"28 December 2012" Archive

For income tax Purpose Working of actuarial surplus in accordance with rule 2 of First Schedule to insurance Act is valid

ICICI Prudential Insurance Co. Ltd. Vs Assistant Commissioner of Income-tax (ITAT Mumbai)

Looking at the issue in any way what is noticed is that the computation made by assessee is in accordance with rule 2 of the Insurance Act, 1938 according to which only Assessing Officer can base his computation. This also corresponds to the way incomes were assessed in earlier years, i.e., the correct method as per rule 2 and section 44....

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‘Freight beneficiary’ in a shipping business to be assessed under normal Income tax provisions and not u/s. 172

Income-tax Officer, International Taxation Vs Marine Containers Services (India) (P.) Ltd. (ITAT Rajkot)

Looking to the magnitude of the voyages undertaken by the freight beneficiary and the fact that the respondent-company has been, as observed by the ld. CIT(A), regularly filing its return of income at Mumbai and being assessed to tax at Mumbai, the finding of the CIT(A) that the freight beneficiary is not engaged in occasional […]...

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Exemption u/s. 10(23C)(vi) can be claimed without applying for registration u/s. 12A

Commissioner of Income-tax Vs Jeevan Deep Charitable Trust (Allahabad High Court)

In our considered opinion, exemption under Section 10(23C)(vi) of the Act can be claimed by an assessee without applying for registration under Section 12A of the Act as it is not required to fulfil the conditions mentioned under Section 11 of the Act while claiming exemption under Section 10(23C) (vi) of the Act. ...

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Billing System & Accounting Treatment in Case of Reverse Charge of Service Tax

CA Nitin Gupta IN CASE OF SERVICE RECEIVER IN CASE OF REVERSE CHARGE • WHERE PAYMENT IS MADE TO THE SERVICE PROVIDER, WITHIN 6 MONTHS FROM THE DATE OF INVOICE   POT = PAYMENT BASIS •WHERE PAYMENT IS NOT MADE TO THE S.P., WITHIN 6 MONTHS FROM THE DATE OF INVOICE...

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Posted Under: Income Tax | ,

Initiation of reassessment proceedings on basis of assessment for subsequent assessment year

NYK Line (India) Ltd. Vs Deputy Commissioner of Income-tax (Bombay High Court)

Undoubtedly an order of assessment which has been passed for a subsequent assessment year may furnish a foundation to reopen an assessment for an earlier assessment year. However, there must be some new facts which come to light in the course of assessment for the subsequent assessment year which emerge in the order of assessment....

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Year End Review of measures taken by CBDT & CBEC

24X7 Customs Clearance , Mandatory E-payment of Customs duty, E-helpline, Measures to Check Tax Evasion , Measures to Check Black , money, E-Filing of Returns, Centralised Processing Centre (CPC) , Payment of Direct Taxes Through ATMs , Online Tax Help , Communication Strategy for school children ...

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Posted Under: Income Tax | ,

Discounting charges not amounts to interest and taxable as business income

Director of Income-tax, International Taxation Vs Cargil TSF PTE Ltd. (Delhi High Court)

The Court took into consideration the definition of 'interest' under section 2(28A) of the Act and also analysed the contents of two circulars issued by the CBDT, being No. 65 dated 02.09.1971 and the subsequent one dated 22.03.1993 (Circular No. 647)(sic), and confirmed the reasoning of the Tribunal that discounting charges did not amoun...

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Notification No. 55/2012-Income Tax Dated 28/12/2012

Notification No. 55/2012-Income Tax (28/12/2012)

Notification No. 55/2012-Income Tax Whereas the Central Government in exercise of the powers conferred by clause (iii) of sub-section (4) of section 80-IA of the Income-tax Act, 1961(43 of 1961)(hereinafter referred to as the said Act), has framed and notified a scheme for industrial park, by the notifications of the Government of India i...

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Additional evidences cannot be accepted by CIT(A) without following mandate in terms of rule 46A

Assistant Commissioner of Income-tax Vs Nirula Handicrafts Bazar (P.) Ltd. (ITAT Delhi)

In the case under consideration, the assessee placed before the ld. CIT(A), certain additional evidence and admittedly, the said documents were not submitted before the AO. The powers of the CIT(A) in terms of rule 46A to admit fresh evidence, entail an element of discretion which is required to be exercised in a judicious manner. ...

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Addition U/s. 41(1) not justified on failure of revenue to prove adjustment of liability

Smt. Victoria Roberts Vs Assistant Commissioner of Income-tax (ITAT Bangalore)

Section 41(1) is a deeming fiction and seeks to tax receipts or benefit which may not strictly be 'income', the burden to prove that a particular benefit or receipt falls within the four corners of the provisions of section 41(1) lies upon the revenue. ...

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