"March, 2013" Archive

List of CA Firms Empaneled for Co-Operative Audit in Maharashtra for FY 2012-13

Auditors List Updated on 30th March 2013 Orders of Hon’ble Commissioner Regarding Empanelment of Auditors Auditor Panel List Amravati Aurangabad Kolhapur Konkan Latur...

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Posted Under: CA, CS, CMA |

Income Tax Refund Set-Off without prior intimation to Assessee is invalid

Jeans Knit (P.) Ltd. Vs Deputy Commissioner of Income-tax (Karnataka High Court)

In the present case there was no prior intimation of the proposed action of adjusting the amount of refund due to the assessee towards any other amount due from the assessee. It was an intimation informing the appellant that the amount of refund due for the assessment year 1997-98 stood adjusted against the outstanding demand for the asse...

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S. 145A Value of inventory must include amount of excise duty paid on it

Petro Araldite (P.) Ltd. Vs Deputy Commissioner of Income-tax (ITAT Mumbai)

During the course of assessment proceedings it was observed by AO that the assessee was following 'exclusive method' of valuing the cost of its inventory by not increasing it with the amount of excise duty paid thereon, although as per section 145A purchases and inventories are required to be grossed up to include to duty element. That is...

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Trust Registration valid for sec. 25 Companies formed with charitable objects

Social Pedia Knowledge Foundation Vs Director of Income-tax (Exemptions) (ITAT Chennai)

In the instant case, a perusal of the object clause of the company shows that it has been incorporated with the aim of providing education, facilitate social and economic empowerment, economic development programs, literacy programs, training programs for villagers and downtrodden people. How these objects are to be achieved should be lef...

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Mobile Companies can recognize revenue to extent of talk time used in case of prepaid talk time

Assistant Commissioner of Income-tax Vs Shyam Telelink Ltd. (ITAT Delhi)

In the present case, the main dispute is regarding revenue recognition relating to unused talk time remaining available as at the end of the year. As noted earlier, there is no dispute that company had to provide talk time to its subscriber till the expiry of the period of card or till complete utilization of talk time, whichever is earli...

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Deduction u/s. 10A is allowable without setting off of losses of other units

Genisys Integrating System (India) (P.) Ltd. Vs Deputy Commissioner of Income-tax (ITAT Bangalore)

It is after the deduction under Chapter VI-A that the total income of an assessee is arrived at. Chapter VI-A deductions are the last stage of giving effect to all types of deductions permissible under the Act. At the end of this exercise, the total income is arrived at. Total income is thus, a figure arrived at after giving effect to all...

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S. 54 Exemption cannot be denied for payment by third party if subsequently reimbursed by the Assessee

Sunil Sachdeva Vs Assistant Commissioner of Income-tax (ITAT Delhi)

As regards another facet of addition in this case which has resulted from enhancement made by the Ld. Commissioner of Income Tax (A) by holding that assessee is not eligible for deduction u/s. 54F(1) on the payment of Rs. 55,70,800/-. This has been denied on the ground that the payment was made by M/s Capital Advertising Pvt. Ltd. wherein...

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A Study on Government Accounting in India – Some Recent Developments

Introduction – The financial management of any organization must have a prudent financial system backed by sound and effective accounting procedures and internal controls. A well-designed and well managed accounting system helps ensure proper control over funds. Accounting policies and procedures are designed to compile accounts ful...

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Belated filing of return can be no ground for denying Income Tax refund

North Eastern Electric Power Corpn. Employees Provident Fund Trust Vs Union of India (Gawhathi High Court)

In the instant case, assessee a recognized trust invested its funds as per instructions of Government of India in various financial institutions and those institutions deducted tax at source from interest earned on fixed deposits. In order to claim refund of TDS erroneously deducted by the financial institutions, the assessee filed return...

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ICAI Presidents Message on Bank Audit, Finance Bill 2013, Companies Bill, 2012

Not resorting to any populist measures, the Government has not touched the direct and indirect tax structures in principle in the Union Budget 2013- 14; neither has it touched the middle class. Some of the experts have felt that they were expecting something more miraculous in the Budget that could tackle the existing economic issues at h...

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Posted Under: CA, CS, CMA |

FEMA – Govt. notifies 135 countries for imposition of quantitative restriction on import of goods

Notification No. GSR 59(E) [F.NO.01/92/180/106/AM-11/PC-VI/PRA] (31/03/2013)

Section 9A Of The Foreign Trade (Development & Regulation) Act, 1992 – Quantitative Restrictions – Power Of Central Government To Impose – Notified Developing Countries For Purposes Of Section 9A NOTIFICATION NO. GSR 59(E) [F.NO.01/92/180/106/AM-11/PC-VI/PRA], DATED 31-1-2013 In pursuance of sub-section (4)(a) of sec...

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S. 14A disallowance can be made even if there is no exempt income

Stream International Services (P.) Ltd. Vs Assistant Director of Income-tax (International Taxation (ITAT Mumbai)

In order to be covered under section 22, it is sine qua non that the assessee must be the owner of the house property as per section 27 read with section 269UA(f). In the instant case, the assessee is not the owner of the property. It cannot also be considered as deemed owner of house property within the meaning of section 27 because it t...

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Interest on loan not deductible if loan were taken for non-business purposes

Commissioner of Income-tax Vs Sahu Enterprise (P.) Ltd. (Allahabad High Court)

It appears that nothing is available from the record that advances/loan without interest were ever given for business purposes. It was for the personal use of Director or family members and after obtaining the loan/advances, the borrower never made any effort to repay the loan amount nor did the assessee company made any effort to recover...

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Mere accruing of income jointly to more persons than one would not constitute thereon an AOP

Sudhir Nagpal Vs Income-tax Officer (Punjab And Hariyana High Court)

In order to assess individuals to be forming association of persons, the individual co-owners should have joined their resources and thereafter acquired property in the name of association of persons and the property should have been commonly managed, only then it could be assessed in the hands of associations of persons. Conversely, the ...

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Press Note on Appointment of Indirect Tax Ombudsman

The President of India has appointed Shri Hrishikesh Sharan, Chief Commissioner, Central Excise (Retd.) as Indirect Tax Ombudsman at Mumbai to hear grievances on Central Excise, Customs and Service Tax issues from the general public. Download Press Note on appointment of Indirect Tax Ombudsman...

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Posted Under: CA, CS, CMA |

Depreciation not allowable if Assessee is not the owner of the Asset either wholly or partly

Dharti Dredgers & Infrastructure Ltd. Vs Assistant Commissioner of Income-tax (ITAT Hyderabad)

In this case ownership of the dredger was not transferred to the assessee in pursuance to the sale agreement, contrary to the claim of the assessee made in this regard. Even accepting the contention of the learned AR that no registration of dredger is required and customs duty is not payable on dredgers, it is a fact on record that the as...

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Jurisdiction of ITAT depends upon location of office of AO passing the order

Assistant Commissioner of Income-tax Vs Smt. Lata Jain (ITAT Lucknow)

Undisputedly the office of the Assessing Officer who passed the assessment orders is located in Delhi, over which the Delhi Benches of the Tribunal has jurisdiction. The order under section 127 of the Act was passed by the ld. Commissioner of Income-tax on 12.8.2011 w.e.f. 23.8.2011, which was passed after passing the assessment order and...

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Ban on release of film in theatres due to its release on DTH platform prior to theatrical release is anti-competitive

Raaj Kamal Film International Vs Tamil Nadu Theatre Owners Association (Compentitiom Commission of India)

The informant herein was trying to experiment with an innovative way to have premier of its movie in India through DTH so as to have reach to maximum number of consumers/viewers at a premier show through DTH medium. The decision of the OP not to exhibit this movie or any other movie released before it was released to theatres, through DTH...

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Posted Under: CA, CS, CMA |

Presentation of Foreign Currency Monetary Item Translation Difference Account

1. In the year 2009, the Ministry of Corporate Affairs amended Accounting Standard (AS) 11, The Effects of Changes in Foreign Exchange Rates by inserting Paragraph 46. As per Paragraph 46, in respect of accounting periods commencing on or after 7th December, 2006 and ending on or before 31st March, 2011, at the option of […]...

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Posted Under: CA, CS, CMA |

Delhi Vat Notifications Dated 30-Mar-13

No.F.3(18)/Fin.(Rev-1)/2012-13/dsVI/263, 264 & 265 (30/03/2013)

1 No.F.3(18)/Fin.(Rev-1)/2012-13/dsVI/265 30-Mar-13 Notification from Finance (Revenue-1) department. 1 No.F.3(15)/Fin.(Rev-1)/2012-13/dsVI/264 30-Mar-13 Notification from Finance (Revenue-1) department. 3 No.F.3(17)/Fin.(Rev-1)/2012-13/dsVI/263 30-Mar-13 Notification from Finance (Revenue-1) department....

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CST Notification for Exemption of tax on inter-State Sales of furnishing cloth

Notification No. CST. 1413/CR 48/Taxation-1 (30/03/2013)

CST Notification for Exemption of tax under section 8(5) of CST Act, 1956 on inter-State Sales of furnishing cloth - Government of Maharashtra hereby in the public interest, exempts with effect from the 1st April 2013, the tax payable on sale of furnishing cloth notified under entry 101 of Schedule 'C'...

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CBDT notifies exemption for grant-in-aid received by ‘Assam State Control Society’ from specified persons

Notification No. 27/2013 - Income Tax (30/03/2013)

Notification No. 27/2013 - Income Tax The notification shall be effective subject to the following conditions, namely:- (a) the 'Assam State AIDS Control Society' does not engage in any commercial activity; (b) the activities and the nature of the specified income of the 'Assam State AIDS Control Society' remain unchanged throughout the...

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MVAT Notification to give effect to proposals as per Budget 2013-14

Notification No. 1513/CR 46(1)Taxation-1 (30/03/2013)

We are attaching herewith VAT Notification to give effect to the proposals as per the Budget Speech 2013-14 given by Finance Minister of Maharashtra State :- Download MVAT Notification :  ...

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CA Firms approved for appointment as Statutory Central Auditors in Public Sector Banks for FY 2012-13

Names of Audit Firms approved for appointment as Statutory Central Auditors in 25 Public Sector Banks for the year 2012-13 Allahabad Bank, Kolkata 1       M/s N K Bhargava & Co, New Delhi 2       M/s M C Jain & Co, Kolkata 3       M/s Raghu Nath Rai & Company, New Delhi 4       M/s Khandelwal Kakani &am...

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Posted Under: CA, CS, CMA |

India & Liechtenstein Sign Tax Information Exchange Agreement (TIEA)

India and Liechtenstein have signed a Tax Information Exchange Agreement (TIEA) today at Bern, Switzerland. The Agreement was signed by Ms Chitra Narayanan, Indian Ambassador in Switzerland from Indian side and Madame Doris Frick, Ambassador of Liechtenstein in Switzerland on behalf of Liechtenstein....

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Posted Under: CA, CS, CMA |

TP – Circular on Identification of Contract R&D Service Provider With Insignificant Risk & Application of Profit Split Method

Government Approves Issue of Circulars on Identification of Contract R&D Service Provider With Insignificant Risk and on Application of Profit Split Method Based on Recommendation of the Rangachary Committee; These Circulars Will Help in Providing Certainty to the Taxpayer on Issues Relating to Transfer Pricing of Development Centre...

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Posted Under: CA, CS, CMA |

Service tax implication on AC Restaurants vide Finance Bill, 2013

With effect from July 1, 2012, Service is defined under Section 65B(44) of Chapter V of the Finance Act, 1994 (“the Finance Act”) means  any activity carried out by a person for another person for a consideration is service, which includes a declared service. Further service tax is applicable unless said service falls under the [&hel...

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Excise & Customs Offices to Remain open on 29th, 30th & 31st March, 2013

Proposed Nationwide Strike by the Associations of Superintendents and Inspectors of Central Excise for 29th, 30th & 31st March, 2013 Stands Withdrawn. All Offices under the Central Board of Excise and Customs (CBEC) shall be open on 29th, 30th & 31st March, 2013 observing their normal office hours, as a part of trade facilitation measure....

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Posted Under: CA, CS, CMA |

CIT, Bhopal authorized to issue orders in writing to Additional or Joint CIT in respect of specified persons

Notification No. 26/2013 - Income Tax (28/03/2013)

Notification No. 26/2013 - Income Tax In exercise of the powers conferred by sub-sections (1) and (2) of section 120 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby :- (a) directs that the Commissioner of Income-tax specified in column (2) of the Schedule below, having his headquarter at the...

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Delhi Value Added Tax (Amendment) Act, 2013 (Delhi Act 01 of 2013)

No.F.14(4)/LA-2013/Cons2law/11 (28/03/2013)

(As passed by the Legislative Assembly of the National Capital Territory of Delhi on the 25th March, 2013) [ 28th March, 2013]-An Act to further amend the Delhi Value Added Tax Act, 2004....

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Jurisdiction of – DGIT (Investigation), Bhopal – Amendment In Notification NO. S.O. 734(E), Dated 31-7-2001

Notification No. 25/2013 - Income Tax (28/03/2013)

Notification No. 25/2013 - Income Tax [F.NO.187/18/2012 (ITA.I)], DATED 28-3-2013 In exercise of the powers conferred by sub-sections (1) and (2) of section 120 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following further amendments in the notification of the Government of India, Ministr...

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Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

Notification No. 32/2013-Customs (N.T.) (28/03/2013)

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 ...

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Guidelines on Implementation of Basel III Capital Regulations in India – Clarifications

RBI/2012-13/460 DBOD.No.BP.BC.88/21.06.201/2012-13 (28/03/2013)

Please refer to the ‘Guidelines on Basel III Capital Regulations’ issued vide circular DBOD.No.BP.BC.98/21.06.201/2011-12 dated May 2, 2012 on the implementation of Basel III guidelines in a phased manner and our press release No. 2012-2013/1092 dated December 28, 2012 rescheduling the start date of implementation of Basel III capital...

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RBI reduces Interest Rate on PPF & SCSS, 2004 from 01.04.2013

RBI/2012-13/458 DGBA.CDD. No. H- 5603/15.02.001/2012-13 (28/03/2013)

Public Provident Fund Scheme, 1968 (PPF, 1968) and Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest rates. Please refer to our circular RBI/2011-12/359 dated January 20, 2012 regarding interest rates on small savings schemes, wherein it was indicated that as per Government’s decision on revision of interest on sm...

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CIT (Central), Bhopal, shall be subordinate to the DGIT (Investigation) Bhopal, CBDT notifies

Noitification No. 24/2013 - Income Tax (28/03/2013)

Notification No. 24/2013 - Income Tax In exercise of the powers conferred by section 118 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby directs that the Commissioner of Income-tax (Central), Bhopal shall be subordinate to the Director General of Income-tax (Investigation), Bhopal....

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Income tax Calculator for FY 2012-13

We have attached below the Excel file containing Income Tax calculator for Financial Year 2012-13 / Assessment year 2013-14 as modified by Finance Bill 2012 presented on 16th March 2012. ...

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KYC verification of office bearers sufficient while opening savings bank account of Self Help Groups (SHGs)

RBI/2012-13/459 DBOD.AML.BC. No.87/14.01.001/2012-13 (28/03/2013)

KYC verification of all the members of SHG need not be done while opening the savings bank account of the SHG and KYC verification of all the office bearers would suffice. ...

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DGFT notifies 5 new Pre Shipment Inspection Agencies & widens area of existing four

Public Notice No. 52(RE:2012)/2009-2014 (28/03/2013)

Five new Pre Shipment Inspection Agencies (PSIA) have been notified. Area of operation of four existing PSIA’s has been widened....

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What is Cheque Truncation & Cheque Truncation in India

Truncation is the process of stopping the flow of the physical cheque issued by a drawer to the drawee branch. The physical instrument will be truncated at some point en-route to the drawee branch and an electronic image of the cheque would be sent to the drawee branch along with the relevant information like the MICR fields, date of pres...

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Posted Under: CA, CS, CMA |

Amendment to SEBI {(KYC) Registration Agency} Regulations, 2011 &relevant circulars

Circular No. CIR/MIRSD/ 4 /2013 (28/03/2013)

The Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} Amendment Regulations, 2013 have been notified vide No. LAD‑NRO/GN/2012-13/35/6998 with effect from March 22, 2013 whereby the requirement for sending original KYC documents of the clients to the KRA has been removed (copy enclosed)....

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Reassessment to disallow claim allowed earlier by change of opinion not permissible

Commissioner of Income-tax Vs Maruti Suzuki India Ltd. (Delhi High Court)

This is a clear case where the primary facts were available before the AO, and therefore, the assessee cannot be held to have failed to disclose "fully and truly all material facts". In our opinion, it was for the AO to draw the appropriate inference. The assessee is/was under no obligation to draw the inference of fact or law based on th...

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Amount not allowed for non deduction of TDS is eligible for deduction U/s. 80IB

Income-tax Officer, Ward-9(3), Pune Vs Kalbhor Gawade Builders (ITAT Pune)

We are not inclined to interfere with the finding of the CIT(A) because on account of violation of conditions prescribed under clause (ia) the implication u/s.40(a) would be that the said amount will not be deducted in computing income chargeable under the head 'profits and gains of business or profession'. The same will form part of prof...

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Income Tax Authority cannot intervene on any scheme filed for sanction u/s. 391

Commissioner of Income-tax Vs Sesa Goa Ltd. (Bombay High Court)

It is an admitted position that under the provisions of Section 391 the Central Government and the IT Authority do not have any powers to intervene or to be heard on any scheme which is filed seeking sanction of this Court u/s 391 of the Companies Act. This question was considered and decided by the learned Single Judge in case of Jindal ...

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Curable defects do not take away right to appeal

M.R.J. Steels (P.) Ltd. Vs Commissioner of Central Excise & Service Tax, Meerut-I (CESTAT Delhi)

If there is any defect in appeal, in terms of the procedure prescribed by rule 4.03 of Chapter 4 of Judicial Manual, that defect may be intimated to the appellant for curing the same without compulsion since curable defects do not take away right to appeal. Therefore, such valuable right should not be casually denied on flimsy ground of t...

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DOPT Releases FAQ on Leave & Allowance for Central Government Employees

Department of Personnel & Training (DOPT) has released an FAQ each on Leave and Children Education Allowance Scheme (CEA), which are very useful to the Central Government Employees...

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Posted Under: CA, CS, CMA |

Online TMS facility extended to processing of returns to handle PAN migration and restoration issues

INSTRUCTION NO.114 (26/03/2013)

Representations from field formations have been received intimating that owing to the delays in PAN Migration, PAN de-duplication and restoration, certain cases remain to be processed. However, AST does not permit these cases to be processed. Therefore, with the Board's approval, the facility of Online TMS is extended for the cases time ...

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Service Tax – No unwarranted harassment or Arrest – Praveen Mahajan

Highlighting the issue of arrest, Mr Bose said that government doesn’t intend to use such provisions indiscriminately. The effort is to ensure that those getting away by must pay their share of taxes and these provisions must be seen in that context....

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Posted Under: CA, CS, CMA |

Interest U/s. 220(2) is chargeable only after expiry of 30 days from issue of demand

Vodafone Mobile Service Ltd. Vs Union of India (Delhi High Court)

The original demand of Rs. 225.86 crores comprised of two components as per the petitioner. The two components were Rs. 114 crores towards the alleged principal tax liability and Rs. 110 crores towards the purported interest liability. We shall first consider the Rs. 110 crores interest liability. According to the learned counsel for the ...

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No Addition for share Application money if Assessee proves genuineness of transactions

Commissioner of Income-tax Vs Misra Preservers (P.) Ltd. (Allahabad High Court)

Assessee had produced relevant evidence before the CIT (Appeals) establishing that all the persons, who had deposited the share application, were not fictitious persons. Most of them were identifiable; they made the payment by cheques and most of them were assessed to Income-tax. The Tribunal has given further relief to the assessee and h...

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Lottery Business – Sale did not take place on dispatch of tickets to stockiest, but only on sale to ultimate customer

Commissioner of Income-tax Vs K and Co. (Delhi High Court)

Arrangement by which the respondent-assessee sent tickets to the stockists who in turn sold the same to their agents did not indicate that the sale took place at the point of dispatch of tickets to the stockists. We also notice that the unsold tickets are to be returned to the organizing agent of the respondent-assessee at least one day b...

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Transferring the case by CIT on the ground of mere co-ordinated investigation not permissible

Global Energy (P.) Ltd. Vs Commissioner of Income-tax (Bombay High Court)

Apex Court has observed in Ajantha Industries (supra) is that while transferring the case on the ground of co-ordinated investigation, some reason has to be given by the commissioner which reveals why it is necessary to transfer the case for the purpose of co-ordinated investigation. In our view unfortunately Commissioner of Income Tax ap...

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CBI arrests excise superintendent for accepting bribe of Rs. 3.50 Lakh

CBI ARRESTS A SUPERINTENDENT OF CENTRAL EXCISE FOR ACCEPTING A BRIBE OF RS.3.50 LAKH; APPROX. RS.9 LAKH CASH RECOVERED IN SEARCHES FROM HIS POSSESSION             The Central Bureau of Investigation has arrested a Superintendent of Central Excise(Anti Evasion), Haldia Commissionerate, Kolkata for demanding & accepting a bri...

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Posted Under: CA, CS, CMA |

Custom House, Chennai to function on 29th, 30th and 31st 2013

No.S.Misc.1/2013-CCO (27/05/2013)

Custom House, Chennai will function on March 29 (Good Friday), 30 (Saturday) and also on Sunday, March 31, to enable Importers and Exporters to file documents, pay duty and clear the goods. On all these days, the Custom House will be functioning from 9.30 A.M. - 6 P.M. like any other working day. A Public notice 72/2013 dated 21.03.2013 ...

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Affirmative vote can’t push the underlying resolution if Article not amended incorporating such vote

World Phone India (P.) Ltd. Vs WPI Group Inc.,USA (Delhi High Court)

The other ground on which the CLB interfered with the decision at the board meeting held on 31-10-2012 was that the notices of the board meeting were issued at a time when the Respondent was not in the country and was stuck in New Jersey, USA, which was admittedly hit by a hurricane. While the notice was properly delivered to the Responde...

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Income Tax Department playing smart

I filed Income Tax return of my client in July 2012 for assessment year 2012-13 which was very well before the due date of 31 July 2012. I filed another return of my client in March 2013, which was approximately 9 months late. But see the irony! The Return filed in month of March got processed and return Filed in the Month of July is stil...

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Posted Under: CA, CS, CMA |

Narcotic Drugs and Psychotropic Substances (Regulation of Controlled Substances) Order, 2013

G.S.R. 191(E) (26/03/2013)

No person shall manufacture, distribute, sell, purchase, possess, store, or consume any controlled substance included in Schedule-A without a unique registration number in Form-A issued by the Zonal Director of Narcotics Control Bureau:...

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Service Tax Regime Heads for Stringent Penalties

Very soon, Service Tax, which is considered to be a relatively young baby in the tax universe, will make the assessees scared of penalties and prosecution. The Budget which has been passed by both the houses of the Parliament now will soon become enactment and all provisions shall become operational. ...

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Posted Under: CA, CS, CMA |

Service Tax Return – ST-3 for July-September, 2012 available

Service Tax Return (ST 3) for the period 1st July-30th September, 2012 is now available in a modified format for e-filing in ACES. Only offline version is available and there is no online version. The utility needs to be downloaded afresh from ‘DOWNLOADS’ section of ACES website, www.aces.gov.in or after logging in, under the ...

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Posted Under: CA, CS, CMA |

CBEC – Good Friday – Relaxation for Prayers to persons who profess Christian faith

Circular No. F.No.296/42/2013-Central Excise .9 (26/03/2013)

The Hon’ble High Court has directed, amongst other things, that such persons who profess Christian faith and are desirous of either being sanctioned full leave on both days or permission to pray at the Church for a limited duration on either day would be sanctioned leave or permission to leave offices to visit the Church at a short dur...

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Seeks to impose final safeguard duty @ 20% on imports of Hot rolled flat products of stainless Steel 304 grade( up to a max width of 1605 mm) into India from China from 4th January, 2013 to 22nd July, 2013 (both days inclusive)

S.O. 834(E). (26/03/2013)

hereas, the Central Government, having regard to the available information as to the possible use of substances mentioned in the Table below in the production or manufacture of various narcotic drugs and psychotropic substances, and also to implement the provisions of the United Nations Convention Against Illicit Traffic in Narcotic Drugs...

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Seeks to levy Anti -dumping duty on Flat Base Steel products originating in, or exported from, China

Notification No. 03/2013-Customs, (ADD) (26/03/2013)

there has been continued dumping of the subject goods from People's Republic of China and the dumping is likely to continue and increase if the anti-dumping duty is allowed to cease;...

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Exemption from customs duty on Import of Pulses extended upto 31-3-2014

Notification No. 18/2013-Customs (26/03/2013)

Notification No. 18/2013 - Customs, Dated 26th March, 2013 Seeks to amend the notification No. 12/2012-Customs, dated 17th March, 2012 - Exemption from customs duty on Import of Pulses extended upto 31-3-2014...

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Regarding Exemption to goods when imported into India from Japan

Notification No. 17/2013-Customs (26/03/2013)

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in ...

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Interest Rate on NSC MIS MIS SCSS POTD WEF 01.04.2013

Rate of interest on various small savings schemes for the financial year 2013-14 effective from 1-4-2013, on the basis of the interest compounding/payment built-in in the schemes, shall be as under :...

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Posted Under: CA, CS, CMA |

Cost Audit Applicability for financial year starting on or after Jan 1, 2013

MCA issues Cost Audit Order in suppression of earlier Cost Audit Orders During the year 2011-12, MCA issued various cost audit orders wherein maximum industries were brought under cost audit net. It needs attention that  to bring uniformity in reporting,the MCA had issued a notification vide S.O. 1747(E) dated 7th August, 2012 mentioning...

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Posted Under: CA, CS, CMA |

Change in shareholding by 2% or more to be disclosed now even if resultant shareholding falls below 5%

Notification No. LAD-NRO/GN/2012-13/36/7368 (26/03/2013)

NOTIFICATION NO. LAD-NRO/GN/2012-13/36/7368, DATED 26-3-2013 In exercise of the powers conferred under section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to amend the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regul...

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TP – When TPO may prefer TNMM or CUP over PSM where intangibles are involved

Circular No. 2/2013-Income Tax (26/03/2013)

Circular No. 2/2013-Income Tax SECTION 92C OF THE INCOME-TAX ACT, 1961, READ WITH RULE 10B OF THE INCOME-TAX RULES, 1962 - TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE - APPLICATION OF PROFIT SPLIT METHOD CIRCULAR NO. 2/2013 [F. NO. 500/139/2012], DATED 26-3-2013 It has been brought to the notice of CBDT that clarification is n...

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TP – How to identify development centres engaged in contract R&D services with insignificant risk

Circular No. 3/2013-Income Tax (26/03/2013)

Circular No. 3/2013-Income Tax It has been brought to the notice of CBDT that there is divergence of views amongst the field officers and taxpayers regarding the functional profile of development centres engaged in contract R&D services for the purposes of transfer pricing audit. ...

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CIT order u/s 263 in respect of items which do not form subject matter of SCN issued u/s 263 is liable to be quashed

The Commissioner of Income Tax, Patiala Vs M/s Roadmaster Industries of India Ltd. (Punjab And Hariyana High Court)

Section 263 of the Act empowers the Commissioner of Income Tax to call for and examine the record of any proceeding, if he finds that any order passed therein by the Income Tax Officer is erroneous in so far as it is prejudicial to the interests of the revenue. But such order can be passed after giving an opportunity of being heard to the...

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Bankwise List of CA firms Approved for Statutory Bank Branch Audit for FY 2012-13

During the year 2012-13, all the 25 PSBs have exercised managerial autonomy in regard to selection and appointment of SBAs. The names of audit firms recommended by these 25 banks and approved by RBI are displayed on the web-site. The information in regard to branches allotted to these audit firms will be published on the web-site, after...

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Posted Under: CA, CS, CMA |

Collection of export outstanding service charges as per RBI rules and banking practice is not unfair trade practice

Rangi International Vs Bank of India (Delhi, Compenetatiion Appelate Tribunal)

In this case Nothing has been pointed out that the bank was not within its right to firstly levy those charges or that it was acting beyond the rules. In levying those charges, the bank has fully justified as it relied on the Reserve Bank Rules and the banking practice. After all the bank had to maintain the accounts and it was by way of ...

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Posted Under: CA, CS, CMA |

Interest on surplus funds, sales tax & excise refunds not eligible for exemption U/s. 10B

Tessitura Monti India (P.) Ltd. Vs. ITO- 8(3)(3) (ITAT Mumbai)

Interest on FD and from bank on surplus funds - Even as admitted by the assessee during hearing, the same is only on surplus funds for the time being and, therefore, cannot be said to be derived from the assessee's business. The same stands rightly excluded. Sales tax refund and excise duty draw back -As such, section 10B(1) read with...

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Profit on sale of Agricultural Land -Business Income or Capital Gain?

ACIT Vs. Shri Bhopindersingh R. Arneja (ITAT Nagpur)

AO has, as highlighted by the FAA, not produced any evidence that assessee was purchasing and selling plots of land in subsequent and earlier assessment years. AO is entitled to draw inferences and conclusions during assessment proceedings. But, the conclusion which adversely affect the interests of a tax-payer should be based on facts an...

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No penalty for concealment of Income on additions based on estimation of income

The Commissioner of Income Tax Vs P. Rojes (Madras High Court)

Though the Assessing Officer invoked penalty under Section 27(1)(c) of the Act and stated that the assessee failed to furnish complete details from bank statement, on going through the materials placed before this Court, it is seen that the Assessing Officer has subsequently found that the said deposit was made for the period commencing f...

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Reassessment for thorough verification of manufacturing activity of Assessee not justified

Dynacraft Air Controls Vs Smt. Sneha Joshi (Bombay High Court)

For these reasons, we have come to the conclusion that the Petitions would have to be allowed. We accordingly allow the Petitions by quashing and setting aside the notices under section 148 of the Income-tax Act, 1961 purporting to re-open the assessment for A.Ys. 2005-06, 2006-07, 2007-08 and 2008-09. Rule is made absolute in the aforesa...

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NR beneficial Owner of Royalty income from Indian Company entitled to benefit of article 12 of DTAA between India and Netherlands

The Director of Income Tax (I.T.) Vs M/s. Universal International Music B.V. (Bombay High Court)

The case of the revenue is that the respondent assessee is not entitled to concessional rate of tax provided in Article 12 of DTAA on the ground that it is not the beneficial owner of the musical tracks in respect of which the royalty income was earned. Thus, not entitled to concessional rate of tax at 10% under DTAA as held by the Assess...

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No addition on account of unexplained gift if Assessee proves identity and creditworthiness of donors

Commissioner of Income Tax Vs Shri Arun Kumar Kothari (Rajasthan High Court)

Commissioner of Income Tax (Appeals) as well as Tribunal both were satisfied with regard to identify and creditworthiness of the donors and genuineness of the gifts. Learned Tribunal also satisfied that there is no room to doubt about love and affection of the donors with the assessee as donors were brothers of the assessee. Therefore, gi...

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If land is adjacent to a municipality, it is an urban land

The Commissioner of Income Tax Vs. Smt. Rani Tara Devi (Punjab And Haryana High Court)

The land in question abuts National Highway 73 and that the acquired land is extensively developed area and is near to Government College, Saket Hospital, District Headquarters/Mini Secretariat, General Hospital, Panchkula than Sectors 24 to 28, Panchkula for which land was acquired in the year 1989. Thus, the land acquired in 1995 was an...

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S. 80G – HC grant Opportunity to Trust Negligent in Filing Requisite details due to employees’ laxity

Guru Gobind Singh Educational Society Vs Commissioner, Income-tax (Madhya Pradesh High Court)

For furnishing information required, the petitioner had sought 5 adjournments, as finds place in the impugned order but such information was not furnished. On 8.3.2001, again an adjournment was sought by the petitioner on the ground that the staff was busy in the examination work so time be allowed for furnishing the information. From the...

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Amendment in sec. 2(14) pertaining to ‘personal effects’ by FA, 2007 is prospective

Faiz Murtaza Ali Vs Commissioner of Income Tax (Delhi High Court)

With regard to the amendment to section 2(14), which has been brought about by the Finance Act, 2007 w.e.f. 1.4.2008 and which alters the clause pertaining to 'personal effects' in the manner indicated below, we may say straightaway that the same would not apply as it has prospective operation with effect from 01.04.2008, whereas in the p...

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TDS deductible U/s. 194J on Fees to Visiting Doctors working in Professional Capacity in Hospitals

DCIT (TDS) Vs. Ivy Health Life Sciences Chandigarh. P. Ltd. (ITAT Chandigarh)

The various clauses of the MOUs need to be examined in the light of the criteria laid down by the Courts to determine whether the doctors attached to the appellant hospital are employees of the hospital. The test which is uniformly applied in order to determine whether a particular relationship amounts to employer-employee relationship is...

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Loss to bank on revaluation of investment in G-Sec. is ‘revenue’ loss; Reassessment not justified

Calyon Bank Vs DCIT (International Taxation)–1(2) (ITAT Mumbai)

Insofar as ground (a) raised by the Assessing Officer that loss on sale of investment of Rs. 6,15,66,000, is a capital loss and is not allowable as deduction, is untenable in law in view of the judgment of Hon'ble Supreme Court and High Court. The Bombay High Court in Bank of Baroda (supra), after following the judgment of Hon'ble Supreme...

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Objection before DRP can be filed by assessee in person or by his agent

Nomura Services India (P.) Ltd. Vs Income Tax Officer (ITAT Mumbai)

As per DRP Rules Rule, objections, if any may be filed in person or through his agent within the specified period in Form 35A. There is no prescription that the objection should be filed by assessee in person. An agent is permitted to file the objection, but in the case of company whether the agent should be a Managing Director/ Director,...

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Removal of Goods as Such and Restricted Related Cenvat Credit Provision

It has been a very common practice in the manufacturing industry to remove raw materials as such i.e. without using in manufacturing activity. One of the common reasons for as such removal is that such raw materials do not satisfy the quality which is required for manufacturing the finished goods. In such a case, the manufacturer returns ...

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Posted Under: CA, CS, CMA |

Addition on the on basis of allocation of indirect cost cannot be made to ALP if no actual expense been incurred

Deputy Commissioner of Income-tax Vs Bekaert Industries (P.) Ltd. (ITAT Pune)

In initial years the assessee had lesser requirement of these spools as the business was in the process of being established and stabilized. The system of collecting these spools also had to be put in place and stabilized to ensure its supply on a sustained basis. The system adopted by the TPO to allocate indirect expenses on the basis of...

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Appeal against DRP order not maintainable if DRP has not given any directions to AO to pass assessment order

M/s Intimate Fashions (India) Pvt. Ltd Vs The Assistant Commissioner of Income-tax (ITAT Chennai)

In the instant case, the contention of the A.R of the assessee is that the impugned order passed u/s 143(3) by the Assessing Officer is not an order which is passed in pursuance of the directions of the DRP. However, if the above contention of the assessee is taken as correct then it implies that the assessee is not entitled to file direc...

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Expenditure incurred after set up of business allowable even if Commercial production not started

M/s. Deccan Goldmines Ltd. Vs Assistant Commissioner of Income Tax (ITAT Mumbai)

In the instant case, the business should be construed set up as the assessee obtained necessary approvals, recruited requisite personal, procured requisite machinery etc. In fact, the assessee has successfully identified certain mineral rich blocks too. As analyzed by the jurisdictional High Court in the case of Western India Vegetable Pr...

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If company had admitted that it owed a sum to petitioner, winding up petition against it was to be admitted

Re. Braithwaite & Co. Ltd. & Anr. (Calcutta High Court)

It appears from the company's admission of January 5, 2011 that it asserted that it owed the petitioner a sum of Rs. 26,08,858/- and it had a claim against the petitioner's associate concern in the sum of Rs. 22,80,646.05. Even if the letter is taken on face value and the veracity of the assertions therein are not questioned, it appears t...

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When assessee’s claim for allowance of CENVAT Credit is pending then application for refund of the same cannot be time barred

Commissioner of Central Excise Vs M/s Tata Motors Ltd. (Jharkhand High Court)

We are of the considered opinion that in fact the issue sought to be raised by the appellant-Revenue is already answered by Hon'ble Supreme Court in the case of Samtel India Ltd. (supra) and, therefore, in this appeal no question of law arises including with respect to the other two issues. The objection of the Revenue that in this very p...

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Services rendered in relation to the execution of a works contract in respect of Railways is not taxable

Bangalore Metro Rail Corporation Ltd. Vs Ministry of Finance, Government of India (Karnataka High Court)

M/s Bangalore Metro Rail Corporation Ltd. is the petitioner in this writ petition. Learned Counsel appearing for the petitioner submits that the writ petition may be disposed of by clarifying the legal position that services rendered in relation to the execution of a works contract in respect of Railways is not taxable under Section 66 of...

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CENVAT Credit cannot be denied merely on the ground that HO who raised invoice was not registered under central registration during material period

M/s. Rohit Surfactants Pvt Ltd. Vs Commissioner of Central Excise (CESTAT Delhi)

CENVAT Credit cannot be denied merely on the ground that HO who raised invoice was not registered under central registration during material period It is to be held that final rejection of centralized registration vide letter dated 26-5-2006 cannot be held to be a justifiable reason for denial of the credit. Apart from the fact that du...

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Input credit available on after sales service expenses if they form part of assessable value

CCE Vs Mahindra & Mahindra Ltd. (CESTAT Mumbai)

The first issue by the learned A.R. is that after sales service of the vehicle is not an 'input service' on the ground that the service has been availed after sale of the vehicle and expenses incurred towards manufacture of the vehicle are entitled for input service credit. We have gone through the Section 4(3) of the Central Excise Act, ...

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Taxability of Services provided by Sec. 25 Company for treatment / recycling of effluent solid waste

Vapi Waste & Effluent Management Co. Vs Commissioner of Central Excise, Daman (CESTAT Ahmedabad)

It was submitted by the learned A.R.  that the appellant company being a limited company is not covered by the term association and exemption available is only to the association. However, it was pointed out by the learned counsel that the appellant is registered under Section 25 of the Companies Act, 1956 which provides that the word "...

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Change in depreciation method from SML to WDV is an approved method & depreciation so charged is allowable U/s. 115J

Commissioner Of Income Tax & Another Vs M/S Hindustan Pipe Udyog Ltd. (Allahabad High Court)

It is not in dispute that under the Companies Act, 1956, both straight line method and written down value method are recognised. Therefore, once the amount of depreciation actually debited to the profit and loss account is certified by the auditors, then, as per the decision of the apex court in the case of Apollo Tyres Ltd. The Assessing...

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In absence of addition on the ground on which reassessment was initiated, addition on other grounds will also fail

The Commissioner of Income Tax­- 4 Vs M/s. Double Dot Finance Ltd. (Bombay High Court)

Unless the Assessing Officer assesses the income with reference to which he had formed a reason to believe within the meaning of Section 147 of the Act, it would not be open to him reassess or assess any other income chargeable to tax which has escaped assessment and comes to his notice in reassessment proceedings. In this case, admittedl...

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Hire-Purchase – In absence of bifurcation of EMIs into principal & interest indexing system of accounting is valid

Sri Chakra Financial Services Limited Vs The Commissioner of Income-tax (Andhra Pradesh High Court)

In the present case, there is no indication of the assessee's hire purchase agreements reflecting bifurcation of the EMIs into principal and interest components. In the absence thereof, the common and accepted usage of the indexing system of accounting in the hire-purchase trade must be held to be valid as otherwise the rate of interest u...

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No Logic in Rejection of CUP method on the ground that there was difference in dates of transactions with AEs and non AEs

The DCIT Vs. M/s. Isagro (Asia) Agrochemicals Pvt. Ltd. (ITAT Mumbai)

The other objection taken by the TPO for rejecting CUP method was that there was difference in the dates of comparable transactions. The ld. DR brought to our notice the transactions entered into by the assessee with its AE on 27.11.2004 which was compared by the assessee with transactions entered with Non-AEs on 10.5.2004 & 12.3.2005. It...

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CBEC threatens action against striking Excise Superintendents & Inspectors

F.No.C.30013/6/2010-Ad IVA(Vol. II) (25/03/2013)

It is reiterated that action in instances of violation of discipline and conduct rules would be taken in accordance with the instructions on the subject....

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Patta Patti manufacturers – Tempted to opt Cenvat Scheme

Compounded levy scheme was introduced in the Central Excise Law with the duty of Rs. 10000/- per machine per month in the year 1994. The scheme was simple with reasonable amount of duty, as such a no. of manufacturers of stainless steel patta-patti switched to it. Later on this duty was increased to Rs. 15000/- and then to Rs. 30000/-. ...

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Posted Under: CA, CS, CMA |

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December 2020