"November, 2012" Archive

EPFO launches e-Passbook service

Over 50 million PF subscribers can now access their accounts online as retirement fund body EPFO launched its e-Passbook service today. Active subscribers whose electronic challan-cum-return is already uploaded, can download their e-Passbook every month under the service launched by the EPFO's Central Provident Fund Commissioner R C Mishr...

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Posted Under: Finance | ,

Guidelines for Disciplinary Proceedings Against Delinquent Govt. Servants

No. 425/04/2012-AVD-IV(A) (29/11/2012)

Instructions have been issued in the past for expeditious disposal of disciplinary proceedings against delinquent government servants. However, it has been observed that disciplinary proceedings are generally taking a long time which defeats the very purpose of initiating the said proceedings. ...

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Service Tax Registration Form Amended to include Accounting Codes

Notification No. 48/2012-Service Tax (30/11/2012)

In exercise of the powers conferred by sub-section(1) read with sub-section (2) of Section 94 of the Finance Act, 1994( 32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994,...

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Notification No. GSR 859(E)-Income Tax Dated 30/11/2012

Notification No. GSR 859(E)-Income Tax (30/11/2012)

Notification No. GSR 859(E)-Income Tax In continuation to the earlier Notification No. G.S.R. 725(E), dated 22-6-1988 (See [1988] 172 ITR (St.) 54), and in pursuance of clause (e) of paragraph 2 of the Capital Gains Account Scheme, 1988, the Central Government hereby authorises all the branches (except rural branches) of IDBI Bank Ltd., t...

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Public Notice No. 33 (RE-2012)/2009-2014, Dated: 30.11.2012

Public Notice No. 33 (RE-2012)/2009-2014 (30/11/2012)

In exercise of the powers conferred under Paragraph 2.4 of the Foreign Trade Policy, 2009-14 and Paragraph 1.1 of the Handbook of Procedures (Vol.1), the Directorate General of Foreign Trade hereby notifies the following in Handbook of Procedure Vol.II (SION Book)....

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ICAI President’s Message – December 2012

Dear Friends, To begin with, let me first convey, on behalf of our accounting fraternity, heartiest congratulations to the Hon’ble Shri Sachin Pilot for taking over as new Union Minister of Corporate Affairs (Independent Charge). Known for his youthful, energetic and dynamic working style, his reformist zeal and resultoriented approach ...

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Posted Under: Finance |

Cost Accounting Records (Pharmaceutical Industry) Amendment Rules, 2012

Notification No. G.S.R. 863(E) (30/11/2012)

"Form A-XBRL" means the form prescribed in these rules for filing compliance report and other documents with the Central Government in the electronic mode and in the manner prescribed under rule 6 of the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011....

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Companies (Cost Accounting Records) Amendment Rules, 2012

Notification No. G.S.R. 862(E) (30/11/2012)

Companies (Cost Accounting Records) Amendment Rules, 2012 – Amendment in rule 2 and substitution of form – A Notification NO. G.S.R. 862(E), dated 30-11-2012 In exercise of the powers conferred by clause (b) of sub-section (1) of section 642 read with clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 (1 [...

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Cost Accounting Records (Fertilizer Industry) Amendment Rules, 2012

Notification No. G.S.R. 864(E) (30/11/2012)

Form A-XBRL means the form prescribed in these rules for filing compliance report and other documents with the Central Government in the electronic mode and in the manner prescribed under rule 6 of the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011...

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Cost Accounting Records (Sugar Industry) Amendment Rules, 2012

Notification No. G.S.R. 865(E) (30/11/2012)

Product or Activity Group" means the product or activity groups notified vide S.O. 1747(E), dated the 7th August, 2012'...

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Cost Accounting Records (Electricity Industry) Amendment Rules, 2012

Notification No. G.S.R. 866(E) (30/11/2012)

Form-B" means the form of the compliance report and includes Annexure to the compliance report and further includes the data or information required to be filed with the Central Government in the manner prescribed under rule 6 of the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011....

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Cost Accounting Records (Petroleum Industry) Amendment Rules, 2012

Notification No. G.S.R. 867(E) (30/11/2012)

In exercise of the powers conferred by clause (b) of sub-section (1) of section 642 read with clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules to amend the Cost Accounting Records....

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Cost Accounting Records (Telecommunication Industry) Amendment Rules, 2012

Notification No. G.S.R. 868(E) (30/11/2012)

"Form-B" means the form of the compliance report and includes Annexure to the compliance report and further includes the data or information required to be filed with the Central Government in the manner prescribed under rule 6 of the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011....

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Notification No. 106/2012 – Customs (N. T.), Dated: 30.11.2012

Notification No. 106/2012-Customs (N.T.) (30/11/2012)

Notification No. 106/2012-Customs (N.T.),  New Delhi, 30th, November, 2012 In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the notifica...

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Companies (Cost Audit Report) Amendment Rules, 2012

Notification No. G.S.R. 861(E) (30/11/2012)

Form I-XBRL means the Form prescribed in these rules for filing cost audit report and other documents with the Central Government in the electronic mode and in the manner prescribed under rule 5 of the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011...

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Procedure and conditions for registration of contracts for export of cotton

Notification No. 26 (RE-2012)/2009-14 (30/12/2012)

The Procedure and conditions for export of cotton has been modified. Maximum limit for obtaining RC has been increased to 30,000 bales. Multiple RCs can be applied within this eligibility. RAs Ludhiana, Rajkot and Vishakhapatnam have also been designated for issue of RCs for export of cotton. RC quantities will be in MTs. Other condition...

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GAAR to be effective from Assessment year 2014-15

Income tax press release (29/11/2012)

General Anti-Avoidance Rules The GAAR (General Anti-Avoidance Rule) provisions have not been put on hold. The Finance Act, 2012 had provided that these provisions shall be effective from the 1st day of April, 2014 and apply to Assessment year 2014-15 onwards....

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Posting Policy for posting of officers in the Directorates of International Taxation & Transfer Pricing

Notification No. [HRD/CM/103/2010-11/1055] (30/11/2012)

Notification No. [HRD/CM/103/2010-11/1055] The Department's Annual General Transfer Pricing Policy shall apply for selection of officers for being posted in the Directorates of International Taxation &. Transfer Pricing subject to the condition that:...

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Compliance Report and Cost Audit Report to be filed using XBRL mode

Notification No. F. No. 17/161/2012-CLV (30/11/2012)

Filing of cost audit report with Central Government.- Every cost auditor or every lead cost auditor on behalf of all the cost auditors of a company, has to file its cost audit report and other documents as required under sub-section (4) of section 233B of the Act, and rules made thereunder with the Central Government using the Extensible ...

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Provisions Relating To Limited Liability Partnership (LLP)

- Meaning of Limited Liability Partnership Understanding Limited Liability Partnership in Brief. - Features of Limited Liability Partnership The Limited Liability Partnership Act 2008 Partners. - Designated Partners. - Limitation of Liability. - Forming a Limited Liability Partnership Forms and Fees. - Limited Liability Partnership Agreem...

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Exemption from long-term capital gains–Purchase of residential house in a foreign country

Sometime back, a query was raised whether the benefit of exemption under sections 54 and 54F of the Income-Tax Act, 1961 (the Act), in respect of long-term capital gains, on account of investment of such capital gains in the purchase / construction of a residential house in a foreign country, is available to an assessee, being a non-resid...

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Posted Under: Finance |

SEBI Revises Norms with Regard to Exchange Traded Funds

SEBI Revises Norms with Regard to Exchange Traded Funds to bring Efficiency in Margining of Index Exchange Traded Funds (ETFS) and Facilitate Efficient use of Margin Capital by Market Participants The Securities and Exchange Board of India (SEBI) has revised the norms for calculating the margins for Exchange Traded Funds. In order to brin...

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Posted Under: Finance |

New Valuation methods of unquoted shares u/s. 56

Notification No. 52/2012-Income Tax (29/11/2012)

Notification No. 52/2012-Income Tax For section 56, value of unquoted shares can optionally be taken as value determined by either DFCF or as per revised method - Income-tax (Fifteenth Amendment) Rules, 2012 - Amendment in Rules 11U and 11UA...

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Seeks to extend the validity of Notification No. 98/2008-Customs dated 27th August, 2008 for a further period of one year, i.e up to and inclusive of 28th November, 2013

Notification No. 50/2012-Customs (ADD) (29/11/2012)

New Delhi, dated 29th November, 2012 Notification No. 50/2012-Customs (ADD) G.S.R. (E). –Whereas the designated authority vide notification No. 15/12/2012-DGAD, dated the 22nd November, 2012, published in the Gazette of India, Extraordinary, Part I, Section 1 dated the 22nd November, 2012 has initiated review in terms of sub-section (5)...

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Service Tax on Real Estate – A Practical Perspective (PART – B)

Article discusses Abatement/Valuation, Reverse Charge in Construction Activity along with different models applicable to Real estate Industry i.e. Tripartite Model, and Joint Development Model with case laws. ...

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Posted Under: Finance | ,

Service Tax on Renting of Immovable Property – Section 66E(A)

Renting has been defined w.e.f. 1.7.2012 in section 65B(41) as allowing, permitting or granting access, entry, occupation, usage or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar ar...

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Posted Under: Finance | ,

No Misconduct by CA if arbitrator of client accepts controversial balance sheet

Ameyas Infraprojects (P.) Ltd. Vs Ajay B. Garg (Bombay High Court)

Considering the fact that the dispute between the partners in respect of the accounts of the said firm was referred to the arbitrator who was an independent person and the said arbitrator looking to the entire evidence has accepted the balance-sheet audited by the 1st Respondent as correct, we see no reason to interfere with the prima fac...

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‘No concession no perquisite’ is for employee and not for employer for TDS Deduction – SC

Regional Dir. ONGC Ltd. Vs Assn. of Sc. & Tech. Offr. ONGC Ltd. (Supreme Court in India)

Scheme of the Act provides that after the employer deducts from the salary of the employee the tax and pays the same to the Central Government, a Tax Deduction Certificate is furnished to the employee and it is for the employee to claim before the Assessing Officer in the assessment proceedings and get a determination done and in case he ...

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Service tax can be demanded only if residential complex comprises more than 12 residential units

A.S. Sikarwar Vs Commissioner of Central Excise, Indore (CESTAT Delhi)

Hon'ble Supreme Court and the Hon'ble Supreme Court has dismissed the appeal filed as reported at 2012 (25) J514 (SC). So we consider that this matter is no longer res integra and service tax can be demanded under section 65(105)(zzzh) only if the building concerned has more than 12 residential units in the building and such levy will no...

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Foreign travel expenditure on Pleasure Trip not allowable

Creamline Dairy Products Ltd. Vs DCIT (ITAT Hyderabad)

The main issue is with regard to allowability of foreign travel expenditure. The assessee claimed foreign travel expenditure at Rs. 20,35,971. As the assessee not furnished details of expenditure relating to business and pleasure trips, the Assessing Officer disallowed 80% of foreign travel expenses at Rs. 16,28,777. On appeal, the CIT(A)...

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Service in relation to IPL sponsorship not liable to service tax for period prior to 1-7-2010

Kingfisher Airlines Ltd. Vs Commissioner of Service Tax, Mumbai-I (CESTAT Mumbai)

As per Section 65(105)(zzzn) the activity undertaken by the applicant is a sponsorship activity but same is specifically exempt if same is undertaken in relation to sponsorship of the sports events. The above said activity came into taxable event with effect from 1.7.2010 when an exemption for sponsorship of sports event has been withdraw...

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Manpower Supply Service not include deputation of employees for onsite development of software

IDS Systems (P.) Ltd. Vs Commissioner of Central Excise, Bangalore (CESTAT Bangalore)

Activities of the appellant may not deserve to be considered as 'supply of manpower' but as rendering of 'information technology software service' and in the light of the stay granted in the case of ASM Technologies Ltd. (supra), the appellants are eligible for waiver of pre-deposit. As regards, the denial of CENVAT credit,...

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Jurisdictional AO may verify position & take such action as may be warranted in law u/s. 172(7)

Income-tax Officer (International Taxation) Vs Albatross Shipping Ltd. (ITAT RAjkot)

Admittedly, the Rajkot Bench of the Tribunal in the case of I.T.O V/s M/s CMA CGM Agencies (India) Pvt. Ltd. (supra) on identical facts relied on by the ld. counsel of the assessee, quashed the order passed u/s 172(4) of the Act with the observation that the jurisdictional AO may verify the position and take such action as may be warrant...

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ITAT set aside disallowance u/s. 14A as Assessee not provided complete details of expenses

Holcim (India) (P.) Ltd. Vs Income-tax Officer, Ward-12 (4), New Delhi (ITAT Delhi)

In the instant case, the assessee denied incurring any expenditure for earning income, which did not form part of total income during the course of assessment proceedings even when huge investments were made by the assessee in the shares for having controlling interest . In terms of the aforesaid decision of the Hon'ble jurisdictional Hi...

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Services not in the course of business of manufacturing are not entitled to input credit

Pfizer Ltd. Vs Commissioner of Central Excise, Belapur (CESTAT Mumbai)

After examining the records, I am of the view that the services in relation to Convention services, Memberships of Clubs & Association Services, Health Club & Fitness Centre Services and House Keeping services are not entitled for input service credit....

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Service Tax Rules- Mostly used in practice

RULE 4: REGISTRATION - Three categories of person liable to get themselves registered under service tax namely:-a. Service Provider of taxable services under section 69(1) b. Person responsible for making payment of service tax as specified in Rule 2 (1) (d) read with section 68. They shall also seek registration under section 69(1) of C...

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Posted Under: Finance | ,

Conflict of Service Tax & Tax Deducted at Source

Conflicts are what make legislation difficult to understand and subject to multiple views. Though we are always seeking for decision from judiciary to guide us in clear manner but the same might come much later than what we expect. There exists conflict for a transaction under various legal frameworks like:...

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Posted Under: Finance | ,

Penalty can’t be deleted on transaction treated as sham

Commissioner of Income Tax Delhi IV Vs Goyal M.F Gases P. Ltd (Delhi High Court)

If we take the view that a claim which is wholly untenable in law and has absolutely no foundation on which it could be made, the assessee would not be liable to imposition of penalty, even if he was not acting bonafide while making a claim of this nature, that would give a licence to unscrupulous assessees to make wholly untenable and un...

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ICAI clarifies on Nagpur land Deal

This Statement of Facts as regards Centre of Excellence (COE) project at Nagpur is being issued for the general information of members in view of the ongoing discussion in public domain. ...

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Posted Under: Finance |

No contravention of Rule 46A if CIT(A) sends document submitted by Assessee for Remand Report

I.T.O. Vs. M/s Bhavya Lakhani Traders & Suppliers (p) Ltd. (ITAT Delhi)

There is no cogency in the ground raised by the Revenue that Ld. Commissioner of Income Tax (A) has not duly afforded adequate opportunity to the Assessing Officer to consider the submissions and evidences filed before him at the appellate stage. The Ld. Commissioner of Income Tax (A) has duly sent the documents furnished by the assessee ...

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Public Notice No. 32 (RE-2012)/2009-2014, Dated: 27.11.2012

Public Notice No. 32 (RE-2012)/2009-2014 (27/11/2012)

In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy 2009-2014, the Director General of Foreign Trade hereby makes the following amendments in Part B of Aayat Niryat Form - ANF 5B of the Handbook of Procedures, Vol.I, (Appendices and Aayat Niryat Forms)....

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SEBI : Inventory Management for Market Makers of SME Exchange/Platform

CIR/MRD/DSA/31/2012 (27/11/2012)

SEBI vide circular dated April 26, 2010 has issued guidelines for market makers on stock exchange/trading platform by a recognized stock exchange having nationwide trading terminals for Small and Medium Enterprises (SMEs)....

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Amount paid for violation of laws not allowable despite Compounding

Arun Kumar Gupta (HUF) Vs Assistant Commissioner of Income-tax (ITAT Delhi)

Now coming to the other aspect on the basis of which the AO disallowed the claim as to whether or not expenditure incurred as a result of compounding of violation of municipal laws & Environmental laws falls within the ambit of aforesaid explanation to sec. 37(1) of the Act, Hon'ble Karnataka High Court in CIT v. Mamta Enterprises [2004] ...

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No Penalty on voluntary admission of Assessee of taxing the income @ 8%

The Commissioner of Income Tax -VI Vs Vatika Construction PVT. LTD. (Delhi High Court)

Whether the disclosure/admission of Assessee of taxing the income @ 8% when faced with detailed enquiry is a voluntary surrender and not liable for penalty under section 271(1)(c) of the Act?” ...

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Payment for relinquishment of fabricated tenancy rights could not be considered in computing capital gain

L.M. Patel & B.M. Patel (HUF) Vs Commissioner of Income-tax (Gujarat High Court)

Section 48(1) of the Act provides for mode of computation and deduction while charging capital gain. Clause-I thereof in particular provides for a payment from the value of consideration received or accrued as a result of transfer of capital asset, expenditure incurred wholly and exclusively in connection with such transfer. The Tribunal ...

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Commission paid to overseas agents for export sales is an input service

Ajay Industries Vs Commissioner of Central Excise, Jalandhar (CESTAT Delhi)

Overseas commission agent services promotes the assessee's business activities and adds to Revenue earning by manufacture and sale of incremental quantity, activity may have nexus to such sales and Service Tax paid on such services has to be held as includable in the definition of inputs services....

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Penalty for delay in payment of service tax for no willful default can be waived

HCL Info Systems Ltd. Vs Commissioner of Central Excise, Noida (CESTAT Delhi)

Once the cause of default is not traced, it is not possible to determine whether that was reasonable or not. There is no whisper about deliberate breach of law by the appellant which normally is consideration while invoking penalty provision. Penalty being not automatically leviable and also no wilful breach of law is there, the matter de...

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Clarification with regard to goods specified in the certificate of registration obtaining declaration/certificates under Central Sales Tax Act, 1956

Trade Circular No. 22 T of 2012 (26/11/2012)

Section 8 of the Central Sales Tax Act, 1956 provides for the rate of tax on sales in the course of inter-State Trade and commerce. Further, sub¬section (1) of section 8 states that every dealer, who in the course of inter-State trade or commerce, sells to a registered dealer the class or classes of goods that are specified in the certif...

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MVAT – Cancellation of assessment order u/s. 23(11)

Trade Circular No. 21 T of 2012 (26/11/2012)

The section 23 of the MVAT Act, 2002 provides for the assessment of tax under different contingencies. 2. Sub-section (11) of section 23 provides that, (1) where a dealer has been assessed under sub-section (2), (3) or (4) and if he makes an application in Form-316 to the Commissioner within thirty days from the date of service of the ass...

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SEBI : Notification regarding establishment of Local Office of Board at Indore

Notification No. LAD-NRO/GN/2012-13/24/2623 (26/11/2012)

No. LAD-NRO/GN/2012-13/24/2623. – In exercise of the powers conferred by sub-section (4) of section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board has established its Local Office at Indore under the administrative control of its Western Regional Office at Ahmedabad....

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Crucial date of sale for issuing C forms

C form is a form for the concessional rate of CST on the inter-state sale of goods and is issued by purchasing dealer in one State to the selling dealer in another State for the inter-state sales transactions done during the period of three months i.e a quarter. ...

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Posted Under: Finance | ,

Anti-dumping duty on import of Caustic Soda, originating in or exported from Saudi Arabia, Iran,Japan and USA

Notification No. 49/2012-Customs (ADD) (26/11/2012)

Notification No.49 /2012-Customs (ADD), Whereas, the designated authority, vide its notification No. 15/28/2010-DGAD, dated the 2nd September, 2011 published in Part I, Section I of the Gazette of India, Extraordinary, dated the 2nd September, 2011, had initiated a sunset review in the matter of continuation of anti-dumping on imports of ...

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Systematic corruption, is a human rights’ violation – SC

State Of Maharashtra Tr.C.B.I. Vs Balakrishna Dattatrya Kumbhar (Supreme Court of India)

Corruption is not only a punishable offence but also undermines human rights, indirectly violating them, and systematic corruption, is a human rights’ violation in itself, as it leads to systematic economic crimes. Thus, in the aforesaid backdrop, the High Court should not have passed the said order of suspension of sentence in a case i...

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Public Servant Need No Sympathy for Corruption- HC

Balim son of Wasudeo Ghodki, Dead Through his legal heirs Vs State of Maharashtra, through Anti Corruption Department, Nagpur (Bombay High Court)

Corrupt public servant deserves no sympathy and ruling out any leniency towards public servant who has been found guilty by the trial court, also made it clear that each of the criminal case is required to be decided with reference to the individual facts of each case. ...

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Validity of Reassessment notice if it mentions employee of company as agent?

Arvind Mills Ltd. Vs Assistant Commissioner of Income-tax (Gujarat High Court)

As per the Assessing Officer, the petitioner should be treated as an agent of Mr. Ivo Perica. For the salary income that Mr. Ivo Perica received for the work done in India having not paid tax, such tax could be recovered from the petitioner. For some strange reason, however, when the impugned notice was issued, the petitioner was describe...

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TPO to consider both external and internal comparables to determine ALP

California Software Co. Ltd. Vs Assistant Commissioner of Income-tax (ITAT Chennai)

Even if the assessee as well as the authorities below agree that the internal comparables are sufficient for the TP study in the present case, that does not justify the legal compulsion of examining the external comparables as well. An agreement, arrived at on the basis of incorrect premises between the contending parties, does not deter...

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Apex court can dismiss appeal on account of vagueness, leaving question of law open

Commissioner of Income-tax, Delhi Vs Gold Tax Furnishing Industries (Supreme Court of India)

In the present case, we find that the Assessment Order does not give effect to the amount seized in the calculation of tax payable at the end of the Assessment Year in question. Further, there is no Demand Notice and there is no basis for claiming interest on advance tax due on 15th September, 15th December and 15th March. On account of t...

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S. 2(22(e) – Mere transfer of profit by a company cannot be treated as loan

Mahender Kumar Gupta (HUF) Vs Assistant Commissioner of Income-tax (ITAT Delhi)

Even though the assessment order mentions date of receipt of profit on sale of shares as 4.2.2004 and the amount is claimed to have been received from the company M/s DN Kansal & Securities (P) Ltd., the AO or the ld. CIT(A) did not analyse the nature of transaction as to how it is loan or advance nor ascertained accumulated profits of th...

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Extended period of limitation not invokable in case of revenue neutral situation

Adani Ports & Special Economic Zone Ltd. Vs Commissioner of Service Tax, Ahmedabad (CESTAT Ahmedabad)

There is no dispute that the appellants were eligible for CENVAT credit for the amount paid as Service Tax and, therefore, this is a situation which was revenue neutral and by not paying the Service Tax immediately, appellants have lost more than Rs.26,00,000/- paid by them as interest which would not have become payable if Service Tax wa...

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Services provided by one unit of assessee to other unit not liable to service tax if Registration of Units based on same PAN

SAIL Vs Commissioner of Central Excise, Ranchi (CESTAT Kolkata)

We find from the Central Excise Registration and the other documents furnished by the applicant that the Registration by Central Excise Department has been given by including PAN Number of SAIL. There is no dispute that the applicant is an unit of M/s SAIL and the other units are also part of M/s SAIL. Thus, we find that the service is be...

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Expense cannot be disallowed for Mistakes in form 15G

Pareek Electricals Vs Assistant Commissioner of Income-tax (ITAT Cuttack)

With respect to the deduction u/s.194-I,the learned Counsel for the assessee has submitted that the land lady being a senior citizen has submitted Form 15G to the assessee declaring that no tax should be deducted on the rent paid to her when the taxable limit for taxation in her hand was to be Rs. 1,95,000. ...

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Drilling of exploratory wells is part Mining Service

Atwood Oceanics Pacific Ltd. Vs Commissioner of Service tax, Ahmedabad (CESTAT Ahmedabad)

While considering the scope of Survey and Exploration of Mineral, Oil and Gas Service, we limited the scope to the five elements of exploration and did not consider the drilling of exploratory wells as part of that service, it has to be treated as part of Mining Service since any service in relation to Mining would come in this category....

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CENVAT Credit balance cannot be used for paying service tax by recipient of GTA services

Topland Exports Vs Commissioner of Central Excise, Rajkot (CESTAT Ahmedabad)

Since the appellant is not providing output services as categorized in Rule 2(p) of the Cenvat Credit Rules, 2004, debiting the said amount in the Cenvat account needs to be rectified by directing the appellant to debit or pay the entire amount invoked in both the appeals as service tax paid for receipt GTA services through PLA or by TR-6...

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Delay in filing of application under sec. 84(3) is condonable

Thakker Shipping (P.) Ltd. Vs Commissioner of Customs (General) (Supreme Court of India)

The expression, including the provisions of sub-section (4) of section 129A is by way of clarification and has been so said expressly to remove any doubt about the applicability of the provision relating to cross objections to the applications made under section 129D(4) or else it may be said that provisions relating to appeals to the Tri...

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Unabsorbed depreciation to be set-off with income from other sources even if business losses not yet exhausted

Commissioner of Income-tax Vs SPEL Semi Conductor Ltd. (Madras High Court)

A reading of Section 32(2) thus makes it clear that if the unabsorbed depreciation allowance could not be wholly set off under clause (i) and clause (ii), the amount of depreciation not so set off can be set off from income from other head, if any, available for that assessment year. The language of Section 32(2) is very clear and there i...

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Cenvat credit can be taken on machine procured prior to registration

Global Digital Color Lab Vs Commissioner of Central Excise I, Jaipur-I (CESTAT Delhi)

Ld. A.R has not been able to point out any provisions to the effect that Cenvat credit cannot be taken on machine procured prior to the date of issue of registration certificate. The argument of the lower authorities seems to be that the credit entries in the register for taking credit should not have been earlier than the date of grantin...

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Full value of consideration could not be substituted by market price if bona fide of the transaction not suspected

SIL Employees Welfare Trust Vs Joint Commissioner of Income-tax, 15(3), Mumbai (ITAT Mumbai)

When the bona fideof the transaction and the actual sale consideration received by the assessee has not been suspected, then for the purpose of computation of capital gains, the full value of consideration can not be substituted by market price or value of the capital asset as on the date of transfer. ...

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ST Demand cannot be upheld under a category different than mentioned in show-cause notice

Ashok Agarwal Vs Commissioner of Central Excise, Jaipur-I (CESTAT Delhi)

Firstly, there is a legal infirmity that tax is demanded under a category of service different from the one for which demand was initially issued. There is also the issue that Clearing and Forwarding Service could be rendered using a godown made available by the service recipient. In this case the service recipient has taken godown on ren...

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Claim made Through invalid revised return can also be considered

M/s Mahajan Industries Pvt. Ltd. Vs ITO (ITAT Delhi)

The AO examined the details of legal and professional charges paid by the company and noticed that the claim of Rs.5 lacs paid to M/s Kotak Mahindra Capital Company Ltd towards placement fees and earned dividend income which was claimed exempt u/s 10(34) of the Act. The company did not make any disallowance for the purposes of section 14A...

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Service Tax Penalty cannot be imposed u/s. 76 and 78 simultaneously

Commissioner of Central Excise Vs Mittal Technopack (P.) Ltd. (CESTAT Kolkata)

We are of the view that even if technically, scope of sections 76 and 78 of the Act may be different, as submitted on behalf of the revenue, the fact that penalty has been levied under section 78 could be taken into account for levying or not levying penalty under section 76 of the Act. In such situation, even if reasoning given by the ap...

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Settlement Commission is barred from entertaining application after time limit prescribed for making an assessment order u/s. 143/144 expired

Commissioner of Income-tax Vs Income-tax Settlement Commission (Delhi High court)

Since no assessment order can be passed after the expiry of the prescribed time-limit, no proceeding can be taken in it. Moreover, proceeding for assessment/reassessment under section 147 are specifically excluded from the purview of case as defined under Section 245A(b). Thus, there is no question of proceedings of the type which are sub...

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Proceedings u/s. 147 not to initiated to examine as to whether there is escapement of income

Deputy Director of Income-tax (International Taxation) Vs Societe International De Telecommunication (ITAT Mumbai)

Reverting to the facts of the instant case, it is seen that insofar as the second reason is concerned, the Assessing Officer initiated reassessment proceedings with a view to 'examine' whether the assessee had accumulated reserve. Obviously, the scope of section 147 cannot encompass such an action under which certain examination is to be ...

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Foreign gift may be treated as undisclosed income on the basis of Confession before FERA Authorities

Smt. Rajrani Gupta Vs Deputy Commissioner of Income-tax (Bombay High Court)

In the present case, the evidence in the form of confirmatory letters, deed of gifts etc. were found during the course of search. The authorities on examination of the confirmatory letters and surrounding circumstances reached a prima facie view that the gifts were not genuine. A notice dated 27.06.1996 under Section 158BC of the Act was ...

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ID Proofs Compulsory for Train Journey in All Reserved Classes from 1.12.2012

With effect from 01.12.2012, one of the passengers booked on a ticket for undertaking journey in any reserved class will have to produce any one of the prescribed proofs of identity failing which all the passengers will be treated as travelling without ticket and charged accordingly. ...

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Posted Under: Finance |

Online Tracking Facility to Check Corruption in Income Tax Refunds

Instances of alleged corruption for settlement of refund claims and complaints come to notice from time to time. Whenever any such instance or complaints comes to notice, the same is verified and if it is found to be correct, the concerned officers/officials have to face penal consequences depending on the facts and circumstances of the c...

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IT – Control on count of Tax Audits, No Option to download Final Acknowledgment

Government has put the facility for CAs to upload 3CA, 3CB, 3CD etc. If Govt. makes upload of the same compulsory from AY 2013-14 by making appropriate rules under I T Rules, 1962, then we will be able to track - how many reports are filed with the department in our name? ...

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Applicability of Service Tax for Software Freelancer

Software is not exempted from Service Tax because it does not appear in the List of Negative Services. Service Tax shall be levied or not is decided on case to case basis depending upon the location of service recipients. If the service recipient is located outside India, Service Tax is not leviable. ...

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Registration to a trust can be denied if it was charging fees for citizen services in addition to statutory fees

Sukhmani Society For Citizen Services Vs Commissioner of Income-tax, Bathinda (ITAT Amritsar)

The present society is doing its business and charging huge fees from the public which was in addition to the prescribed fee of the Punjab Government. Even otherwise, the fees charged by the present society is in addition to the burden forced upon the common-man. Because of this service has to be rendered by the Punjab Government free of ...

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Income from sale of abandoned cargo by a custodian of goods not liable to Service tax

Maersk India (P.) Ltd. Vs Commissioner of Central Excise & Customs (CESTAT Mumbai)

The counsel for the appellant submits that in Board's Circular No. 11/1/2002-TRU dated 01/08/2002 it has been clarified that Service Tax is not leviable on the activities of the custodian when he auctions abandoned cargo and VAT/ST is paid in respect of such cargo. ...

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Providing adequate support staff to all assessment units – CBDT

Letter [F. No. HRD/CMD/123/2/2011-12/2301] (23/11/2012)

Assessment officers of many charges have conveyed to the Board that they are not being provided any secretarial assistance or other office help and they are left with no option but to make private arrangement to finalise their assessment orders and other time bound matters....

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Taxability of Share Profit of Assessee maintaining separate investment and trading portfolio

Jignesh Indulal Patel Vs Income-tax Officer, 4(1)(2), Mumbai (ITAT Mumbai)

There is no dispute that the assessee is maintaining two separate portfolios i.e. investment portfolio and trading portfolio. The A.O. has admitted the said position consistently in the past. It is pointed out that the shares in question which are subject matter of short term capital gain and long term capital gain are part of the investm...

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Extension of time to submit ITR-V cannot validate a time-barred S.143(2) notice

M/s E.K.K. & Co Vs. The A.C.I.T. (ITAT Cochin)

The scheme frame by the CBDT clearly says that where the return was filed electronically with digital signature the acknowledgment generated electronically shall be evidence for filing of the return. Wherever, the return was filed electronically without digital signature, on successful transmission, the computer shall generate acknowledge...

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Water supply project not coverd under Erection, Commissioning or Installation Services

Lalit Constructions Vs Commissioner of Central Excise, Raigad (CESTAT Mumbai)

Water supply project is an infrastructure facility and a civic amenity which the State provides in public interest and not an activity of commerce or industry. Therefore, the appellants are not covered under the category of Erection, Commissioning or Installation Services." Following the precedent decision in the case of Indian Hume Pipe ...

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No addition to income for festival discount given, if the same is Practice in Industry

Commissioner of Income-tax, Bombay Vs Krishna Sahakari Sakhar Karkhana Ltd. (Supreme Court of India)

The question, whether the above difference between the fair market price and the concessional price should or should not be added to the total income of the assessee(s) Society, needs to be re-looked by Commissioner of Income Tax (Appeals) [for short, 'CIT(A)']. Apart from the afore-stated question, CIT(A) would take into account, whether...

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Regulatory function performed by BIS is not a business activity

Bureau of Indian Standards Vs Director General of Income-tax (Exemptions) (Delhi High Court)

Statutory bodies (including BIS) are empowered to frame rules or regulations, exercise coercive powers, including inspection, raids; they possess search and seizure powers and are invariably subjected to Parliamentary or legislative oversight. The primary object for setting up such regulatory bodies would be to ensure general public utili...

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Penalty cannot be presumed to be passed on to another person

Shree Perfect Security Services (India) (P.) Ltd. Vs Commissioner of Service Tax, Ahmedabad (CESTAT Ahmedabad)

In view of the presumption in the law that an penal liability can never be passed on to another person who has not committed the offence, the view taken by the Tribunal in the case of Offshore Hook-up that department has to prove that unjust enrichment would mean that some extra effort is required in addition to merely looking at the bala...

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Order passed by appellate authority without application of mind liable to be set aside

J.B.M. Auto Components Ltd. Vs Commissioner of Central Excise, Delhi-I (CESTAT Delhi)

Appellate authority has not applied his own independent mind to various issues involved in the appeal and various contentions raised by the appellant. It stand simply observed by the appellate authority that all the issues stand discussed in detail by the adjudicating authority and he find himself in agreement with the same. ...

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Service Tax – Penalty u/s. 76 and 78 cannot be levied simultaneously

Jivant Enterprise Vs Commissioner of Service Tax, Ahmedabad (CESTAT Ahmedabad)

As regards the judgment relied upon by the learned SDR in the case of Bajaj Travels Ltd. (supra) I find that the issue involved in the: case was the issue therein the show cause notices were issued prior to 10.05.2008, i.e. on 17.10.2005 invoking the provisions of sections 76 and 78 of the Finance Act, 1994 for imposition of penalty. ...

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Assessee can resort to section 264 proceedings, even if he has approached appellate authority

Aryaman Spinners (P.) Ltd. Vs Commissioner of Income tax (Gujarat High court)

The penalty was based on certain quantum additions. Such additions came to be deleted by the Commissioner(Appeals). Further appeal by Revenue before the Tribunal was rejected. When the Commissioner was deciding the revision petition of the assessee, what was prevailing was the order of the Tribunal. ...

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Measures to Contain Fiscal Deficit

Government has imposed economy measures like rationalization of expenditure and optimization of available resources with a view to improve macroeconomic environment. These include a ban on holding of meetings and conferences at five star hotels, restrictions on foreign travel and ban on creation of Plan and Non-Plan posts. Ministries/De...

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Posted Under: Finance |

India Do not have the Concept of Tax Free Zones

There is no concept called Tax Free Zones as such in operation. However, there are schemes like Special Economic Zones (SEZs) and Export Oriented Units (EOUs) which provide tax exemptions. Both above schemes are administered by the Department of Commerce. ...

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Posted Under: Finance |

CItywise detail of Income tax Search in last 3 and half years

The Income tax Department conducts search and seizure operations based on the credible companies, association of ‘persons’ which includes individuals, hindu undivided families (HUFs), firms, companies, association of persons (AoPs), body of individuals (BoIs), local authorities and any artificial juridical person who are in possession...

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Posted Under: Finance |

Today is last date to E-File Non-XBRL 23AC and 23ACA without additional fees

General Circular No.38/2012 (23/11/2012)

General Circular No.38 /2012 , Dated 23.11.2012 In continuation of General Circular No. 30/2012 dated 28.09.20 12 on the subject cited above, I am directed to say that Due date of filing of e-forms 23AC(Non-XBRL) and 23ACA (Non XBRL) as per new schedule VI (applicable for the accounting year commencing on or after 1.4.2011 ) has been exte...

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Functioning of Review Committee of Commissioners

F.No.390/Review/2/2012-JC (23/11/2012)

Your attention is invited to the statutory provisions by which committee of two Commissioners/Chief Commissioners have been constituted to review the orders passed by the appellate Commissioners/Commissioners as original adjudicating authority....

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Rajiv Gandhi Equity Savings Scheme, 2012 -Section 80CCG – Notification

Notification No. 51/2012-Income Tax (23/11/2012)

Notification No. 51/2012-Income Tax Rajiv Gandhi Equity Savings Scheme, 2012 shall apply for claiming deduction in the computation of total income of the assessment year relevant to a previous year on account of investment in eligible securities under sub-section (1) of section 80CCG of the Income-tax Act, 1961. Notification No. 51/2012 ...

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How to View Form 26AS of Famous Personalities?

We all know that the Govt. has launched a new website of Income Tax E-filing. Have you seen Form 26AS of well-known persons like Ambanis, Tatas, Deols etc? Earlier it was not possible for all to see this, but now on new I T E-filing website it is possible for all CAs. ...

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MVAT Audit Due (Form 704) date extended to 15th January, 2013

Commissioner of Sales Tax in Maharashtra has informed to defer the submission of VAT Audit Report in Form 704 under the MVAT Act, 2002 to 15th of January, 2013 from the scheduled due date of 30th November, 2012. A Notification to this effect is expected on coming Monday, the 12th November, 2012....

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Posted Under: Finance |

Penalty After Surrender Via Revised ROI u/s. 271(1)(c) – High Court Explains Law

Commissioner of Income Tax Delhi-VI Vs Usha International Ltd. (Delhi High court)

The question of concealment of income and whether the revised return was filed voluntarily or not is a question of fact to be examined and decided upon the facts and circumstances of the each case and, therefore, it was not permissible to the Tribunal to merely rely on earlier orders where this issue was considered and penalties were canc...

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Difference in applicability of Cost Compliance Report & Cost Audit Report

With issue of various circulars, cost audit orders and notifications with regard to Cost Accounting, the MCA has set the stage for collection of the authentic information (duly approved by Bard of Directors and verified by a Cost Accountant) with regard to various industries for use by various Ministries....

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December 2020