With a view to rein in high inflation, the Reserve Bank of India today raised its key short-term lending and borrowing rates by 0.25 per cent each with immediate effect. The short-term lending (repo) rate has been hiked to 6.50 per cent and the borro
Purchase price of generic unpatented APIs from associated enterprises can be benchmarked against the price of same APIs sold by other independent producers despite difference in quality The Mumbai bench of the Income Tax Appellate Tribunal (Tribuna
The above ruling lays down that the amount withdrawn from revaluation reserve and credited to the Profit & Loss account cannot be reduced from book profit if such amount had not increased the book profit at the time of creation of reserve.
So far as the disallowance of administrative expenditure is concerned, we feel considering the fact that there is no precise formula for proportionate disallowance, no disallowance is called for, for proportionate administrative cost attributable to earning of tax free income until Rule 8D came into force. We, therefore, dispose of the appeals by setting aside the orders of the Tribunal and that of the first appellate authority on this issue and remand all the assessments back to the Assessing Officer for reworking disallowance under Section 14A in the case of each assessee for each assessment year. The proportionate disallowance under Section 14A should be limited to only interest liability and not overheads or administrative expenditure; which should be considered for disallowance under Rule 8D from 2007-2008 onwards.
In Commissioner of Customs and Central Excise Vs. Hongo India (P) Ltd., reported in 2009 (236) ELT 417 (SC), the Supreme Court approved this decision in M.M. Thomas (supra) and said that the High Court possesses all powers in order to correct the errors apparent on the face of record. In D.N. Singh Vs. CIT, reported in (2010) 325 ITR 349, the full bench of Patna High Court held High Court has power to review its order under Section 260A of Income Tax Act. It referred to paragraphs 28 and 29 of the said judgment and held that as laid down in M.M. Thomas and approved in Hongo India (supra), the High Court has the inherent power of review, being a court of plenary jurisdiction. The Supreme Court in Shivdeo Singh Vs. State of Punjab, reported in 1963 AIR SC 1909 held that power of review inheres in every court of plenary jurisdiction to prevent miscarriage of justice or to correct grave and palpable errors committed by it.
It is undisputed that these three companies have shown supernormal comparable profits as compared to the other comparable. There exclusion from the list of comparable is quite correct. By excluding these three companies from the comparables and showing the computation on the basis of TPO data the arithmetic mean of OP/OC to 17.15% which falls within the +-5% range as permitted by section 92(C)(2). Hence, we find considerable cogency in the arguments of the ld. counsel of the assessee in this regard. We further find that assessee has made voluminous submissions including paper books before the DRP who has passed a very cursory and laconic order without going into the details of the submissions. We find that this is quite contrary to the mandate of section 144C of the IT Act.
I, the undersigned, hereby give my consent to act as a Director of the captioned Company pursuant to the provisions of Section 264(2)/266(1)(a) of the Companies Act, 1956. I hereby certify that I am not restrained/ disqualified/ removed of, for being
Shri R. P. N. Singh assumed the charge of the Minister of State for Corporate Affairs here today at Shastri Bhawan. Secretary of the Ministry, Shri R. Bandyopadhyaya, and other senior officers of the Ministry of Corporate Affairs were present on the
Finance Minister Shri Pranab Mukherjee has said that the targets for direct and indirect tax collections are being raised for this financial year. He said that direct tax collection target is to be increased to 4% and indirect tax collection target will be raised to 6%. The Finance Minister was addressing the review meeting of Central Board of Direct taxes (CBDT) and Central Board of Exise and Customs (CBEC) in Chennai today.
The strategy adopted by the Government to tackle the menace of illicit funds is five-fold. This consists of: i) Joining Global crusade against ‘black money’; ii) Creating an appropriate legislative framework; iii) Setting up institutions for dealing
