important thing to appreciate here is that the provision created is on account of ascertained liability and the same should logically be excluded out of the calculation of book profits Clause (c) of Explanation (1) of Section 115JB. If the argument of the AO is accepted then every creation of provision will lead to dilution/reduction in the value of assets as a general class and therefore would not be deductible from book profit.
With regard to the assessee’s claim for exemption under section 10(1) of the Act in respect of agricultural income, the only aspect that clinches the nature of the agricultural income is whether agricultural operations were carried out or not. Once it was established that such agricultural activities were carried out by the assessee, assessee was entitled for exemption in respect of such agricultural income under section 10(1) of the Act, irrespective of any violation of the statutory provisions as alleged by the Assessing Officer in the instant case. Such infraction of the statutory provisions may expose the assessee to the risks of being penalized or punished under the relevant statutes, but the same do not change nature of the agricultural income, and as such, cannot be fatal to the assessee’s claim for exemption under section 10(1) of the Act.
FDI is not permitted in Real Estate Business. However, as per paragraph 6.2.11 of ‘Circular 1 of 2012 – Consolidated FDI Policy’ of the Department of Industrial Policy & Promotion (DIPP), FDI upto 100 per cent is permitted under the automatic route for Townships, housing, built-up infrastructure and construction development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure), subject to certain conditions.
Reserve Bank of India (RBI) in its monetary policy, during 2012-13 has announced not to permit banks to levy foreclosure charges/pre-payment penalties on home loan on a floating interest rate basis.
The value addition provided by a profession supplements and strengthens the statutory role which it normally plays under the legal framework by the government. As long as this aspect is recognized by the profession, the respect for it increases. Sometimes we get a rare opportunity to present this aspect to the Government during the formulation of the statute, so that the same can be incorporated in an appropriate form in the regulations. Our Institute utilized this opportunity when the new CARR and CAR notifications incorporated the Part III – Performance Reporting to the management, as a part of the report to be submitted by the Cost Auditor.
Ending hassles of employers in payment of EPF subscription of employees, the government today started an electronic mechanism that promises to bring transparency and accessibility. The initiative, launched by Labour and Employment Minister Mallikarjun Kharge, offers an opportunity to employers to file their returns online from anywhere and anytime.
The appointment of CA firm shall be done in two phases:- 1. Firm shall be short listed on the basis of Technical Bid and financial bids of short listed firms only would be opened.2. The services would be provided to Jaipur Regional Office, Housing & Urban Development Corporation Ltd. (HUDCO), HUDCO Bhawan, Behind RHB Office, Jyoti Nagar, Jaipur as well as any other location! office falling within the jurisdiction of HUDCO, Jaipur Regional Office.
If in any year, the gross receipts of the Institution exceeds Rs. 10 lakhs or Rs. 25 lakhs, as the case may be, then in that year, the Assessing Officer is empowered to examine the allowability of exemption u/s 11 but the same has no effect on granting the registration u/s 12AA of the Act.
The Delhi High Court today asked the Institute of Charted Accountants in India (ICAI) to allow disabled persons appearing for the CA examination to take the their relatives’ help in writing the papers for them.
In the instant case, in order to examine the entitlement of the assessee for exemption under section 54, it is to be seen whether the assessee had constructed residential house within three years of the transfer of his property. For doing so, the meaning of the term ‘house’ is to be explored. The term ‘house’ has not been given any statutory definition and, thus, has to be assigned meaning as understood in common parlance. As per dictionary, it means abode, a dwelling place or building for human habitation. A building, in order to be habitable by a human being, is ordinarily required to have minimum facilities of washroom, kitchen, electricity, sewerage, etc.
