The meeting of the Consultative Committee attached to the Ministry of Communications and Information Technology was held here today to discuss the Mail Network Optimization Project of Department of Posts. In his opening remarks Shri Kapil Sibal, Minister for Communications and Information Technology said that Department of Posts decided to revamp mail operations in line with the international best practices and include a project in the 11th Five Year Plan for consolidation and optimization of the existing mail network. The completion of project would result in improved mail related services to the public.
Distinction Between A Public Company And a Private Company – Following are the main points of difference between a Public Company and a Private Company :- 1. Minimum Paid-up Capital : A company to be Incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a minimum paid-up capital of Rs. 5,00,000.
Pune Income Tax Appellate Tribunal on the issue of deductibility of portfolio management fees in computing ‘capital gains’ under the Indian Tax Laws (ITL) held that such fees was directly connected to the acquisition and sale of securities and was incurred in the normal course of the investment activity. It was held that the payments would be allowed as a deduction in computation of capital gains under the ITL.
With a view to providing more operational flexibility to Indian corporates having investments abroad, Reserve Bank of India (‘RBI’) has decided to further liberalize / rationalize the regulations relating to overseas direct investment by Indian parties by making certain changes vide Rationalization (A.P. (DIR Series) Circular No. 69) dated 27.05.2011.
When works contract is sub-contracted there is only one taxable event and between main contractors and sub-contractor only one is liable to pay tax on the goods incorporated in the works contract. Herebelow this issue is discussed in the light of decision of Supreme Court and P&H High Court in the context of VAT provisions especially under Punjab VAT Act, 2005.
Amid reports that the government is planning to make tax evasion a criminal offence, a finance ministry official today said it could be done only if the source of income is illegal. But ‘if it is a tax evasion alone, it is a civil offence,’ the official said. He, however, asserted that ‘if there is an element of illegality about the source of income or if funds are used for illegal purpose…we can think of classifying these as criminal tax offences’.
M/s Total Securities Ltd Vs DCIT (ITAT Mumbai) – Whether penalty paid by a registered broker is not a fine for any infringement of law and hence allowable – Whether admission fee paid by the assessee to stock exchange for acquiring membership is revenue – Whether salary paid to directors can be disallowed on the ground that the assessee has failed to prove the genuineness of services rendered when similar payments have been allowed in subsequent years – Whether payments made to arbitragers and jobbers is covered by 194C and hence the same is not allowable if TDS is not deducted.
M/s. Perfetti India Ltd. Vs. ACIT (ITAT Delhi) Considering all the aspects and principle of consistency propounded by the Hon’ble Supreme Court in the case of Radha Swami Satsand vs. ITO reported in 193 ITR 321, we are of the opinion that loss suffered by the assessee on account of exchange rate fluctuation is allowable expenditure in this year also. The assessee may not be able to produce evidence of the utilisation of the capital before the AO but from the orders of the AO in earlier years and in subsequent years impliedly, it is ascertainable that it is used for the working capital which is in a revenue account.
Shanker Raju Vs UoI (Supreme Court) – CAT – Appointment of Member – A person who has completed ten years as a Member of Tribunal is ineligible to be re-appointed as Member even if he has not attained 65 years of age – Plain reading of proviso to sec. 10A makes it clear that the Chairman and Members appointed prior to Amending Act of 2006, on completion of either their term of service or on attainment of 65 years in the case of Chairman or 62 years in the case of Members of the Tribunal, whichever is earlier, may be considered for fresh appointment – Proviso to sec. 10A provides that such fresh appointment could be made only when the criteria prescribed under amended sec. 8 is satisfied and it is further subject to the condition that the total term of office of the Chairman shall not exceed 5 years and that of a Member, ten years.
Those interested in making presentation to the committee or submitting their views in person are welcome. Necessary date & time for an interactive session will be announced on our website. Individual e-mails can be sent by those interested to attend the session by conveying so at vkgupta99@nic.in or lb.singhal@nic.in
