The core issue that we are really required to adjudicate in this appeal is whether or not, on the facts and circumstances of this case, the assessee can be said to have a permanent establishment (PE)1 in India, and, if it is held that the assessee indeed has a permanent establishment in India how much profits can be taxed as being attributable to such a permanent establishment.
On December 30, 2011, Shri Pawan Kumar Bansal, the Minister for Parliamentary Affairs spoke to the media and gave a detailed account of the Bills that were passed in one or both the Houses and the Bills that are pending for consideration. Of these, only the Lokpal and Lokayuktas Bill and the Whistle Blowers were passed by the Lok Sabha and are now before the Rajya Sabha. One Bill has been reported by the Standing Committee and other Bills are with the Standing Committee.
The year 2011 was marked by complex, specialized, high profile investigations conducted by the Central Bureau of Investigation, to probe corruption and crime. The Bureau’s investigations made national headlines in several cases, such as, the 2G Spectrum investigation; Bellary illegal mining Case, Bhanwari Devi abduction and murder case, Commonwealth Games related investigations, alleged irregularities in the implementation of National Rural Health Mission in Uttar Pradesh and alleged corruption in Mumbai’s Adarsh Housing Society case, among several others.
The Ministry of Corporate Affairs has formed a committee to develop the roadmap for future implementation of XBRL. The committee has its Terms of References as under: A. Identification of class of companies and various reports to be filed in XBRL in Phase-wise manner. B. Development of Taxonomies to be used by Corporates for their […]
The Union Finance Minister Shri Pranab Mukherjee said that he is confident that moderation in inflation would continue in the coming months, though softening in the prices of manufactured goods, despite the rapid decline in non-food primary inflation, may be more gradual.
Uthorized dealers may, at their discretion, also accept FCR issued by Shipping companies of repute/IATA approved agents (in lieu of bill of lading), for purchase/discount/collection of shipping documents even in cases, where export transactions are not backed by letters of credit, provided their ‘relative sale contract’ with overseas buyer provides for acceptance of FCR as a shipping document in lieu of bill of lading. However, the acceptance of such FCR for purchase/discount would purely be the credit decision of the bank concerned who, among others, should satisfy itself about the bona fides of the transaction and the track record of the overseas buyer and the Indian supplier since FCRs are not negotiable documents. It would be advisable for the exporters to ensure due diligence on the overseas buyer, in such cases.
Policy Circular No. 47 (RE 2010)/2009-2014 dated 08.11.2011 laid down the procedure to file the DEPB applications for ‘Free Shipping Bills” for exports of ‘Cotton Yarn including Melange Yarn’ and ‘Cotton’. Representations have been received from trade and industry with regard to exports made under the “EPCG Shipping Bills” for “Cotton yarn including Melange yarn” from 01.04.2011 to 04.08.2011 and ‘Cotton’ from 01.10.2010 to 04.08.2011. In such cases appropriate code for DEPB and EPCG could not be given as during the period DEPB was not available. For the making applications of DEPB in such cases, the following procedure is laid down:-
The course of events in the instant case shows that the assessee was really contemplating the construction of a residential house. This intention of the assessee is very clear from the fact that within days of the sale of her old property, the assessee had purchased the new site for constructing a residential house. The old property was sold on 8-6-2006. The new landed property was purchased immediately on 5-7-2006. The events of sale and purchase and their proximity clearly demonstrate that the assessee had purchased the property only for the purpose of constructing a residential house. The old property was sold for a consideration of Rs. 34,73,447, out of which the assessee was accountable for long-term capital gains of Rs. 32,77,450. The assessee has invested Rs. 33,88,160 for the purchase of the land, which is more than the quantum of long-term capital gains. This again demonstrates the fact that the assessee had arranged the transaction in such a bona fide manner so as to claim the exemption available under section 54F.
The allegation in brief is that Kuwait based private firm had sent 3 items of electronic goods i.e. one Plasma T.V., a Sound System and Mounting brackets worth Rs.90,727/- in favour of a Lady, resident of Melattoor P.O., Trichur, whose husband was an employee of the above firm. The items were sent to her as gift items on the occasion of her house warming and the said consignment was arrived at Nedumbassery Airport. On receipt of the consignments, the lady preferred a Bill of Entry through Cochin based CHA. On receipt of the Bill of Entry before the Customs authorities at CIAL Nedumbassery, the Assistant Commissioner noted that the imported goods were electronic goods and the value of the same exceeded the exempted limit. He also noted that the import appears to be in violation of Foreign Trade Policy and that the goods were valued at Rs.90,727/- Hence, the same were liable to be confiscated under Customs Act.
This paper aims at bringing out the intricacies of prosecution of offences contained in the Income Tax Act, 1961 and their compounding. This paper further minutia the various guidelines issued by the CBDT in this regard. The readers are cautioned to take proper care and consultation before acting on the material contained in this article.
