Policy Circular No. 47 (RE 2010)/2009-2014 dated 08.11.2011 laid down the procedure to file the DEPB applications for ‘Free Shipping Bills” for exports of ‘Cotton Yarn including Melange Yarn’ and ‘Cotton’. Representations have been received from trade and industry with regard to exports made under the “EPCG Shipping Bills” for “Cotton yarn including Melange yarn” from 01.04.2011 to 04.08.2011 and ‘Cotton’ from 01.10.2010 to 04.08.2011. In such cases appropriate code for DEPB and EPCG could not be given as during the period DEPB was not available. For the making applications of DEPB in such cases, the following procedure is laid down:-
The course of events in the instant case shows that the assessee was really contemplating the construction of a residential house. This intention of the assessee is very clear from the fact that within days of the sale of her old property, the assessee had purchased the new site for constructing a residential house. The old property was sold on 8-6-2006. The new landed property was purchased immediately on 5-7-2006. The events of sale and purchase and their proximity clearly demonstrate that the assessee had purchased the property only for the purpose of constructing a residential house. The old property was sold for a consideration of Rs. 34,73,447, out of which the assessee was accountable for long-term capital gains of Rs. 32,77,450. The assessee has invested Rs. 33,88,160 for the purchase of the land, which is more than the quantum of long-term capital gains. This again demonstrates the fact that the assessee had arranged the transaction in such a bona fide manner so as to claim the exemption available under section 54F.
The allegation in brief is that Kuwait based private firm had sent 3 items of electronic goods i.e. one Plasma T.V., a Sound System and Mounting brackets worth Rs.90,727/- in favour of a Lady, resident of Melattoor P.O., Trichur, whose husband was an employee of the above firm. The items were sent to her as gift items on the occasion of her house warming and the said consignment was arrived at Nedumbassery Airport. On receipt of the consignments, the lady preferred a Bill of Entry through Cochin based CHA. On receipt of the Bill of Entry before the Customs authorities at CIAL Nedumbassery, the Assistant Commissioner noted that the imported goods were electronic goods and the value of the same exceeded the exempted limit. He also noted that the import appears to be in violation of Foreign Trade Policy and that the goods were valued at Rs.90,727/- Hence, the same were liable to be confiscated under Customs Act.
This paper aims at bringing out the intricacies of prosecution of offences contained in the Income Tax Act, 1961 and their compounding. This paper further minutia the various guidelines issued by the CBDT in this regard. The readers are cautioned to take proper care and consultation before acting on the material contained in this article.
Certificate Course on Valuation is scheduled to start at Mumbai, with Fees INR 25000 from 21st -22nd January, 2012. Please Register.
The result of the Information Systems Audit [ISA] Assessment Test held on 24th December, 2011 is likely to be declared tentatively on 18th January, 2012 around 2.00 PM at the Institute’s office at New Delhi.
TAX BENEFITS ON PROPOSED ISSUE OF TAX FREE BONDS BY INDIAN RAILWAY FINANCE CORPORATION LIMITED The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under section 10 (15) (iv) (h) of IT Act. There will be no deduction of tax at source from the interest, which accrues to the bondholders on these bonds irrespective of the amount of the interest or the status of the investors. Wealth Tax is not levied on investment in Bonds under section 2(ea) of the Wealth-tax Act, 1957.
Briefly stated facts of the case are that the assessee company is engaged in the business of Trading in Electric Motors, Fans, Laboratory equipments and generation of Wind Power filed return declaring total income at Rs. 11,60,151/-. During the course of assessment proceedings, it was interalia observed by the AO that the assessee has claimed dividend income of Rs. 12,840/- being exempt u/s 10(34)
PTC India Financial Services Ltd. (PFS) has launched infrastructure bonds in the name as PFS Long Term Infrastructure Bond – Series 2, under section 80CCF of face value of Rs. 5000/- each to remain open till February 29, 2012 for subscription.
In Surat Electricity Co Ltd v. Asstt. CIT (2010) 35 DTR (Ahd) (Trib) 272 the assessee as per direction of the State Government supplied fodder to various cattle camps for maintaining smooth relations with the Government. In view of Explanation 5 to section 80 G it was held that the donation of grass fodder is not eligible for deduction. However, since it satisfied the test of commercial expediency it was held that it is allowable under section 37.
