"01 December 2012" Archive

Interest earned on deposits out of non-SLR funds is eligible for deduction u/s. 80P(2)(a)(i)

Commissioner of Income-tax, Shimla Vs Kangra Central Cooperative Bank Ltd. (Himachal Pradesh High Court)

There can be no dispute with the proposition that the word 'attributable' is much wider in scope than 'derived'. The Legislature has used the words 'attributable to' in conjunction with the phrase 'anyone or more of such activities'. The investment of the funds by the banks including the non-reserves was part of the banking activities si...

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Appointment of Chairman can not be called mala-fide merely because his appointment terms undergo changes

Saroj Bala Vs Union of India (Delhi High Court)

As per Section 6 of the SICA, the member/Chairman can hold an office for a period of not exceeding 5 years or till he or she attains the age of 65 years. ACC is the competent authority, who has to take decision out of the proposal made by the concerned Ministry. In the present case, note prepared by the Secretariat of ACC and proposal sen...

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TP – ALP needs to be seen only with regard to transaction with AEs

Ratilal Becharlal & Sons Vs Joint Commissioner of Income-tax, Range - 18(3) (ITAT Mumbai)

The profit margin from the international transaction with the A.E. has to be seen in relation to the uncontrolled transaction with the independent parties. What is to be compared is the international transactions of the assessee with its related parties and not for its entire transaction with non-related parties also. Therefore, ALP has t...

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Registration of CAs in New e-filing Website

I am happy to inform you that a long-awaited initiative to curb the misuse of membership numbers of our members in the tax audit reports has finally been taken. The new e-filing system launched by the CBDT (Central Board of Direct Taxes) has opened a window for chartered accountants to register and upload certain specified reports requir...

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Posted Under: Income Tax |

To claim deduction u/s. 35DDA for VRS , compliance with rule 2BA not mandatory

State Bank of Mysore Vs Commissioner of Income-tax (Appeals)(LTU), Bangalore (ITAT Bangalore)

A plain reading of provisions of section 35DDA, it is clear that compliance with the conditions of rule 2BA is mandatory only to avail exemption under section 10(10C) by the employees but said rule is not relevant to deduction under section 35DDA. ...

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Income from other sources to be included for computing book profit for Remuneration to partners

Suresh A. Shroff & Co. Vs Joint Commissioner of Income-tax 11 (3) (ITAT Mumbai)

For the purpose of Section 40(b)(v) read with Explanation there cannot be separate method of accounting for ascertaining net profit and/or book-profit. In other words, according to the said Explanation 'book profit' means the net profit as shown in the profit and loss account including income from other sources not the profit computed und...

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S. 54F Amount withdrawn from CGAS taxable in the year of withdrawal

Joint Commissioner of Income-tax (OSD) Vs B. Shivkumar (ITAT Chennai)

Last proviso to section 54F clearly mentions that when amounts deposited under Capital Gains Account Scheme were not utilised wholly or partly for the purchase or construction within the period specified, then such amount would be charged as income of the previous year in which the period of three years, starting from the date of the tra...

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Tribunal has discretion of granting stay and dispensing with requirement of pre-deposit

Commissioner of Central Excise, Jalandhar Vs International Tractors Ltd. (Punjab and Hariyana High Court)

The Tribunal has the discretion of granting stay and dispensing with the requirement of pre-deposit of duty. Secondly, the argument that under Section 35-C(2A) of the Act, the appeal is required to be heard within 180 days, would also be frivolous as the stay order is not co-terminus with the period prescribed for disposal of the appeal....

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Competition & Consumers Protection Laws in India

Competition can be defined as a process wherein cost efficient production is achieved in a structure having reasonable number of players (producers and consumers) with simple entry and exit procedures and where exists a close substitution between products of different players in a given industry....

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In case of export, place of removal is to be taken as port of export

Dynamic Industries Vs Commissioner of Central Excise, Daman (CESTAT Ahmedabad)

As submitted by the learned counsel in respect of FOB exports, the place of removal has to be treated as the Port. Further input service definition is an inclusive definition of services used by the manufacturer directly or indirectly in or in relation to manufacture and clearance and also relating to business activities and specified cat...

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