"May, 2011" Archive

Centre Seeks Views of State Governments and Political Parties on Lokpal

Centre has sought the views of State Governments and Political Parties on certain issues related to drafting of Lokpal Bill. The text of the letter written by the Chairman of the Drafting Committee, Shri Pranab Mukherjee is as follows: The issue of setting up of a Lokpal to curb corruption in high places has been under the consideration ...

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Posted Under: Income Tax |

Chidambaram advocates more taxes on luxury items, inheritance levy

Concerned over low tax-GDP ratio, Home Minister P Chidambaram has pitched for higher taxes on luxury products and imposing inheritance tax. Chidambaram, who is a former finance minister, had expressed these views at the full Planning Commission meeting headed by Prime Minister Manmohan Singh last month....

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Posted Under: Income Tax |

ICAI – President's Message – June 2011

Let the faith of people of the world be restored in democracy for good, where the supreme power lies with the citizens who themselves elect people to represent them; democracy needs to be celebrated and kept alive by all possible means. Father of our Nation Mahatma Gandhi agrees to its value and suggests that actions inspired by tolerance...

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Posted Under: Income Tax |

HC asks CCI to provide complete order to NSE by Friday

The Delhi High Court today asked Competition Commission to provide the NSE by friday its complete order including views of members dissenting with the majority ruling that held the bourse guilty of abusing market dominance....

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Posted Under: Income Tax |

Filling up of the vacancies of Indirect Tax Ombudsman – CIRCULAR [F. NO. A. 35017/35/2011-AD.II], DATED 30-05-2011

CIRCULAR [F. NO. A. 35017/35/2011-AD.II] (30/05/2011)

CIRCULAR [F. NO. A. 35017/35/2011-AD.II], DATED 30-5-2011 - I am directed to state that seven (7) posts of Indirect Tax Ombudsman at 7 stations, viz., New Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Ahmedabad and Lucknow (in the HAG + pay scale of Rs. 75,500-80,000 per month) have been created vide Sanction Order No. 92/2011, dated 5-5-20...

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Circular on selection for the posts of Indirect Tax Ombudsman – CIRCULAR [D.O. F.NO.A-12026/5/2011-AD.I], DATED 25-05-2011

CIRCULAR [D.O. F.NO.A-12026/5/2011-AD.I] (25/05/2011)

CIRCULAR [D.O. F.NO.A-12026/5/2011-AD.I], DATED 25-5-2011 You are aware that the Government of India has created 7 posts of Indirect Tax Ombudsman at 7 stations, viz., New Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Ahmedabad and Lucknow under the Indirect Tax Ombudsman Guidelines, 2011. Selection for the posts of Indirect Tax Ombudsman i...

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Indirect Tax Ombudsman Guidelines, 2011

The Guidelines are introduced with the objective of enabling the resolution of complaints relating to public grievances against the Customs, Central Excise and Service Tax Department and to facilitate the satisfaction or settlement of such complaints....

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Posted Under: Income Tax |

DTAA with Mozambique

Notification No. 30/2011 - Income Tax (31/05/2011)

Notification No. 30/2011 - Income Tax FT&TR-II [F.NO.501/152/2000-FT&TR-II], dated 31-5-2011 - Whereas the annexed Agreement between the Government of the Republic of India and the Government of the Republic of Mozambique for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income signed in In...

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RBI – Findings of Forensic Scrutiny – Guidelines for prevention of frauds

RBI/2010-11/555 DBS. CO.FrMC.BC.No. 10/23.04.001/2010-11 (31/05/2011)

DBS. CO.FrMC.BC.No. 10/23.04.001/2010-11 - Based on the findings of the scrutinies, further study has been made across banks to ascertain the policy and operating framework in place for detection, reporting and monitoring of frauds as also the surveillance/ oversight process in operation so as to prevent the perpetration of frauds. The st...

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Revision in the powers of adjudication of the officers of Customs – Circular No.24/2011-Customs – Dated 31st May, 2011

Circular No. 24/2011-Custom Duty (31/05/2011)

Circular No.24/2011-Customs References have been received from the field formations for specifying the ‘proper officer’ for issuance of show cause Notice and adjudication of cases of export under the drawback and Export Promotion Schemes. Further, as per Board’s Circular No.23/2009-Customs dated 1.09.2009, whereas the monetary limi...

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Banks' NPAs may rise due to rate hikes- Central Bank of India

Central Bank of India chief S Sridhar today said the industry's non-performing assets (NPAs) are likely to increase, as some smaller companies that borrowed during the low rates regime would find it difficult to service their loans due to the hike in rates....

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Posted Under: Income Tax |

CWA – Extension of the last date for admission to Foundation, Intermediate and Final Course for December 2011 term of Examination

5th June 2011 , the last date for admission to Foundation, Intermediate and Final Course for December 2011 term of examination being Sunday, the same is now being extended to the next working day i.e. 6th June 2011. This extension be brought to the general notice of the Students and accordingly arrangements may kindly be made...

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Posted Under: Income Tax |

COMPETITION LAW – Amendment in CAT (Salaries and Allowances and other terms and conditions of service of the Chairperson & other Members) Rules, 2009

Notification No. G.S.R. 397(E) (31/05/2011)

NOTIFICATION NO. G.S.R. 397(E), DATED 24-5-2011 - In exercise of the powers conferred by clause (mc) of sub-section (2) of section 63 read with sub-section (1) of section 53G of the Competition Act, 2002 (12 of 2003), the Central Government hereby makes the following rules, further to amend the Competition Appellate Tribunal (Salaries and...

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Tariff Value of Edible Oils, Brass Scrap and Poppy Seeds Notified vide Notification No.37/2011-Customs (N.T.) dated May 31, 2011

Notification No. 37/2011-Customs (N.T.) (31/05/2011)

Notification No. 37/2011 – Customs (N. T.) - Central Board of Excise and Customs (CBEC), Department of Revenue has issued a Notification No.37/2011-Customs (N.T.) dated May 31, 2011 and thereby notifying tariff values of edible oils, brass scrap (all grades) and Poppy seeds as shown in the table below....

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New Directorate of Income Tax (Criminal Investigation) Created

New Directorate of Income Tax (Criminal Investigation) Created; to be Headed by an Officer of the Rank of Chief Commissioner of Income Tax; to Look into Criminal Matters Having any Financial Impliaction Punishable as an Offence Under any Direct Tax Law. The DCI will perform functions in respect of criminal matters having any financial imp...

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Posted Under: Income Tax |

Income Tax department to publish and expose names of tax defaulters on newspapers

Tax defaulters beware! With tax recovery to the tune of more than Rs one lakh crore held up for lack of information about the whereabouts of defaulters, the Income Tax(I-T) department is working on plans to publish their names in newspapers. The problem has been further compounded with several of the tax defaulters having created 'benami'...

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Posted Under: Income Tax |

Document seized must not only be a ‘speaking one’ but also be prima facie ‘incriminating one’ for attracting sec. 153C

Sinhgad Technical Education Society Vs. ACIT (ITAT Pune)

Sinhgad Technical Education Society vs. ACIT (ITAT Pune) -Though section 153C of the Income Tax Act confers jurisdiction if the Assessing Officer is 'satisfied' that 'documents' seized belong to a person other than the person referred to in section 153A so as to be able to assess that other person, the document must have prima facie incr...

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No Section 271(1)(c) penalty for failure to disallow u/s 14A

DCIT Vs. Nalwa Investments Ltd (ITAT Delhi)

DCIT vs. Nalwa Investments Ltd (ITAT Delhi)- Though the computation of s. 14A disallowance was not made, the figures of dividend and interest were stated in the P&L A/c. Even the tax auditors did not state that s. 14A disallowance should be made. As there is no allegation by the AO that there was collusion between the auditor and the asse...

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CBDT chairman appreciates Income Tax department and expresses gratitude

From the desk of Chairman,- CBDT S.N. 50 /May 31,2011 With profound humility, I bow in reverence & express my gratitude to each & every member of Ayakar Pariwar for their good wishes & support in my humble attempt to serve our great Nation. Even a small gesture of concern and care from me towards my Pariwar members has invariably elicited...

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Posted Under: Income Tax |

Liquid funds give better returns than savings account

Investments made in liquid funds, which invest in short-term debt instruments, offer better returns for retail investors than parking money in savings bank account, says a study. A study conducted by CRISIL Fund Services has found that liquid funds not only offer higher post-tax returns but also provide a reasonable degree of safety in te...

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Posted Under: Income Tax |

India and Tanzania Signed Double Taxation Avoidance Agreement (DTAA)

Press release No.402/92/2006-MC (10 of 2011) (28/05/2011)

The Government of the Republic of India signed a Double Taxation Avoidance Agreement (DTAA) with the United Republic of Tanzania for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on 27th May, 2011 at Dar-es-Salaam. The Agreement was signed by Shri K V Bhagirath, High Commissioner...

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CIT v Citi Financial Consumer Finance Ltd. (Delhi High Court)

CIT Vs Citi Financial Consumer Finance Ltd (High Court of Delhi)

The expenditure is to be fully allowed in the year in which the same is incurred provided it fulfills the test laid down under s 37, and only in exceptional cases can the expenditure be allowed to be spread over, that too, when the assessee chooses to do so as held by Delhi High Court in CIT v Citi Financial Consumer Finance Ltd — In fa...

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MCA makes it mandatory for CAs, CSs, CWAs to digitally sign DIN applications

General Circular No. 32/2011 (31/05/2011)

THE Ministry of Corporate Affairs has decided that with effect from 12th June, 2011, all DIN-1 & DIN-4 applications have to be digitally signed by the practicing Chartered Accountants, Company Secretaries or Cost Accountants who shall also verify the particulars of the applicant given in the applications. All these applications will be ap...

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Depreciation for the purpose of declaration of Dividend under Section 205 in case of companies referred to in Section 616 (C ) of the Companies Act, 1956 (the Act)

General Circular No. 31/2011 (31/05/2011)

It has been noticed that despite having clear provision in section 616 (C) of the Companies Act, 1956, the companies engaged in the generation or supply of electricity are approaching Ministry of Corporate Affairs for fixing rate of depreciation in individual cases. The Ministry has, considered the whole matter and it is hereby clarified ...

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The Companies (Passing of the resolution by Postal Ballot) Rules, 2011

Notification No. G.S.R. 419(E) (30/05/2011)

MCA has replaced the Postal Ballot rules by incorporating the green initiatives in the Postal Ballot mechanism. Sending of Notice and voting by shareholder through electronic mode has been recognized. However, there is no option to the Company to adopt both, manual as well as electronic mechanism. (Notification [GSR 419(E)] dated 30 May 2...

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India initiates lesser anti-dumping probes against imports between October, 2010 and April 2011

In sync with several other major economies, India initiated less number of anti-dumping probes against imports between October, 2010 and April 2011, according to a joint report of the multilateral agencies. India launched 15 anti-dumping investigations during this period as against 20 in the same months (October 2009 to April 2010) of ear...

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Posted Under: Income Tax |

Political parties to go corporate as Election Commission plan new rules to curb use of black money

In an effort to curb the use of black money in the electoral process, the Election Commission now plans to ask political parties to conduct their finances in a corporate fashion by getting their accounts audited and publishing their audited finance sheets annually. The EC has received a host of such recommendations from the country's audi...

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Posted Under: Income Tax |

ICAI to soon conclude disciplinary proceedings against auditors in Satyam case

Accounting regulator ICAI today said it will soon conclude the disciplinary proceedings against S Gopalakrishnan and Srinivas Talluri , the two auditors embroiled in the multi-crore Satyam fraud . The Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) would be holding the hearing(s) in the said matter(s) at ...

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Posted Under: Income Tax |

Delhi court fines plantation company for violating SEBI norms

A plantation company and its two directors have been slapped with a fine of Rs2.25 lakh by a Delhi court for collecting a huge sum of money from the public, promising them high returns, without prior Securities and Exchange Board of India (SEBI) permission. Additional sessions judge Pawan Kumar Jain fined Yojna Agro Forestry Ltd, a firm a...

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Posted Under: Income Tax |

Thrust on ensuring faster and inclusive growth – Montek Singh Ahluwalia

Planning Commission’s Deputy Chairman Montek Singh Ahluwalia today said the issues like cash subsidy and PPP, especially raised by Bihar, would be addressed prominently in the approach paper to 12th five year plan. 'We will give thrust on ensuring faster and inclusive growth and sustainability,' Mr. Ahluwalia said....

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Posted Under: Income Tax |

RBI Guidelines for Accounting of Repo / Reverse Repo Transactions-Clarification

RBI/2010-11/551 IDMD No./29 /11.08.043/2010-11 (30/05/2011)

We have received queries from market participants whether the Master Repo Agreement finalised by FIMMDA is mandatory for repo transactions in Government Securities settled through CCIL. In this regard, it is clarified that the Master Repo Agreement finalised by FIMMDA is not mandatory for repo transactions in Government Securities settlin...

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Resolution of issues regarding allocation of villages under Electronic Benefit Transfer (EBT) scheme and roadmap for providing banking services in villages with population above 2000 under Financial Inclusion Plan (FIP)

RBI/2010-11/550 RPCD.CO.LBS.BC.No. 74/02.19.010/2010-11 (30/05/2011)

It has been brought to our notice that in some States the State Governments are implementing the ICT based Electronic Benefit Transfer (EBT) for routing social security benefits (MNREGA, NOAPS, etc.) to beneficiaries through the banking channel using the 'one district one bank model'....

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CWA- Suggested Minimum Professional Fees as Approved by the Council

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA 12 SUDDER STREET, KOLKATA – 700 016 -SUGGESTED MINIMUM PROFESSIONAL FEES AS APPROVED BY THE COUNCIL AT ITS -268TH MEETING HELD ON MAY 28, 2011 1. Fees for Cost Audit related assignments:...

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Posted Under: Income Tax |

Creation of a new Directorate of Income-tax (Criminal Investigation)

Notification No. 29/2011 - Income Tax (30/05/2011)

Notification No. 29/2011 - Income Tax The President of India is pleased to approve the creation of the Directorate of Income-tax (Criminal Investigation), to be known in short as DCI, in the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, with immediate effect....

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I-T sleuths to hand over boss's number before raid / Survey

The next time an Income Tax team raids your business premise they will not seize anything but instead leave the name and contact number of their boss with you. The I-T team will do so even before they begin the raid and the step has been taken to do away with any grievance related to harassment or corruption by I-T officials under the gar...

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Posted Under: Income Tax | ,

Trade Mark Case – Delhi HC dismisses appeal of Champagne Moet & Chandon

Champagne Moet And Chandon Vs Union Of India & Ors (Delhi High Court)

The Delhi high court has dismissed the writ petition of French company Champagne Moet & Chandon objecting to the order of the Intellectual Property Appellate Board dismissing its appeal against an order of the Deputy Registrar of Trademarks in a trade mark case. The company is a well-known manufacture of wines which it is selling under th...

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SC directs motor vehicle owner to pay for accident caused by minor

Jawahar Singh Vs. Bala Jain & Ors. (Supreme Court of India)

Jawahar Singh Vs. Bala Jain & Ors. (Supreme Court - 09.05.2011) The Supreme Court has stated that it is the duty of the owner of a motor vehicle to ensure that it was not misused. Therefore, he would be liable to pay compensation for the accident if the vehicle is driven by a minor. The owner was asked to pay Rs 8 lakh to the family of a ...

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Apex Court upholds government policy in container terminal bid

APM Terminals B.V. Vs. Union of India & Anr (Supreme Court of India)

The company had challenged the government policy of not allowing existing operators to bid for the immediate next terminals. According to the policy, The court asserted that the government has the right to make a policy to prevent companies from bidding for the immediate next terminals so that no monopoly of cargo firm is created. The cou...

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Posted Under: Income Tax |

Supreme Court accepts higher bid after auction of firm says it will benefit creditors

Shradhha Aromatics Private Limited Vs. O.L. of Global Arya Industries Limited and others (Supreme Court of India)

The Supreme Court last week set aside the judgment of the Gujarat high court and directed the sale of a wound-up company in Veraval at a higher price so that creditors will get their dues. The company judge had first ordered the sale at a one price, but recalled its order when a higher offer was made by another party. However, when one of...

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Supreme Court reveals four points essential to escape murder conviction

State of Rajasthan Vs. Islam (Supreme Court of India)

State of Rajasthan Vs. Islam (Supreme Court 24.05.2011) An accused can escape conviction for murder if he proves that there was no premeditation for the act, occurred in a heat of passion, no cruelty involved and undue advantage taken, the Supreme Court has ruled. A bench of justices Asok Kumar Ganguly and Deepak Verma in a judgement sa...

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Government Commissions Fresh Study Through Top National Level Institutions for Estimation of Unaccounted Income/Wealth both Inside and Outside the Country

Ministry of Finance, Government of India has commissioned an in-depth and fresh study, engaging three top national level institutions for estimation of unaccounted income and wealth held within and outside India. This study will bring out the nature of activities that encourage money laundering and its ramifications on national security. ...

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Posted Under: Income Tax |

Interocean Shipping (I) (P.) Ltd. Versus Union of India (Delhi High Court) Dated – 03-03-2011 – Service Tax

Inter ocean Shipping (I) (P.) Ltd. Vs Union of India (Delhi High Court)

Interocean Shipping (I) (P.) Ltd. Versus Union of India (Delhi High Court) Dated: 03-03-2011 - Service Tax - Ship broking and other activities - Section 65(105)(zzb)read with 65(19) - Business Auxiliary Services - The said services became taxable by the Finance Act, 2003, whereby sub-section (zzb) to section 65(105) was enacted - The sa...

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Allowability of Unfunded actuarial liability for pension in respect of employees payable till death

Brooke Bond India Ltd. Vs Joint Commissioner of Income Tax & Anr. (Calcutta High Court)

Brooke Bond India Ltd. Vs. JCIT & Anr. (Calcutta High Court) - Tribunal was justified in law in not allowing the sum of Rs.1,43,35,000/- which represents the liability on account of pension on the basis of the resolution of the Board payable to the employee till their death. Whether, the liability on account of pension on the basis of th...

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Whether disallowance of loss on account of purchase and resale of UTI units should be restricted to the extent of dividend brought to tax by the AO

Eveready Industries India Ltd. Vs Commissioner of Income-Tax (Calcutta High Court)

Eveready Industries India Ltd Vs CIT, Kolkata (Dated: March 04, 2011)- Income Tax - Sections 10(33), 14A, 94(7) - Whether dividend stripping is allowable - Whether a premeditated transaction by virtue of which an assessee earns tax free income and squares off profits with losses is permissible if it is within the four corners of law. - As...

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Office notice appended to 158BC order can constitute satisfaction note within the parameter of Section 158BD of the Income Tax Act, 1961 – HC

The Commissioner Of Income Tax Vs M/s Mukta Metal Works (Punjab & Haryana High Court)

The Commissioner of Income Tax (CIT) Versus M/s Mukta Metal Works - Whether the Tribunal is right in holding at page 68 of the order that the office note dated 21.05.2001 which was appended to 158BC order dated 21.5.2001 and is part of the said order, does not constitute a satisfaction note within the parameter of Section 158 BD of the I...

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Income Disclosed before IT authorities cannot be treated as towards taxable service in the absence of any statutory presumption and without making any enquiry

Commissioner of Central Excise Commissioner ate Vs M/s Mayfair Resorts (Punjab & Haryana High Court)

Mayfair Resorts Vs. CCEC, Ludhiana - The assessee is registered with the Service Tax Department under the category 'Mandap Keeper'. During audit for the period of 2004-05, it was noticed by the Department that the assessee surrendered Rs.35 lacs to the Income Tax Department as additional taxable income on the said amount being found cash ...

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If Act exclude a service from service tax than same can not be imposed by virtue of any circular

Kasturi & Sons Ltd Vs Union Of India & others (Madras High Court)

KASTURI & SONS LTD, CHENNAI Versus UNION OF INDIA & others (Madras High Court)- Dated: 24-02-2011 - Service Tax - Based on the impugned circular of the second respondent, the third respondent is insisting for payment of service tax on maintenance charges payable to the company in Denmark and therefore, the impugned circular is challenged...

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ST – Unless a different intention appears from the terms of contract, in case of the imposition or increase in the tax after the making of a contract, the party shall be entitled to be paid such tax or such increase

Pearey Lal Bhawan Association Vs M/S Satya Developers Pvt. Ltd. (Delhi High Court)

Pearey Lal Bhawan Association Vs M/S Satya Developers Pvt Ltd (Delhi High Court) - Service Tax: whether the burden of service tax, levied on the service or facility of leasing (of the suit premises) should be borne by the lessor (i.e. the service provider) or the lessee (i.e. the defendant, user). - that unless a different intention appea...

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HC dimisses revenue appeal as there was nothing to show that the amount of cash seized represented clandestine sale of excisable goods

Commissioner of Central Excise Vs. M/s Patran Pipes (P) Ltd. (Punjab & Haryana High Court)

Commissioner Of Central Excise (CCE) vs M/S Patran Pipes (P) Ltd. - There is concurrent finding of fact recorded by the Commissioner and the Tribunal that there was nothing to show that the amount of cash seized represented clandestine sale of excisable goods....

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Liability of Duty, Penalty, & Interest in respect of import made against forged & fabricated advance license

Rahuljee & Company Ltd Vs Commissioner Of Customs (Delhi High Court)

Rahuljee & Company Ltd. Versus Commissioner of Customs (Delhi High Court) -The importers who got the goods cleared on the basis of licences purchased by them through one, Gautam Chaterjee and these licences had ultimately turned out to be forged and fabricated licences purported to be issued in the names of different licence holders. - o...

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Whether ITAT justified in law in allowing deduction u/s 80IB on labour job receipts ignoring the fact that such income is not ‘derived from’ the eligible business?

Commissioner of Income-Tax Vs M/s Metalman Auto Pvt. Ltd. (Punjab & Haryana High Court)

Metalman Auto Pvt. Ltd. Vs. CIT, Ludhiana(High Court of Punjab and Haryana At Chandigarh) - Whether ITAT is justified in law in allowing deduction u/s 80IB on labour job receipts ignoring the fact that such income is not 'derived from' the eligible business of industrial undertaking of the assessee company? - Whether ITAT is justified in ...

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The action of the Chief Commissioner to refuse to accept new units as a part of LTU and issuing show cause notice to them regarding transfer of Cenvat credit not tenable under LTU scheme

Sharda Motor Industries Ltd. Vs Union of India (Bombay High Court)

The unit in question is situated at Nashik, Maharashtra within the jurisdiction of this Court. The said unit was initially administered by the LTU at Delhi and it is only as an afterthought the revenue is contending that the unit in question would not be governed by the LTU scheme for the period where there was no specific approval. If me...

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Message from Hon'ble Minister of Corporate Affairs, Shri Murli Deora

Consider the enormity of the data-over 8 and a half lac companies, over hundred online services offered to them, over sixty e-forms. hundreds of data fields and crores of pages of pdf attachments. If this speaks about something. it is the challenge before the Regulator, the Ministry of Corporate Affairs (MCA), which is humongous. While MC...

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Posted Under: Income Tax |

DEPB scheme may not get extension – Commerce Ministry

Commerce Ministry has asked exporters to 'keep their fingers crossed' on their demand for extension of the DEPB, a tax neutralisation scheme on exports, beyond June 30. With the Revenue Department making it clear that the window of the Duty Entitlement Pass Book (DEPB) would close from June end, the exporters are lobbying hard with both ...

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Posted Under: Income Tax |

Govt relaxes eligibility criteria for appointment of CMDs for public sector banks

Facing shortage of experienced hand, the government has relaxed the criteria for selection of Chairman and Managing Director (CMD) of public sector banks , a decision that would make several executive directors eligible for elevation as CMD. Under the new criteria, a bank executive director (ED) with a minimum experience of 6 months woul...

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Posted Under: Income Tax |

FDI in services come down by 22.5 pc to USD 3.4 bn in 2010-11

Foreign direct investment (FDI) in India''s services sector, which contribute over 50 per cent in the country''s economic growth, declined by 22.5 per cent to USD 3.4 billion in 2010-11, according to the industry ministry''s latest data. The services sector (financial and non-financial services) had attracted FDI worth USD 4.39 billion du...

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Posted Under: Income Tax |

30 corporate executives get Rs 1 crore-plus salary per annum

Mukesh Ambani has got company of at least 29 fellow corporate executives, including four from his own group Reliance Industries , in terms of annual salaries running into crores of rupees for the latest fiscal. These include JSW Energy's Sajjan Jindal, Hindustan Construction's Ajit Gulabchand, Raymond's Gautam Hari Singhania, ICICI Bank'...

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Posted Under: Income Tax |

Sebi widens net for fake IPO bidding probe

Sebi has begun a probe into possible use of fake bids for artificially pushing up the subscription levels in numerous IPOs over past few years, with a modus-operandi similar to that in Vaswani Industries case. After halting Vaswani Industries' listing earlier this month on suspicion of irregularities in its IPO bidding, the market watchdo...

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Posted Under: Income Tax |

Message from Secretary, Ministry of Corporate Affairs, Shri D.K. Mittal

Technological advancements in recent decades have given us a digital platform for financial information. However, 'digital' does not mean 'compatible' because each software application generates the financial document in different format (pdf, xls, html, doc. etc), which unfortunately cannot be read directly by another software applicatio...

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Posted Under: Income Tax |

New Career Opportunity with ICAI

ICAI requires technically par excellence professionally successful, academically brilliant, and administratively capable human resources at various level for being part of the business transformation project at ICAI in its headquarters at Delhi/Noida. The ICAI is the apex accountancy body established by the Parliament for regulating the ...

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Posted Under: Income Tax |

Merely because of the fact that the assessee had asserted that it is a developer in the returns filed by him, it cannot be said that there is any failure on the part of the petitioner to disclose fully and truly all material facts

Aayojan Developers Vs ITO (Gujarat High Court)

Aayojan Developers vs ITO (Ahemdabad High Court) -Merely because of the fact that the assessee had asserted that it is a developer in the returns filed by him, it cannot be said that there is any failure on the part of the petitioner to disclose fully and truly all material facts. At best, the petitioner has made a claim along with suppo...

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Govt raises ECB limit, eases norms

The Government of India has decided to raise the limit for external commercial borrowings to $30 billion from $20 billion before, a senior finance ministry official said on Friday. The government has decided not to raise the foreign institutional investor limit in government bonds, said the official, who did not wish to be named. FIIs c...

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Posted Under: Income Tax |

Finance ministry clear norms for new bank licences, with FDI rider

The finance ministry has cleared the Reserve Bank of India's draft guidelines on new bank licences with a rider that the existing 74% cap on foreign direct investment be retained. The central bank, which had proposed capping FDI in new banks at 49% in the first 10 years, is likely to make the guidelines public and may seek comments from ...

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Posted Under: Income Tax |

Committee set up to strengthen ways to curb black money

The Government has constituted a Committee under the Chairmanship of Chairman, Central Board of Direct Taxes (CBDT) to examine ways to strengthen laws to curb the generation of black money in the country, its illegal transfer abroad and its recovery. The Committee will examine the existing legal and administrative framework to deal with t...

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Posted Under: Income Tax |

Income Tax Survey officer to provide prior to survey contact details of CCIT/ CIT / Addl. CIT / JCIT to taxpayer

CBDT S.N. 49 (27/05/2011)

Transparency in Survey operations - For bringing transparency in survey operations and obviate the possibility of any grievance to the taxpayers, it is decided that henceforth: Survey teams visiting taxpayer’s premises under the provisions of section 133 A of the Income tax Act will, before the commencement of survey proceedings,provid...

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Instructions for filing of ITR -1 for A.Y. 2011-12

Who can use this Return Form This Return Form is to be used by an individual whose total income for the assessment year 2011-12 includes:‑ (a) Income from Salary/ Pension; or (b) Income from One House Property (excluding cases where loss is brought forward from previous years); or (c) Income from Other Sources (excluding Winning from Lo...

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Posted Under: Income Tax |

National Consumer Helpline Receives 10,170 Complaints in April

The National Consumer Helpline (NCH) received 10,170 calls during April 2011 for redressal of consumer complaints. In addition of these calls, 639 complaints were also received through online complaint system on NCH website. The maximum calls were received from Delhi followed by Uttar Pradesh,Maharashtra, Rajasthan and Haryana....

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Posted Under: Income Tax |

Modification in the instruction regarding payment of MCA fees in electronic mode

The Ministry of Corporate Affairs has instructed that from Monday next, i.e. May 29th, 2011 the payment of less than Rs. 50,000/- through electronic mode will be permissible in the “Investor Education and Protection Fund” through Pay Misc. Fee functionality. This facility will also be admissible for user having category as“Official ...

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Posted Under: Income Tax |

Overseas Direct Investment – Liberalisation / Rationalisation – A.P. (DIR Series) Circular No. 69 Dated 27.05.2011

RBI/2010-11/548 A.P. (DIR Series) Circular No. 69 (27/05/2011)

A.P. (DIR Series) Circular No. 69 - Performance Guarantees issued by the Indian Party -At present, ‘financial commitment’ of the Indian Party includes contribution to the capital of the overseas Joint Venture (JV) / Wholly Owned Subsidiary (WOS), loan granted to the JV / WOS and 100 per cent of guarantees issued to or on behalf of the...

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Delhi HC decision on Directos Appointment / Removal by IFCI on the board of TFCI Ltd.

Ifci Ltd. Vs Tfci Ltd. (Delhi High Court)

IFCI Ltd. Versus TFCI Ltd.- Delhi High Court - Brief facts of the present case are that the appellant company (hereinafter referred to as ‘IFCI’) owns 37.85% of shares of respondent-company (hereinafter referred to as ‘TFCI’). On 26th November, 2010 IFCI sent a requisition to TFCI for convening an Extra-Ordinary General Meeting (f...

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Competition Law- Brief study of Combination provisions effective 1 June, 2011

The Competition Act, 2002 was enacted to regulate (a) anti-competitive agreements, (b) abuse of dominance, and (c) Combinations. The provisions relating to regulation of combinations (for instance mergers, acquisitions, amalgamations, takeovers etc.) had been in abeyance for some time. These have now been notified Vide Notification No. S....

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Posted Under: Income Tax |

Review of Guidelines on entry of NBFCs into Insurance Business

RBI/2010-11/540 DNBS.PD.CC.No. 221/03.02.002/2010-11 (27/05/2011)

RBI has clarified that in case more than one company (irrespective of doing financial activity or not) in the same group of the NBFC wishes to take a stake in the insurance company, the contribution by all companies in the same group shall be counted for the limit of 50 % prescribed for the NBFC in an insurance JV. DNBS.PD.CC.No. 221/03.0...

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Bonus benefit to silk carpets under ITC HS code 57019090 and drawback code 570102

Public Notice No. 50 (RE-2010)/2009-14 (27/05/2011)

Bonus benefit under Focus Product Scheme available to silk carpets would also include such silk carpets exported under ITC HS code 57019090 with drawback code 570102 duly endorsed on the respective shipping bills. This will be with effect from 1.4.2010....

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Reconciliation of failed transactions at ATMs – Notification No. DPSS.PD.No.2632 / 02.10.002 / 2010-2011

RBI/2010/11/547 DPSS.PD.No.2632/02.10.002/2010-2011 (27/05/2011)

The Reserve Bank of India on Friday directed banks to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within seven days of an account holder's complaint or else pay a Rs 100 per day compensation. "The time limit for resolution of customer complaints by the issuing banks shall stand reduce...

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IRDA – Public Disclosures to be made by Insurers on Website and in Newspapers

Notification No. Ref:IRDA/F&I/CIR/PBDIS/105/05/2011 (27/05/2011)

Effective from the year ending March 2011, all insurers are required to file a Certificate confirming compliance with the stipulations on public disclosures as under: (1) Compliance with disclosure requirements on the Insurer’s website (Annexure 1) ; and (2) Compliance with the requirements on publication in the Newspapers (Annexur...

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Exim Bank's Line of Credit of USD 20 million to the Government of the Republic of Mozambique – A.P. (DIR SERIES) CIRCULAR NO. 4, DATED 25-07-2011

A.P. (DIR SERIES) CIRCULAR NO. 4 (27/05/2011)

Export-Import Bank of India (Exim Bank) has concluded an Agreement, dated March 28, 2011 with the Government of the Republic of Mozambique, making available to the latter, a Line of Credit (LoC) of USD 20 million (USD twenty million) for financing eligible goods, services, machinery and equipment including consultancy services to be expor...

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DELHI HC upheld deduction claimed in respect of remuneration/royalty paid to subsidiaries and holding companies

CIT Vs. Nestle India Ltd. (Delhi High Court)

CIT Vs. Nestle India Ltd. -The Delhi high court last week dismissed the appeal of the Commissioner of Income Tax in a dispute over the deduction claimed by IT return in respect of remuneration/royalty paid by it to other subsidiaries and holding companies. The assessing officer disallowed the claim and the tax appellate tribunal held that...

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Delhi HC Rules – Learner’s licence not valid to claim compensation

New India Assurance Co. Ltd. Vs Manjit Singh & Ors. (Delhi High Court)

New India Assurance Co. Ltd. vs Manjit Singh & Ors. on 18 May, 2011 - An insurance company would not be liable for payment of compensation in a motor vehicle accident if the driver had been transporting passengers on a learner’s licence, the Delhi High Court held in the case, New India Assurance Ltd vs Manjit singh. However, the company...

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Double Taxation Avoidance Agreement (DTAA) with Ethiopia

Press release No.402/92/2006-MC (09 of 2011) (27/05/2011)

The Government of the Republic of India signed a Double Taxation Avoidance Agreement (DTAA) with the Federal Democratic Republic of Ethiopia for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on 25th May, 2011 at Addis Ababa. The Agreement was signed by Shri S.M. Krishna, Externa...

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Notification No. 28/2011 – Income Tax Dated 27-5-2011

Notification No. 28/2011 - Income Tax (27/05/2011)

Notification No. 28 /2011- Income Tax [F. NO. 200/21-2011-ITA-I], DATED 27-5-2011 In exercise of the powers conferred by clause (39) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the following as the international sporting event, persons and specified income for the purposes of the said cl...

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MCA allows payment of Fees of less than Rs. 50000 through non electronic mode by Staff, Official liquidator and for Payment to Investor Education and protection Fund

Circular No. HQ/9/2002 (27/05/2011)

With effect form 29.05.2011, in the following cases challan mode for payment is allowed for amount less than Rs. 50,000/-. a. Payment to 'Investor Education and protection Fund' through `Pay Misc. Fee' functionality b. Any payment made by user having category as 'Official liquidator office...

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Corrigendum to Notification GSR 482(E) dated 04 March, 2011 regarding Exemption of certain group from provisions of section 5 of Competition Act, 2002 for a period of 5 years

Corrigendum to Notification No. GSR 482(E) (27/05/2011)

S.O. In the notification of the Government of India in the Ministry of Corporate Affairs vide GSR No.482 jEj, dated the 4th March, 2011, published at page 2 of the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), dated the 4th March, 2011, namely:- in line 5, for has assets read has either assets. in line 6, for ...

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Notification No. 44/2011-Customs Dated: 27/05/2011

Notification No. 44/2011-Customs (27/05/2011)

Notification No. 44/2011-Customs Whereas in the matter of import of Acetone (hereinafter referred to as the subject goods), falling under sub-heading 29141100 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, the Chinese Taipei (hereinafter referred to as the subject country) and imp...

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Customs Notification No.43/2011 Seeks to amend notification No. 121/2006-Customs, dated the 26th December,2006

Notification No. 43/2011-Customs (27/05/2011)

Notification No.43/2011-Customs Central Government, hereby makes the following further amendment in the notification of Government of India in the Ministry of Finance( Department of Revenue) No. 121/2006-Customs dated the 26th December, 2006, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R....

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Rate of exchange of conversion of each of the foreign currency with effect from 1st June, 2011 – Notification No. 36/2011 – Customs (N.T.)

Notification No. 36/2011-Customs (N.T.) (27/05/2011)

Notification No. 36/2011 - Customs (N.T.) Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 1st June, 2011 be the rate mentione...

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Taxability of profit and loss arising on account of appreciation or depreciation in the value of foreign currency

CIT Vs Dalmia Dairy Industries Ltd (Delhi High Court)

CIT Vs Dalmia Dairy Industries Ltd (Delhi High Court) - Income tax – Capital or Revenue Receipt – Rule 115 – Whether, if assessee receives a sum on account of non-performance of the terms of the agreement by the purchaser under an arbitration award and keep it in the capital account, the surplus arising on account of fluctuation in ...

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Tax paid by contractee on goods supplied to contractor, is allowable as Input Tax Credit to such contractor

The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor. The assessee was a...

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Posted Under: Income Tax |

Despite detection in survey, No penalty U/s. 271(1)(c)

CIT Vs. SAS Pharmaceuticals (Delhi High Court)

CIT vs. SAS Pharmaceuticals (Delhi High Court) Though it is possible that but for detection in the survey, the assessee might not have offered the income, penalty u/s 271(1)(c) can only be levied if “in the course of proceedings” the AO is satisfied that there is “concealment” or “furnishing of inaccurate particulars“. The wor...

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ABC International Inc USA (2011) 241 CTR 289 / 55 DTR 393 (AAR)

In re ABC International Inc. (AAR Delhi)

A.A.R. No. 840 of 2010 in the case of ABC International Inc. USA- Foreign corporates with subsidiaries in the country are not subject to payment of withholding tax for financial services like discounting of bills provided to their Indian arms. In a ruling, the Authority of Advanced Rulings (AAR) also held such companies are also not liab...

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India inks DTAA with Ethiopia to check tax evasion

India signed a Double Taxation Avoidance Agreement (DTAA) with the Federal Democratic Republic of Ethiopia for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on 25th May, 2011 at Addis Ababa. The Agreement was signed by Shri S.M. Krishna, External Affairs Minister on behalf of the...

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Posted Under: Income Tax |

RBI to soon release guidelines on new bank branches

The Reserve Bank will soon release guidelines for implementing its proposal to locate at least a quarter of the new bank branches in the unbanked areas, which generally fall in the rural areas. RBI will issue guidelines for 25% rural branches soon, said a banker present at the central bank's post-policy meeting today....

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Posted Under: Income Tax |

OECD pegs India’s growth at 8.5 percent in 2011-12

The OECD on Wednesday pegged India’s growth at 8.5 per cent for the current fiscal, indicating that economic expansion would be slower. The Organisation for Economic Cooperation and Development has projected the Indian economy to expand 8.5 per cent in 2011-12, much lower than the growth of 9.6 per cent witnessed in 2010-11 financial ye...

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Posted Under: Income Tax |

Regarding processing for or on behalf of client, in relation to agriculture – causing sale or purchase of agricultural produce

Circular No. 143/12/ 2011 – ST (26/05/2011)

Circular No. 143/12/ 2011 – ST Representations have been received that client processing of tobacco involving threshing and drying of tobacco leaves and client processing of raw cashew involving roasting/drying, shelling and peeling of raw cashew to recover kernel, are considered by the field formations as not falling within the meaning...

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Export of Guar gum

Notification No. 49 (RE- 2010)/2009-2014 (26/05/2011)

DGFT Notification No 49 (RE – 2010)/2009-2014 - Notification No. 47 of 18.05.2011 stipulating export of Guar gum to EU to be allowed only if it does not contain Penta Chlorophenol (PCP) in any proportion, has been rescinded. Thus, the earlier stipulation of Notification No. 50 of 06.07.2010 of allowing presence of upto 0.01 mg/Kg. of ...

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Despite Loan, Shares Gain is STCG and Not Business Profit

Shri Mahendra C Shah, Mumbai Vs Additional Commissioner of Income Tax (ITAT Mumbai)

Mahendra C Shah vs. Addl CIT (ITAT Mumbai) - The fact that the assessee borrowed for the purpose of buying shares is not conclusive that the assessee intended to do business in shares and not merely invest in them if the interest is capitalized as cost of the shares & not claimed as a revenue expenditure (Shanmugam 120 ITD 469 (Pune) foll...

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Internal Vigilance in Private Sector/foreign Banks

RBI/2010-11/554 DBS.CO.FrMC.BC.No. 9/23.04.001/2010-11 (26/05/2011)

DBS.CO.FrMC.BC.No. 9/23.04.001/2010-11 - RBI has also issued various circulars for the prevention of frauds and malpractices in banks. In this connection reference is specifically drawn to circulars DBOD. No.BC.20.17.04.001 dated August 25, 1992 on the recommendation of the Committee to enquire into various aspects relating to frauds and ...

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How to acquire digital signature certificate (DSC) and what are the charges?

The Ministry of Corporate Affairs has stipulated a Class-II or above category certificate for e-filings under MCA21. A person who already has the specified DSC for any other application can use the same for filings under MCA21 and is not required to obtain a fresh DSC. The DSCs are typically issued with one year validity and two year vali...

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Posted Under: Income Tax |

StCBs/DCCBs – Setting up of Central Electronic Registry under the SARFESAI Act, 2002 – RPCD.CO RCB.BC.No. 73/07.38.03/2010-11

RBI/2010-11/546 RPCD.CO RCB.BC.No. 73/07.38.03/2010-11 (26/05/2011)

RPCD.CO RCB.BC.No. 73/07.38.03/2010-11 It may be noted that initially transactions relating to securitization and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by banks and financial institutions, as defined under the SARFAESI Act, are to be registered in...

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Companies(Central Government's) General Rules and Forms (Second Amendment) , 2011 – New Form No. 23D inserted effective from 29-05-2011

Notification No. G.S.R.407(E) (26/05/2011)

1, (1) These rules may be called the Companies (Central Government's) General Rules and Forms ( Amendment ) Rules 2011. (2) They shall come into force with effect from 29th May, 2011. 2. In the Companies (Central Government's) General Rules and Forms, 1956, in Annexure 'A' for Form 23D the following Form shall be substituted , namely ...

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