"August, 2012" Archive

Ministry of Finance Notifies Advance Price Agreement (APA) Scheme

Income Tax Press release (31/08/2012)

The Ministry of Finance has notified an “Advance Pricing Agreement Scheme” (Rules 10F to 10T of Income Tax Rules, 1962) vide notification No. 36/2012 dated 30-8-2012. The Finance Act, 2012 had inserted sections 92CC and 92CD in the Income Tax Act 1961 introducing the provisions of Advance Pricing Agreement (APA). The APA Scheme shall ...

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Taxation of Income Received for services contract spread over various years

Dr. Aman Khera Vs Deputy Commissioner of Income-tax (ITAT Delhi)

Admittedly, the assessee has not served for the period of five years. The assessee has not rendered enough services to warrant emoluments of Rs. 1,21,83,494. It is assessee's submission that during the year under consideration he has not created a debt or a right to receive the payment equivalent to Rs. 1,21,83,494. Hence, it cannot be sa...

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Taxation of Gift given by cessation of Trading Liability

Rajesh Kumar Vs Assistant Commissioner of Income-tax (ITAT Cochine)

While the gift is given by a person to another person who is personally related to him, the remission of trading liability takes place in business relationships. Normally, the remission of trading liability takes place only due to adverse business situation faced by a business concern. ...

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Advance against property cannot be taxed as capital gain if possession not given

Jaico Automobile Engineering Co. (P.) Ltd. Vs Assistant Commissioner of Income-tax, Circle 11(5), Bangalore (ITAT Bangalore)

In the instant case, it was noticed that the agreement clearly stated that the owner would continue to be in possession of the scheduled property till such time the developer completes the construction of the said complex and delivers their areas infra. In the instant case, nothing was brought on record to substantiate that the possession...

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Computation of Excise Duty where the goods are sold at a price below the cost of production

Commissioner of Central Excise, Mumbai Vs M/s. Fiat India (P) Ltd. & ANR. (Supreme Court of India)

Excise duty to be computed on the basis of manufacturing cost plus profit where the goods are sold at a price below the cost of production : It was held that commercial cost of manufacturing the cars was not reflected in the assessable value declared by the assessee....

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Govt exempts Additional services from service tax

At present there are 17 items in the negative list (Section 66 D of the Finance Act, 1994) and 39 items in the mega exemption notification 25/2012-ST dated 20.6.2012. Government has recently exempted more services from the purview of service tax. ...

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Posted Under: Income Tax | ,

SEBI launches Toll-free Helpline Service for Investors

SEBI has extended its toll free helpline service (1800 22 7575 / 1800 266 7575) to Saturday and Sunday from the existing Monday to Friday. The service on Saturday and Sunday would be available initially to investors from all over India in English, Hindi, Marathi and Gujarati from 9:30 a.m. to 5:30 p.m....

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Posted Under: Income Tax |

Form AS Viewed for 5.69 Crore Times this Year

No. of times Form 26AS viewed 5.69 cr . No. Of distinct PANs for which Form 26AS viewed 1.38 cr . Statistics as on 23/08/2012...

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Posted Under: Income Tax |

Assessment cannot be reopened u/s 147 in absence of tangible material

Inductotherm (India) Pvt. Ltd (Formerly Inductotherm India) Vs M. Gopalan, DY.Commissioner Income Tax Or His Successor(Gujarat High Court at Ahmedabad)

In the present case, we notice that in two out of four reasons recorded by the Assessing Officer for reopening the assessment, he stated that he need to verify the claims. In the second ground, he had recorded that admissibility of the bad debts written off required to be verified. In the fourth ground also, he had recorded that admissibi...

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Notification No. 79/2012-Customs (N. T.) – Tariff of Gold Silver, Crude Palm Oil etc

Notification No. 79/2012-Customs (N.T.) (31/08/2012)

Notification No. 79/2012-CUSTOMS (N. T.) Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001, ...

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RBI allows QFIs to hedge their currency risk

RBI/2012-13/185 A. P. (DIR Series) Circular No. 21 (31/08/2012)

It has now been decided to allow QFIs to hedge their currency risk on account of their permissible investments (in equity and debt instruments), as per the details given in the Annex....

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Bad debt cannot be claimed for first time in revised return filed pursuant to section 153A

Gendmal Kothari Vs Deputy Commissioner of Income-tax (ITAT Jodhpur)

The assessment is framed u/s. 153A of the IT Act, which is specifically meant for computation of undisclosed income, which is found during the course of search. The assessee in order to circumvent the provisions of law have tried to reduce the amount in question out of total undisclosed income determined in the course of search by claimi...

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International Workers (IWs) – refund /readjustment of excess amount in pension fund -Clarification

Notification No.IWU/7(29)/2012/Review /16266 (31/08/2012)

Consequent upon inclusion of special provisions in respect of International Workers (IWs) and signing of Social Security Agreements (SSAs) with a number of countries by the Government of India, the benefit of "detachment" is being availed by the posted Indian employees by obtaining a Certificate of Coverage (COC) on the basis of which the...

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Delegation of Powers to Regional Directors u/s 17,18,19,141 and 188 of Companies Act,1956

Notification No. F. No.1/1/2003–CL.V (30/08/2012)

I am directed to refer to this Ministry’s letter of even no. dated 3 1.7.2012 on the subject cited above and say that wherever fee on pending cases under section 17, 18, 19, 141 and 188 of the Companies Act, 1956 have already been paid by the companies/stakeholders at the time of filing of petition, consequent upon the transfer of appli...

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Effect of Purchases Made From Suspicious Dealers on Audit Report

Much has been discussed on recent issue about Suspicious Dealers, but rarely has someone analysed Whether Purchases made from such Suspicious Dealers should actually form part of Purchases while preparing Financials. The last updated List of 1277 Suspicious Dealers who has issued false bills without delivery of goods is displayed on Websi...

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Posted Under: Income Tax | ,

Service Tax on Director’s Services – Company to Pay

With Service Tax regime migrating to negative list approach w.e.f. July 1, 2012, almost all the services except those in negative list (section 66D) and exempted services (Notification No. 25 2012-ST dated 20.06.2012) have become exigible to service tax . ...

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Delegation of powers to Regional Directors under sectionS 17, 18, 19, 141 and 188 of the Companies Act, 1956

F. No. 1/1/2003-CL.V (Pt. file) (30/08/2012)

I am directed to refer to this Ministry's letter of even no. dated 31-7-2012 on the subject cited above and say that wherever fee on pending cases under sections 17, 18, 19, 141 and 188 of the Companies Act, 1956 have already been paid by the companies/stakeholders at the time of filing of petition, consequent upon the transfer of applica...

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Taxability of Amount received by society from its members for TDR transfer

Commissioner of Income-tax-21 Vs Jai Hind CHS Ltd. (Bombay High Court)

The TDR premium is liable to be paid by a member of the society who desires to utilize additional FSI in the form of transferable development rights. The principle of mutuality would clearly apply to instant case. In the context of the payment of non-occupancy charges by a member of a co-operative housing society to the society, a Divisio...

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SC differs with Judgement granting Interest on excess TDS & Advance Tax

Commissioner of Income-tax Vs Gujarat Flouro Chemicals (Supreme Court of India)

In our view, the judgement of this Court in the case of Modi Industries Limited v. Commissioner of Income Tax, 1995 (6) S.C.C. 396 = (2002-TIOL-446-SC-IT) correctly holds that Advance Tax or TDS loses its identity as soon as it is adjusted against the liability created by the Assessment Order and becomes tax paid pursuant to the Assessmen...

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Anti-dumping duty on imports of Metronidazole, originating in, or exported from China

Notification No. 40/2012-Customs (ADD) (30/08/2012)

Notification No.40 /2012-Customs (ADD) Seeks to levy anti-dumping duty on imports of Metronidazole, originating in, or exported from People’s Republic of China, for a further period of five years...

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Applicable rate of CVD on imported Fertilizers-regarding

Circular No. 23/2012-Custom Duty (30/08/2012)

Representations have been received from trade as well as the field formations regarding the applicable rate of additional duty of customs (CVD) on Fertilizers when imported into India. Doubts have arisen in view of the fact that in Notification No. 12/2012-Customs, dated 17-03-2012, except for Serial Number 200(ii) [where the CVD rate of...

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CBDT notifies Advance Pricing Agreement Scheme

Notification No. 36/2012-Income Tax (30/08/2012)

Notification No. 36/2012-Income Tax In the Income-tax Rules, 1962 (hereafter referred to as the principal rules), - (a) after rule 10E, the following rule shall be inserted, namely.- Advance Pricing Agreement Scheme- 10F. Meaning of expressions used in matters in respect of advance pricing agreement.—For the purposes of this rule and...

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Policy Circular No. 2 (RE-2012)/2009-14 dated 19.7.2012-Corrigendum thereto

Policy Circular No. 4 (RE-2012)/2009-14 (30/08/2012)

The vehicles imported under this scheme shall be registered either as a tourist vehicle or shall have an appropriate registration specific to a particular state enabling the vehicle to be used for tourist purpose. A copy of the Registration certificate should be submitted to the concerned Licensing Authority as a confirmation of the vehic...

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Status of Private Limited Company u/s 4(7) of Companies Act, 1956

It is important to check the status of Private Limited Company, if the shareholder of such Private Limited is Body Corporate incorporated outside India. It is also important from the audit point of view since if the status of such Private Limited Company is established as Subsidiary of Public u/s 4(7) of Companies Act, 1956 then all the C...

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Posted Under: Income Tax |

Reassessment on the basis of Income Tax amendment not justified

Saint Gobain Glass India Ltd. Vs Assistant Commissioner of Income-tax, Company Circle-VI (1) (ITAT Chennai)

On the date of issue of notice under section 148 on 31-3-2008 by the Assessing Officer for reopening of the assessment, the earlier view taken by the Assessing Officer in the assessment framed under section 143(3) on 31-3-2006 was supported by the decision of the Supreme Court in the case of HCL Comnet Systems & Services Ltd. (supra), and...

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Compensation or damages for fraud taxable as income from other sources

In re IC (AAR Delhi)

Between January and April, 2009 a number of suits were filed against IC and A and B in various jurisdictions in the United States claiming damages. The suits were based on tort, misrepresentation, deceit, fraud and so on. In terms of the procedural laws of the United States, the suits were directed to be consolidated. The suits were conso...

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CBDT Committee To Form Departmental View on Contentious Legal Issues


It has been observed that a large part of litigation in the Direct Taxes matters involves interpretation of legal provisions. Lack of desired clarity on a contentious legal issue, amongst the officers of the department, sometimes leads to inconsistent approach on the same issue giving rise to further litigation. With a view to provide cla...

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General Circular No. 27/2012, dated 29/08/2012

General Circular No. 27/2012 (29/08/2012)

A representative not below the rank of Joint Secretary from Wo Power 14.A representative not below the rank of Joint Secretary from Wo Petroleum 15.A representative not below the rank of Joint Secretary from Mbo Highways 16.A representative not below the rank of Joint Secretary from Wo Urban...

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Trust having ‘medical relief’ object eligble for exemption even if they incidentally carry on a commercial activity

Samarpan Samiti Vs Commissioner of Income tax-II, Agra (ITAT Agra)

After examination of the activities of the assessee samiti and after considering CBDT Circular No. 11/2008, dated 19-12-2008, it is found that the admitted facts of the case under consideration are that the assessee-trust is carrying on the activities in respect of medical relief. It is found that Samiti/institution/entities whose object ...

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Section 50C applicable even if registration takes place subsequent to transfer

Deputy Commissioner of Income-tax, Circle-9 Vs Bagri Impex (P.) Ltd. (ITAT Kolkata)

The Revenue's case is that the provision of sec. 50C having come on the statute book with effect from 1-4-2003, and the capital asset which is the subject-matter of transfer, being land, the same would apply, and thus stands rightly invoked by the AO. The assessee's case, and on the basis of which it found favour with the first appellate...

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Re-opening of assessment for change of opinion not valid – SC

Assistant Commissioner of Income-tax Vs ICICI Securities Primary Dealership Ltd. (Supreme Court of India)

The assessee had disclosed full details in the Return of Income in the matter of its dealing in stocks and shares. According to the assessee, the loss incurred was a business loss, whereas, according to the Revenue, the loss incurred was a speculative loss. Rejection of the objections of the assessee to the re-opening of the assessment by...

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Validity of Winding up proceeding against the company for non-payment of rent

Raju Jhurani Vs. M/s Germinda Pvt. Ltd. (Supreme Court of India)

This Appeal is directed against the judgment and order dated 14th August, 2006, passed by the Calcutta High Court in A.C. No.54 of 2005 dismissing the Appeal on the ground that in the absence of any specific finding whatsoever as to the rate of rent and the period of default committed by the respondent-tenant, the proceedings under the Co...

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Receipt of order by nephew can’t be a ground to condone delay in appeal filing

Jyoti Enterprises Vs Commissioner of Central Excise, Allahabad (CESTAT Delhi)

Ld. AR submits that appellant was not registered as service tax payer and as such no authorised representative stands mentioned by him. As the impugned order was served at the residential address of the appellant, it has to be considered as proper service of the order. ...

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SC remanded back the case to HC for order passed without interpreting section 14A

Commissioner of Income-tax-III Vs RK BK Fiscal Services (P.) Ltd. (Supreme Court of India)

The assessee claims deduction for expenses incurred to earn amounts which are exempted from tax. The case involves the interpretation of Section 14A of the Income Tax Act, 1961 . The Kolkata High Court has said that no substantial question of law arises in this case. There is no judgment of the Kolkata High Court on the interpretation of ...

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SC extends deadline for Maharashtra builders to pay VAT to October 31

Promoters & Builders Assn. Vs State of Maharashtra (Supreme Court of India)

The SC has extended the deadline for builders to pay VAT from August 31 to October 31. If they do so, they are not entitled to pay penalty and 15% interest on delayed payment of VAT, according to the SC interim order. The builders must register with the sales tax department by October 15 before paying VAT. The VAT money will be collected ...

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FTP – Import of Night Vision Binoculars – Authorisation Required

Notification No.15(RE-2012)/2009-2014 (29/08/2012)

Presently, the import policy for Binoculars (HS Code: 9005.10.00) is free. Night Vision Binoculars/ Passive Night Vision Devices (PNVs) are classified under the same HS Code: 9005.10.00. But these items will be ‘restricted’ for import. So the amended entry HS Code: 9005.10.00 will read as follows...

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Section 144C – Dispute Resolution Panel – Reference to – Reconstitution of DRP at Mumbai – 1

Order No. 8/FT&TR/2012 (28/08/2012)

ORDER No. 8/FT&TR/2012 In partial modification of order No. 6/FT&TR/2012, and in exercise of powers conferred under section 144C of the Income-tax Act, 1961, the Board hereby constitutes the Dispute Resolution Panel (DRP) at the area of jurisdiction given under column (2) of the Table below comprising of three Commissioners of Income-tax...

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Dispute Resolution Panel – corrigendum to Order No. 6/FT&TR/2012, dated 10-7-2012 & Order No. 7/FT&TR/2012, dated 31-7-2012

Order [f.no. 500/15/2011-ft&tr-i] (28/08/2012)

Order [f.no. 500/15/2011-ft&tr-i], dated 28-8-2012 Section 144C of the Income-tax Act, 1961 - Dispute Resolution Panel - Reference to - corrigendum to Order No. 6/FT&TR/2012, dated 10-7-2012 and Order No. 7/FT&TR/2012, dated 31-7-2012 constituting DRPs and alternate DRP at various places...

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SEBI – Manner of achieving minimum public shareholding requirements in terms of SCRR, 1957

Circular No. CFD/DIL/11/2012 (29/08/2012)

with a view to facilitate listed entities to comply with the minimum public shareholding requirements within the time specified in Securities Contracts (Regulation) Rules, 1957 (SCRR, 1957), the following additional methods shall be available:-...

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Free ‘Quick Referencer’ on Cooperatives & NPO Sectors

The ‘Quick Referencer’ contains the relevant information about cooperatives & NPO sectors in brief such as important acts, accounting standards, auditing standards, important provisions of direct and indirect taxes, registration under different acts, various forms, and other important information about these sectors....

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Non-resident guarantee for non-fund based facilities entered between two resident entities

A. P. (DIR Series) Circular No. 20 (29/08/2012)

Borrowing and lending of Indian Rupees between two persons resident in India does not attract the provisions of the Foreign Exchange Management Act, 1999. In case where a Rupee loan is granted against the guarantee provided by a person resident outside India, there is no transaction involving foreign exchange until the guarantee is invoke...

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Multilateral convention on mutual administrative assistance on tax matters with OECD member countries

Notification No. 35/2012-Income Tax (29/08/2012)

Notification No. 35/2012-Income Tax Whereas, a Multilateral Convention on Mutual Administrating Assistance in Tax Matter and as amended by the 2010 protocol was signed by the Republic of India at the headquarters of the Organisation for Economic Co-operation and Development (OECD) at Paris on the 26rd day of January, 2012 (hereinafter ref...

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Deduction for sum payable to an employee in lieu of leave to his credit–Section 43B(f)

In the judgement of Calcutta High Court in the case of Exide Industries Ltd. Vs Union of India [2007] 292 ITR 470 (Cal), it was held that section 43B(f) of the Income-Tax Act, 1961 (the Act) was arbitrary, unconscionable and de-hors the Supreme Court decision in the case of Bharat Earth Movers Vs CIT [2000] 245 ITR 428 (SC) and accordingl...

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Posted Under: Income Tax |

No TDS default for non-deduction of TDS on accommodation perquisites if concession not established

Superintendent (DDO) Vs Income-tax Officer (TDS) (ITAT Delhi)

Assessing Officer has nowhere held in the impugned order that any concession was given by the employer to its employees and they have provided the accommodation on a concessional rates. Assessing Officer straightway applied Rule 3 without first establishing the case that the appellants have provided any concession in the shape of accommod...

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Free software to Prepare ITR & TDS Return

ICAI has arranged the ‘Tax Cloud software: Cloud based ITR & TDS Return Preparation for CAs’ enables Income Tax Return and TDS Return preparation, provides all types of assesses support including Individuals, HUFs, Firms and Companies, calculates Income Tax under all heads such as Salary, House Property, Capital Gain, Business and Pro...

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Compensation to end litigation – Capital gain or Business Profit?

Control & Switchgear Contractors Ltd.Vs Deputy Commissioner of Income-tax, Circle-3(1) (ITAT Delhi)

CIT-DR has contended that compensation should be regarded as normal business receipt received in the normal course of business, we find that the same had not been received in lieu of undertaking any negative covenants not to compete with Schneider in India but on the contrary the assessee continues to carry on the same line of business....

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Service tax on vocational education/training course – Clarification

Circular No. 164/15/2012-ST (28/08/2012)

Circular No. 164/15/2012-ST Clarification has been sought in respect of levy of service tax on certain vocational education/training/ skill development courses (VEC) offered by the Government (Central Government or State Government) or local authority themselves or by an entity independently established by the Government under the law, a...

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Empanelment of Stock Auditors with Central bank of India

Central Bank of India, Zonal Office, Pune invites applications for empanelment of CA firms for conducting of Stock Audit of our clients/borrowers enjoying credit facilities from branches situated in our Pune, Ahmednagar, Nasik and Aurangabad Regions. The eligibility criteria are as under:- ...

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Posted Under: Income Tax |

Exemption can’t be denied if placement & training fees is collected under law

Orissa Trust of Technical Education and Training Vs Chief Commissioner of Income-tax (Orrisa High Court)

Chief Commissioner has relied on the Government of India resolution providing for fee structure, 1997 and the Government of Orissa Industries Department Resolution dated 17.09.1998 to come to a conclusion that the fees collected towards "placement and training" is in excess of what was prescribed by the said resolutions. Petitioner's case...

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Procedure for disposal of unclaimed/ uncleared cargo u/s. 48 of Customs Act, 1962, lying with custodians

F.No.442/12/2004-Cus.IV (Pt.) (28/08/2012)

Attention is invited to Board Circular No. 50/2005-Cus. dated 1st December, 2005, issued on the above mentioned subject. References have been received regarding difficulties faced in respect of disposal of motor cars and negative list items. ...

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CCIT Personally Responsible for Transfer Order Violation

The CBDT in its letter dated 27.08.2012 stated that there has been non-compliance and violation of the CBDT’s order in respect of posting of officers on promotion to the grade to JCIT. The CBDT has taken a stern view and threatened that the concerned officer who issued the order and the CCIT (CCA) concerned would be held personally liab...

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Posted Under: Income Tax |

Antivirus software at discounted price for ICAI members

ICAI in order to enable members to have access to antivirus software, has tied up with Quick Heal technologies Pvt. Ltd. Pune for providing access to Quick Heal Total Security at a special discounted price of Rs. 750/- plus taxes only for 3 years from the date of activation....

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Posted Under: Income Tax |

Companies need Central Govt approval to pay over 10% of net profit to directors

Registered companies in India can't pay more than 10% of net profit as remuneration to board-level directors overall without the government's approval, the Ministry of Corporate Affairs said today....

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Redemption of Indian Depository Receipts (IDRs) into Underlying Equity Shares

Circular No. CIR/CFD/DIL/10/2012 (28/08/2012)

It is decided to allow partial fungibility of IDRs (i.e. redemption/conversion of IDRs into underlying equity shares) in a financial year to the extent of 25 % of the IDRs originally issued. Suitable instructions for modifying the existing legal framework governing IDRs, in order to implement the decision to allow redemption of IDRs into ...

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CBDT aims faster & accurate Income Tax refunds

The Income Tax department will aim to issue faster and accurate refunds this financial year and introduce new taxpayer friendly services. In her maiden interaction with the top IT brass, newly-appointed CBDT Chairperson Poonam Kishore Saxena has asked officials to ensure timely refunds and hassle-free services for taxpayers which are the ...

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Posted Under: Income Tax |

Notification No. 14 (RE-2012)/2009-2014, Dated: 28.08.2012

Notification No. 14 (RE-2012)/2009-2014 (28/08/2012)

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) as amended, read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes following amendments in Notification No. 5 (RE-2012)/2009-14 dated 02.07.2012...

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Amendment in ITC (HS) 2012 Schedule 1-Import Policy

Notification No. 13 (RE-2012)/2009-2014 (28/08/2012)

Para 2 (II) (a) of chapter 87 lists certain conditions that every new vehicle being imported to the country must satisfy. Of these conditions, sub para (iv) of para 2(II)(a) is amended by adding a new sentence “The country of manufacture will also mean a Single Market like the European Union (EU)” after the existing sentence. ...

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Basic & Faq on Taxation of Construction Developers

The Government of Maharashtra has amended the definition of Sale under the Maharashtra Value Added Tax Act, 2002 with effect from 20th June 2006 thereby including in the said definition the transfer of property in goods involved in the execution of works contract, including an agreement for carrying out for cash or for deferred payment o...

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CBDT fixes Responsibilities of Chairman and Members of CBDT

CBDT Order No. 170 (27/08/2012)

Vide Order No. 170 of 2012 dated 27.08.2012 the CBDT has ordered the distribution of work amongst the Chairman and the Members of the CBDT. ...

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Issue of Indian Depository Receipts (IDRs) – Limited two way fungibilty

RBI/2012-13/178 A. P. (DIR Series) Circular No. 19 (28/08/2012)

It has now been decided to allow a limited two way fungibility for IDRs (similar to the limited two way fungibility facility available for ADRs/GDRs) subject to the following terms and conditions:...

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Form 29C -Reporting of Alternate Minimum Tax (AMT)

Notification No. 34/2012-Income Tax (28/08/2012)

Notification No. 34/2012-Income Tax In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 1. (1) These rules may be called the Income-tax (Ninth Amendment) Rules, 2012....

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Shipping Profits Under DTAA & taxation of Income from slot charter

Director of Income-tax (International Taxation) Vs Balaji Shipping UK Ltd. (Bombay High Court)

There is no distinction in principle between a slot charter and a voyage charter of a part of a ship. They are both in a sense charterers of a space in a ship. The phrase “operation of ships” in Article 9 must be understood in the context of the phrase “the business of operation of ships” in s. 44B. As income from slot hire agreem...

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In fresh assessment passed pursuant to remand by ITAT income cannot be enhanced

Kellogg India Pvt. Ltd. Vs Asstt. Commissioner of Income Tax (ITAT Mumbai)

It is now a settled proposition of law that the Appellate Tribunal under section 254(1) of the Act, had no power to take back the benefit conferred by the Assessing Officer or enhance the assessment. Once the matter has been restored by the Tribunal, the income cannot be enhanced from what was determined at the time of original assessment...

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Notification No. 78/2012-Customs (N.T.), Dated: 27.08.2012

Notification No.78/2012-Customs (N.T.) (27/08/2012)

S.O. (E). - In exercise of the powers conferred by sub-section (1) of section 5 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby imposes the Joint Commissioner or Additional Commissioner of Customs, Custom House, Cochin, to exercise the powers and discharge the duties as adjudicating authority over ...

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FM to Address Chief Commissioners/DGs of Customs, Excise & Service Tax Tomorrow

The Conference of the Chief Commissioners and Directors General of Customs, Central Excise and Service Tax will be held in New Delhi tomorrow. The Union Finance Minister, Shri P. Chidambaram will inaugurate the Conference and also interact with the tax officials in the open house discussions....

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Posted Under: Income Tax |

If claim not considered by AO, there is no change of opinion

Gujarat Power Corporation Ltd Vs Assistant Commissioner of Income Tax (Gujarat High Court at Ahmedabad)

Assessee put forth his claim for exemption under section 10(23G) of the Act with respect to three different incomes, namely, (1) interest from SSNNL bonds, (2) interest from GIPCL bonds, and (3) capital gain from sale of shares by GPEC. Such claim was supported by the notes forming part of the return of income. It is not as if the Assessi...

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Notification No.77/2012-Customs (N.T.), Dated: 27.08.2012

Notification No.77/2012-Customs (N.T.) (27/08/2012)

S.O. (E). - In exercise of the powers conferred by sub-section (1) of section 5 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby imposes the Joint Commissioner or Additional Commissioner of Customs (Import), Jawaharlal Nehru Custom House, Nhava Sheva, to exercise the powers and discharge the duties ...

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Construction of memorials in the memory of war heroes is charitable object

Yodha Samarak Samiti Vs Commissioner of Income-tax, Panchkula (ITAT Chandigarh)

By looking at the aims and objectives of the assessee's-society it was apparent that one of the objectives was construction of suitable memorials in the memory of war heroes but the other objects to be taken up the assessee-society by way of setting up educational institutions, arranging seminars, holding meetings/conferences and to organ...

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Section 54F available even if borrowed funds used for investment

J.V. Krishna Rao Vs Deputy Commissioner of Income-tax, Circle 3(3), Hyderabad (ITAT Hyderabad)

The learned First Appellate Authority failed to appreciate the fact that the provisions of U/s. 54F do not require the same sale proceeds to be utilized to claim deduction U/s. 54F....

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To claim terminal depreciation asset must be used for purpose of business or profession

Deputy Commissioner of Income-tax Vs Rajeswari Foundations Ltd. (ITAT Chenai)

The assessee was in the business of offset printing and typesetting. It admittedly had converted this land and factory building into stock-in-trade. The Minutes of the assessee-company did the conversion of the land and factory building into stock-in-trade and the business assets of the assessee no more survived as the business asset elig...

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Slump Sale – Transfer of right to carry on business is chargeable as capital gains

Assistant Commissioner of Income-tax, Circle 33(1), New Delhi Vs Smt. Sangeeta Wij (ITAT Delhi)

No material whatsoever was brought on record by the Assessing Officer to the effect that the payment of Rs. 1,20,00,000 was for the assessee not to engage in any business. Even so, the Assessing Officer opined that the compensation of Rs.1,20,00,000 was not a capital receipt liable to capital gains, but was a business receipt falling unde...

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For making a new claim before appellate authorities filing of revised return not necessary

G.V.K. Industries Ltd. Vs Assistant Commissioner of Income-tax (ITAT Hyderabad)

The making of a new claim if any before the Assessing Officer is required to be done only by way of filing the revised return of income and not by way of letters or by way of filing revised computation etc. But when comes to the Tribunal or for that matter the Commissioner (Appeals), who is also not the Assessing Officer, but who is the a...

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Regarding issue of ‘proper officer’ under the Customs Act, 1962

Notification No. 76/2012-Customs (N.T.) (27/08/2012)

Notification No. 76/2012-Customs (N.T.) Central Board of Excise and Customs hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 40/2012-Customs (N.T.), dated the 2nd May, 2012, published in the Gazette of India, Extraordinary, Part II, Section...

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Payment of principal amount under financial lease not allowable as revenue expenditure

Rio Tinto India (P.) Ltd. Vs Assistant Commissioner of Income-tax (ITAT Delhi)

Admittedly, vehicles have been taken under a finance lease arrangement and not under operational lease, Article 2.2 of the agreement entered into by assessee with LPIN provides for arrangement for the registration & insurance of the vehicles and inter alia, stipulates that vehicles shall be insured and registered in the name of the client...

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SEBI requires all DPs to make available basic services Demat Account

Circular No. MRD/DP/22/2012 (27/08/2012)

With a view to achieve wider financial inclusion, encourage holding of demat accounts and to reduce the cost of maintaining securities in demat accounts for retail individual investors, it has been decided that all depository participants (DPs) shall make available a Basic Services Demat Account (BSDA) with limited services and reduced co...

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Rationalization of process relating to surrender of registration by sub-brokers

Circular No. MIRSD/10/2012 (27/08/2012)

Considering the present role of sub-broker where he is not permitted to deal with funds and securities of the investors, in consultation with the major stock exchanges and stock brokers' associations, it has been decided to rationalize the procedure for surrender of sub-broker registration, as follows...

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TDS U/s.194I not applicable on parking & landing charges paid by airlines

Commissioner of Income-tax Vs Singapore Airlines Ltd. (Madras High Court)

Given the definition of 'lease or tenancy' and the definition of 'rent' as appearing in Section 194 I Explanation, unless the payment is with reference to the use of any specified land or a building, payment made for availing of the services as in the nature landing or parking, as available in the present case before us, cannot be constru...

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Toppers of CS June 2012 Examination & All India Provisional Merit list


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Posted Under: Income Tax |

Additional depreciation cannot be limited to 50% by condition of usage of asset for 180 days

Deputy Commissioner of Income-tax Vs Cosmo Films Ltd. (ITAT Delhi)

Thus, the assessee had earned the benefit as soon as he had purchased the new plant and machinery in full but it is restricted to 50% in that particular year on account of period of usages. Such restrictions cannot divest the statutory right. Law does not prohibit that balance 50% will not be allowed in succeeding year. ...

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Section 80-IB deduction cannot be denied on job work income

Disha Food (P.) Ltd. Vs Assistant Commissioner of Income-tax (ITAT Hyderabad)

There is no dispute to the fact that the eligible business of the assessee is manufacturing of biscuits and the assessee has received the conversion charges by carrying out the manufacturing process on behalf of ITC Ltd. The word 'manufacture' is of much wider connotation and would include any process as a result of which a different comm...

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Assessee can set-off capital loss arising from sale of shares to sister concern

Assistant Commissioner of Income-tax Vs Biraj Investment (P.) Ltd. (Gujarat High Court)

In the present case, it is not even the case of the Revenue that shares were sold at a price lower than the market rate. If that be so, the question of inflating the loss by transferring the shares to group company would not arise. Under ordinary circumstances, it is always open to the assessee in his own wisdom to either hold on to certa...

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Excess amount paid on amalgamation is Goodwill & eligible for depreciation u/s 32

Commissioner of Income-tax, Kolkata Vs Smifs Securities Ltd. (Supreme Court of India)

In the present case, the Assessing Officer, as a matter of fact, came to the conclusion that no amount was actually paid on account of goodwill. This is a factual finding. The Commissioner of Income Tax (Appeals) ['CIT(A)', for short] has come to the conclusion that the authorised representatives had filed copies of the Orders of the High...

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Remuneration to Professional taxable as salary if he is governed by same rules as employees of the payer

Deputy Commissioner of Income-tax Vs Wockhardt Hospitals Ltd. (ITAT Hyderabad)

A careful perusal of the appointment order issued to the doctors shows that a fixed monthly amount was paid by the assessee as remuneration and it is in no way concerned with the fees received from the patients treated by them. The appointment letter was issued to the concerned doctor on the basis of his application. The doctors are gover...

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Expenditure having direct nexus with income generating apparatus allowable

DCIT Vs. M/s India International House Ltd. (ITAT Delhi)

The reliance placed on Hon’ble Supreme Court judgment in the case of Empire Jute Co. Ltd. (supra) is well placed as the expenditure incurred by the assessee has direct nexus with its income generating apparatus. Respectfully following various judgments mentioned and relied on by CIT(A) we see no infirmity in his order, which is upheld....

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If no information given in return found to be incorrect / inaccurate, the assessee cannot be held guilty of furnishing inaccurate particulars

M/s. Reliance Infrastructure Limited (Formerly known as BSES Ltd.) Vs ACIT-10(1) (ITAT Mumbai)

A glance at the provisions of section 271(1)(c) of the Income-tax Act, 1961, suggests that in order to be covered by it, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must have furnished inaccurate particulars of his income. The meaning of the word "particulars" used in section 271(1)...

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Section 54EC do not stipulate assessment year in which investment is to be made

Income-tax Officer, Wd. 21(1)(1), Mumbai Vs Mrs. Chetana H. Trivedi (ITAT Mumbai)

The provisions of section 54EC do not make any reference to the assessment year in which the investment is to be made but only lays down a condition of 6 months period of time after the date of transfer of the capital asset....

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Holding period of asset received in exchange to be counted from possession date

Assistant Commissioner of Income-tax Vs Jaimal K. Shah (ITAT Mumbai)

The assessee computed the gain from sale of flats as long term capital gain taking holding period from the date of development-cum-sale agreement. The Assessing Officer has not accepted the claim of the assessee and has computed capital gain as short term capital gain as the assessee had taken possession of the flats only on 24-2-2005 and...

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Selling of vegetarian food for popularizing vegetarian food habits is charitable object

Assistant Director of Income-tax (Exemption), 1(1) Vs Sri Sri Radha Damodar Charitable Trust (ITAT Mumbai)

The preparation of vegetarian food items and selling the same was mainly for popularizing the vegetarian food habits and in this way the assessee is engaged in promoting the vegetarianism among the people so that they can change their living habits and take the necessary steps for the better of humanity, which is undoubtedly a charitable ...

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FAQs on Direct Entry to Chartered Accountancy (CA) Course

Who is eligible to register directly for Chartered Accountancy Course without passing Common Proficiency Test (CPT)? The following categories of students are eligible to register directly for Intermediate (Integrated Professional Competence) Course without passing the Common Proficiency Test (CPT):-...

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Posted Under: Income Tax | ,

Registration cannot be denied to muslim Trust giving Islamic education

Malik Hasmullah Islamic Educational and Welfare Society Vs Commissioner of Income-tax, Faizabad (ITAT Lucknow)

The learned CIT continued to observe that section 13(1)(b) of the Act provides that in the case of a trust or charitable institution created or established for the benefit of a particular religious community or caste, no income will be excluded from the total income. It was, further, observed by the learned CIT that provisions of section ...

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No deemed dividend on loan given to director for providing collateral & giving personal guarantee to bank

Assistant Commissioner of Income-tax, Company Circle-V(3) Vs Smt. G. Sreevidya (ITAT Chennai)

By virtue of offering personal guarantee and collateral security for the benefit of the company, the liquidity position of the assessee had gone down. In the strict sense if it is to be construed the amount forwarded by the company to the assessee was not in the shape of advances or loans. The arrangement between the assessee and the comp...

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Free Handbook on Real Estate Taxation & legal Aspects

An informative handbook offering comprehensive information on real estate has been attached for your reference. The Book overs the following topics :- Overview of Real Estate laws of India, Rent Control Act, Property Tax, FDI guidelines for real estate, Income Tax, Service Tax, FEMA, Real Estate – Deeds/Agreements, Authorities and O...

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ICAI Guidelines for Advertisement for Members in Practice

The Members may advertise through a write up setting out their particulars or of their firms and services provided by them subject to the following Guidelines and must be presented in such a manner as to maintain the profession’s good reputation, dignity and its ability to serve the public interest....

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Posted Under: Income Tax |

ITAT cannot ask for rejection of books if A.O. made addition on the basis of his limited review

Pragati Engineering Corporation Vs Income-tax Officer, Raebareli (ITAT Lucknow)

In the instant case, the Judicial Member has not stated anywhere that the profit margin disclosed by the assessee was rejected by the Assessing Officer arbitrarily and the addition made by the Assessing Officer is excessive and arbitrary. The Assessing Officer has discretion to either reject the books of account and estimate gross profit ...

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SEBI (ICDR) (Third Amendment) Regulations, 2012

Notification No. LAD-NRO/GN/201 2-13/12/18951 (24/08/2012)

The promoter or promoter group shall not make institutional placement programme if the promoter or any person who is part of the promoter group has purchased or sold the eligible securities during the twelve weeks period prior to the date of the programme and they shall not purchase or sell the eligible securities during the twelve weeks ...

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GST is More Effective & Efficient Substitute for Plethora of Indirect Taxes -FM

The Union Finance Minister, Shri P. Chidambaram said that the goods and services tax (GST) is a more effective and efficient substitute for plethora of indirect taxes. The Finance Minister said that he is hopeful that the GST Bill would be passed before the end of the current financial year. ...

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Posted Under: Income Tax |

Annual e-Filing Guidelines for ROC e-Form Filings

Please note the article was wrongly republished on 24.08.2016 while actually it was suppose to be re-published on its original date of 24.08.2012. Please refer mca.gov.in for latest applicable article or keep visiting us as we will be coming up with a new article on the subject Annual e-Filing Guidelines As a part of Annual […]...

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Posted Under: Income Tax |

No TDS deductible on interest for delayed payment of Purchase Bills U/s. 194A

Sri Venkatesh Paper Agencies (Hyd.) (P.) Ltd. Vs Deputy Commissioner of Income-tax, Circle-3(1), Hyderabad (ITAT Hyderabad)

Tribunal has held that a payment which has direct link and immediate nexus with the trading liability being connected with the delayed purchase payments will not fall within the category of interest as defined in section 2(28A). The payment made by the assessee in the present appeal being of similar nature also cannot be termed as interes...

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Section 54F exemption available on Residential house constructed on agricultural land

Assistant Commissioner of Income-tax Vs Om Prakash Goyal (ITAT Jaipur)

The Commissioner (Appeals) considered the fact that there is no bar to purchase agricultural land on which house was to be constructed. The fact is that subject to the provisions of sub-section (4) of section 54F, where, in the case of an assessee being an individual or a HUF, the capital gain arises from the transfer of any long-term cap...

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December 2020