"May, 2012" Archive

Amedment in duty rates on Brass Scrap (all grades), Poppy Seeds, Gold and Silver

Notification No. 47/2012-Customs (N.T.) (31/05/2012)

Notification No. 47/2012 - Customs (N. T.), Dated- 31st of May, 2012 S.O. … (E).– In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendmen...

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Company Law – Notification amending Form 23AB

Notification No. G.S.R. 411(E) (31/05/2012)

In exercise of the powers conferred by sub-section (1) of section 642 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Central Government’s) General Rules and Forms, 1956, namely: –1. (1) These rules may be called the Companies (Central Government’s) Gen...

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Cost Accountants Eligible for VAT Audit in Tamil Nadu

ACT No. 18 OF 2012. (31/05/2012)

In the Tamil Nadu Value Added Tax Act, 2006, after section 63, the following section shall be inserted, namely:—63-A. Accounts to be audited in certain cases.—(1) Every registered dealer whose total turnover including zero-rate sale and sale in the course of inter-State trade or commerce as specified in section 3 of the Central Sales ...

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MVAT – Recindment of Notification No. VAT.1507/CR-44/Taxation-1 dated 6th December 2007

Notification No.-VAT: 1512/CR46/Taxation-1 (31/05/2012)

In exercise of the powers conferred by sub-section (1) of section 41 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Government of Maharashtra hereby rescinds with effect from the 1st April 2012, the Government Notification, Finance Department, No. VAT.1507/CR-44/ Taxation-1, dated the 6th December 2007. ...

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Guarantors to pay if debtors default – SC

The guarantor of a loan is liable to pay it if the debtor fails to clear it, the Supreme Court has ruled, while maintaining that financial institutions too cannot act like property dealers in recovering the debts. The apex court gave the ruling on an appeal by one Ganga Kishun, who had stood as a guarantor to a bank loan, raised by one G...

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Posted Under: Custom Duty | ,

Corruption does not deserve sympathy or leniency – even if it’s Rs. 50 bribe – SC

Harjibhai Devjibhai Chauhan Vs State of Gujarat (Supreme Court of India)

Held - Where the minimum sentence is provided, we think it would not be at all appropriate to exercise jurisdiction under Article 142 of the Constitution of India to reduce the sentence on the ground of the so-called mitigating factors as that would tantamount to supplanting statutory mandate and further it would amount to ignoring the su...

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Today is last day to submit form to secure Unstructured CPE learning Hours

As per CPE learning which is eligible for CPE credit for Unstructured Learning Activities(ULAs), the members are required to submit their Self-declaration in the form enclosed once in a year before 31st May, to avail the CPE Hours Credit for the ULAs undergone by them in the previous year. These forms would have to be submitted to the con...

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Posted Under: Custom Duty |

Despite Retrospective amednment Royalty Not Taxable as DTAA prevails

B4U International Holdings Ltd. Vs. DCIT (IT) (ITAT Mumbai)

In this case Assessing officer has made disallowance u/s. 40(a)(i) on payment for hiring charges for transponder, paid to PanAmSat Limited on the ground that no tax has been deducted at source by the assessee, u/s. 195 of the Act. Argument of learned Departmental Representative that the amendment to the Finance Act, 2012 changes the posit...

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Rationalization measures in the Qualified Foreign Investors (QFIs) Scheme

In the Budget 2011-12, the Government, for the first time, permitted Qualified Foreign Investors (QFIs), who meet the KYC norms, to directly invest in Indian Equity Mutual Fund (MF) schemes and in MF debt schemes that invest in infrastructure. It was for the first time that this new class of investors was allowed to directly participate i...

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Posted Under: Custom Duty |

Mere claim of income without any enforceable right does not result into any income

Deep Drilling 1 Pte. Ltd. Vs Assistant Director of Income-tax (International Taxation) (ITAT Mumbai)

Under the mercantile system of accounting, deduction of expenses is allowed when liability to pay such expenses is incurred irrespective of the fact whether such an amount has been paid or remained unpaid at the end of the year. In the like manner, income, under such a method of accounting, is recognized on accrual basis. In other words,...

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No reopening of Cases Prior to 01.04.2012 & Circular to avoid multilevel TDS on software u/s 194J -FM

On the issue of retrospective amendment, Union Finance Minister, Shri Pranab Mukherjee has said that he had given a commitment in the Parliament with regard to retrospective amendments that CBDT will issue a policy circular to clarify that in cases where assessment proceedings have become final before first day of April, 2012; such cases ...

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Posted Under: Custom Duty |

Fm asks tax officials to avoid moving HC in case question of law not involved in disputes

Normally my advise would be that if there be no point of law, if its a matter of fact, then I think with the two appeals at the commissioner's level the department need not rush to the High Court if there be no point of law concerned, Mukherjee said which addressing I-T officials here. ...

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Posted Under: Custom Duty |

CIT(A) must give sufficient time to A.O. for preparation of Remand Report

A.C.I.T. Vs. M/s.Bengal Waterproof Ltd. (ITAT Kolkata)

After hearing the rival submissions and on careful perusal of materials available on record, keeping in view of the fact that sufficient opportunity of being heard to AO has not been given by ld. CIT(A) for preparation of Remand Report and further keeping in view of the fact that all the materials placed before ld. CIT(A)has not been sent...

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Once foreign travelling accepted for business purpose then part of amount cannot be disallowed on account of personal use unless it is established

M/s Blue Steel Engineers Vs. DCIT (ITAT Mumbai)

It is not disputed that the directors of the company have undergone foreign travelling for the purpose of export and looking for the business avenues abroad. The details submitted by the assessee though only provides the date of travelling, details of country visited and amount of fare, visa charges and other miscellaneous expenses incurr...

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Appointiment of IRS Officers As Assistant Commissioners of Income-tax

Notification No. 10/2012-Income Tax (31/05/2012)

Notification No. 10/2012-Income Tax The president is pleased to appoint the following IRS(IT) officers in the grade of ACIT(Junir Scale) in the pay scale of Rs. 15,600 to Rs. 39,100 with effect from the dates stated against their names. Notification No. 10 of 2012 appointing IRS Officers As Assistant CITs ...

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Regarding File applications for 9 SEZ port codes

Policy Circular No. 66 (RE-2010)/2009 (31/05/2012)

DGFT Policy Circular No. 66 (RE-2010) /2009--Dated 31ST May, 2012- Sub:- File applications for 9 SEZ port codes - reg. Director General (Systems) have accorded SEZ port codes to the following 9 SEZs which have been uploaded on DGFT’s website:-...

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Online Reporting of Overseas Direct Investment in Form ODI

RBI/2011-2012/585 A.P. (DIR Series) Circular No.131 (31/05/2012)

It has now been decided to communicate the UIN in respect of cases under the Automatic Route to the ADs/Indian Party through an auto generated e-mail to the email-id made available by the AD/Indian Party. Accordingly, with effect from June 01, 2012 (Friday), the auto generated e-mail, giving the details of UIN allotted to the JV / WOS und...

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Disallowance u/s 36(1)(iii)(proviso) applicable to extension of existing business and not to setting up altogether different or new business

Sheetal Drape (India) Ltd. Vs Additional Commissioner of Income-tax-4(3) (ITAT Mumbai)

The ld. counsel for the assessee contended that the ld. CIT(A) was not justified in sustaining the disallowance of interest for the reason that the assessee was already doing its business from a rented premises. The new office premises and godown were stated to have been added in the current year to carry on the same business. It has thus...

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Unused urban land held by assessee for industrial purposes not assessable to Wealth Tax for a period of two years from the date of acquisition

Mars Hotels & Resorts (P.) Ltd. Vs Deputy Commissioner of Wealth Tax (ITAT Mumbai)

Notification has permitted the development of the land only for hotel; therefore, after the said notification, the land in question cannot be developed other than hotel and there is no dispute on this point that the land was finally developed by constructing the hotel by the assessee. Even, the MCGB vide its letter dated 10.6.1994 has ack...

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Where assessee is payee and not payer, no question of its defaulting in TDS deduction u/s 194J arises

Piramal Healthcare Ltd. Vs Assistant Commissioner of Income-tax (TDS)(ITAT Mumbai)

It is necessary that the assessee or the person concerned liable to deduct and pay the TDS must be responsible for paying to a resident any sum, by way of fees for professional services, fees for technical services, royalty or any sum referred to in clause (va) of sec. 28. Whereas just contrary to the said conditions, in the instant case...

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Penalty Us/ 271D applies only when Assessee accepts cash Loan Exceeding Rs. 20,000/- from a person

Gopal Sarkar Vs Additional Commissioner of Income-tax (ITAT Kolkata)

Secs. 271C, 271D and 271E, which were inserted in the I T Act w.e.f. 1st April, 1989, by the Direct Tax Laws (Amendment) Act, 1987, provided for the levy of penalties for certain defaults. Penalty under s. 271C was levied for failure to deduct tax at source. Penalty under s. 271D may be levied for failure to comply with the provisions of ...

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Providing sports facilities to general public without restriction to any caste, creed, religion or profession eligible for exemption U/S. 11

Director of Income-tax (Exemption) Vs Goregaon Sports Club (Bombay High Court)

This Court had the occasion to consider similar issues in a Judgment delivered in the case of DIT (Exemption) v. Chembur Gymkhana [Income Tax Appeal No. 5568 of 2010, dated 13-2-2012]. This Court, following the law laid down by the Supreme Court, has held that the fact that the membership of the club is open to a section of the community ...

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Identity of donor & voluntary nature be established for treating a donation as corpus donation

Income-tax Officer, Ward-2, Sri Ganganagar Vs Smt. Vidyawanti Labhuram Foundation for Science Research & Social Welfare (ITAT Jodhpur)

To avail exemption under section 11(1)(d) in respect of Voluntary contributions made with a specific direction that they shall form part of the corpus of the trust/institution, identity of donor(s) must be established- If identity of donors not established, there is no question of the donations having been received with such a direction s...

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Claim of Assessee that he never received Notice not tenable if he attends on date fixed for hearing

Commissioner of Income-tax Vs Vision Inc. (Delhi High Court)

The only question that arises for our consideration is whether the notice issued on 30.12.2004 under Section 143(2) of the Act was validly served upon the assessee-firm on 31.12.2004 as claimed by the Assessing Officer. We proceed on the assumption that the notice was not served on either of the two partners of the assessee-firm and that ...

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SEBI – Exit Policy for De-recognized/ Non-operational Stock Exchanges

Circular No. CIR/MRD/DSA/14/2012 (30/05/2012)

EBI vide circular dated December 29, 2008 issued guidelines in respect of exit option to stock exchanges. The exit policy of aforesaid exchanges has been reviewed by the Board and the said Circular stands revised/modified to the extent as under....

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DGFT – Exemption for export of pulses to the Republic of Maldives

Notification No. 118 (RE-2010)/2009-2014 (30/05/2012)

Notification No. 118 (RE-2010)/2009-2014 73 MTs of pulses for the year 2012-13 and 80 MTs of pulses for the year 2013-14 to the Republic of Maldives would be permitted to be exported through MMTC Ltd....

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RBI- Uniformity in Risk weight for assets covering PPP and post COD projects

RBI/2011-12/581 DNBS.PD.CC.No.276/03.02.089/2011-12 (30/05/2012)

The Reserve Bank, vide its notification No.DNBS.233/CGM(US)-2011 dated November 21, 2011 viz; Infrastructure Debt Fund-Non-Banking Financial Companies (Reserve Bank) Directions, 2011 issued detailed guidelines with regard to regulation of IDF-NBFCs.In terms of the Guidelines,for the purpose of computing capital adequacy, IDF-NBFCs are per...

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Discounting Charges are Not Interest – SC

CIT Vs Cargil Global Trading I. P. Ltd (Supreme Court of India)

CIT V/s. CARGIL GLOBAL TRADING I. P. LTD. Payment of ‘interest’ presupposes borrowing of money or incurring of debt. Discounting of Bill of Exchange does not involve borrowing of money or incurring of debt. The Bill of Exchange were acquired by the purchaser at a discounted price and there was no debt or obligation incurred by the Ta...

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Expenditure on fully convertible debentures deductible

Commissioner of Income Tax Vs Havells India Pvt. Ltd. (Delhi High Court)

Expenditure on fully convertible debentures deductible, Export Sales Income Source cannot be said to be located or situated outside India . It is well settled that expenditure incurred in connection with the issue of debentures or obtaining loan is revenue expenditure. Reference in this connection may be made to the leading judgment of th...

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TDS deductor only liable for Interest & Penalty not for TDS

Jagran Prakashan Ltd. Vs DCIT (TDS) (Allahabad High Court)

Sec. 194H - Ad agencies are not agent of newspaper; hence TDS is not required to be deducted on commission paid to such agencies. Where tax has not been deducted at source, the short deducted tax cannot be realised from the deductor and the liability to pay such tax shall continue to be with the assessee direct, whose income is to be ch...

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CBDT launches Internship Programme in Foreign Tax

Internship Programme of Foreign Tax & Tax Research Division, Department of Revenue - The CBDT has launched an internship programme in the Foreign Tax & Tax Research Division. The objective of the programme is to enable the department to critically analyze various aspects of International Taxation, Transfer Pricing, Advance Pricing Agreem...

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Posted Under: Custom Duty |

MVAT Notification for Extension of date for Entry 59 of Schedule A

Notification No. VAT. 1512/C.R. 62/Taxation-l (30/05/2012)

In exercise of the powers conferred by sub-section (1) of section 9 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Government of Maharashtra hereby amends SCHEDULE A appended to the said Act, as follows, namely:—...

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No Reassessment u/s 147/148 for Legal Error / Illegality in Original Assessment Order

Munjal Showa Ltd. Vs Deputy Commissioner of Income Tax (Delhi High Court)

The assessee had filed and furnished all details and particulars relating to the royalty payment including agreements, calculation and the approval before the Ld. AO during assessment proceedings. There was no failure on the part of the assessee to furnish true and correct all material facts. The facts were available before and were withi...

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HC allowed Migration of Student despite non payment of Fees

Rakesh Kumar Gupta Vs Registrar, University of Delhi and ANR (Delhi High Court)

In the counter affidavit filed by the respondent No.2/SOL, it is stated that the student is not entitled to any relief in the present petition for the reason that as per the rules of the respondent No.2/SOL contained in the prospectus, only a bonafide student of a college is entitled to migration to SOL and admittedly, the student had pai...

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Waste not, want not – New Rules to regulate e-Waste

NA (30/05/2012)

The Ministry of Environment and Forests (“MoEF”) has taken the first step towards reducing the alarmingly growing menace of pollutants from the information age. The E –Waste (Management and Handling) Rules, 2011 framed under the Environment Protection, Act 1986 were published on May 30, 2011 and have come into effect on 1st May 201...

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Networking Equipments Eliigible for Depreciation @ 60%

Dy. Commissioner of Income-tax Vs. M/s. Microsoft Corporation India Pvt. Ltd. (ITAT Delhi)

From the above note, it is clear that the above equipment primarily include the routers, switches, modems, etc. which are in the nature of input and output support devices which performs the functions including communication and control and, thus, they are computer hardware when they are used along with computer and when their functions a...

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Validity of Reopening u/s.147/148 on the basis of statement obtained during survey & retracted later?

Smt. M. Maheswari Vs. The Asst. Commissioner of Income Tax (ITAT Chennai)

When the statements made by the assessees here, later retracted, do not have any evidentiary value, there is no basis in holding that there are materials available before the Assessing Officer to make out cases of escapement of income. A reason must be formed by the Assessing Officer to reopen an assessment on the basis of material or in...

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Seeks to rescind Notfns. 09/2012, 10/2012, 11/2012, 18/2012 and 23/2012 – C.E

Notification No. 27/2012-Central Excise [G.S.R. 409(E).] (30/05/2012)

G.S.R. 409 (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby rescinds the following notifications of the Government of India in the Ministry of Finance (Department of...

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COP issued by ICAI etc can be considered as KYC document for proprietary concerns

RBI/2011-12/579 DNBS(PD).CC. No 275/03.10.42/2011-12 (29/05/2012)

Proof of the name, address and activity of the concern, like registration certificate (in the case of a registered concern), certificate/licence issued by the Municipal authorities under Shop & Establishment Act, sales and income tax returns, CST / VAT certificate, certificate / registration document issued by Sales Tax / Service Tax / Pr...

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FM to Inaugurate biggest office building of Income tax Department in India tomorrow

Union Finance Minister, Shri Pranab Mukherjee will inaugurate the biggest office building of the Income tax Department in India tomorrow. The building will house the offices of salary charges, non-corporate charges, International Taxation, Exemption and other allied charges, accommodating approximately 800 Officers and 1500 staff. It will...

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Posted Under: Custom Duty |

Criteria Declaring a Financial Institution as PFI U/s 4a of the Companies Act, 1956

The Ministry of Corporate Affairs has after giving due consideration decided that any Financial Institution applying for declaration as PFI shall fulfil the following criteria:- (a) A company or corporation should be established under a special Act or the Companies Act, 1956 being a central act; (b) Main business of the company should be ...

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Posted Under: Custom Duty |

Govt clears 25 FDI proposals worth 2,973.40 cr cleared

Government today said it has cleared 25 foreign direct investment, FDI proposals worth 2,973.40 crore rupees. The Finance Ministry said in a release that the applications were cleared after recommendations of the Foreign Investment Promotion Board,FIPB headed by Economic Affairs Secretary R Gopalan. ...

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Posted Under: Custom Duty |

When the award is opposed to public policy it is void

Union of India Vs M/s. Bharath Builders & Contractors (Kerala High Court)

Learned Central Government Standing Counsel submitted that the award so far as the upholding the claims under claim Nos.8 to 75 are not seriously opposed and it need not be set aside, urging that the challenge to the award on the ground it is opposed to public policy is against the awarding of claims under 1 to 7, we are not impressed by ...

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Custom Duty exemption to Compression-type combined refrigerator-freezers imported from Thailand

Notification No. 38/2012-Customs (29/05/2012)

Notification No. 38/2012- Customs In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the M...

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Anti-dumping duty on import of Aniline when originating in or exported from European union

Notification No. 30/2012-Customs (ADD) (29/05/2012)

Notification No. 30/2012-Customs (ADD) Whereas, in the matter of import of Aniline (hereinafter referred to as the subject goods), falling under sub-heading 292141 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the said Customs Tariff Act), originating in, or exported from European Union (h...

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Anti Dumping Duty on Acetone from Chinese Taipei – Withdrawn

Notification No. 29/2012-Customs (ADD) (29/05/2012)

Notification No. 29/2012-Customs (ADD) In exercise of the powers conferred by sub-section (1) and sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975), read with rules 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Ru...

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Seeks to levy definitive safeguard duty on import of Phthalic Anhydride

Notification No. 03/2012-Customs (SG) (29/05/2012)

Notification No. 3/2012-Customs (SG) Now, therefore, in exercise of the powers conferred by sub-section (1) of section 8B of the said Act, read with rules 12 and 14 of the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997, the Central Government after considering the said findings of the Director Genera...

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Seeks to rescind Notification No.1/2012-Customs (SG), Dated: 17.01.2012

Notification No. 02/2012-Customs (SG), (29/05/2012)

Notification No. 2/2012-Customs (SG), Central Government hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) no. 1/2012- Customs (SG), dated the 17th January, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R.29 (E), dat...

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Service Tax – How to Apply for Compunding of offence

Notification No. 17/2012-Service Tax (29/05/2012)

An applicant may, either before or after the institution of prosecution, make an application under sub-section (2) of section 9A of Excise Act, made applicable to service tax vide section 83 of the Act, in the form appended to these rules, to the compounding authority to compound the offence. Where an offence under the Act has been commi...

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Service Tax – How to apply for Settlement of Cases

Notification No. 16/2012-Service Tax (29/05/2012)

These rules may be called the Service Tax (Settlement of Cases) Rules, 2012. (1) An application under sub-section (1) of section 32E of Excise Act, made applicable to service tax vide section 83 of the Act, shall be made in the Form SC(ST)-1. (2) The application referred to in sub-rule (1), the verification contained therein and all rele...

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ICAI’s Guidance Note on Maintenance of Cost Accounting Records

Section 209(1) (d) of the Companies Act, 1956, incorporated in 1965, is the backbone of statutory cost accounting in the Indian corporate sector. This framework put to practice, through promulgation of Cost Accounting Records Rules by the Government, has inculcated a sense of cost consciousness in large number of industries/companies. The...

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Posted Under: Custom Duty |

Issues in Processing of Income Tax Returns at CPC

The following assessees have to file compulsorily e return only: - Limited Companies - Compulsory Audit Cases - from A.Y. 2012-13 Individuals/HUFs having Total Income above Rs. 10 Lakhs and assessees who have got foreign assets. To be filed with digital signature only for Limited Companies and for others whose accounts are audited u.s. 4...

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Clarification On Reopening Assessments Due To Retrospective Amendment introduced by Finance Act, 2012

Letter [F.No.500/111/2009-FTD-1(Pt.)] (29/05/2012)

The Finance Act, 2012 has introduced certain clarificatory amendments in section 2 clause (14), Section 2 clause (47), Section 9 and Section 195, of the Income Tax Act, 1961 ("Act"), with retrospective effect from 01.04.1962 or 01.04.1976, whereby meaning of various terms used in these sections have been clarified in order to remove any d...

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Residential Property Market – Time to Invest?

The residential property market in India, particularly in the Tier I & II cities, has remained sluggish for the past 12 months, with significantly lower sale volumes, especially when compared to the high absorption rates of 2010. Home loan interest rates now seem to be declining from their cyclical highs but unforeseen tax levies have com...

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Download Finance Act, 2012 as Assented by President

Honourable President of India has Given its Assent to Finance Bill 2012 or Budget 2012-13 on 28.05.2012. The Finance Bill 2012 already received the assent of Lok Sabha & Rajya Sabha. You can also download Finance Bill 2012, We have provided link for the same at the bottom of the post....

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Posted Under: Custom Duty |

Actual wastage cannot be compared with fixed standard because of various factors

D.C. I .T. Vs Sahara India Mass Communication (ITAT Delhi)

Assessee has maintained quantitative records wherein full details of newsprint purchased and used are given. The assessee has also explained the reason for excessive wastage before the Assessing Officer. The Assessing Officer, however, without rejecting the contentions of the assessee, relied on the report of the Registrar of Newspapers o...

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I-T department forms lawyer teams to fight black money cases

The Income Tax department has initiated a special country-wide exercise to engage a battery of lawyers for fighting black money cases and filing prosecution in a host of other tax evasion cases. Finance Minister Pranab Mukherjee, in his white paper on black money tabled during the recently concluded Parliament session, had said that "to ...

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Posted Under: Custom Duty |

Companies (Director Identification Number) Amendment Rules, 2012

Notification No. G.S.R. 395(E) (28/05/2012)

The photograph and document attached to the Form DIN-1 belongs to me. I further confirm that all required documents have been duly attested by me or duly attested by either Public Notary or a Gazetted Officer of a Government and are attached to the Form DIN-1....

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CMA – For Attention of Members – Election Reforms Committee

The members of the Institute are kindly aware that the Election to the 18th Council of the Institute of Cost Accountants of India were held in 2011 in accordance with the Cost and Works Accountants (Election to the Council) Rules, 2006 read with the Cost and Works Accountants Act, 1959 and the Cost and Works Accountants Regulations, 1959....

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Posted Under: Custom Duty |

Conversion of Term Deposits, Daily Deposits or Recurring Deposits for Reinvestment in Term Deposits by State and Central Co-operative Banks

RBI/2011-12/577 RPCD.CO.RCB.BC.No. 78/07.38.01/2011-12 (28/05/2012)

As per the instructions contained in paragraph 11 of circular RPCD.No.RF.DIR.BC.53/D.1-87/88 dated November 2, 1987 on Interest Rates on Deposits, StCB/DCCB on request from the depositor, should allow closure of a term deposit, a deposit in the form of daily deposit or recurring deposit, to enable the depositor to immediately reinvest the...

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Download Form-16 with 24Q + 26Q (Annual Return) in Excel Format

Automated Form 16 Preparation Software which can prepare at Form 16 of 50 Employees from the details of 24Q Annual Return Form. Master Form-16 New Financial Year 2012-13 / Assessment Year 2013-14 Master Form-16 New Financial Year 2011-12 / Assessment Year 2012-13 ...

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Buy-Back of Shares u/s. 77 of Companies Act, 1956

Section 77 essentially states that no company limited by shares, and no company limited by guarantee and having a share capital, shall have power to buy its own shares, unless the consequent reduction of capital is effected and sanctioned in pursuance of sections 100 to 104 or of section 402. Section 77(2) then furthers the objective of S...

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Posted Under: Custom Duty |

Procedure for download and merging of split TDS/TCS statement

Procedure for Download of File Merge Utility (in case file is split) and Merging Split Quarterly Consolidated TDS/TCS statement. A. Procedure for Download of File Merging Utility 1) Download 'File Merge Utility' from TIN website (www.tin-nsdl.com ) under the option 'TAN Registration' in download section. FMU can be downloaded ...

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Posted Under: Custom Duty |

Revised CBDT Instruction on Grant of TDS Credit For AY 2011-12

Instruction No. 4/2012 (25/05/2012)

Instruction No. 4/2012 (i) In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. Five thousands, the TDS claim may be accepted without verification. (ii) Where there is zero TDS matching, TDS credit shall be allowed only after due verification. ...

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Negative List in Service Tax-Impact on Construction Industry

It was 18 years ago when the levy of service tax was introduced with a meagre three services which has now grown manifold to 119 services. The scope of services has widened during the period of time. At present the levy of service tax is based on positive list. That is, only those services are taxable which are specifically mentioned in t...

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Posted Under: Custom Duty |

Copyright Board cannot grant interim relief

Super Cassettes Industries Ltd. Vs Music Broadcast Pvt. Ltd. (Supreme Court of India)

In the instant case, the power being sought to be attributed to the Copyright Board involves the grant of the final relief, which is the only relief contemplated under Section 31 of the Copyright Act. Even in matters under Order XXXIX Rules 1 and 2 and Section 151 of the Code of Civil Procedure, an interim relief granting the final relief...

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Charity should not become a façade to promote business interest or secure advantage of persons mentioned in section 13(3)

Director of Income-tax Vs Maruti Center For Excellence (Delhi High Court)

What is prohibited and barred is application of income or use of the property of the institution directly or indirectly for benefit of a person mentioned in Section 13(3) i.e. he is paid beyond what is reasonable, adequate, commensurate and justified for the services rendered or goods supplied. The said person should not profit at the exp...

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Office of CA or of a firm of a CA is neither a shop nor a commercial establishment.

Phillipos & Company And Others Vs The State (Karnataka High Court)

Once it is held that the office of a chartered accountant or of a firm of chartered accountants does not come within the expression of shop or commercial establishment as defined in the Act of 1961, the corollary would be that the provisions of the Act of 1961 cannot be applied to the office of a chartered accountant or of a firm of char...

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Profession of CA is neither a trade nor a business

Municipal Corporation of the City of Pune Vs Shri Bhagwan Ganesh Sabne (Bombay High Court)

The Principal Judge, Small Causes Court, Pune, and thereafter the District Judge, Pune, negatived the contention of the Corporation holding that profession of Chartered Accountant is neither a trade nor a business. Advocate for the Respondents drew my attention to the judgment reported in Current Tax Reporter Volume 80 Phillipos & Compan...

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Commission Agent Services provided prior to 10.09.2004 also taxable services under BAS

South City Motors Ltd Vs Commissioner of Service Tax, Delhi (CESTAT Delhi)

The Appellants are dealers of Ford Motor vehicles and they had entered into agreements with different banks and also with Non-Banking Financial Companies to market car-loan to potential customers. For loan taken by the customers, these appellants got commission from the banks and NBFCs. The issue in this appeal is whether service tax is t...

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Subscription fee received for social media monitoring and market intelligence services taxable as Royalty

ThoughtBuzz Pvt. Ltd. Vs Director of Income-tax (Authority for Advance Rulings (Income Tax) New Delhi)

Assessee was a tax resident of Singapore. The applicant sought a ruling on taxability of subscription fee received from users in India to access the online information database maintained by it. AAR was of the view that the market intelligence services provided by the applicant on online portal was taxable as Royalty as per Clause (iv) of...

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Posted Under: Custom Duty |

Transfer Pricing – Disallowance of excess advertisement expense by comparing with average advertisement expense of companies is an adhoc method &not TNMM

ACIT Vs M/s. Genom Biotech Pvt. Ltd. (ITAT Mumbai)

Transfer Pricing Officer recomputed the expenditure relating to reimbursement of business promotion expenses by Assessee to its associated enterprise based in Cyprus. The TPO had compared the said expense with the average of promotional expenditure incurred by 17 pharmaceutical companies, to compute arm’s length price (ALP) using Trans...

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Exemption from furnishing return of income for A.Y. 2012-13 to salaried taxpayer

In the case of a salaried taxpayer, entire tax liability is discharged by the employer through deduction of tax at source. Complete details of such taxpayers are also reported by the employer through Tax Deduction at Source (TDS) statements. Therefore, in cases where there is no other source of income, filing of a return is a duplication ...

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Posted Under: Custom Duty |

Ordinary profits’ referred to in Section 80IA is different from ‘ALP’

Weston Knowledge Systems & Solutions (India) Pvt. Ltd., Vs The Income Tax Officer (ITAT Hyderabad)

The Tribunal placed reliance on the Chennai Tribunal ruling in the case of Tweezerman (India) Private Limited v. Addl. CIT, [2010] 4 ITR (Trib.) 130 (Chennai) which ruled that provisions of Section 80-IA(10) of the Act do not give an arbitrary power to the AO to determine the profits of the taxpayer. It is incumbent on the AO to show how ...

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Section 54F benefit remains intact even if Assessee transfer New house acquired to claim S. 54F to acquire another house

ACIT Vs Ms. Sultana Nazir (ITAT Chennai)

Assessee has invested in purchase of new residential house at Rs. 70,80,620/- within the period of two years in which the transfer took place and therefore, the assessee was eligible for deduction u/s 54F(1) of the Act in respect of the said investment out of this deemed long term capital gains. In our considered opinion, the Assessing Of...

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Mere Sale & Lease Back cannot lead to conclusion that transaction is sham

Commissioner of Income Tax Vs M/s. High Energy Batteries (India) Ltd. (Madras High Court)

It cannot be said that all tax planning is illegal/ illegitimate/impermissible. Applying the rationale of this decision to the case on hand, in the absence of any material to pronounce on the genuineness of the transaction herein, the mere fact that what had been purchased had been leased out to the vendor or that vendor had undertaken to...

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Even in a case where no expenditure is incurred, AO has to apply Rule 8D

Lakshmi Ring Travellers Vs Assistant Commissioner of Income-tax (ITAT Chennai)

The taxpayer contended that the AO may invoke provisions of the Section 14A of the Act only after conducting necessary enquiries into the factual aspects. However, the Chennai Tribunal held that even in a case where the taxpayer claims that no expenditure was incurred in relation with the exempt income, the statute had provided for a pres...

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S. 14A In case net interest is income, no part of interest paid can be disallowed for earning tax free dividend

Deputy Commissioner of Income Tax Vs M.s. Trade Apartment Ltd. (ITAT Kolkata)

The taxpayer adjusted the interest expenditure against the interest income earned. After such adjustment no interest expenditure remained to be disallowed. The taxpayer offered expenditure other than interest of Rs. 111,521 for disallowance under Section 14A of the Act on the estimated basis. The Kolkata Tribunal held that there was no i...

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Interest free loan is subject to arm’s length test irrespective of commercial expediency

Tata Autocomp Systems Limited Vs. ACIT (ITAT Mumbai)

The Tribunal dismissed the taxpayer’s proposition that only real income should be taxed and noted that these arguments could not be accepted in the context of Chapter X - Special Provisions relating to Avoidance of Tax, of the Act. In this regard, reliance was placed on the decision of Perot System TSI (India) Limited. The Tribunal obse...

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ALP cannot be applied to determine ‘ordinary profits’ for computing S.10A deduction

Visual Graphics Computing Services (India) Pvt. Limited Vs. The Asst. Commissioner of Income-tax (ITAT Chennai)

The provisions of Transfer Pricing regulations contained in Section 92 belong to a separate code enacted for computing income from international transactions having regard to Arm’s Length Price (ALP) so as to confirm that there is no tax avoidance by the taxpayer. Operation of Transfer Pricing provisions ends when the Transfer Pricing O...

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Payments for purchase of Software not Royalty – ITAT Mumbai

Asstt. Commissioner of Income Tax Vs Sonata Information Tech. Ltd. (ITAT Mumbai)

AAR in the case of Dassault (supra) was a case of sale of shrink wrap software and the AAR has held that reproduction and adaptation envisaged by section 14(a)(i) and (vi) can contextually mean only reproduction and adaptation for the purpose of commercial exploitation. The ruling of the AAR in the case of Dassault (supra) was approved by...

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Sec. 80-IB(10) applicable not for merely building housing project but also for developing & building housing project

CIT Vs Shravanee Constructions (Karnataka High Court)

CIT v. Shravanee Constructions (Karnataka High Court) Section 80-IB(10) of the Act is applicable not for merely building housing project but for developing and building housing project. In terms of the agreement, the taxpayer not only undertook the development activities on the land in question, but in fact the taxpayer entered into an ...

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Severance benefits (including Leave Encashment) received outside India from former employer for services rendered outside India not taxable in the hands of an individual who is a Not Ordinary Resident

Commissioner of Income Tax Vs. Shri Anant Jain (Delhi High Court)

Receipt of the impugned amount was on account of part services rendered by the assessee to his previous foreign employer outside India. Under section 5 of the I.T. Act, the total income of any previous year of a person who is a resident includes all incomes from whatever source derived, which is received or deemed to be received in India...

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Unit in SEZ, EPZ, FTZ & 100% EOU exempt from mandatory cost audit

General Circular No. 11/2012 (25/05/2012)

In partial modification of para (b) (iii) of the General Circular No. 67/2011, dated 30th November, 2011, it has been decided to extend exemption from mandatory cost audit to all units located in the specified Zones such as Special Economic Zones (SEZs), Export Processing Zones (EPZs) and Free Trade Zones (FTZs) and also to the 100% Expo...

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Regarding Exemption from applicability of cost accounting records rules to construction industry

Instruction F. No. 52/1/CAB-2012 (25/05/2012)

Cost Accounting Records Rules, 2011 do not visualize companies to change their cost accounting system if already in-place; but they are required to comply with the Generally Accepted Cost Accounting Principles and Cost Accounting Standards issued by the Institute of Cost Accountants of India, to the extent these are found to be relevant a...

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SEBI : Amendment to Consent Circular dated 20th April 2007

CIR/EFD/1/2012 (25/05/2012)

The Consent order, containing the alleged misconduct, legal provisions alleged to have been violated, facts and circumstances of the case and the consent terms, shall be hosted on the website of SEBI....

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Charitable trust is not invalid merely because settlor or Poor Relative of settlor is one of the beneficiary

Manockjee Cowasjee Petit Charities Vs Director of Income-tax (Exemp.) (ITAT Mumbai)

A charitable trust is not invalid merely because that settlor is one of the beneficiaries as long as he is not the sole beneficiary. If settlor is the sole beneficiary, then the trust would be invalid on account of non-divesting of party. Where dominant object of the trust was to help the poor Parsis and to donate to educational instituti...

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DIN 1 / DIN 4 Form – Photograph & Residential status included

Notification No. G.S.R. (E) (25/05/2012)

These rules may be called the Companies (Director Identification Number) Amendment Rules, 2012. (2) They shall come into force with effect from 29th May, 2012. 2. In the Companies (Director Identification Number) Rules, 2006,- (a) after FORM NO. DIN 1, in Annexure 1, for item (i) and entries relating thereto, the following shall be sub...

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India and Netherlands sign Protocol Amending DTAC

The Convention between the Kingdom of Netherlands and the Republic of India for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital was signed on 30th July, 1988 (DTAC). Both India and Netherlands have concluded a Protocol to amend the Article 26 of the DTAC concerning E...

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Posted Under: Custom Duty |

Requirements for requesting information under the India-Switzerland tax treaty relaxed

India has entered into a tax treaty with Switzerland; Article 26 of the tax treaty which deals with exchange of information between the two countries was reworded by agreement between the two countries and simultaneously a new paragraph 10 was inserted in the Protocol to clarify the understanding of the operation of Article 26 (Notificati...

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Posted Under: Custom Duty |

S.68 If assessee fails to prove identity & credit worthiness of creditor than AO can treat the loan as income

Kaypan Exports Pvt. Ltd. Vs. Income tax Officer (ITAT Mumbai)

The dispute is regarding addition of Rs.14,60,052/- made by AO on account of unsecured loans from Shri Balwantbhai Grewal. There is no dispute that the said amount had been shown as loan in books of account of the assessee. Assessee could not produce any evidence to prove the identity and creditworthiness of Shri Balwantbhai Grewal who li...

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Agent not liable for tax on income earned on behalf of principal but only for charges received for his service

City & Industrial Development Corporation of Maharashtra Ltd. Vs. ACIT (ITAT Mumbai)

Assessee is an agent of Government of Maharashtra and also considering the fact that Hon’ble High Court granted stay to the assessee for the recovery of the demand when the appeal was pending before ld CIT(A), we hold that the assessee has a prima facie case for grant of stay for recovery of the dues pending disposal of appeal before th...

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International Worker definition narrowed – outbound assignees contributing to India PF excluded

Notification No. IWU/7(17)2009/2816 (25/05/2012)

Special Provisions in respect of International Workers included in the Employees' Provident Funds Scheme, 1952 as well as Employees' Pension Scheme, 1995 have been given effect from 15t October, 2008. Subsequently, certain amendments have also been carried out vide notification dated 11th September, 2010 and the same were circulated vide ...

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I-T department working on strategy to prevent corruption

The Income Tax Department is working on a comprehensive strategy to deal with corruption within the organisation. The work relating to identification of potential areas of corruption related to the organisational activities and development of an action plan for its mitigation has commenced, the Central Board of Direct Taxes (CBDT) said. ...

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Posted Under: Custom Duty |

Who is a First Stage Dealer & Concept of Transit Sale

First Stage Dealer means a dealer, who purchases the goods directly from (i) the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from any other premises from where the...

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Posted Under: Custom Duty |

Stamp Papers valid even after six month of Purchase

Thiruvengada Pillai Vs Navaneethammal and Anr. (Supreme Court of India)

The Indian Stamp Act, 1899, nowhere prescribes any expiry date for use of a stamp paper. Section 54 merely provides that a person possessing a stamp paper for which he has no immediate use (which is not spoiled or rendered unfit or useless), can seek refund of the value thereof by surrendering such stamp paper to the Collector provided it...

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IRDA Guidelines on approval/renewal of agents training institutes

Circular No. IRDA/AGTS/CIR/GLD/120/05/2012 (25/05/2012)

The Authority has issued standard instructions and guidelines applicable for approval/renewal of agents training institutes vide Ref: IRDA/AGTS/CIR/GLD/269/12/2011, dated 7th December, 2011....

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Amendments in DTAA between India & Japan

Notification No. 19/2012-Income Tax (24/05/2012)

Notification No. 19/2012-Income Tax Whereas the Convention between the Government of the Republic of India and the Government of Japan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on income has come into force on the 29th day of December, 1989 after the exchange of Instruments of Ratifica...

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ITAT Asks CBDT to take notice of Mistakes in Central processing of Returns

Ambala Central Cooperative Bank Ltd. Vs Income-tax Officer (ITAT Chandigarh)

However, we would like to take this opportunity to bring to the notice of CBDT that after the procedure of Central processing of returns, many issues have come before various forums where unnecessary demands have been raised due to non-grant of TDS, wrong computation of income, adjustment of the previous year demand which have already bee...

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