"04 July 2012" Archive

Notification for Mah. Act No. VIII of 2012-Date of effect on which Section 7(1), section 23 and section 26(2) of Amd. Act shall come into force

Notification No.VAT.1512/CR-65/Taxation (04/07/2012)

In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Maharashtra Tax Laws (Levy Amendment and Validation) Act 2012 (Mah. VIII of 2012) the Government of Maharashtra...

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Wealth Tax on agricultural lands in urban area

Finance Act, 1992 made suitable amendments to the Wealth Tax Act and sec. 2(ea)(v)(b) defines “urban land”. But it does not clearly explain the status of agricultural lands situated in urban areas. In spite of that, the income tax authorities were giving exemptions to such lands till recently. This was evidenced by a document dow...

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Lease Rent – Only Finance charge represents the revenue receipt

Prakash Leasing Ltd. Vs DCIT (Karnataka High Court)

Prakash Leasing Ltd. v. DCIT - The lease rentals is not the real income of the assessee. The lease rental consists of financing charge as well as capital recovery. The amount received towards capital recovery constitute the capital expenditure, whereas the financing charge represents the revenue receipt, which is the real income. It is as...

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S. 80HHC Amendment cannot be from retrospective date

Avani Export & Others Vs Commissioner of Income Tax Rajkot & ORS. (Gujarat High Court at Ahmedabad)

In the present case, according to the Finance Minister presenting the Bill, a valid piece of legislation has been wrongly interpreted by the Tribunal. We have already pointed out that according to the existing law, if a valid piece of legislation is wrongly interpreted by the Tribunal, the aggrieved party should move higher judicial forum...

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ICAI Disciplinary Committee obliged to offer opportunity of being heard & to comply with principles of natural justice

Talluri Srinivas Vs Institute of Chartered Accountants of India (Delhi High Court)

Talluri Srinivas v. ICAI (Delhi HC)- Section 21B(3), read with rule 18 of the Rules makes it clear that the Disciplinary Committee is obliged to offer the member, whose conduct is under examination, an opportunity of being heard and to comply with the principles of natural justice. In the instant case, the period during which the interim ...

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A.O. may reject Books of Account if Assessee does not furnish proper records of production

Pawan Kumar Vs ITO (ITAT Chandigarh)

The discrepancies pointed out by the Assessing Officer while rejecting the book results have not been satisfactorily explained by the assessee. The Assessing Officer has observed that although the quantity of cotton seed, mustard and groundnut crushed during the previous year were shown separately but the yield of oil and oil cakes have b...

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Assessee Entitled To Raise Claim For Deduction Even Outside Return of Income

CIT Vs M/s. Pruthvi Brokers & Shareholders Pvt. Ltd. (Bombay High Court)

It is clear to us that the Supreme Court did not hold anything contrary to what was held in the previous judgments to the effect that even if a claim is not made before the assessing officer, it can be made before the appellate authorities. The jurisdiction of the appellate authorities to entertain such a claim has not been negated by the...

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No disallowance for non-deduction of TDS on reimbursement of Expenses

Mitra Logistic Pvt. Ltd. Vs ITO (ITAT Kolkata)

Mitra Logistic Pvt. Ltd. V. ITO - There is no dispute about the fundamental posit ion that as long as the payments are for reimbursements, and not expenditure, the tax deduct ion obligations do not come into play and accordingly, disallowance u/s. 40(a)(i ) cannot be made either. In support of this proposition, our attention is invited...

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Applicability of Service tax on Domain Name Registration Services

As per the Finance Bill, 2012, of Govt. of India, there have been vast changes in the taxation provisions relating to Service Tax. As per the new provisions, services of all types unless these have been specifically exempted in the negative list ( Vide Notification No. 25/2012-Service Tax Dated 20th June, 2012) , shall become chargeable...

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S. 635 – Production of certified copy of order of company court sufficient for its execution by executing Court

Samvidha Chit Funds (P.) Ltd. (In Liquidation) Vs Additional Junior Civil Judge (Andhra Pradesh High Court)

The procedure to be followed in the matter of execution of the order made by the company court is different from that laid down in the Code of Civil Procedure. As per section 635, it is sufficient to produce to the Court which is required to execute its order, a certified copy of the order sought to be executed. It is not necessary to com...

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