Amarpali International Vs. ACIT (ITAT Delhi)- Ld. counsel of the assessee submitted that assessee has adequate interest free funds available with the firm which have been used to make the advances during the year. She claimed that no nexus has been established between the interest bearing fund and advances to sister concerns. We have carefully considered the submissions. We find that for making any disallowance in connection with the interest, it is incumbent upon the authorities below to give a finding with regard to the nexus between the interest bearing funds available with the firm and interest free advances made during the year. In our considered opinion, the interest of justice will be served, if the matter is remitted to the file of the Assessing Officer to consider the issue afresh. Assessing Officer shall examine the assessee’s claim that sufficient interest free funds are available to assessee to give advances to the concerns. Accordingly, the issue stands remitted to the file of the Assessing Officer.
M/s Aithent Technologies Pvt Ltd. V/s. ITO (ITAT Delhi)- In its Transfer pricing study, the assessee adopted CUP method and justified the interest free loan on the basis that it had sufficient interest free funds. The TPO rejected the claim and computed notional interest at the rate of 14percent, based on certain domestic borrowings of the assessee.. On appeal, the Tribunal observed that the cost incurred by the assessee was not a relevant consideration under the CUP method and held that it was irrelevant whether the loans were advanced out of own funds or out of borrowed funds and whether the interest free loan were commercially expedient for the assessee or not.
Central Government issues Notification to Provide average Rates of Service Tax Refund for a wide Range of Goods Exported from India; Adds to E-Enabled Service Delivery to Exporting Community, Limits Public interface and Reduces Transaction Costs in obtaining Refunds The Central Government has issued a notification today to provide average rates of service tax refund, ranging from 0.03% to 0.20% of the F.O.B. value of export, for a wide range of goods exported from India. The average rate of refund is in respect of 18 identified services used beyond the factory gate. This is being done to implement the simplified scheme.
The Central Bureau of Investigation has registered a case against a Commissioner, Central Excise, Delhi; a Superintendent, Central Excise, New Delhi; a middleman and others for demanding an illegal gratification of Rs. 60 Lakhs from a mobile phone importer.
Letter [F. No. 137/21/2011 – Service Tax], Dated 19-12-2011 Section 65(109a) of the Finance Act, 1994 – Telecommunication service – Clarification on taxability in respect of International Private Leased Circuit (IPLC) charges and amendment in the definition of Telegraph Authority under section 65(111) of the Finance Act, 1994. The IPLC services rendered by a person located outside to a person located in India, is neither taxable under the category of Telecommunication Services, nor taxable under the category of Business Support Services
The Finance Ministry is working on savings banks account number portability, which will allow a customer to retain his account number while changing his bank.
Very rarely moments come into the life of a professional body, where a call is taken on the way forward, so as to realise its true potential. Such a moment came in December 2011, when emotions ran high amongst us, as to what will finally emerge through the churning process that happened in the Parliament-the highest legislature of the country, which passed the Cost and Works Accountants (Amendment) Bill 2011. As all of you are aware, the Rajya Sabha passed the bill on 12th December 2011 with some amendments. The LokSabha passed it without further amendments to the bill that was passed in RajyaSabha. While this entire episode had our profession in the centre of the arena fighting a battle, but the happenings on the sidelines by unaffected parties, turned the tables against our just demand for decades. The details of the bill passed by RajyaSabha is available at http://164.100.24.219/BillsTexts/RSBillTexts/PassedRajyaSabha/cost%20work.pdf
ACIT Vs. Afghan Crane Crusher (ITAT Delhi)- Upon assessee’s appeal Ld. Commissioner of Income Tax (Appeals) noted that the aforesaid loans were duly recorded in the books of accounts and confirmations of loans were also filed before the Assessing Officer wherein the depositors accepted to have made interest free loans to the assessee. Ld. Commissioner of Income Tax (Appeals) further observed that the unsecured loans have been raised by the assessee from relatives and friends in the financial year 2004- 05 for obtaining credit limit from banks and the impugned sums do not represent trading liability for invoking provisions of section 41(1) of the Act. In view of the above facts Ld. Commissioner of Income Tax (Appeals) held that the Assessing Officer was legally and factually incorrect in invoking provisions of section 41(1) of the Act and made disallowance of Rs. 13,80,000/-.
The following additional methods viz. Institutional Placement Programme (IPP) and Offer for Sale of Shares through the stock exchange for the purpose of compliance with SCRR requirements are being introduced. The broad features of the same are as under:
As part of efforts to fight black money, the government has decided to double the strength of the crucial foreign tax division in Finance Ministry which handles classified tax related information between India, tax haven nations and other countries.
