"24 August 2009" Archive

If Assessee fails to offer an explanation or offers a false/unsatisfactory explanation then penalty will be leviable for concealment of income

Tushti Securities Pvt Ltd. Vs ACIT (ITAT Ahmedabad)

It was the duty of the assessee to show with exact figures the basis of calculating the amount of brokerage to be returned to the existing clients. In fact the assessee itself stated in its letter dated 17-3-2003 that it was having a somewhat raw system of deciding and accounting such claims and that these claims were decided on ad hoc ba...

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If part of company business is deal in shares then all types of transactions, whether delivery based or non-delivery based, will be treated as speculative transactions

Metropolitan Traders Pvt. ltd. Vs ITO (ITAT Mumbai)

Admittedly, the assessee company was dealing in Cement and also engaged in the business of dealing in shares. There is no dispute over the fact that the assessee had taken delivery of shares before selling them. The assessee company had claimed set off of unabsorbed speculation loss relating to assessment year 1995-96 and 1997-98 carried ...

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Sale of equipment to an Indian party by a foreign company cannot be construed as resulting into any business connection in India

Xelo Pty Ltd. Vs DDIT (Int'l Taxation) [ITAT Mumbai]

The offshore supply of equipment from abroad, in common parlance, means that the supply of goods is made outside India. Ordinarily in such a case, the Indian party opens a letter of credit and nominates a bank to issue irrevocable LOC favouring the foreign party....

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A transaction cannot be held bogus for the mere fact that Assets sold by Assessee if not found with buyer

CIT Vs Uttamchand Jain (Bombay High Court)

As the VDIS 1997 certificate issued by the department is valid and subsisting, it is not open to the revenue to contend that there was no jewellery which could be sold by the assessee on 20/1/1999.It is not the case of the revenue that the assessee continues to be in possession of the said diamond jewellery even after the alleged sale ef...

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Taxability of Income to American company by allowing use of its database located abroad to customers in India

FactSet Research Systems Inc., In re (Authority for Advance Rulings)

The applicant maintains a `database' which is located outside India and which contains the financial and economic information including fundamental data of a large number of companies world-wise. The customers of the applicant are mostly financial intermediaries and investment banks which have the need for such data. The databases contain...

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Loss on purchase and sale of units of mutual fund cannot be treated as speculation loss

Multiplex Trading & Industrial Co. Ltd. Vs ITO (ITAT Delhi)

The assessee is engaged in rendering Business & Management Consultancy and Marketing Services to its various clients against payment of professional fees. The assessee invested Rs 2,00,00,000/ - in 14,38,848.929 units of Sun F &C fund. The dividend of Rs.43,16,546. 70 received on 22.02.2001 was also reinvested in 4,09,151.252 units of the...

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Warrant of authorization decides whether a person has been subjected to search or not

Asha Maritime (India) Pvt. Ltd. Vs DCIT (ITAT Mumbai)

. Section 132(1) empowers the Director General or Director or the Chief Commissioner or Commissioner or any such Joint Director or Joint Commissioner, as may be empowered in this behalf by the Board to authorize Joint Director, Joint Commissioner or other lower authorities to conduct the search if the former authority has reason to believ...

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Breach Candy Hospital Trust Vs. CCIT (2010) 192 TAXMAN 98 (Bom)

Breach Candy Hospital Trust Vs. CCIT (Bombay High Court)

The Division Bench in the facts of the case had held that there was absence of any material to show that generally there was a profit in the hospital activities of the petitioner therein. In this context, it was held that it cannot be said that the petitioner did not exist solely for philanthropic purpose but, for the purpose of profit an...

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RBI issued circular on providing Collateral Free loans to Micro and Small Enterprises(MSEs)

RBI/2009-10/129, RPCD.SME&NFS.BC.No.16/06.02.31(P)/2009-10 (24/08/2009)

On September 21, 2007 banks were advised, vide our circular RPCD.PLNFS.No 3068 /06.02.31/2007-08, that they may extend collateral-free loans upto Rs. 5 lakh, to all newloans sanctioned to the units of MSE sector (both manufacturing and services enterprises) as defined under MSMED Act, 2006.On September 21, 2007 banks were advised, vide o...

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Facility of advance ruling on service tax and excise matters extended to PSU and resident Indian companies

Public sector companies can now seek advance ruling on Customs, Central Excise and Service Tax matters. Also, Indian companies (those considered as resident under the Income-Tax law) have now been allowed to seek advance ruling on project imports. The Center’s move to extend the advance ruling facility to public sector companies comes n...

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