"04 September 2011" Archive

ICAI and Other Examining bodies should get tuned to RTI Act – SC

The Institute of Chartered Accountants of India Vs. Shaunak H. Satya & Ors. (Supreme Court of India)

ICAI Vs. Shaunak H. Satya & Ors. (Supreme Court of India)- The learned counsel of ICAI submitted that there are several hundred examining bodies in the country. With the aspirations of young citizens to secure seats in institutions of higher learning or to qualify for certain professions or to secure jobs, more and more persons participat...

Read More

India cannot have a treaty with Switzerland under which the deposits of Indians in Swiss banks would be taxed by European nation – CBDT

Unlike the United Kingdom, India cannot have a treaty with Switzerland under which the deposits of Indians in Swiss banks would be taxed by the European nation, says the Central Board of Direct Taxes (CBDT). ...

Read More
Posted Under: CA, CS, CMA |

Loss arising on year-end valuation of an interest rate swap allowable as a deduction – ITAT Mumbai

ABN Amro Securities India Pvt. Ltd. Vs. ITO (ITAT Mumbai)

ABN Amro Securities India Pvt. Ltd. Vs. ITO (ITAT Mumbai)- When anticipated profits on unmatured contracts are held, to be non-taxable, there is no good reason as to why anticipated losses on unmatured contracts can be taken into account while computing business income, we find that there is an inherent fallacy in this approach inasmuch a...

Read More

M/s M.R. Tourist Home & Ors. Vs. Sales Tax Officer & Ors. (Supreme Court)

M/s M.R. Tourist Home & Ors. Vs. Sales Tax Officer & Ors. (Supreme Court of India)

M/s M.R. Tourist Home & Ors. Vs. Sales Tax Officer & Ors. (Supreme Court of India)- Whether Section 7(b) of Kerala General Sales Tax Act, 1963 introduced on 24.10.2006 with retrospective effect from 1.7.2006 could be applied to those dealers who had contracted for payment of turnover tax at the compounded rate under the alternate method o...

Read More

Interest income on trade advance given by a credit institution towards purchase of machinery for which the delivery is delayed, is not covered under the definition of ‘interest’ as defined u/s 2(5A)

Commissioner of Income Tax-I Vs. M/s. Integrated Finance Co. Ltd. (Madras High Court)

CIT Vs M/s Integrated Finance Co. Ltd. (Madras High Court)- The assessee is a credit institution. As a finance company engaged in hire purchase and leasing transaction, the assessee also does not deny that its activities in respect of financing, falls for consideration under sub clause (iv). The Assessing Officer has assessed the transact...

Read More

Allowance cannot be made merely because future payments were made out of the funds said to be kept in the suspense account

Commissioner of Income Tax Vs. K. A. S. Mathivanan (Madras High Court)

APPEAL under Section 260A of the Income Tax Act against the order dated 9.9.2003 made in ITA No.1297/Mds/96 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench, for the assessment year 1991- 92....

Read More

Depreciation at the rate of 50% cannot be claimed in respect of vehicles given on lease

Dy. CIT Vs Pradip N Desai (Gujarat High Court)

Dy. CIT Vs Pradip N Desai (Gujarat High Court)- The assessee company is a leasing company which is engaged in leasing of plant and machinery, motor cars, etc. to its client. It is neither the case of the assessee nor is there anything on record to indicate that the assessee uses the vehicles in question in its business of transportation o...

Read More

In case of loss making company valuing goodwill at 10% of the total consideration, without any material on record not sustainable

Commissioner of Income Tax Vs India Cements Ltd. (Madras High Court)

Prayer: Appeal filed against the order of the Income Tax Appellate Tribunal "C" Bench, dated 31.12.2002, made in I.T.A No. 1890/Mds/96, under Section 260 A of the Income Tax Act, 1961....

Read More

Compensation received for the mere loss of profits will be a revenue receipt, while the compensation received for the loss of a source of income would be capital receipt

The Commissioner of Income Tax Vs IPL Chemical Limited (Madras High Court)

CIT, Tiruchy Vs P L Chemical Limited (Madras High Court)- The contract entered into led to the loss of source of income in the ordinary course of business. As rightly pointed out by the Tribunal, the assessee's business hitherto till 1995 to market its products and its brand name, thus no longer available in toto, the non-compete fee thus...

Read More

Sale proceeds’ in Sec 10A also means net proceeds if the goods are purchased from foreign buyers on credit and assessee is entitled to benefits u/s 10A

CIT Vs IPL M/s Henna Zebraat (Allahabad High Court)

CIT, Bareilly Vs M/s Henna Zebraat (Allahabad High Court)- The assessee referred to the decision of Hon'ble Supreme Court in the case of J.B. Boda and Co. (P) Ltd Vs. CBDT, 223 ITR 271, according to which, if net proceeds are received in foreign exchange and credited then assessee would not be disentitled from exemption. ...

Read More