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In a recent ruling, in the case of LG Asian Plus Ltd. Vs. Asst. Director of Income-tax the Mumbai Income-tax Appellate Tribunal has held that income earned by a Foreign Institutional Investor from derivative trading would be taxable as `capital gains’ in view of special provisions under section 115AD of the Income-tax Act, 1961. The Tribunal also held that under the Act, income could be treated as ‘speculative’ only if it was taxable as ‘business income’. The Tribunal accordingly ruled that FII income would not be treated as ‘speculative business income’. While ruling in favour of the assessee, the Tribunal held that loss incurred from derivative transactions would not be treated as ‘speculation loss’ but would be treated as capital loss, and hence, it could be adjusted against capital gains earned by the assessee.
The Circular defines electronic mode to mean video conferencing facility i.e. audio-visual electronic communication facility (VCF) employed which enables all persons participating in that meeting to communicate concurrently with each other without intermediary and to participate effectively in the meeting. The Circular clarifies that shareholders of a company may participate in a General Meeting under the provisions of the Act through electronic mode.
Government of India [GOI], Ministry of Corporate Affairs [MCA] has clarified its position on the Corporate Governance procedures under Companies Act, 1956 [the Act]. MCA has, on 20 May 2011, issued the General Circular No. 28/2011 [No. 17/95/2011/CL.V] dated 20 May 2011 relating to participation by directors in the meeting of Board / Committee of Directors [Board Meeting] through electronic mode. The Act provides that minimum 4 Board meetings be held every year and at least 1 Board meeting must be held every 3 months. The Act does not specify participation in the Board Meeting through electronic mode.
A relation between the business of a non-resident and activity carried on in India would result in a ‘business connection’ for the purpose of deemed accrual of income in India as well as for considering the resident as the agent of the non-resident
Merely because the assessee had been permitted to establish a new industrial undertaking for the manufacture of computer software as 100% EOU under the STP scheme was itself not enough to record a finding that the said unit had in fact been established and was entitled to claim the exemption under s 10B — as held by Delhi High Court in CIT v Modi Xerox — In favour of Revenue.
With choppy conditions in the stock market, the Department of Public Enterprises (DPE) is in disagreement with the Finance Ministry on pushing PSUs for listing and follow-on public offers through a “diktat”. The Department of Disinvestment, under the Finance Ministry, has identified PSU majors like Oil India Ltd, Rashtriya Ispat Nigam Ltd, MMTC Ltd and NBCC for a stake sale, as it would like to achieve the Rs 40,000 crore sell-off target for the current fiscal.
The Government today said that PPF accounts of Hindu Undivided Families (HUFs) which were closed down between May 2005 and December 7 last year would get 8 per cent interest on the deposits. The Finance Ministry has issued the clarification in view of the doubts raised with regard to payment of interest on Public Provident Fund (PPF) accounts held by the HUFs beyond the maturity period.
NOTIFICATION NO. S.O. 1064(E), DATED 16-5-2011 – WHEREAS, M/s. Infoparks Kerala, a State Government organization, has proposed under section 3 of the Special Economic Zones Act, 2005 (28 of 2005) (hereinafter referred to as the said Act), to set up a sector specific Special Economic Zone for information technology and information technology enabled services at Villages Puthencruz and Kunnathunadu, Taluka Kunnathunadu, District Ernakulam in the State of Kerala
CIRCULAR NO. IRDA/ACT/CIR/MIS/111/05/2011, DATED 25-5-2011 – This technical note describes the framework for estimating Economic Capital (EC hereafter) for general insurance companies including standalone health insurers of India. Typically EC is calculated using “standard formula” approach or through the use of internal models (company specific models). This technical note describes the “standard formula” approach for estimating EC.
aragraph 10 of AS 19 Leases requires the lease classification to be made at the inception of the lease., It further states that ,…If at any time the lessee and the lessor agree to change the provisions of the lease, other than by renewing the lease, in a manner that would have resulted in a different classification of the lease … the revised agreement is considered as a new agreement over its revised term. Changes in estimates (for example, changes in estimates of the economic life or of the residual value of the leased asset) or changes in circumstances (for example, default by the lessee), however, do not give rise to a new classification of a lease for accounting purposes.,
