"15 September 2012" Archive

Telecom Infra Service Providers are eligible to procure goods against Form ‘C’

M/s Indus Towers Limited, Vs The Commercial Tax Officer (Andhra Pradesh High Court)

Telecom Infrastructure Service Providers – Entitled to procure goods against ‘C’ Forms at concessional rate of CST @2% - Goods purchased are used in the telecommunication network and therefore covered by Section (1) and 8(3)(b) of the CST Act – Petitions allowed - Penalties levied on the appellants set aside. ...

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Reverse Charge of Service Tax (Accounting Treatment)

As we are witnessing the major changes in the Service Tax Rules/Acts recently. Under Reverse Charge Mechanism the service recipient is liable to pay the service tax instead of service provider. However in certain cases both service provider and service recipient has been made liable to pay service tax. The service receiver has to register...

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Non compete fees taxable as business income not as Salary Income

ACIT Vs Kanwaljit Singh (ITAT Delhi)

Now coming to the issue in question about the head of taxability, the provisions of Section 28(va) have been narrated above. Except from raising general argument about colourable device, lower authorities have not disputed the arguments of the assessee about applicability of Section 28(va),...

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Judgement of Gujarat HC regarding section 281, which deals with certain transfers to be void

This Note relates to the significance of the recent judgement of Gujarat High Court in the case of Tax Recovery Officer Vs Industrial Fin. Corpn. of India [2012] 346 ITR 11 (Guj), which deals with the interpretation of the provisions of section 281 of the Income-Tax Act, 1961 (the Act), relating to Certain transfers to be void. As per afo...

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Addition u/s 68 can be made for non production of lenders

Smt. Suman Gupta Vs Income-tax Officer, Ward 1, Aligarh (ITAT Agra)

It is not in dispute that there were cash deposits of the equivalent amounts in the bank accounts of the creditors just before advancing loan to the assessee or on the date of issuing cheques to the assessee. In the case of the creditor, 'RS', his bank statement is filed in which Rs. 2,50,000 has been deposited, but neither it is mentione...

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Deduction under section 54F available on construction of building

Smt. Dharam Shobha Rani Vs Income-tax Officer (ITAT Hyderabad)

Assessee having constructed the building and invested the capital gain, the assessee is entitled for deduction u/s. 54F of the Act if other conditions discussed herein below are fulfilled. ...

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HC criticises Income Tax Department for playing dirty games with Assessee

Management Committee (CFH Scheme) Vs Income-tax Officer (TDS), Cuttack (Orissa High Court)

Department cannot take advantage of its own inaction and lapses by taking a stand that the financial year is over. Such action of the opposite parties as rightly apprehended by the petitioner would lead to unnecessary complication and unavoidable and inappropriate proceedings. Had the certificate been given in time as was done in the prev...

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Contingent deposits received from customers is income – SC

M/s. Sundaram Finance Ltd. Vs Assistant Commissioner of Income Tax, Chennai (Supreme Court of India)

It is now well settled that in determining whether a receipt is liable to be taxed, the taxing authorities cannot ignore the legal character of the transaction which is the source of the receipt. The taxing authorities are bound to determine the true legal character of the transaction....

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Derivative transaction through MCX after 1-4-2006 to be treated as non-speculative

Assistant Commissioner of Income-tax, Circle-16(1) Vs Arnav Akshay Mehta (ITAT Mumbai)

Issue is whether such a notification given on 22nd May 2009, thorugh which MCX Stock Exchange has been recognized, can be held to be applicable for the transaction undertaken in the assessment year 2007-08 i.e., after 1st April 2006. From the combined reading of clause (d) of proviso to section 43(5), Rule 6DDA, 6DDB and Explanation (ii) ...

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Assessee can claim Refund of TDS paid twice or excess

FAG Bearings India Ltd. Vs Chief Commissioner of Income-tax (Gujarat High Court)

Since no provision is made in the Act or the Rules for claiming refund of excess TDS deducted with respect to remittance to the foreign company, CBDT issued its circular No. 769, dated 6-8-1998 and made provision for granting such refund to the Indian assessee deductee under the following circumstances:...

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