"February, 2010" Archive - Page 30

Income Tax Press Note [F. NO. 9/3/2009-ECB], dated 15-2-2010

PRESS NOTE [F. NO. 9/3/2009-ECB] (15/02/2010)

A scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (through Depository Receipts Mechanism) was notified in 1993 (hereinafter referred to as "the scheme") to allow the Indian Corporate sector to access global capital markets through issue of Foreign Currency Convertible Bonds (FCCBs)/Equity Shares under the Global...

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Recent judgement of Punjab & Haryana HC on disallowance U/s. 14A of I.T. Act, 1961

It was held in this case that where it is found that for earning exempted income no expenditure has been incurred, disallowance under section 14A cannot stand. In view of the finding of the Tribunal, it is clear that the expenditure on interest was set-off against the income from interest and the investment in the share and funds was out ...

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IGST – Innovative way of handling Inter State Transactions

The Empowered Committee of State Finance Ministers unveiled the First Discussion paper on Goods and Service Tax in India on 10th November 2009. This discussion paper provides us with broad contours of dual GST to be implemented in India....

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Can Tribunal take back what assessing officer has given?

From the above, it can be clearly seen that there is no blanket restriction on the powers of the Tribunal to enhance the assessment but the restriction on enhancement is in light of the judge – made law, or to put it differently, in light of the ratio decidendi of the binding judicial pronouncements. Further this view has been confirmed...

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National policies alone cannot prevent a crisis

Give the known challenges, every central bank has to move in the direction of taking right steps that it may feel as appropriate despite lack of consensus on many critical issues, without waiting for the global system to move. It would be wrong, however, as noted by Mr. Stephen Roach, to presume that “best global policies are the sum of...

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Rule 8D of the Income Tax Rules – Whether prospective or retrospective?

Section 14A was introduced in the Income Tax Act, 1961 by the Finance Act 2001 with retrospective effect from 1st April 1962. The intent of introducing this section was reiteration of the well settled legal principle that when an assessee incurs any expenditure in relation to income which is not liable to tax under the Act, he would ideal...

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Section 14A of I.T.Act,: Certain critical issues

As per well settled law and also according to canons of taxation only that expenditure which is relatable to taxable income should be deducted in computing the total income. Expenditure which has a bearing on exempt income should not be considered in the computation of total income as otherwise this would result in double advantage to the...

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Statutory auditor of bank should be appointed by RBI: ICAI President

Auditors in public sector banks (PSBs) must be appointed by the Reserve Bank of India (RBI) and the current practice of allowing bank managements to decide on such appointments must be done away with, the new President of the CA Institute, Mr Amarjit Chopra, has said....

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Customs Notification No 11/2010 (NT), Amending Principal Notification No. 36/2001 – Customs (N.T.), dated, the 3-08-2001

Notification No. 11/2010-Customs (N.T.) (15/02/2010)

Notification No. 11/2010 - Customs (N. T.),New Delhi, 15th February, 2010 - S. O… (E) – In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the notification of ...

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Expenditure incurred by the assessee on leased premises, cannot be treated as capital expenditure and has to be allowed as Revenue expenditure

ACIT Vs M/s. SET India Pvt. Ltd. (ITAT Mumbai)

The finding of the Tribunal that 12.5% of net ad revenues is arms length price, was not challenged by the Revenue, we uphold the findings of the first appellate authority. Money received from a holding company with whom the assessee does not have any trading or business transaction cannot be considered as trading receipt....

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