"01 March 2013" Archive

If Assessee paid tax u/s. 140A, interest u/s. 234A to be demanded only on short tax payment

Bharatbhai B. Shah Vs Income Tax Officer & 2 (Gujarat High Court)

In the present case, the assessee deposited a sum of Rs.10 lacs under section 140A of the Act. In addition thereto, the assessee had also suffered tax deduction at source to the tune of Rs. 25,533/-. Eventually, the Assessing Officer, assessed the tax liability of the assessee at total of Rs. 15,08,474/-. Thus the assessee had short-paid ...

Read More

Budget – Focused on Fundamentals

Dr. Sanjiv Agarwal The Union Budget 2013-14 presented by Finance Minister, P. Chidambaram, his 8th one, could be termed as a balanced, focused and a reasonable one from the point of view of economy and all the stakeholders. Though it may be missing the much needed ignition or spark to put the markets on fire, […]...

Read More
Posted Under: Income Tax |

CIT can cancel registration of trust granted under Section 12A only wef 01.06.2010

Agra Development Authority Vs Commissioner of Income Tax-1 (ITAT Agra)

One of the contention of the ld. Departmental Representative that Section 12AA(3) has been amended w.e.f. 01.06.2010 wherein power has been given to cancel registration under section 12A(1) of the Act. In that case the CIT cancelled registration under section 12A of the Act after 01.06.2010, therefore, the fact is different than case unde...

Read More

Consideration received for assignment of toll collection rights, prima facie, amounts to franchise service

Navayuga Engineering Co. Ltd. Vs Commissioner of Central Excise & Customs, Visakhapatnam (CESTAT Bangalore)

On a perusal of the definition of franchise given under Section 65(47) under the Finance Act, 1994, we note that it refers to an agreement by which the franchisee is granted representational right to provide service identified with the franchisor whether or not any 'service mark' is involved. Prima facie, in the absence of such an agreeme...

Read More

‘Air travel agents’ services for business purpose are input services

EMCON Technologies India (P.) Ltd. Vs Commissioner of Central Excise (CESTAT Bangalore)

Similarly, if the air travels were undertaken by the company's executives for business purposes, the necessary nexus between the service and the business activities of the appellant does exist. The show-cause notice did not even attempt to make out a case to the contra. Therefore, the case of the appellant is liable to be accepted. ...

Read More

No reversal of cenvat credit if credit of the same is not been availed by Assessee

Saurabh Organics (P.) Ltd. Vs Commissioner of Central Excise, Thane (CESTAT Mumbai)

As regards the demand for payment of an amount @ 8% of the value of the exempted goods under Rule 57CC of the Central Excise Rules, 1944 made out in the show-cause notice, it has been noted that the appellants have not availed any credit of the duty paid either on the raw materials supplied by the principal manufacturer or on the raw mate...

Read More

If main petition is pending for adjudication, interim reliefs in the nature of main reliefs cannot be granted

Arun Amidwar Vs Grip Tight Packaging (India) (P.) Ltd. (Mumbai, Company Law Board)

In the present case the petitioner No. l was removed as director and this Bench presumes that the convening and holding of general meeting in which he was removed is legal and valid. So far as para 11.3 of the reliefs is concerned that the R1-company be directed to be operated only with the joint signature of the petitioner No.1 and resp...

Read More

Lease transaction is genuine if lessee has got right just to use the asset & have to return it back it on termination of lease

Commissioner of Income-tax, Udaipur Vs Banswara Syntex Ltd. (Rajasthan High Court)

In the present case, the assessee had no right to transfer or alienate the machinery in any form, was obliged to re-deliver the equipment upon termination of lease agreement, was not to part with possession and not to make alteration in the equipments with the stipulation that additions would belong to the lessor; and the lessor was entit...

Read More

Additions based on presumptions for mere adjustment of entries not valid

Commissioner Of Income Tax Vs Raghuraji Agro Industries (P.) Ltd. (Allahabad High Court)

From the record, it appears that as on March 31, 2003, the figure of Rs. 1 crore was appearing in schedule IV, under the head unsecured loan" in the balance-sheet. In the earlier year it was appearing as 1. Unsecured loan Rs. 60 lakhs. 2. Share application money Rs. 40 lakhs. During the assessment year under consideration, the same was sh...

Read More

Appeal not maintainable before HC if tax effect is less than Rs. 10 lakhs

Commissioner of Income-tax, International Taxation Vs IGATE Global Solutions Ltd. (Karnataka High Court)

We dismiss these two appeals as not tenable in view of value of the subject matter in each of the appeal being less than Rupees Ten Lakhs, but reserving liberty to the appellants to revive the appeals, in the event of their success before the Supreme Court in the Special Leave Petitions preferred by the revenue....

Read More

Trust can claim double benefit of depreciation and application of Income U/s. 11 on Fixed Assets

Assistant Commissioner of Income-tax Vs Shri Adichunchanagiri Shikshana Trust (ITAT Bangalore

The hon'ble jurisdictional High Court held that the amount of depreciation debited to the account of charitable institutions is to be deducted to arrive at an available income from charitable or religious purposes. Following the decision of the jurisdictional High Court, we therefore, hold that the depreciation is to be deducted to arrive...

Read More
Posted Under: Income Tax |

Petition U/s. 397 filed by Minors alleging oppression & Mismanagement is not maintainable

Aruna Hotels Ltd. Vs Kamal Babbar (Chennai, Company Law Board)

To file a petition u/s 397, 398 of the Act, one has to fulfil the requirement as contemplated under the above provision of law. Unless and until the above criterion is fulfilled, the petition is not maintainable. The persons who can qualify to file the petition are (i) in case the company is having a share capital, not less than 100 membe...

Read More

Winding up petition can be admitted In case of fraudulent sale of company assets by promoters & negligible chances of continuance of business in future

In re Dunlop India Ltd., (HIGH COURT OF CALCUTTA)

No workmen or employee of the company had appeared to resist the order of winding up. The conduct of those in management of the company in fraudulently selling off assets conservatively estimated at Rs. 2,300 crore makes it just and equitable for the company to be wound up. The company had been unable to show any prospects of it carrying ...

Read More
Posted Under: Income Tax |

Reference to DVO without rejection of books is invalid

Prithavi Raj Bohra Vs Income-tax Officer, Jalore (ITAT Jodhpur)

In the present case, a categorical finding is recorded by the Tribunal that the books were never rejected. This aspect has not been considered by the Hon'ble High Court. In the circumstances, the reliance placed on the report of the DVO was misconceived''. By observing these observations, the decision of Hon'ble High Court was set aside a...

Read More

No disallowance U/s. 40A(3) for Cash purchases made from Mandi through Kachcha Arahtia

Income Tax Officer, Ward 1, Aligarh Vs Sunil Kumar Agarwal (ITAT Agra)

The ld. CIT(A) considered the issue in detail in the light of exceptions provided under Rule 6DD in order to grant relief to the assessee for violation of section 40A(3) of the IT Act. The finding of fact recorded by the ld. CIT(A) to the effect that the assessee was a Pakka Arahtia and made purchases from Kachcha Arahtias have not been d...

Read More

Registration U/s. 12A not to be denied if objects of trust are charitable

Sri Gomandir Seva Trust Vs Commissioner of Income-tax, Sambalpur (ITAT Cuttack)

Tribunal vide their order dt.12.9.2011 had noted all the facts finding when it was the endeavor of the learned CIT to limit himself to satisfy about the charitable nature of the objects of the Trust and find the genuineness of the activities of the Trust. The undisputed fats are that the learned CIT in the second innings has reiterated th...

Read More
Posted Under: Income Tax | |

Allowability of expenses incurred on higher studies of director’s son

Deputy Commissioner of Income-tax Vs Inox India Ltd. (ITAT Mumbai)

The facts of the case are that assessee is a limited company engaged in the business of manufacture of vacuum insulated tanks, cold convertor systems, atmospheric vaporizers and cryo containers, etc. The learned Commissioner of Income-tax-Departmental representative for the Revenue submitted that penalty has been levied on the addition am...

Read More

Deduction U/s. 10A allowable before setting off of losses and unabsorbed depreciation

Valueprocess Technologies (I) (P.) Ltd. Vs Income-tax Officer, Ward-10(3)(1), Mumbai (ITAT Mumbai)

Section 10A of the Income-tax Act, 1961, is a provision which is in the nature of a deduction and not an exemption. The deduction under section 10A has to be given effect to at the stage of computing the profits and gains of business. This is anterior to the application of the provisions of section 72 which deals with the carry forward an...

Read More

No disallowance U/s. 10A for mere higher profits if the same is not found to be for tax avoidance

Zavata India (P.) Ltd. Vs Income-tax Officer, Ward 3(2), Hyderabad (ITAT Hyderabad)

Since the assessee's operations are efficient enough to obtain more profits and since the receipts are at arm's length and there is no passing of excess profits by the parent company (AE) to the assessee, the Assessing Officer's action in restricting the profits is not correct. Also there is no reason to restore it to the Assessing Office...

Read More

Prior to AY 2008-09, disallowance of expenses relating to exempt income u/s. 14A is to be computed on a reasonable basis and not as per rule 8D

Forever Diamonds (P.) Ltd. Vs Deputy Commissioner of Income-tax (ITAT Mumbai)

The dispute is regarding disallowance of expenses relating to exempt income under section 14A of the Act. Under the said provisions, the disallowance of expenses relating to exempt income is required to be computed as per Rule 8D. The Hon'ble High Court of Bombay in the case of Godrej and Boyce Mfg. Co. v. Dy. CIT [2010] 328 ITR 81 have h...

Read More

If cash payments not covered by exceptions provided under rule 6D expense is disallowable

Income-tax Officer Vs Nam Estates (P.) Ltd. (ITAT Bangalore)

It is seen that in the course of the assessment proceedings the Assessing Officer found that the assessee had made payments towards purchase of land in the Devanahalli taluk of Bangalore District out of which sums amounting to Rs. 87,92,635 were found to have been paid in cash in contravention of the provisions of section 40A(3) of the Ac...

Read More

Fees paid to Non resident for services rendered in relation to business carried outside India is not taxable in India

Aqua Omega Services (P.) Ltd. Vs Assistant Commissioner of Income-tax Co. Circle I(2), Chennai (ITAT Chennai)

In the instant case also services were provided by the assessee outside India and for this business the services of non-residents were utilized to whom technical fee in question was paid. No good reason could be shown by the DR as to why the aforesaid decision of the Tribunal is not applicable in the instant case and why the said decision...

Read More

Writ petition cannot be admitted if alternative remedy of appeal is available with Appellant

Ram Kaashyap Investment Ltd. Vs Securities and Exchange Board of India (Madras high Court)

Admittedly, these two writ petitions have been filed challenging the orders passed by the respondent SEBI under Sections 11 and 11(b) of the Act 15 of 1992 against the company as well as Mr. A. Venkatramani, the promoter. As against that, an appeal has to be filed before the Appellate Tribunal. Further Section 29 of the Act, 1992, enables...

Read More

Claims not made in ROI can be made before & entertained by appellate authorities

Givaudan Flavours (India) (P.) Ltd. Vs Deputy Commissioner of Income-tax – 1(3), Mumbai (ITAT Mumbai)

The dispute is regarding allowability of claim of bad debt not made in the return of income. The claim had been made before AO only during assessment proceedings which had not been allowed following the judgment of Hon'ble Supreme Court in the case of Goetz India Ltd. (supra) in which it has been held that any claim before the AO has to b...

Read More

Winding petition to be dismissed if Liability of the Company not crystallized

Meghraj Capital Advisors (P.)Ltd. Vs Samira Constructions Ltd. (Bombay High Court)

In the present case, the foundation is the Consultancy Agreement between the parties, where it was agreed, as per the Petitioner, that the Petitioner would get a guaranteed fee of Rs. 50 lacs, which was payable on a monthly basis at the rate of Rs. 3 lacs per month, at least for 12 months, or at the time when the investment size is achiev...

Read More

Winding up petition to be dismissed if debts are barred under law of limitation

Interactive Media & Communication Solution (P.)Ltd. Vs Go Airlines Ltd. (Delhi High Court)

After the company petition before the Bombay High Court was withdrawn on 11th November, 2011, notice under section 434(1)(a) was issued on 15th December, 2011 at the registered office of the respondent company. Section 434(1)(a) requires issue of 21 days notice for deeming fiction created by the provision to apply. However, section 434(1)...

Read More

Petition alleging oppression not maintainable if petitioner doesn’t have requisite qualification shares

Kailash Nath Roy Vs Bengal Bonded Warehouse Association (Kolkata Company Law Board)

Under section 399 of the Act, statute has made it clear that 10 per cent shareholding is requisite qualification to invoke jurisdiction under sections 397 and 398 of the Act. If the joint shareholding of first petitioner has become half, then certainly this petition is short of the requisite qualification that is required under section 39...

Read More

During pendency of oppression petition no further issue of shares permissible unless proved to be in Companies interest

Sharvani Energy (P.) Ltd. Vs N. VenkateshwarRao (Chennai Company Law Board)

The petitioners, who are the respondents in this application, have filed the company petition by invoking various provisions of the Act, alleging certain acts of oppression and mismanagement against the applicants herein. The petitioners are opposing the increase of share capital and allotment of shares on the ground that they were hol...

Read More

Companies to register Charge with ROC within 30 days from its creation date

Kalupur Commercial Co-operative Bank Ltd. Vs Registrar of Companies (Mumbai Company Law Board)

The charge has to be registered by filing Form 8 with the concerned RoC in terms of section 125 within a period of 30 days after the creation of the charge. The RoC may allow another 30 days time on payment of additional fee and therefore, total 60 days time is available to file the necessary forms with the RoC for creating the charge ove...

Read More

Agency Commission received by Banks / FIs from RBI / Govtschemes is exempt from service tax

Union Bank of India Vs Commissioner of Central Excise & Service Tax, Mumbai (CESTAT Mumbai)

Providing service of payment and receiving money on behalf of the government in respect of various transactions such as public deposit, RBI bond, EPF, senior citizen saving scheme, compulsory deposit scheme etc. does not fall under the category of Banking and Financial service and the above activity is exempt from banking and financial se...

Read More

BPO can take Input credit on CA, Business Support & Air Travel Service

Sure Prep (I)(P.) Ltd. Vs Commissioner of Service Tax, Mumbai (CESTAT Mumbai)

As per the definition of input service under rule 2 (1) of the Cenvat Credit Rules, 2004, it includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the...

Read More

Input credit cannot be denied on mere procedural grounds

Jindal Stainless Steelway Ltd. Vs Commissioner of Central Excise, Raigad (CESTAT Mumbai)

Tribunal has held that although the documents are not in the name of the assessee's factory but same are in the name of the head office of the assessee and there is no dispute about the input service received by the assessee. Therefore, substantive benefit cannot be denied on procedural grounds. ...

Read More

SIM card distributor not liable to service tax if tax already been paid by Telecom Company

G.R. Movers Vs Commissioner of Central Excise, Lucknow (CESTAT Delhi)

The appellants are distributors of sim cards needed to enable telecommunication service provided by BSNL through mobile telephone. They also market recharge coupons which enables additional duration of time for which such service is allowed to the customers of BSNL. BSNL supplies these cards with fixed Maximum Retail Price (MRP) to the ap...

Read More

Input credit admissible on marketing services for marketing of assessee’s product outside India

Syntel International (P.)Ltd. Vs Commissioner of Central Excise, Pune (CESTAT Mumbai)

As per the Business Associates Agreement entered into by the appellant with Syntel Inc., USA has agreed to provide marketing services in relation to software services developed by Syntel International Pvt. Ltd., India and Syntel Inc., USA has to identify customers in USA and make efforts to get the customers and assist Syntel (India) in ...

Read More

Input service for construction of immovable property, which is rented admissible for cenvat credit

Venus Investments Vs Commissioner of Central Excise, Vadodara (CESTAT Ahmedabad)

Tribunal in the case of Navratna S.G. Highway Property Pvt. Ltd.in Order No. A/47/WZB/ AHD/2012, dt. 17-1-2012, has considered the same issue and has come to the conclusion that the credit of Service Tax paid on the services used during construction of immovable property which is rented subsequently, is admissible for payment of Service T...

Read More

In case of reverse charge mechanism service provider not liable to service tax

Commissioner of Service Tax, Ahmedabad Vs Landmark Automobiles (P.)Ltd. (CESTAT Ahmedabad)

It is also undisputed that the demand of the service tax is raised on the commission received by them as a licensed agent from the said M/s. IFFCO-TOKIO General Insurance Company Ltd. I find that the defence put up by the respondent before the: lower authorities is correct inasmuch as the provisions of rule 2(1)(d)(ii) of the Service Tax ...

Read More

Cenvat Credit on input services prior to registration allowable

Commissioner of Service Tax, Service Tax Division II, Chennai Vs Sylla Synergy India Ltd. (CESTAT Chennai)

Brief facts of the case are that the adjudicating authority rejected the refund claim for the period prior to the Registration of service tax paid by the respondents on the ground that the assessee entitled to refund claim of input service credit only for the period after registration. The said order was challenged before the Commissioner...

Read More

Classification of service cannot be changed in the hands of the recipient

Max India Ltd. Vs Commissioner of Central Excise, Chandigarh (CESTAT Delhi)

The first argument that classification of service cannot be changed in the hands of the recipient, by itself is good enough to allow this appeal. Further I note that there is no reference in the opening paragraph to the classification as indicated in column (2) of the Table in the Notification. This appears to be a serious lacuna. But suc...

Read More

Notification No. 12/2013 – Central Excise

Notification No. 12/2013-Central Excise (01/03/2013)

Seeks to amend notification No. 12/2012 – CE, dated the 17th March, 2012, so as to make necessary amendments in the specified entries thererin.  NOTIFICATION No. 12/2013-Central Excise – New Delhi, the 1st March, 2013 G.S.R. (E). – In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Ac...

Read More

Amendment under SAFTA -Notification No.27/2013 – Customs (N. T.) Dated 01.03.2013

Notification No. 27/2013-Customs (N.T.) (01/03/2013)

In exercise of the powers conferred by sub-section (1) of section 5 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government hereby makes the following rules to amend the Determination of Origin of Goods under the Agreement on South ...

Read More

Notification No.26/2013 – Customs (N. T.) Dated 1st March, 2013

Notification No. 26/2013-Customs (N.T.) (01/03/2013)

Gold, in any form, in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed...

Read More

Notification No.4/2013 – Service Tax Dated – 1st March, 2013

Notification No. 04/2013-Service Tax (01/03/2013)

public limited company shall have the same meaning as is assigned to public company in clause (iv) of sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956) and shall include a private company that becomes a public company by virtue of section 43A of the said Act;...

Read More

Budget 2012-13 – Amendment in Service Tax Negative List

Notification No. 03/2013-Service Tax (01/03/2013)

Notification No. 3/2013 - Service Tax - 1st March, 2013 Two more services have been included in the negative list for service tax. These are: Vocational courses offered by institutes affiliated to the State Council of Vocational Training; and, testing activities in relation to agriculture and agricultural produce....

Read More

ST – Change in Abatement Rate for residential unit

Notification No. 02/2013-Service Tax (01/03/2013)

Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority,-...

Read More

Regarding ‘zero excise duty route’ to branded ready- made garments and made-ups.

Notification No. 11/2013-Central Excise [G.S.R.146(E)] (01/03/2013)

Seeks to amend notification No.30/2004-CE, dated the 9th July, 2004, so as to provide ‘zero excise duty route’ to branded ready- made garments and made-ups...

Read More

Notification No. 10/2013-Central Excise; Dated: 01-03-2013

Notification No. 10/2013-Central Excise (01/03/2013)

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance...

Read More

Notification No. 9/2013-Central Excise; dated: 01.03.2013

Notification No. 09/2013-Central Excise (01/03/2013)

Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.117 (E), dated the 1st March, 2011, and last amended by notification No. 16/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.167 (E), dated the 17th March, 2012....

Read More

6% excise duty on branded readymade garments & made ups of cotton, not containing any other textile materials -Reg.

Notification No. 08/2013-Central Excise (01/03/2013)

it is hereby clarified that goods of cotton, not containing any other textile material, shall include goods made from fabrics of cotton, not containing any other textile material, even if they contain sewing threads, cords, labels, elastic tapes, zip fasteners and similar items used for stitching, fastening, holding or adornment, of mater...

Read More

Notification No.7/2013-Central Excise; dated: 01.03.2013

Notification No.7/2013-Central Excise (01/03/2013)

Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the excisable goods of the description specified in column (2) of the Table below and falling within the tariff item of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from so much of the duty of excise specified...

Read More

1% excise duty on Mobile handsets including Cellular phones -Reg

Notification No. 06/2013-Central Excise (01/03/2013)

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby rescinds the notification of the Government of India in the Ministry of Finance...

Read More

Increase in compound levy rate of duty for Stainless pattis/pattas – Reg

Notification No. 05/2013-Central Excise (01/03/2013)

In exercise of the powers conferred by Rule 15 of the Central Excise Rules 2002, the Central Government hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 17/2007-Central Excise, dated the 1st March, 2007...

Read More

Seeks to notify ‘the resident public limited company’ as a class of persons U/s. 23A(c)(iii) of Central Excise Act, 1944

Notification No. 04/2013-Central Excise (N.T.) (01/03/2013)

In exercise of the powers conferred by sub-clause (iii) of clause (c) of section 23A of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby specifies the resident public limited company as class of persons for the purposes of the said clause....

Read More

Reassessment invalid on failure of AO to take note of information furnished during assessment

Deputy Commissioner of Income-tax (LTU) Vs Hyundai Motor India Ltd. (ITAT Chennai)

In our considered opinion, the notice issued under section 148 of the Act is nothing but mere change of opinion. The issues which have already been considered in the original assessment cannot be reappreciated in reassessment proceedings under the garb of income escaping assessment. If the Assessing Officer has not given any finding after...

Read More

Delay in filing of Appeal may be condoned on imposition of cost

Affiliated Computer Services (I) (P.) Ltd. Vs Commissioner of Service Tax (Karnataka High Court)

An appeal is a substantive right. The assessee should have a full opportunity to put forth his case and should be able to get relief, if any, in accordance with. It is difficult to sustain the assessee's negligence. However, the assessee cannot also be let scot free. Now, he has preferred this appeal and the learned advocate for the Depar...

Read More

S. 271D period of Limitation to be reckoned from the date of First show cause notice irrespective of who issued it

Commissioner of Income-tax, Udaipur Vs itendra Singh Rathore (Rajasthhan High Court)

In the present case, the first show cause notice for initiation of proceedings was issued by the AO on 25.03.2003 and was served on the assessee on 27.03.2003. Obviously, the later period also expired on 30.09.2003 when six months expired from the end of the month in which the action for imposing the penalty was initiated. The order as pa...

Read More

Notification No. 25/2013-Customs (N.T.), Dated 1st March, 2013

Notification No. 25/2013-Customs (N.T.) (01/03/2013)

in Appendix F, in the column relating to Articles allowed free of duty, in item (a), for the words jewellery upto ten thousand rupees by a gentleman passenger or rupees twenty thousand by a lady passenger the words jewellery upto fifty thousand rupees by a gentleman passenger or one lakh rupees by a lady passenger shall be substituted....

Read More

Facilitating campus recruitment of students prima facie, amounts to provision of ‘Manpower Recruitment or Supply Agency’ service

Indian Institute of Management Vs Commissioner of Service Tax, Bangalore (CESTAT Banhalore)

Prima facie, the institute was facilitating campus recruitment of its students by various companies from year to year and collecting charges/fees from such companies as a consideration for the same. Prima facie, this transaction squarely fell within the ambit of the definition of "Manpower Recruitment or Supply Agency' as amended w.e.f. 1...

Read More

Service Tax on Outdoor catering & transportation facility provided to employees eligible for input credit

Paramount Communication Ltd. Vs Commissioner of Central Excise, jaipur (CESTAT Delhi)

The benefit of Cenvat credit paid on outdoor catering services received by the appellants for providing food to their employees as also service tax paid on running a cab service for transportation of employees from home to factory and back to home stands denied on the ground that the said services cannot be held to be eligible cenvatable ...

Read More

Notification No.15/2013-Customs – Dated –1st March, 2013

Notification No. 15/2013-Customs (01/03/2013)

(i) after serial number 9 and the entries relating thereto, the following serial number and the entries shall be inserted, (ii) against serial number 12, in column (4), for the entry 10%, the entry Nil shall be substituted; (iii) after serial number 24 and the entries relating thereto, the following serial number and the entries shall be ...

Read More

Notification No. 14/2013-Customs – Dated 1st March, 2013

Notification No. 14/2013-Customs (01/03/2013)

The principal notification No.146/1994-Customs, dated the 13th July, 1994 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R. 575(E), dated the 13th July, 1994 and last amended...

Read More

Notification No. 13/2013-Customs – Dated – 1st March, 2013

Notification No. 13/2013-Customs (01/03/2013)

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with sub-section (1) of section 3 of the Customs Tariff Act,1975 (51 of 1975), the Central Government, being satisfied that it is necessary in ...

Read More

Notification No. 12/2013-Customs – New Delhi, the 1st March, 2013

Notification No. 12/2013-Customs (01/03/2013)

(40) Conveyor system including conveyors for heat setting, cold setting, drying and reactivating and sterilizing of footwear with or without vacuum...

Read More

Additions based merely on perceived general market conditions or notorious practices in trade circles untenable

Commissioner of Income-tax Vs Discovery Estates (P.) Ltd. (Delhi High Court)

Observations of the assessing officer to the effect that no one makes a loss in real estate business and that the market perceptions indicate that the prices of the immoveable properties are always on the upward trend. These observations have, inter alia, formed the basis of the additions made by the assessing officer. It was even suggest...

Read More

Seeks to amend notification No. 9/2012-Customs, dated the 9th March, 2012, so as to revise the variation limit in respect to height and circumference in case of re-import of cut & polished diamond

Notification No. 11/2013-Customs (01/03/2013)

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

Read More

Seeks to amend notification No. 75/2005-Customs, dated the 22nd July, 2005 so as to make editorial changes in column (2) of S. No. 118, to align it with HS 2012

Notification No. 10/2013-Customs (01/03/2013)

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

Read More

Transaction which would otherwise may have been exempt u/s. 10(38) cannot be said to be involving ‘treaty shopping’

Director of Income-tax (International Taxation), Delhi Vs Goodyear Tire & Rubber Company (Delhi High Court)

If income arises out of the transfer of a long term capital asset being an equity share in a listed company, the said income would be exempt under section 10(38) of the said Act. There is no doubt that the shares of Goodyear India Limited are listed shares and therefore even if a consideration had been charged for the transfer of the 74% ...

Read More

Notification No. 9/2013-Customs – Dated- 1st March 2013

Notification No. 09/2013-Customs (01/03/2013)

Central Government hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 69/2004- Customs, dated the 9th July, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 411(E), dated the 9t...

Read More

Mode of recovery of CENVAT credit wrongly taken, under CENVAT Credit Rules, 2004 -Reg

Notification No. 03/2013-Central Excise (N.T.) (01/03/2013)

The principle rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated 10st September, 2004, vide Notification No. 23/2004-Central Excise (N.T.), dated the 10st September 2004,vide number G.S.R. 600(E), dated the 10th September, 2004 and last amended vide Notification No.28/2012 Central Excis...

Read More

Reg. provision for interest on refund arising out of order of final assessment

Notification No. 02/2013-Central Excise (N.T.) (01/03/2013)

Seeks to further amend the notification No. 4/2002-CE (N.T.), dated 1st March, 2002 so as to make provision for interest on refund, subject to sub-rule (6), arising out of an order of final assessment under sub-rule (3) of rule 7 of the Central Excise Rules, 2002...

Read More

Additional interest paid by Bank Assessee on some FDRs be allowed as deduction

Indian Bank Vs Deputy Commissioner of Income-tax, Special Range-I (Madras High Court)

As far as the assessee's claim on payment of additional interest is concerned, while confirming the Assessing Officer's view that the payments were contrary to the RBI guidelines, the First Appellate Authority as well as the Income Tax Appellate Tribunal held that all that the assessee could pay as per the RBI guidelines was 8% interest o...

Read More

Regarding MRP based assessment with 35% abatement thereon, for branded medicaments

Notification No. 01/2013-Central Excise (N.T.) (01/03/2013)

Medicaments exclusively used in Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems, manufactured in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act...

Read More

Transaction once accepted as genuine in assessment can’t be raised in reassessment proceedings

Commissioner of Income-tax Vs Smt. Saroj Agarwal (Allahabad High Court)

The assessee disclosed capital gain and claimed exemption under section 54F on the ground that entire sale proceeds were invested in construction of house property. In the original assessment proceedings, the Assessing Officer, denied exemption on ground that construction of house property was complete before the date of transfer of share...

Read More

Transaction with sister concerns at a comparatively low price not sufficient ground to reject Books

Deputy Commissioner of Income-tax Vs Sphoorti Machine Tools (P.) Ltd. (ITAT Mumbai)

The primary condition for rejecting the book results as laid down under section 145 of the Income-tax Act, 1961 (the Act) is that the Assessing Officer should be satisfied that the books of account maintained by the assessee are not complete and correct. As can be seen from the findings given by the Assessing Officer in the order of asses...

Read More

Deduction u/s. 80-IB(10) not dependent on manner of profit distribution among AOP members

Fortaleza Developers Vs Commissioner of Income-tax-15, Mumbai (ITAT Mumbai)

The assessee AOP in the present case has been assessed as AOP and found to have fulfilled the condition laid down in section 80 IB(10) and has been held to be eligible for such deduction. The quantum of deduction under section 80 IB (10) will depend on the income earned from eligible project. The quantum of deduction will not depend upon ...

Read More

Assessee entitled to Interest on TDS paid as per AO’s direction of which refund was granted subsequently by Appellate Authorities

NEO Sports Broadcast (P.) Ltd. Vs Deputy Director of Income-tax (International Taxation), Range 4(2), Mumbai

In a case where assessee voluntarily deducted tax and claimed refund directly, grant of interest under section 244A may not arise and the Board Circulars on this issue are applicable, whereas in a case where AO demand the tax / interest consequent to an order under section 195/201 or 201A, and the refund arose consequent to the orders of ...

Read More

Post amendment in s. 28(va) Non-compete fee is liable to be taxed under business income

Anurag Toshniwal Vs Deputy Commissioner of Income-tax - 1(3), Mumbai (ITAT Mumbai)

Hon'ble Jurisdictional High Court of Bombay in the case of John D'Souza (supra) has also held that any payment for not carrying out any activity or for refraining from carrying out activity in relation to business which otherwise was being allowed to be carried out by the assessee, by the erstwhile owner was assessable u/s. 28(va), square...

Read More

Creditors of demerged / transferee company not entitled to be heard in the petition filed u/s. 391

Innovatherm GmbH Vs Sesa Goa Ltd. (Bombay High Court)

This Court in a series of decisions, has consistently taken a view that the creditors of the transferee Company would have no right to intervene in the petition filed by the transferor Company under Section 391 of the Companies Act. Learned Single Judge of this Court in the case of Industrial Credit & Investment Corpn. of India Ltd. (supr...

Read More

Clauses to Finance Bill of Income Tax, Excise, Custom & Wealth Tax Act

Clause 2, read with the First Schedule to the Bill, specifies the rates at which income-tax is to be levied on income chargeable to tax for the assessment year 2013-14. Further, it lays down the rates at which tax is to be deducted at source during the financial year 2013-14 from income other than Salaries...

Read More
Posted Under: Income Tax | ,

Input services received after period of export not eligible for refund

BNY Mellon International Operations (India) (P.) Ltd. Vs Commissioner of Central Excise (Appeals), Pune-III (CESTAT Mumbai)

Refund has been denied to the appellant on the ground that refund of Cenvat credit had been claimed in respect of input services received by the appellant after the period of export and hence cannot be considered as input services used for the purpose of exported service during the period in question. This is a fact on record that these i...

Read More

Companies not liable for settlement between two groups entered on behalf of it by unauthorized signatory

Abhishek Ahuja Vs Rockman Breweries (TNK) Ltd. (Delhi Company Law Board)

Since the proposed minutes containing the terms of consensus filed on 28/02/2012 does not contain any authorization by R-l in favour of Mr. C.S. Agarwal R-2 to sign such minutes on its behalf, the minutes dated 28/02/2012 and the order dated 23/03/2012 cannot be enforced against the R-l company. It is open to the parties to file a joint a...

Read More

Director General of Civil Aviation Issues Guidelines for FDI in Civil Aviation Sector

File No. AV. 14027/1/2003-AT (I) (01/03/2013)

The Civil Aviation sector, inter-alia, includes Airports, Scheduled and Non-Scheduled domestic passenger airlines sector, cargo airlines, Helicopter services/ Seaplane services, Ground Handling Services, Maintenance and Repair organizations, Flying training institutes, and Technical training institutions. The present policy of FDI in the ...

Read More

Administrative Measures for Optimum Efficiency of the Tax Regime

Slew of Administrative Measures for Optimum Efficiency of the Tax Regime The Finance Minister has proposed to continue the series of administrative measures for improving the overall efficiency of the tax regime. Presenting the Union Budget in the Lok Sabha today, Shri P.Chidambaram said that he proposed to expand the slew of administrati...

Read More
Posted Under: Income Tax |

Union Budget 2013-14 – ICAI Perspective

Tax Proposals of the Union Budget 2013-14 The aim of Budget 2013-14 aptly addresses the need of the hour i.e., to accelerate growth through sustainable development and inclusive growth. The tax proposals are also in tandem with this overall aim of the budget, proposed to be achieved by focusing on key areas, such as bringing […]...

Read More
Posted Under: Income Tax |

Budget -Explanatory Memorandum to Service Tax, Excise & Custom Notifications

Explanatory Memorandum to notification No. 25/2013-Customs (N.T.) dated 01-03-2013. Notification No. 25/2013-Customs (N.T.), dated 01-03-2013 seeks to further amend notification No. 30/98-Customs (N.T.), dated 2nd June, 1998, so as to raise the value limit of Jewellery allowed duty free to an Indian passengers who has been residing abroad...

Read More
Posted Under: Income Tax | ,

Economic Survey-2012-13 – ICAI Perspective

The Institute of Chartered Accountants of India (ICAI) welcomes the Economic Survey 2012-13 which shows that although the economy exhibited moderate growth rate during 2012-13 but its growth rate is much higher and better than the global growth rate and growth rate achieved by developed economies....

Read More
Posted Under: Income Tax |

Residency Status based on TRC could not be question by IT department – FM

Income tax press release (01/03/2013)

Concern has been expressed regarding the clause in the Finance Bill that amends Section 90 of the Income-tax Act that deals with Double Taxation Avoidance Agreements. Sub-section (4) of section 90 was introduced last year by Finance Act, 2012....

Read More

Subscription to Tata Brand Equity contribution not liable to FBT in the absence of employer – employee relation

Assistant Commissioner of Income-tax Vs Tata Consultancy Services Ltd. (ITAT Mumbai)

While deciding Revenue's appeal in ITA No. 6747/M/2011, this Bench had the occasion to consider the Circular issued by CBDT being Circular No. 8/2005 dt. 29.8.2005 wherein this Bench has held that employer/employee relationship is a pre-requisite for the levy of FBT. Rationale for introduction of FBT is that it is difficult to isolate the...

Read More

Budget 2013-14 – Amnesty Scheme for Service Tax Defaulters

Voluntary Compliance Encouragement Scheme, 2013 (VCES) – To motivate about 10 lakh of those registered assesses of service tax, who are not filing returns and paying tax dues, the Finance Minister has proposed to introduce a one-time scheme called ‘Voluntary Compliance Encouragement Scheme’ in 2013-14 Budget proposals. Under thi...

Read More
Posted Under: Income Tax | ,

Key Features of Union Budget 2013-2014

THE ECONOMY AND THE CHALLENGES > Getting back to potential growth rate of 8 percent is the challenge facing the country. > Slowdown in Indian economy has to be seen in the context of slowing global economic growth from 3.9 per cent in 2011 to 3.2 per cent in 2012. > However, no reason for […]...

Read More
Posted Under: Income Tax |

Risk Management and Inter-Bank Dealings – A.P. (Dir Series 2012-13) Circular No. 86, Dated 1-3-2013

A.P. (DIR SERIES 2012-13) CIRCULAR NO. 86 (01/03/2013)

Authorised Dealer banks should report all derivative transactions including forward exchange contracts on the basis of PV adjustment for the purpose of calculation of the net open position. Authorised Dealer banks may select their own yield curve for the purpose of PV adjustments. The banks however should have an internal policy approved ...

Read More

Budget 2013-14 – Major Changes in Service Tax

CA Amit Lath Finance minister while delivering his budget speech stressed on the importance of stability of taxation regime. With this view in mind very few changes has been introduced in the already destabilized regime of service tax. In this article an effort has been made to compare the changes introduced in the budget 2013-2014. [&hel...

Read More
Posted Under: Income Tax |

Budget 2013 – Direct & indirect tax perspective for first time home buyers

WANT TO ENCASH TAX BENEFITS OF INVESTMENT IN RESIDENTIAL UNIT- RESTRICT IT TO A BUDGET HOUSE You are planning to invest in Residential House, and got excited with the news of tax exemptions, be careful and keep a check on the Investment value.  If you want to take the benefit of the Tax incentives in […]...

Read More
Posted Under: Income Tax | ,

Changes in Indirect Taxes – Union Budget 2013

Important changes in Indirect Taxes – Union Budget 2013:- No change in peak rate of Customs (10%), Central Excise (12%) and Service tax rates (12%). UNION BUDGET 2013: CHANGES IN SERVICE TAX A. CHANGES IN CHAPTER V OF THE FINANCE ACT, 1994 (WILL COME INTO FORCE WHEN THE FINANCE BILL, 2013 IS ENACTED):- i. Changes […]...

Read More
Posted Under: Income Tax |

Budget 2013-14 – Direct & Indirect Tax Highlights

Direct Tax – At a Glance No change in income tax slabs A tax credit of Rs. 2,000 to every person with an income of up to Rs. 5 lakh per annum Surcharge of 10 % on persons (other than companies) whose taxable income exceeds Rs. 1 crore for only one year Increase in surcharge […]...

Read More
Posted Under: Income Tax |

Guidelines For Enabling Partial Two-Way Fungibility Of Indian Depository Receipts

Circular No. CFD/DIL/6/2013 (01/03/2013)

This circular is issued in exercise of the powers conferred under section 11 of the Securities and Exchange Board of India Act, 1992, read with regulation 100 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009....

Read More

Search Posts by Date

December 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031