"25 May 2009" Archive

Penalty can not be imposed for non deduction of TDS if assessee was prohibited by reasonable cause

Sahara India Financial Corpn. Ltd. Vs Addl. CIT (ITAT Delhi)

3. We have duly considered the rival contentions and gone through the records carefully. Learned Assessing Officer as well as learned CIT(Appeals) have given much emphasis on the point whether assessee has committed a default within the meaning of sec. 194-A by not deducting the TDS when interest was credited to the interest provision acc...

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Penalty for concealment can not be imposed automatically for disallowance of deduction

Twin Star Jupiter Co-op. Hsg. Soc. Ltd. Vs ITO (ITAT Mumbai)

9. Part A of the Explanation to section 271(1)(c) provides that if assessee fails to offer an explanation or offers and explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the Commissioner to be false. This explanation can therefore, be applied only where the assessee has either not offered any Explanation...

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Space leasing Income with services and facilities will be business income

Gesco Corpn. Ltd. Vs Assistant Commissioner of Income-tax (ITAT Mumbai)

15. Therefore, in our view, the issue involved in the present appeals is essentially a question of fact and once this question is answered, the application of appropriate legal principles should not present much difficulty. We find considerable strength in the submission of the assessee that facts in its case were distinguishable from tho...

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Section 164 attracted when shares of beneficiaries are unknown

CIT Vs P. Sekar Trust (Madras High Court)

Section 164 gets attracted only when the shares of the beneficiaries are unknown, which is manifest from the marginal heading of that section itself; so long as the trust deed gives the details of the beneficiaries and the description of the person who is to be benefited, the beneficiaries cannot be said to be uncertain, merely because wi...

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ICAI president advocates more power for chartered accountants

Uttam Prakash Agarwal, president of Institute of Chartered Accountants of India (ICAI), has been in focus lately, handling queries on the role of auditors in the Satyam Computer fiasco. Agarwal, who is also chairing the six-member high-level committee set up by ICAI to look into the Satyam scandal, talked to Vivek Seal of DNA on […...

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Posted Under: Income Tax |

ICAI will update accounting norms for oil and gas industry

The Institute of Chartered Accountants of India (ICAI) will soon update the accounting norms for oil and gas industry to keep pace with the technological developments in the sector. “We issued guidelines for oil and gas industry in 2003. But since then a lot of technological improvement has taken place. Therefore, we are revising ...

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Posted Under: Income Tax |

Government Notified provisions of competition act, 2002

The Central Government has notified from on 20th May, 2009, the provisions of the Competition Act, 2002 relating to anti-competitive agreements (section 3) and abuse of dominant position (section 4) alongwith other related and miscellaneous provisions. This will enable the Competition Commission of India to enforce these provisions o...

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Posted Under: Income Tax |

Norms for execution of Bank Guarantee under specified export promotion schemes- Modifications in Circular No.58/04-Cus dt.21.10.04-reg

Circular No. 17/2009-Custom Duty (25/05/2009)

As regards considering the combined export performance / duty payment of all the units of a manufacturer operating under single Importer exporter code (IE code) for the purposes of deciding the eligibility of the said importer for benefits under the said circular, it has been felt that the exporter operating under one IE code and having d...

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Grant of All Industry rate of duty drawback to merchant exporters- reg

Circular No. 16/2009-Custom Duty (25/05/2009)

I am directed to refer to Para (vi) of Ministry's Circular No. 64/98-Cus dated 01.09.1998, where it was clarified that in the case of merchant exporter who procures the export goods from the open market, the benefit of All Industry Rates of Duty Drawback shall be restricted to the Customs allocation only, if any. Export goods purchased f...

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