vs CIT (2015) 373 ITR 673 (SC) after considering all previous judgments of Supreme Court, held that where the main object of the assessee company is to acquire and hold properties and to let out those properties, then the rental income had to be treated as income from business and not as income from house property.

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  • Feb
  • 04
  • 2016

No addition for change in valuation of stock, where method changed in compliance of ICAI Accounting Standard

Added In Income Tax
ITAT Lucknow held In the case of ACIT vs. M/s J. K. Synthetics Ltd. that CIT (A) correctly observed that there are many judgments in which, it was held that if there is change in the method of valuation of closing stock due to mandatory requirement and that change has been consistently followed by the assessee, no addition is called for. This is not the case of the Revenue that the change in method of valuation of closing stock has not been consistently followed by the assessee after this year and therefore, in our considered opinion, no interference is called for in the order of CIT (A). No addition is sustainable on account of change in method of valuation.

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  • Feb
  • 04
  • 2016

Revenue expenses u/s 37 allowed in same year, AO not authorized to treat as deferred revenue expenditure

Added In Income Tax
ITAT Delhi held In the case of ACIT vs. M/s Citi Financial Consumer Finance India Ltd. that this issue is squarely covered by assessee’s own case in ITA No. 4776/Del/2010 vide order dated 20.02.2015, for the assessment year 2006-07 passed by this Bench of the Tribunal in which it was held that, the expenditure on publicity and advertisement is to be treated as revenue in nature allowable fully in the year in which it was incurred. The expenditure was incurred to facilitate the assessee’s trading operations.

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  • Feb
  • 03
  • 2016

Foreign Technicians in India : Liability to tax

Added In Income Tax
Of late, the issue regarding the taxability of the remuneration and living allowance, etc. payable to a foreign technician on deputation in India under a Technical Collaboration or Assistance Agreement, has become quite controversial. At the root of this controversy, are the provisions of S. 9(1)(ii) of the Income-Tax Act, 1961 (the Act). Section 9 of the Act deals with “Income deemed to accrue or arise in India”.

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  • Feb
  • 03
  • 2016

Sale of a capital asset converted into stock-in-trade : Tax-treatment

Added In Income Tax
In business there are occasions when a capital asset is converted into stock-in-trade and stock-in-trade is converted into capital asset. There may also be occasions when an asset ceases to be a stock-in-trade. In this context, section 45(2) of the Income-Tax Act, 1961 (the Act) is relevant. For the sake of ready reference, section 45(2) is reproduced as follows :

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