"July, 2009" Archive

Notification No. 59/2009 – Income Tax Dated 31/7/2009

Notification No. 59/2009 - Income Tax (31/07/2009)

Notification No. 59/2009 - Income Tax It is hereby notified for general information that the organization The Eye Research Foundation, Chennai, has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules 5C and 5E of the Income-tax Rul...

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Amends Notification No. 21/2002-Customs Duty, dated 1st March, 2002

Notification No. 84/2009-Custom (31/07/2009)

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of ...

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Amends Notification No. 36/2001-Custom Duty (N.T.), dated, 3rd August 2001

Notification No. 103/2009-Customs (N. T.) (31/07/2009)

The Principal notification was published in the Gazette of India, Extraordinary, vide Notification No. 36/2001 - Customs (N.T.), dated, the 3rd August, 2001 (S. O. 748 (E), dated, the 3rd August, 2001) and was last amended vide Notification No. 91/2009-Customs (N.T.), dated, the 15th July, 2009 (S. O. 1748 (E) dated 15th July, 2009)....

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Circular on Amendment to Chapter VIA of the SEBI (Disclosure and Investor Protection) Guidelines, 2000

Circualr No. SEBI/CFD/DIL/ DIP/37/2009/ 31/07 (31/07/2009)

We confirm that all the material disclosures in respect of the Issuing Company have been made in the red herring prospectus / prospectus and certify that any material development in the Issuing Company or relating to the issue, up to the commencement of listing and trading of the IDRs offered through this issue, shall be informed through ...

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Circular on Additional Information required for registration / renewal of registration as Portfolio Managers

Circular No. IMD/DOF I/PMS/Cir-5/ 2009, (31/07/2009)

I/We hereby apply for REGISTRATION. I/We warrant that I/We have truthfully and fully answered the questions above and provided all the information which might reasonably be considered relevant for the purposes of my/our registration....

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Circular on Procedure for submission of updations in the offer documents filed with SEBI

Circular No. CFD/MB/IS/4/ 2009/31/07 (31/07/2009)

Securities and Exchange Board of India (hereinafter referred to as “the Board”), vide circular dated February 24, 2009, enhanced the validity of its observation letter issued for public and rights issues to twelve months from three months. The said circular inter-alia stated that before opening of the issue, every issuer shall file an...

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Builders need to pass on Housing tax benefit to home buyers otherwise benefit may not be extended in future

Having given tax holiday to builders, Finance Minister Pranab Mukherjee today warned that if the incentives are not passed on to the consumers the same may not be extended in future. I expect the developers to pass on the benefit of the tax holiday to the home buyers. It should reflect in the prices. Unfortunately it happens in our countr...

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Posted Under: Income Tax |

MRTP Commission getting more complains then CCI

Even after three months of the Competition Commission of India (CCI) coming into force, its predecessor, the Monopolies and Restrictive Trade Practices Commission (MRTPC) is continuing to accept fresh cases on a daily basis.  Complainants are continuing to show a preference for MRTPC to the CCI, which is a costlier option for the commo...

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Posted Under: Income Tax |

ICWAI – Equate Cost Accountants with Chartered Accountants

All manufacturing companies with a paid-up capital of Rs 50 crore or more will be required to conduct a statutory cost audit, which would bring about 25,000 firms under the ambit of cost audit. At present, only 44 industries and specific products within an industry come under cost audit. The proposed change will have a major positive impa...

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Posted Under: Income Tax |

Agreement for Avoidance of Double Taxation with the Government of the Republic of Tajikistan

India and Tajikistan have written the new chapter of their relations when both nations have inked on the Double Taxation Avoidance Agreement (DTAA). With an aim of bolstering the flow of technology, investment and services both India and Tajikistan have signed the DTAA....

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Posted Under: Income Tax |

Notification No. 60/2009 – Income Tax Dated 31/7/2009

Notification No. 60/2009 - Income Tax (31/07/2009)

Notification No. 60/2009 - Income Tax , dated 31-7-2009 It is hereby notified for general information that the organization Institute of Rural Management, Anand, Gujarat has been approved by the Central Government for the purpose of clause (iii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with rules 5C an...

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Over 200 PSU do not have company secretary in employment though they are mandated to have one

Over 200 public sector undertakings (PSUs) do not have a company secretary on their rolls even though they are mandated to have one, the government informed Parliament on Thursday. “As per information available, 233 PSUs have not appointed a company secretary,” Salman Khursheed, minister for corporate affairs, said in the Lok Sabha on...

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Posted Under: Income Tax |

Analysis of Report of Board of Directors to Shareholders

Introduction The Board of Directors of a Company play a fiduciary role in protecting the interest of shareholders by providing adequate information on the company’s management and its functioning. They are the custodian of the money that the shareholders have invested in the company. Duty is cast upon the Board of directors to prepare a...

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Posted Under: Income Tax |

Services availed by a manufacturer for outward transportation of final products from the place of removal is input service

ABB Ltd. Vs CCE & ST (CESTAT Bangalore)

The services availed by a manufacturer for outward transportation of final products from the place of removal should be treated as an input service in terms of Rule 2(1)(ii) of the Cenvat Credit Rules, 2004 and thereby enabling the manufacturer to take credit of the service tax paid on the value of such services. ...

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Deduction U/s. 80-IB(10) need to be given proportionally if a few residential units are exceeding the built-up area of 1500 sq. ft prescribed by section

ITO Vs AIR Developers (ITAT Nagpur)

It is apparent from the perusal of section 80IB(10) that this section has been enacted with a view to provide incentive for businessmen to undertake construction of residential accommodation for smaller residential units and the deduction is intended to be restricted to the profit derived from the construction of smaller units and not fro...

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Not allowing cross examination is procedural defect and will not make an assessment null and void

Centurion Investment & International Trading Co. Pvt. Ltd. Vs ITO (ITAT Delhi)

It is a matter of record that the assessee had not been allowed the cross examination of the party whose statement has been used against him in making the assessment the addition us thus in violation of principles of natural justice. Not allowing cross examination is a defect of procedural in nature. It is to be allowed in order to make t...

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Merely because an addition is made to the income declared by the assessee, penalty u/s. 271(1)(c) cannot be imposed

Kanbay Sotware India Pvt. Ltd. Vs DCIT (ITAT Pune)

In Dharmendra Textile Processors' case (supra), Their Lordships have held that that penalty under section 271(1)(c) provides remedy for loss of revenue. A penalty under section 271 (1)(c) involves payment of an additional amount, which is a civil liability to provide for remedy for loss of revenue, while a sentence of imprisonment under ...

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Brokerage paid on renting of property not allowable u/s. 23 and 24 of the Income Tax Act

Tube Rose Estates Pvt. Ltd. Vs ACIT (ITAT Delhi)

Brokerage could be claimed as collection charges if as per the agreement, it is the responsibility of the broker to collect the rent but provision relating to deduction on account of collection charges in sub-clause (viii) of section 24 stand deleted from Assessment year 1993-94 and collection charges are included in the lump-sum deducti...

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Notification No. 83/2009-Customs Duty, Dated: 30.07.2009

Notification No. 83/2009-Customs (30/07/2009)

For the purposes of this notification, rate of exchange applicable for the purposes of calculation of such anti-dumping duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by sub-clause (...

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Notification No. 82/2009 – Customs Duty, Dated: 30.07.2009

Notification No. 82/2009-Customs (30/07/2009)

For the purposes of this notification, rate of exchange applicable for the purposes of calculation of such anti-dumping duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of...

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Empanelment with Allahabad Bank for practicing CAs as Concurrent/ Revenue Auditor

BIODATA FORMAT-2009 Allahabad Bank invites applications in the under noted prescribed format from practising firms of Chartered Accountants of India who are willing to have their firm empanelled as Concurrent/ Revenue Auditor in the Bank. The panel of auditors maintained last year (excluding existing concurrent auditors) since expired and...

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Posted Under: Income Tax |

Brokers claimed depreciation on BSE card value; Department moved High court

Stock broking firms on Monday argued before the Bombay High Court that they are entitled to claim depreciation costs on the value of their Bombay Stock Exchange (BSE) membership cards while calculating their tax liabilities. The Income Tax department has moved the court against more than 100 brokers saying that depreciation cannot be char...

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Posted Under: Income Tax |

Five easy to follow Security tips for Indian tax payers filing their return online

It’s that time of the year again when you need to file your end of year income tax return, but is the plethora of paperwork bogging you down? The Indian government has just made things easier by launching the facility of filing your income tax returns online. The advantages of filing your income tax returns […]...

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Posted Under: Income Tax |

AP High Court dismiss plea challenging induction of strategic investor into Satyam

The Andhra Pradesh High Court on Tuesday dismissed a petition filed by a shareholder challenging the Company Law Board’s (CLB) order to induct a strategic investor into Satyam Computer Services Ltd. The designated judge to hear cases arising out of the Companies Act, Mr Justice V.V.S. Rao, dismissed the petition filed by Mr Manohar Lal ...

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Posted Under: Income Tax |

Budget clarified on taxability of Property gift received from non Relatives and Capital gain on sell of that property subsequently

The Centre has changed the definition of ‘income’ under the Income-Tax law to ward off litigation on a Budget proposal on taxation of property passed on as gifts. The gifting route was hitherto used to escape the tax net, but this Budget sought to plug this loophole by bringing to tax, at the hands of […]...

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Posted Under: Income Tax |

Exchange Rate notification for Import / Export of goods with effect from 1st August, 2009

Notification No. 102/2009-Customs (N. T.) (29/07/2009)

In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 68/2009-Customs (N.T.), dated the 26th June, 2009 vide number S.O. 1570 (E), dated the 26th June, 2009, except as respects thing...

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Finance Minister given more tax breaks in finance bill passed in Lok Sabha

The Finance Minister announced a slew of amendments on both income-tax and service tax fronts to achieve the objective of generating economic activity in the present environment of economic slowdown...

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Posted Under: Income Tax |

Despite s. 271(1B), s. 271 (1)(c) penalty is not valid if AO’s satisfaction not recorded at stage of initiation

Madhushree Gupta Vs. UOI (Delhi High Court)

In Ram Commercial Enterprises 246 ITR 568 (Del) {affirmed in Rampur Engineering 309 ITR 143 (Del) (FB)}, the Delhi High Court held that if the AO did not record his satisfaction that the assessee had concealed particulars of his income before completion of the assessment proceedings, the initiation of penalty proceedings...

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Mere retraction of the confession may not be sufficient to make confessional statement irrelevant

Meghraj Jain Vs. UOI (Bombay High Court)

Pursuant to a search under FERA, the premises of the appellant were searched on 11.4.1989. Foreign currency was recovered though no incriminating material was found. In his statement recorded on the same day, the appellant confessed to indulging in various foreign exchange transactions. One Mr. Narendra Mirani also confessed that the fore...

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As expected RBI kept key policy rates unchanged in the monetary policy review

The RBI has kept the key rates unchanged and increased the inflation forecast to 5 per cent. The GDP is expected to grow at 6 per cent and the money supply growth is seen at 18 per cent, according to the quarterly review of the economy, released on Tuesday. The deposit growth is seen at […]...

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Posted Under: Income Tax | ,

Incomes which are tax-free under the Income Tax Act, 1961 (Simple Guide)

1. Agricultural income: Any income which you receive as income from any agricultural activity is deemed as not included in total income. If your father is into agriculture and he gives you a part of the income as a gift, then you don’t need to pay tax on it, provided, your father files his tax […]...

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Posted Under: Income Tax |

Finance bill for 2009-10 gets approval of Lok Sabha

The Lok Sabha has passed the Finance Bill for 2009-10 by a voice vote on Monday, Finance Minister Pranab Mukherjee has said that economic recovery has begun and India would achieve 8-9 pc economic growth by the end of 2010. Finance Minister Pranab Mukherjee has announced a slew of concessions, including one pc interest subsidy for [&hell...

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Posted Under: Income Tax |

Insider trading norms not applicable to ESOPs

Market regulator SEBI has clarified on the interpretation of certain amendments in the insider trading norms, in response to a few queries from companies. The regulator said the six-month restriction for directors and employees to transact in shares of a company is only intended for trading on stock exchanges and not applicable to the exe...

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Posted Under: Income Tax | ,

Stock brokers need to settle the balance funds/securities lying in the trading accounts of clients on the last day of every month

AFTER numerous complaints of rampant misuse, the Securities and Exchange Board of India (Sebi) has proposed that stock brokers must settle the balance funds/securities lying in the trading accounts of clients on the last day of every month.Brokers must also send monthly statements to clients, and in case of a dispute, clients will have to...

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Posted Under: Income Tax |

Government planning to include the concept of class action suit in new Companies bill

With lessons from the multi-crore rupee Satyam fraud case, the government is planning to include the concept of class action suit in new Companies bill, likely to be introduced in the current session of Parliament, to help investors claim damages from fraudulent companies....

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Posted Under: Income Tax |

Lami Nagar road in East Delhi renamed as Chartered Accountant’s Lane

Mukherjee Nagar in north Delhi is home to a large number of civil service aspirants. Katwaria Sarai is preferred by students trying to crack the engineering and medical entrance exams. And chartered accountants? Well they seem to prefer Laxmi Nagar in east Delhi. So much so that the stretch between Laxmi Nagar and Mother Dairy crossin...

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Posted Under: Income Tax |

Cheers! Mvat rate on wine in Maharashtra reduced to 4%

Maharashtra government has given into the demand from various quarters including farmers and slashed the VAT back to 4% from the recent increase to 25% while the imported wines will attract the duty of 20% instead of 25%. The decision was taken at a special cabinet meeting convened Wednesday in Nashik. A decision was also taken […...

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Posted Under: Income Tax |

I-T department started scrutinising returns of charitable trusts

In a move that could lead to some charitable trusts losing their registration, the income-tax (I-T) department has started scrutinizing the returns they had filed earlier, two officials said. This follows a government directive last year to these trusts to pay income tax on the revenue they earn from commercial activities. “Since no...

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Posted Under: Income Tax |

ICAI asked government to mandate all companies to file their financial statements in XBRL format

Domestic companies may soon have to file financial statements in a computerised format to enable easy flow of information between regulators and facilitate comprehensive financial data analysis. In a letter to the ministry of corporate affairs, the Institute of Chartered Accountants of India (ICAI) has asked the government to mandate all ...

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Posted Under: Income Tax |

Additional Information/AIR transaction details need to be disclosed in ITR

The income tax return filing process requires that a lot of information be provided to the tax authorities. Most people gear up by ensuring they have collected all the details necessary for ensuring the correct income is shown and the right deductions are available. This is not enough, as individuals need to ensure there is some [&hellip...

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Posted Under: Income Tax |

RBI expcted to keep key policy rates unchanged in the monetary policy review

The Reserve Bank of India might change its bias towards softening interest rates into a more cautious outlook but is expected to keep key policy rates unchanged in the monetary policy review on Tuesday. At the same time, banking sources close to the development said the central bank could raise its growth target from 5-6 per cent [&hell...

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FM's reply to debate on Finance (No.2) Bill,2009 in lok Sabha on 27th July 2009

Madam Speaker, at the outset, I would like to thank all the honourable Members who have participated in the discussion on the Finance (No.2) Bill, 2009. I would also like to thank all other stakeholders who have participated in the debate outside the House. I have immensely benefited from the valuable suggestions made both inside [&hellip...

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Posted Under: Income Tax |

IRDA put cap on charges to be levied on ULIP

Circular No: 20/IRDA/Actl/ULIP/09-10 Sub: Unit linked products – Cap on charges The Insurance Industry has introduced ULIPs which have found favour with insurance customers in India. These products prescribe certain charges which are deducted either from contributions or from the fund. In 2005, the IRDA had in its Circular No.032/IR...

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Posted Under: Income Tax |

SEBI : Comprehensive Risk Management Framework for the cash market

MRD/Do P/SE/Cir-08/2009 (27/07/2009)

communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report....

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Notification on Service tax exemption to maintenance of road

Notification No. 24/2009-Service Tax (27/07/2009)

Notification No. 24/2009-Service Tax In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service, referred to in ...

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Even Best Judgment assessment cannot be made without giving opportunity of being heard has to be given to assessee

Harjinder Singh Vs ITO (ITAT Amritsar)

12. The phraseology, syntax and language used/employed by the legislature in section 144, as quoted hereinabove, are amply clear. As per this section, inter alia, if a person fails to comply with the terms of a notice under section 143(2), the A.O., after taking into account all relevant material gathered by him shall, after giving the as...

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Validity of levy of penalty for not furnishing the return of income within the prescribed time

Sanjay Agarwal @ Sanjay S. Agarwal Vs. ACIT (ITAT Agra)

6.2 In the present case there has been admittedly a default in terms of s. 271F of the Act; the assessee's legal ground, i.e., in respect of validity of its return, being of no consequence, in view of me. Clear mandate of the provision (s. 271F), as well as the decision by the Hon'ble Apex Court in the case of Prakash Nath Khanna (supra)....

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Expenditure incurred by a foreign company in India during period of lull in its business in India not allowable

CIT Vs Foramer France (Uttarakhand High Court)

6. Admittedly, the assessee in these appeals are non-resident companies having no permanent establishment in India. It is also not disputed that after the contract received by the assessee companies in the year 1983 and before, fresh contract was given to them by the ONGC only in the year 1999. Learned counsel for the appellant (revenue) ...

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Tribunal is not competent to recall its previous order and re-write the same again and reverse the earlier decision taken on merit

Adarshveer P. Jain Vs ACIT (ITAT Mumbai)

8. A bare perusal of the ground raised by the assessee, in impugned M. A. reveals that the same pertain to the issues adjudicated by the Bench, on merit, after evaluating the rival submissions, including case laws relied upon by the parties, and the relevant records. The issues considered and decided on merit after due application of mind...

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Stamp Duty and Fees Payable for Registration of Companies Limited by Shares

STAMP DUTY AND FEES PAYABLE FOR REGISTRATION OF COMPANIES LIMITED BY SHARES Nominal Capital Filing fee to be deposited with Stamp Duty payable in Maharashtra Memorandum Articles & Forms* the ROC (each) Memorandum Articles Rs. Rs. Rs. Rs. Rs. 50,000 4,000 100 200 1,000 100,000 4,000 200 200 1,000 200,000 7,000 200 200 1,000 500,000 [&h...

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Posted Under: Income Tax |

Stamp Duty Rates as Per Bombay Stamp Act, 1958

The Explanation to the definition provides that any instrument by which one co-owner transfers his property to another co-owner would be deemed to be a conveyance provided that it is not an instrument of partition....

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Posted Under: Income Tax |

Central Vigilance Commission disposes of 485 cases, recovers over Rs 13 crore

New Delhi (PTI): The Central Vigilance Commission has disposed of 485 cases and effected recoveries to the tune of Rs 13.55 crore in the last one month alone. The Commission has launched prosecution against 10 officers including six from Central Board of Direct Taxes (CBDT), two from Department of Telecommunication and one each from Centr...

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Posted Under: Income Tax |

RBI penalised PSU & Private banks for violating its guidelines

The Reserve bank of India (RBI) has penalised a number of banks—both government-run and private—in the last three years for violating its guidelines. The alleged violations include “non-adherence of know-your-customer (KYC) norms, failure of internal controls in initial public offerings, violation of foreign exchange management guid...

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Operational of the IDR Rules with immediate Effect and Applicability of FEMA Regulations

As you aware the Ministry of Corporate Affairs has notified Companies (Issue of Indian Depository Receipts) Rules, 2004 and subsequently there were amendments on the subject matter and SEBI vide its Circular No. SEBI / CFD / DIL / DIP / 20 /2006 / 3 / 4 dated April 3, 2006 issued by the Securities […]...

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Posted Under: Income Tax |

New direct tax code expected to release for public discussion 20th August 2009

The Lok Sabha was informed, on Friday that the new direct tax code will be released for public discussion by August 20. The new code will be released along with a discussion paper, the Minister of State for Finance, Mr S. S. Palanimanickam, said in a written reply in the Lok Sabha. On July 6, […]...

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Posted Under: Income Tax |

LLPs clarification required on capital gain & stamp duty on coversion

Limited liability partnerships (LLPs) have been the flavour of corporate jurists all over the world in the past 15 years. The concept looked attractive. India passed the Limited Liability Partnership Act in 2008, providing the legal framework for the formation of LLPs. The Act came into force on April 1, 2009. The tax aspect has been sort...

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Posted Under: Income Tax |

CBI registers case against a Commissioner of Income Tax

The Central Bureau of Investigation has registered a case against a Commissioner of Income Tax for accumulating huge assets worth crores of rupees in his name as well as in the name of his family members, which are disproportionate to his known sources of income....

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Posted Under: Income Tax |

Income Tax department can not tax research work

The Bombay High Court, in a recent order, came down heavily on the Income-Tax Department, which unilaterally injected an application for exemption for scientific and industrial research, without seeking guidance of experts on the matter. Tax authorities do not have the jurisdiction to decide on the issues pertaining to scientific research...

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Posted Under: Income Tax |

PAN card mandatory for all policies where annual premium is more than Rs 1 lakh

The Insurance Regulatory and Development Authority has made PAN card mandatory for all policies where annual premium is more than Rs 1 lakh. It has issued a circular to all life insurance companies in this regard, said a life insurance council official....

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Posted Under: Income Tax |

Chartered accountant found murdered at the Delhi University’s North Campus

A chartered accountant working for Himanshu Sabharwal, son of Ujjain Professor H.S. Sabharwal who died after a fracas between students on the campus three years ago, was found stabbed to death under mysterious circumstances at the Delhi University’s North Campus on Thursday. Thirty-two-year- old Parminder Singh was found in a pool of bl...

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Posted Under: Income Tax |

Government decided to make it compulsory to quote UTN in Income-tax return forms

The Government has decided to make it compulsory to quote Unique Transaction Number (UTN) in the Income-tax return forms to be filed by all the assessees to whom such number has been allocated by the Income-tax Department....

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Posted Under: Income Tax |

Government proposes to set up a CPC at Bengaluru

The Government proposes to set up a Centralised Processing Centre (CPC) during 2009-10 only at Bengaluru, for processing of all Income-tax returns received in the State of Karnataka and for processing of all e-returns received in the country. It will provide speedy processing of returns and issue of refunds to all taxpayers irrespective o...

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Posted Under: Income Tax |

Effective tax rate for IT Companies will go up once exemption for STPI comes to end

IT firms such as TCS, Infosys and Wipro expect their effective tax rates to go up in the coming years as more of their delivery units come out of Software Technology Parks of India. This would further impact the net profit of these companies, already under pressure because of the global economic crisis. The actual […]...

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Posted Under: Income Tax |

Portal to help Indian companies make transition to International Financial Reporting Standards (IFRS) launched

The Nasdaq-listed Corporate Executive Board (CEB), a business advisory platform, has come up with an online resource — IFRSPortal.in — to help Indian companies make a smooth transition to International Financial Reporting Standards (IFRS) at lower costs. Through the portal, companies can access the CEB’s practical guidance, best pra...

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Posted Under: Income Tax |

Auditor ask extension to complete Special Audit of Reliance Communication

A special audit of Anil Ambani group firm Reliance Communications will be delayed, as the auditor Parakh & Co has sought an extension for three months from mid-July.The government has, however, asked the auditor for progress report before deciding on giving the extension and in case more time was given, the auditors would have to [&he...

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Posted Under: Income Tax |

To buy online through credit/debit card you need to enter password from 1st August 09

In order to make online transactions Safe & Secure, Reserve Bank of India (RBI) has passed a new mandate with effect from 1st August 2009, wherein online credit card based transactions will include a new verification process. From the 1st of August 2009, every time you make an online payment, you will be directed to your bank̵...

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AAR on taxability of payments made by applicant to a British company for rendering telecom services in India

Cable & Wireless Networks India Pvt. Ltd., In re (Authority for Advance Rulings)

9. (1) The following incomes shall be deemed to accrue or arise in India :— (i) to (v) xx xx xx xx xx xx xx xx xx (vi) income by way of royalty payable by—...

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Settlement Commission has jurisdiction over the case which involves search assessments where block assessments are to be completed under section 158BC

Varinder K. Arora, In re (Settlement Commission)

19. The first fundamental issue is whether the Commission has at all jurisdiction to deal with this case which involves search assessments where block assessments are to be completed u/s 158BC. The arguments of the learned CIT(DR)s appear quite weighty and persuasive. However, the arguments of" the learned AR of the applicant are logical ...

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MAT credit should be allowed before calculating Interest U/s. 234B and 234C of the Income Tax Act, 1961

Sucham Finance & Investments Pvt. Ltd. Vs ACIT (ITAT Mumbai)

6. We have heard the rival contentions and carefully perused the orders. The short question here is whether credits for tax paid as provided in section 115JAA of the Act has to be given before charging of interest u/s 234A & 234B or after charging of interest u/s 234A and 234B of the Act, in the later years, when such credit is claimed. E...

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Section 271(1)(c) can be invoked only if there is a "concealment of particulars of income"

CIT Vs Haryana Warehousing Corporation (Punjab & Haryana High Court)

20. It seems to us that the revenue functions in the same manner as other departments of administration, wherein the accepted norm is, to shift the responsibility of decision making to the judiciary. In sum and substance, the judiciary not only adjudicates upon legitimate controversies between quarreling parties, but also discharges the e...

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Profit on transfer of Indira Vikas Patras before maturity is capital gain and tax is chargeable

Ujagar Singh Oberoi Vs ACIT (ITAT Delhi)

The assessee purchased the Indira Vikas Patra during the financial year 1997-98. The Indira Vikas Patras are shown as investment in the books of assessee since 1997-98. The Indira Vikas Patras are issued for certain denominations at half of the face value. The period of maturity varies on the basis of rate of interest and accumulation the...

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Last date for payment of Annual Membership/COP Fees For The Year 2009-10 for CAs is 31.07.2009

The annual Membership and Certificate of Practice fees (if member holds certificate of practice) became due and payable on 1st April, 2009. Circulars advising members to pay the membership/certific ate of practice fee were sent to individual members in the month of April, 2009 and published in May, 2009 issue of the Journal. Attention of ...

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Posted Under: Income Tax |

2 Crore Income tax returns pending for processing

The Income Tax department (I- T department) had more than 2.35 crore tax returns pending for processing at the beginning of this financial year; the Rajya Sabha was informed today. “There was a pendency of 2,35,74,618 income-tax returns for processing u/s 143(1) of the Income Tax Act 1961, as on April 1, 2009,” Finance Ministe...

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Posted Under: Income Tax |

FM launches online Customs tariff database

The Department of Economic Affairs (DEA) in the Finance Ministry is getting tech-savvy by the day. It has gone in for an electronic database of Customs tariffs to equip itself for better policy making on the import tariff front. The electronic database, which would also be accessible to trade through the Internet soon, covers 11,000 [&hel...

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Posted Under: Income Tax |

Non confirmation of minutes does not have any effect on the decision taken at the earlier meeting: SC

Kerala State Electricity Board Vs Hindustan Construction Co. Limited (Supreme Court of India)

Supreme Court of India has decided in the Matter Kerala State Electricity Board V/s Hindustan Construction Co. Limited [2009] 91 SCL 183 (SC) inter alia decide that "Confirmation of minutes of Board meeting or any committee meeting does not require confirmation in subsequent meeting. Non confirmation of minutes does not have any effect on...

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Mistakes people commit generally in filing income tax return

Wrong selection of ITR :- One may sorely miss the old ‘one size fits all’ SARAL forms for the sheer ease and convenience of filling up the one page return, but they were not e-friendly. It was also cumbersome to attach a whole lot of supporting documents and spend a day away from the office […]...

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Posted Under: Income Tax |

ITAT Mumbai benches not functioning during the period 27.07.09 to 31.07.09

The following benches will not function during the period 27.07.09 to 31.07.09 and the cases are adjourned to respective dates. Please see separate Notice:- "A-1, B-1, E-1, SMC & WT:" "K" Bench cases will be heard by "L" Bench...

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Posted Under: Income Tax |

Procedure for direct supply by intermediate supplier to the port for export for export by ultimate supplier – reg.

Circular No. 893/13/2009-Central Excise (23/07/2009)

Attention is invited to Public Notice No. 151 (RE-2008)/2004-09 dated 26th February, 2009 issued by DGFT. Vide Sr. No. 16 of the said Public Notice, the 2nd sub-paragraph of paragraph 4.13 relating to "Advance Authorization or DFIA for Intermediate Supplies" has been amended. It has been, inter alia, provided that intermediate supplier ca...

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Export of non-excisable goods under self-sealing and self-certification-reg

Circular No. 892/12/2009-Central Excise (23/07/2009)

Representations have been received from exporters of non-excisable goods (agricultural products) requesting to extend the facility of self-sealing and self-certification to non-excisable agricultural products. They have requested that this facility would enable them to meet export requirements of the products which expire within a few we...

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ICAI recommended joint auditors for big companies and rotation of partners every five years

Following the outcry over the role of auditors in the Satyam scam, auditing regulator ICAI has recommended major changes in processes, which include among other things, joint auditors for big companies and rotation of partners every five years....

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Posted Under: Income Tax |

Police arrested CA for cheating his employer

The Powai police has arrested a chartered accountant (CA) for cheating the owner of a leading pharmaceuticals company, Genom Biotech Pvt Ltd, of Rs 40 lakh. After the fraud, the accused had resigned from his job to avoid getting caught, said the police. The 34-year-old chartered accountant, Rajesh Ranjan, and the owner of GBPL at [&hellip...

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Posted Under: Income Tax |

Large corporate taxpayers (LTU) get personalised attention

`Happy to help you' may remind you of the famous ad of a private telecom services company, but the Income Tax (I-T) department is also eager to tell large corporate taxpayers roughly the same thing.So, client executives and relationship managers — so far confined to the private sector and especially service providers — have now made a...

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Posted Under: Income Tax |

Period for which books of account need to be kept under different Laws

Companies Act, 1956 A company is required to maintain its books of account and vouchers for a period of 8 years immediately preceding the current year. Licensed Companies u/s 25 of The Companies Act, 1956 is required to maintain its books of account and vouchers for a period of not less than 4 years. The […]...

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Posted Under: Income Tax |

SEBI prohibit listed companies from issuing shares with superior rights

SEBI/CFD/DIL/LA/2/2009/21/7 July 21, 2009 The Managing Director/ Executive Director/ Administrator of all the Stock Exchanges Dear Sir/Madam, Sub.: Amendments to the Equity Listing Agreement 1. It has been decided to amend the Equity Listing Agreement to prohibit listed companies from issuing shares with superior rights as to voting or di...

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Posted Under: Income Tax | ,

SEBI abolished no-delivery period for all types of corporate action

The Securities and Exchange Board of India, the markets watchdog, has done away with a no-delivery period for all types of corporate actions for scrips that are traded in the compulsory dematerialised mode and accordingly, short deliveries, if any. During corporate announcements like bonus or dividend, shares of that company were under a ...

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SC to decide on 'dividend stripping' by mutual funds for creating a short-term loss to avoid tax

The Supreme Court will decide whether mutual fund brokers can resort to a process (dividend stripping) of creating a short-term loss to avoid tax. A Bench headed by Justice S H Kapadia has issued notice broking firms on a batch of petitions filed by the income-tax department challenging the Bombay High Court judgment that a broker [&hell...

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Posted Under: Income Tax |

Service tax topics to be omitted and to be asked in November 2009 Examination for CA Final & PCE Students

Announcement for November 2009 examinations Professional Competence Examinations It is clarified that in Part –II : Service tax and VAT of Paper 5 : Taxation, students will not be tested on specific questions covering individual taxable services. Integrated Professional Competence Examinations It is clarified that in Part –II : Servic...

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Posted Under: Income Tax |

Circular on Issue of Indian Depository Receipts (IDRs)

A.P. (DIR Series) Circular No. 05 (22/07/2009)

Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 and Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, are being issued separately....

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RBI Circular on Cash Withdrawal at Point-of-Sale

RBI/2009-10/Y7105 , DPSS.CO.PD.No. 147/02.14.003/ 2009-10 (22/07/2009)

Presently cash withdrawal facility using plastic cards is available only at Automatic Teller Machines (ATMs). As on May 31, 2009, number of ATMs and POS terminals in the country stood at 44,857 and 4,70,237 respectively. The use of debit cards at Point-of-Sale (POS) terminals at different merchant establishments has been steadily increasi...

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Press Note on taxation of limited liability partnerships

LLP is a new corporate form that enables professional expertise and entrepreneurial initiative to combine, organize and operate in an innovative and efficient manner. In India, this need has long been recognised for businesses which may require a framework that provides flexibility suited to requirements of service, knowledge and technolo...

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Posted Under: Income Tax |

Personal verification of PAN applications by visiting the applicant

NSDL has put a notice on his website mentioning that they will verify Identity and address of a certain percentage of PAN applications although they haven’t mentioned much detail about the mode of visit, timing, within how much day of application, who will be authorized to visit etc. The notice on NSDL website is as […]...

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Posted Under: Income Tax |

CIC decided, CA student to get copy of answer sheet under RTI Act

Name of the Appellant: Ms. Vikita Vishanji Soni , Name of the Public Authority: The Institute of Chartered Accountants of India , Decision No.4167/IC(A)/2009 , F. No.CIC/MA/A/2009/000474 , Dated, the 13th July, 2009 , Delivered by : Central Information Commission....

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Posted Under: Income Tax |

Reopening of Completed assessment, onus lies mainly on department to confront assessee with evidence

ITO Vs Bansi Lal (ITAT Amritsar)

21. We have heard the parties and have perused the material on record. The learned Commissioner (Appeals) has held that the case of the Assessing Officer was based on the statement of Shri Ramesh Kumar, which was not confronted to the assessee, which was incumbent upon the department to do, since it was a case of reopening of a completed ...

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Reassessment on ground of allowance of excess deduction on incentives of DEPB U/s. 80HHC

ACIT Vs Narayandas Sugnomal (ITAT Mumbai 'B-1' Bench)

7. We have considered the issue. The learned CIT (A) has considered that there was a change of opinion by the A.O. and he deemed to have formed an opinion at the time of original assessment on allowing 80HHC deduction on DEPB. There is nothing on record to support the opinion formed by the learned CIT(A) on this issue. The learned counsel...

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Expenses reimbursed cannot be excluded from the amount defined in section 44BB(2)

CIT Vs RBF Rig Corporation (Uttarakhand High Court)

Whether, the ITAT has erred in law in holding that reimbursement of expenses on account of catering charges and fuel etc. to the assessee were not part of the gross receipts for the purposes of Section 44BB of the Income Tax Act, 1961? 5. Before further discussion, we think it just and proper to quote the provisions contained...

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Indian Depository Receipt Rules notified by GOI operationalises with immediate effect

Circular No. 05/2009-10/106 - RBI (22/07/2009)

Foreign Institutional Investors (FIIs) including SEBI approved sub-accounts of the FIIs, registered with SEBI and Non-Resident Indians (NRIs) may also invest, purchase, hold and transfer IDRs of eligible companies resident outside India and issued in the Indian capital market, subject to the Foreign Exchange Management (Transfer or Issue ...

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Public Notice No. 191 (RE-2008)/2004-2009, Dated: 21.07.2009

Public Notice No. 191 (RE-2008)/2004-2009 (21/07/2009)

Indian Rupee Value of the special currency Basket for the purposes of deferred payments contracts entered into under the Deferred Payments Protocol dated the 30th April, 1981 for the period 1.1.81 to 31.12.85 and the Deferred payments protocol dated 23rd December, 1985 for the period 1.1.1986 to 31.12.90 between the Government of India an...

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Public Notice No. 190 (RE-2008)/2004-2009, Dated: 21.07.2009

Public Notice No. 190 (RE-2008)/2004-2009 (21/07/2009)

In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy 2004-2009, the Director General of Foreign Trade hereby makes the following amendments in Appendix 2 (List of Export Promotion Councils/ Commodity Board) of the Handbook of Procedures (Vol.I)....

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Re-constitution of National Advisory Committee on Accounting Standards

Notification No. S.O. 1800(E) (21/07/2009)

In exercise of the powers conferred by sub-section (1) of Section 210A of the Companies Act, 1956 (1 of 1956), the Central Government hereby constitutes an advisory committee to be called the National Advisory Committee on Accounting standards, consisting of the following Members to advise the Central Government on the formulation and lay...

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