"01 August 2012" Archive

Assessee need not reside abroad permanently to be treated as non resident

Suresh Nanda Vs Assistant Commissioner of Income-tax (ITAT Delhi)

Test of residence will be determined on the basis of number of days of stay in India and not by the interpretation adopted by the lower authorities in this case. It has not been disputed by the revenue that the number of days of the stay of assessee in India are less than 182 days. In these facts and circumstances the assessee's arguments...

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In Scrutiny Assessment A.O cannot totally ignore information given in revised belated return

Commissioner of Income Tax Vs M/s.NEPC India Limited (Madras High Court)

The assessee-company initially filed u/s 139(1), a return supported by regular accounts, and showing substantial book profit and offering MAT. However thereafter its accounts came to be inspected by the Registrar of Companies who gave certain directions to modify its Annual Accounts. On the basis of those directions the assessee revised ...

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Stay petition before CIT Appeal & recovery of disputed income-tax demand during pendency thereof

It is a well-known fact that the Assessing Officers (AOs) in many cases make high-pitched assessments and raise huge uncalled for demands against the assessee, as a result thereof. It is also a well-known fact that after raising such uncalled for and unjustified high demands, the Revenue authorities take recourse to coercive measures for ...

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Posted Under: Income Tax |

MCA extends due date to file Form No. 5 INV to 31st August 2012

General Circular No. 20/2012 (01/08/2012)

(a) Any Company, which has filed multiple Form 5 INV while uploading the information for the year 2010-11 on or before the date of issue of this circular, should again file Form 5 INV (single) and upload the details of investors in excel template. This process should be completed by 31' August, 2012. (b) All Companies, which have not yet ...

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Service Tax – Recent Changes

Reverse charge mechanism- Usually service provider is liable to pay service tax for the services provided except for the few services covered under reverse charge, under which service receiver is liable to pay service tax. This mechanism has not been altogether a new mechanism. This mechanism was prevalent in the earlier service tax law a...

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Posted Under: Income Tax |

e-filing of Return not compulsory for Agents of non-residents & Private discretionary trusts

(i) it will not be mandatory for agents of non-residents, within the meaning of section 160(1) (i) of the Income –tax Act, if his or its total income exceeds ten lakh rupees, to electronically furnish the return of income of non-residents for assessment year 2012-13; (ii) it will not be mandatory for ‘private discretionary trusts’, ...

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Posted Under: Income Tax | ,

Claim for deduction, omitted in the return can be made before appellate authorities

Very often the tax payer realises that he omitted to claim certain deductions, only long after he had filed the return. The circumstances would be such that the tax payer would not be even eligible to file a valid revised return. ...

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Posted Under: Income Tax |

S. 68 Once Assessee discharge initial burden of proving creditworthiness of parties onus shift on revenue to prove otherwise

Vishnu Jaiswal Vs Commissioner of Income-tax (Appeals) (ITAT Lucknow)

The provisions of section 68 should be read in conjunction with section 106 of the Evidence Act. In the peculiar facts and circumstances of the case, the assessee has discharged the initial burden of proving identity, genuineness of transactions and also creditworthiness of the three creditors by producing their respective bank accounts. ...

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Govt Permits investments from Pakistan

Present Position - As per paragraph 3.1.1 of 'Circular 1 of 2012 - Consolidated FDI Policy', effective from 10-4-2012, investment from a citizen of Pakistan or an entity incorporated in Pakistan is not permitted. 2.0 Revised Position - The Government of India has reviewed the policy, as contained in paragraph 3.1.1 of the circular ibid ...

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Posted Under: Income Tax |

Rate of exchange of conversion of each of the foreign currency wef 02.08.2012

Notification No. 67/2012-Customs (N.T.) (01/08/2012)

Notification No.67/2012-Customs (N.T.) Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 2nd August, 2012 be the rate mention...

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MVAT – Automatic cancellation of Unilateral Assessment Order

Trade Circular No. 12.T of 2012 (01/08/2012)

NEW PROCEDURE TO BE FOLLOWED FOR PASSING AND CANCELLATION OF UAO:- (1) The new system of automatic cancellation of UAO shall be applicable with effect from 1st August 2012. (2) With effect from 1st August 2012, assessing authority shall pass an UAO only through MAHAVIKAS. (3) MAHAVIKAS will automatically ascertain the return fili...

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CBDT Extended Due Date to 31.08.2012 for all returns which were due to be filed by 31.07.2012

PRESS RELEASE [NO. 402/92/2006-MC (20 OF 2012)] (01/08/2012)

A section of Media has reported that the Central Board of Direct Taxes has extended ‘due date’ of filing of returns to 31st August, 2012 in respect of only those returns which were to be e-filed by 31st July, 2012. It is clarified that the notification issued by the Board on 31st July, 2012 has extended the ‘due date’ of filing of...

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India Signs Tax Information Exchange Agreement with Monaco

Income Tax press release (01/08/2012)

Government of India and Government of Principality of Monaco have signed a Tax Information Exchange Agreement (TIEA) yesterday. The agreement was signed by the Minister of State for Finance, Shri S S Palanimanickam from Indian side and Counsellor of Government for Finances and Economy, Mr. Marco Piccinini from Monaco side. This is the nin...

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Clarification on duty concessions on import of certain specified sports goods, equipments & requisites

Circular No. 21/2012-Custom Duty (01/08/2012)

Circular No. 21 /2012-Customs - From the wordings of the notification no. 146/64-Customs dated 13.07.1994, it is seen that the exemption covers two broad categories of goods. First category covering sports goods required for training purposes by a sports person of outstanding eminence, which are listed in specified terms under each item...

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Govt bans export of edible oil in branded consumer packs

Notification No. 9 (RE-2012)/2009-2014 (01/08/2012)

As per Para 4 of Notification No. 77 dated 28.09.2011, export of edible oils is permitted only in branded consumer packs of upto 5 Kgs, within a ceiling of 10,000 tons, for the period 01.11.2011 to 31.10.2012. Now, with immediate effect, even such export of edible oils is prohibited. Accordingly, Para 4 of Notification No. 77 dated 28.09...

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Gift, Hospitality, Cash to Doctors not allowable – CBDT

Circular No. 5/2012-Income Tax (01/08/2012)

CIRCULAR NO. 5/2012 The council in exercise of its statutory powers amended the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 (the regulations) on 10-12-2009 imposing a prohibition on the medical practitioner and their professional associations from taking any Gift, Travel facility, Hospitality, Ca...

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Losses not claimed in original Return, cannot be claimed by filing revised return

Karnataka Forest Development Corp. Ltd. Vs Commissioner of Income-tax (ITAT Bangalore)

Undisputedly, the assessee has filed original return under sub-section (1) of section 139. In the said return of income, the assessee has not claimed the loss. Sub-section (5) provides that where the assessee discovers any omission or a wrong statement, then he can file a revised return. Where the wrong statement or omission results in th...

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AAR is a court & its ruling should be first challenged before HC

Columbia Sportswear Company Vs Director of Income Tax, Bangalore (Supreme Court of India)

AAR ruling should in the first instance be challenged before the High Court instead of directly in the Supreme Court. To avoid the matter remaining pending in the High Court for years, which would defeat the objective of enabling the applicant to get an expeditious ruling, the matter should be heard directly by a Division Bench of the Hig...

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S. 80P – Co-Operative Societies providing loan only to member eligible for deduction

Deputy Commissioner of Income-tax V/s. Jayalakshmi Mahila Vividodeshagala Souharda Sahakari Ltd. (ITAT Panaji)

The question arises is whether the assessee is entitled for the deduction under section 80P(2)(a)(i). Section 80P(2)(a)(i) is explicitly clear that if the co-operative society is engaged in the business of banking or providing credit facilities to its members the co-operative society is entitled for the deduction. There is an embargo put ...

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Arbitration clause cannot bar HC to admit winding up petition

Integrated Broadcasting Co. (P.) Ltd. Vs Nettlinx Ltd. (Andhra Pradesh High Court)

There is no conflict between the statutory relief of winding up and of the contractual right to have disputes settled by arbitration. Once a bona fide defence is shown to exist, arbitration will be the efficacious and proper remedy. Where, however, the defence is mala fide and a moonshine, arbitrable disputes would not exist and the compa...

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Payment for Comparing the material with the samples provided by assessee is not FTS

Jeans Knit (P.) Ltd. Vs Deputy Commissioner of Income-tax (ITAT Bangalore)

Basic question to be considered by us is whether the nature of services rendered by SEL fall within the ambit of technical, managerial and consultancy services as defined under Explanation 2 to clause (vii) of sub-sec (1) to sec. 9 of the IT Act. As per the said explanation, fees for technical services means any consideration (including a...

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Roads inside & within boundary wall of premises are part of factory buildings

Commissioner of Income-tax, Jaipur Vs Sunshine Glass Indus (P.) Ltd. (Rajasthan High Court)

In Hukamchand Mills Ltd. v. CIT [1978] 114 ITR 870 (Bom.), the roads laid out within factory premises were regarded as part of factory buildings and were entitled to depreciation. In the case of CIT v. Lucas TVS Ltd. [1977] 110 ITR 346 (Mad.), the word 'building' was held to include roads laid in the proximity of factory for the purpose o...

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Expenditure on studies of bona fide employee can’t be disallowed merely because he was son of an ex-director

Commissioner of Income-tax Vs Naidunia News and Network Ltd. (Madhya Pradesh High Court)

Shri Siddharth Chhajlani was a regular employee of the assessee Company since financial year 2003-04 and has taken note of the salary certificate along with the deduction and payment to Employee's Provident Fund. It has also been noted that Shri Siddharth Chhajlani was sent for higher studies in printing technology, which is the main fiel...

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