"08 April 2012" Archive

Software Customisation is ‘production’ of computer program and entitled for S. 10B benefits

Cybertech Systems & Software Ltd Vs CIT (ITAT Mumbai)

The term ‘computer programme’ had not been defined under Section 10B of the Act, however, it had been defined under Section 10BB of the Act as ‘computer programme’ or ‘process’ or ‘management of electronic data’. After the amendment with effect from 1 April 2001, the definition of computer software had been given in the Ex...

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Discount on debentures issued for construction of house property allowable

M/s. Litolier Properties Pvt. Ltd. Vs. Income tax Officer (ITAT Mumbai)

ITAT held that the proportionate discount on deep discount debentures issued for construction of house property is in the nature of interest as defined under Section 2(28A) of the Income-tax Act, 1961 (the Act). Therefore, such interest would be allowable as deduction under the provisions of Section 24(b) of the Act while computing income...

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ITAT on Meaning of expression ’may be taxed’ used in India’s tax treaties

M/s. Telecommunications Consultants India Ltd. Vs Addl.CIT (ITAT Delhi)

Tribunal held that use of the expression ’may be taxed’ in the second sentence of Article 7 on business profits would permit both the state, in which the permanent establishment (PE) is situated (Source State or PE State), as well as the Residence State of the enterprise, the right to tax the business profits attributable to the PE....

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Quick Referencer On LLP Circulars (April 2011 – March 2012)

Registration Of Companies Or Llps Which Have One Of Their Objectives To Do Business Of Architect. Integration Of Director’s Identification Number (Din) Issued Under Companies Act, 1956 With Designated Partnership Identification Number (Dpin) Issued Under Limited Liability Partnership (Llp) Act, 2008...

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Posted Under: Income Tax |

Major Changes in Revised / New Schedule VI

Companies now have to follow Vertical Format for presentation of financial statements; horizontal format is no longer permitted by Revised Sch-VI. The Schedule No. as required earlier has been replaced with Note No. Number of shares held by each shareholder holding more than 5% shares now needs to be disclosed. Such information will be ba...

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Posted Under: Income Tax | ,

Checklist & Resolutions for Appointment of Managing Director

The following are the steps involved in appointment of Mr. A as Managing Director in a Company who is not an Managing Director in any other Company: 1- Convene Board Meeting, appoint Mr. A as Additional Director and pass resolution for appointment as Managing Director (sample of resolution specified hereunder) and fix date and appr...

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Posted Under: Income Tax | ,