M/s J.K. Aluminium Co vs. ITO (ITAT Delhi) – The assessee is a firm engaged in the business of manufacture of aluminum wire rods at IGP, SIDCO, Phase-II Samba, Jammu & Kashmir. During the assessment proceedings, the assessee had filed computation of taxable income wherein deduction u/s 80IB amounting to Rs 5,85,84,089/- was claimed. The A.O went through the details and found that the assessee had received excise duty refund of Rs 5,68,41,800/- during the financial year. The A.O by applying ratio laid down by the Supreme Court in the case of Liberty India vs. CIT 225 CTR 233 and the decision of ITAT, Amritsar Bench, in the case of M/s Shree Balaji Alloys vs. ITO in ITA No.255/Asr/2009 for the assessment year 2005-06 did not accept the assessee’ s claim for relief u/s 80IB of the Act in relation thereto. When this was proposed to the assessee, the assessee furnished a judgment of Delhi High Court in the case of CIT vs. Dharampal Premchand Ltd. 317 ITR 353 wherein this issue has been claimed to have been decided in its favour. The A.O, however, taking support from the decision of the Supreme Court, went on to disallow the claim of the assessee in respect of this excise duty refund. On Appeal Honorable ITAT Allow the claim of the Assessee relying on the Supreme Court decision in the case of Dharam Pal Prem Chand Ltd.
Vide Order No. 85 of 2011 dated 11.5.2011, the CBDT has transferred & posted Commissioners & Directors of Income-tax. Order No. 85 of 2011 dated 11.5.2011
It has come to the notice of the Ministry that some companies are making applications for getting prior approval of Central Government when they propose to make any loan to, or give any guarantee or provide any security in connection with a loan made by any other person to a Public Limited Company of which any such Director is a Director or a member even when the proposal does not fall under Section 295(d) and Section 295(e) of the Companies Act, 1956. General Circular No. 24/2011, Dated: – 12th May, 2011
Gujarat High Court has issued notices to the Union Ministry of Finance and the Income Tax department in response to petitions by two companies of Adani Group, challenging the imposition of Minimum Alternative Tax (MAT) through an amendment in the Finance Act, 2011. The notices were issued yesterday by the division bench of Chief Justice S J Mukhopadhaya and Justice J B Pardiwala while hearing the petitions by Mundra Port Special Economic Zone Ltd (MPSEZL) and Adani Power Ltd (APL). Next hearing is scheduled for July 8.
It is observed that Indian operations of foreign banks functioning in India as branches of the parent banks generally do not have a separate Audit Committee vested with the responsibility of examining and reviewing inspection/audit reports for their compliance. In the recent past, there have been concerns about the adequacy of regulatory compliance by foreign banks in India and it is felt that this is on account of Business Heads/Units reporting directly and being answerable to their ‘Functional Heads’ located overseas and not to the Chief Executive Officer (CEO) of Indian operations. RBI/2010-11/520 Ref.DBS.ARS.BC. No.07/ 08.91.020/ 2010-11
In March 2009, Ministry of Corporate Affairs (MCA), added paragraph 46 to the existing notified AS 11, The Effects of Changes in Foreign Exchange Rates, giving an option to companies to follow accounting treatment laid down in that paragraph. However, that option was available, as per that paragraph, only upto 31 st March 2011. Thus, that option is presently not available after 1st April 2011.
State Bank of India (SBI) will introduce green-channel banking at more of its branches to promote paperless work and to facilitate faster transactions for customers, SBI sources said. All major transactions, including withdrawals, deposits and remittances up to Rs 40,000, will be made through green-channel banking, which was introduced at 26 out of 680 branches of the bank in the first phase, the bank’s General Manager (Network-II), Devendra Prasad, said today.
These rules may be called the Companies (Accounting Standards) Amendment Rules, 2011. They shall come into force on the date of their publication in the Official Gazette. In the said rules, in the annexure under the heading B. ACCOUNTING STANDARDS, in the sub-heading “Accounting Standard (AS) 11” relating to The Effects of Changes in Foreign Exchange Rates, in paragraph 46, for the words and figures “46. In respect of accounting periods commencing on or after 7th December, 2006 and ending on or before 31s` March 2011”, the following shall be substituted, namely,‑ 46. In respect of accounting periods commencing on or after 7th December, 2006 and ending on or before 31′ March 2012.
Approval for FDI in Limited Liability Partnership firms The Cabinet Committee on Economic Affairs today approved the proposal to amend the policy on allowing Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP) firms. The FDI in LLPs will be implemented in a calibrated manner, beginning with the ‘open’ sectors where monitoring is not required, subject to the following conditions:
The Union Finance Minister Shri Pranab Mukherjee said that there are three major challenges before us today. The Finance Minister said that the first major challenge is how to bring entire society especially the poor and vulnerable section of society in the ambit of development process so that everyone shares fruits of benefit of growth and development. Shri Mukherjee said that the second major challenge is to achieve sustained GDP growth at the rate of 9 to 10 percent with fiscal prudence and moderate inflation.
