"April, 2013" Archive

Download Finance Bill 2013-14 passed by Lok Sabha on 30.04.2012

The Finance Bill 2013 has been passed by the Lok Sabha today (30.04.2013) after incorporating  12 minor amendments. THE MINISTER OF FINANCE (SHRI P. CHIDAMBARAM) Moving the motion for consideration of the Bill said: Post the Budget presentation and post the Finance Bill introduction, we had discussions with stakeholders, Members of Parli...

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Posted Under: Income Tax |

CBDT Clarifications on Functional Profile of Development Centres engaged in Contract R&D Services with insignificant risk

CA Kamal Garg TRANSFER PRICING: CBDT Clarifications on Functional Profile of Development Centres engaged in Contract R&D Services with insignificant risk – conditions relevant to identify such Development Centres...

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Posted Under: Income Tax |

TDS – New File Validation Utility (FVU) version 2.133 – Key features / Download

Import of challan file (.csi file): Import of challan file downloaded from the TIN website (Challan Status Inquiry) has been made mandatory at the time of validating the quarterly TDS/TCS statement, if the TDS/TCS is deposited through challan. This will be applicable in case of regular statement and for correction statement in the scenari...

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Posted Under: Income Tax |

TDS – New File Validation Utility (FVU) version 3.7 – Key features / Download

Section 80CCG: Section 80CCG has been incorporated for Form no. 24Q Q4. Section code 80CCG is applicable for FY 2012-13 onwards. Section 80CCF: Quoting deduction under section 80CCF has been restricted to FY 2010-11 and 2011-12....

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Posted Under: Income Tax |

Form 24G – Procedure to obtain duplicate copy of Provisional Receipt Number

Services / Form 24G / Procedure to obtain duplicate copy of Provisional Receipt Number In case if Account Office needs duplicate copy of Provisional Receipt Number, AO is required to send request letter to NSDL....

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Posted Under: Income Tax |

New FVU for Form 15CA Bulk upload (version 1.3)

File Validation Utility (FVU) for Form 15CA Bulk upload (version 1.3) released on 07/03/2013 The Form 15CA FVU is a Java based utility. JRE (Java Run-time Environment) [versions: SUN JRE: 1.4.2_02 or 1.4.2_03 or 1.4.2_04 or IBM JRE: 1.4.1.0] should be installed on the computer where the Form 15CA FVU is being installed. Java is […]...

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Posted Under: Income Tax |

CA Final & IPCC Examination Dates, Timing, Changes for May 2013

 CA final exams will be started from 2nd May 2013 and ended on 16th May 2013 CA IPCC will be started from 3rd May and ended on 15th May 2013 CA IPCC Exam Date Sheet for May 2013...

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Posted Under: Income Tax |

HC have no jurisdiction on consumer commission orders – SC

Cicily Kallarackal Vs Vehicle Factory (Supreme Court of India)

The basic issue has been raised in the petitions that the Kerala High Court did not have jurisdiction to entertain the writ petition against the judgment and order passed by the National Consumer Disputes Redressal Commission (hereinafter called 'the Commission'). The said order could be challenged only before this Court in view of the p...

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Transfer Pricing – Important principles on turnover filter & comparison explained

Capgemini India Private Limited Vs. Asstt. Commissioner of Income tax (ITAT Mumbai)

. Facts in brief are that the assessee during the assessment year 2007- 08 had provided software programming services to the parent company in the US for which the assessee had received a sum of Rs.5,39,40,81,065/-. Since the assessee had entered into an international transaction with an associate enterprise, the income arising from such...

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No service tax can be levied on chit fund business – HC

Delhi Chit Fund Association Vs Union of India & Anr. (Delhi High court)

The petitioner prays that the notification should be quashed in so far as it seeks to subject the activities of a business chit fund companies to service tax to the extent of 70% of the consideration received for the services. The contention of the petitioner is that there is no question of exempting a part of the consideration received f...

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Transfer Pricing – Scope of +/- 5% tolerance adjustment to ALP explained

IHG IT Services (India) Pvt. Ltd. Vs. ITO (ITAT Delhi)

From the above second proviso to Section 92C(2), it is evident that if the variation between the arm's length price and the price at which international transaction was actually undertaken does not exceed the specified percentage, then only the price at which the international transaction has actually been undertaken shall be deemed to be...

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ICAI President's Message – May 2013

Dear Friends, Ethics is all about our becoming and feeling responsible about everything that is around us. We are responsible only when we appreciate everything that is ethical and denounce all that is not ethical around us. I would like our membership to ensure that they always go for the stricter interpretation, foregoing the liberal [&...

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Posted Under: Income Tax |

Anti-Dumping Duty on Import of Solar PV Modules

The Ministry examines the effects of dumped goods on the domestic industry, and not cheap goods. Dumping takes place if the export price of a product is less than the normal value prevailing in the exporter’s country. In order to offset the adverse effects of dumped imports, Domestic Industry can avail the trade defence measures [&helli...

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Posted Under: Income Tax |

Steps to strengthen the process and creations of Intellectual Property Rights

The Office of Controller General of Patents, Designs and Trade Marks has taken the following steps to strengthen the process and creations of Intellectual Property Rights. (i) The filing of Patents and Trademarks applications has been made online....

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Posted Under: Income Tax |

Conversion of a firm into a Limited Liability Partnership – Clarification

General Circular No. 09/2013 (30/04/2013)

The Ministry has been examining some of the issues raised by stakeholders with regard to clarifications on the provisions of the Limited Liability Partnership (LLP) Act, 2008 with regard to conversion of a partnership firm into LLP. ...

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Five Years jail to Then Income Tax officer In Disproportionate Assets Case

  The Special Judge for CBI cases, Visakhapatnam has convicted Sri Akella Venkata Subramanya Sastry, the then Income Tax Officer, Eluru, West Godavari District (Andhra Pradesh) U/s 13(2) r/w 13(1) (e) of P.C Act 1988 in Disproportionate Assets case and sentenced him to undergo Five Years Rigorous Imprisonment with fine of Rs.10,000/-. Th...

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Posted Under: Income Tax |

Listed Companies to submit audited financial results for the entire financial year within sixty days of the end of financial year

CS Kiran Kumar Guptha B As per SEBI Circular dated October 05, 2011, the following is an important amendment to Clause 41 of Listing Agreement: ‘The issuer shall submit audited financial results for the entire financial year, within sixty days of the end of the financial year. The issuer shall also submit the audited financial [&hel...

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Posted Under: Income Tax |

Notification amending tariff Value of Gold, Silver etc. wef 30.04.2013

Notification No. 51/2013-Customs (N.T.) (30/04/2013)

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 makes the following amendment in the ...

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Resolve Arrears Demand Grievances In Transparent Manner – CBDT

LETTER F.NO. 1(164)/DIT(R)/DEMAND MANAGEMENT/DOMS/2013-14 (29/04/2013)

The demand uploaded by AO's on the CPC Portal together with demand in IRLA is way short of the total demand reported in CAP-I. And the demands uploaded, are sometimes incorrect or non-existent leading to grievances and causing aberrations in projection of total collection figures....

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SEBI : Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to Normal Rolling Settlement

CIR/MRD/DP/15/2013 (29/04/2013)

at least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from TFTS to normal Rolling For this purpose....

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Utilizing Refunded SAD for Duty Payment (DEPB) – Extended Again

Circular No. 18/2013-Customs (29/04/2013)

Your kind attention is invited to the Circular No.27/2010-Customs, dated 13.08.2010, regarding procedure on refund of 4% Special Additional Duty (SAD). The above Circular provides the facility of manual filing of Bill of Entry for utilizing the amount of re-credited 4% SAD refunds for ...

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If similar matter was remanded back to Commissioner (Appeals) vide earlier order, present order also to be remanded back

Khillan & Co. (P.) Ltd. Vs Commissioner of Central Excise, Chandigarh (CESTAT Delhi)

Following the earlier order to reduce the litigation at the grass root level first appellate order is set aside and we send the matter back to ld. Appellate Authority to re-examine the issue without insisting on pre-deposits by him. In the result, both stay application and appeal are disposed remanding the appeals to the ld. Commissioner...

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Accomodation services provided to staff in remote area are input services

Commissioner of Customs & Central Excise Vs ITC Ltd. (Andhra Pradesh High Court)

The Commissioner's Order-in-Appeal dated 27.05.2008 reflects that he accepted that the efficiency of the employees of an organization would be dependent on various factors, one such being the provision of a housing colony. He further conceded that these facilities would contribute to the enhancement of the productivity of the organization...

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Sec. 73 applies only if assessee incurres loss from Sale / Purchas eof Shares or intends to C/F non-absorbed loss

The Commissioner of Income Tax VI Vs. Appollo Vikas Steels Pvt Ltd (Gujarat High Court)

Assessing Officer committed an error in resorting to explanation to section 73 of the Act. The issue before him was whether the income earned by the assessee through sale of shares should be taxed as business income or should be treated as capital gain. Such issue had to be decided on the basis of the question whether the assessee is invo...

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Assessee is in category of a ‘scientific research association’ or not should be decided by Central Government

Centre for Development of Telematics And Anr. Vs UOI And Ors. (Delhi High Court)

Issue of whether the petitioner fell within the category of a 'scientific research association' or in the category of 'other institution' partly doing scientific research should be considered by the central government afresh in the manner indicated above and in accordance with law. To enable this, we are setting-aside the notification dat...

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Addition not sustainable in absence of any difference in details and reconciliation statement furnished by assessee

Commissioner of Income Tax- IV Vs Shree Rama Multi Tech Ltd. (Gujarat High Court)

Tribunal deleted the addition made on account of difference of balances of Rs.14,03,85,459/-. The Tribunal after considering the explanation of the assessee-respondent and the findings of the CIT(A), recorded the reconciliation statement substantiated by necessary evidence which had been furnished by the respondent assessee. The remand re...

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No reversal under Cenvat rule 6 is required in case of clearances to SEZ unit/developers

Ashlyn Enterprises Vs Commissioner of Central Excise (CESTAT Bangalore)

In this appeal filed by the assessee, the challenge is against a demand raised on the appellant in terms of Rule 6(3) of the CENVAT Credit Rules 2004 for the period from July to December 2008. During the said period, the appellant (a unit in the domestic tariff area) had cleared their products to SEZ developers/units. During the same peri...

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Intent to evade payment duty is a sina qua non for invoking penal provision u/s. 11AC

M/s. Landis + Gyr Ltd. Vs CCE-KOL-V (CESTAT Kolkata)

Undisputedly the appellant had received input services viz. GTA and Business Auxiliary Service and used the same in or in relation to the manufacture and trading of Electric Meters. It is also not in dispute that credit of Rs. 3,41,397/- availed by the appellant on the said input services were not exclusively used in or in relation to the...

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Customs – After 1-6-2007 Settlement Commission cannot grant immunity from payment of interest

Frontier Cycle Industries Pvt. Ltd. Vs. Union of India and others (Bombay High Court)

Section 127 H of the Customs Act, 1962, prior to its amendment by Act No.22 of 2007, empowered the Settlement Commission to grant immunity, inter alia, either wholly or in part of any part of the interest. With effect from 1 June 2007 an amended provision was brought into force by which the Settlement Commission cannot any longer grant a ...

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AICTE approval not required for University-approved MBA – SC

Association Of Management Of Private Colleges Vs. All India Council For Technical Education & Ors. (Supreme Court of India)

MBA course is a technical education, we hold that MBA course is not a technical course within the definition of the AICTE Act and in so far as reasons assigned for MCA course being ‘technical education’, the same does not hold for MBA course. Therefore, for the reasons assigned while answering the points which are framed in so far as...

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Loss due to Confiscation of stock by Customs is allowable

Rajmal Lakhichand Vs Assistant Commissioner of Income-tax (ITAT Pune)

The facts of the case are that the assessee is a jeweller and it is in this business for the last number of years. There was a search at the assessee's premises by the DRI on 13th Feb., 1993 in which they found that the assessee had purchased silver weighing 1,913.295 kgs. and the same was seized. The stand of the assessee was that it had...

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Six Month Time limit for disposal of trust registration application is directory

Commissioner of Income Tax- I Vs Sheela Christian Charitable Trust (Madras High Court)

Period of six months as provided in Sub-section (2) of Section 12AA is not mandatory. Though the word 'shall' has been used but it is well known that to ascertain whether a provision is mandatory or not, the expression 'shall' is not always decisive. It is also well known that whether a statutory provision is mandatory or directory has to...

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Surrender after detection of incriminating material with regard to income so surrendered is not voluntary

Ajay Jain Vs A.C.I.T. (ITAT Delhi)

Voluntarily means out of free will without any compulsion. When the assessee concealed incriminating material in the form of transactions in the aforesaid account of the two parties, surrender cannot held to be voluntarily. Surrender of income after the department has collected incriminating material with regard to the income so disclosed...

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Stamp value on the date of agreement to be reckoned for computing capital gains if registration is delayed bonafidely

Deputy Commissioner of Income Tax Vs Sri S. Venkat Reddy (ITAT Hyderabad)

Accordingly, we direct the Assessing Officer to cause necessary enquiry with regard to SRO rate as on 13.6.2005 and also the fact of giving the possession of the property to the purchaser on 13.6.2005 itself, and to decide the issue in the light of the Tribunal order in the case of M. Siva Parvathi (supra) and the judgement of Kerala High...

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Bifurcation of rural and urban branches must for deduction u/s. 36(viia)

State Bank of Indore Vs ACIT (ITAT Indore)

In the appeal of the revenue by ground no. 2, the department has challenged the conclusion of the learned CIT(A) regarding deduction u/s 36(1)(vii) for bad and doubtful debts written off restricted to the amount in excess of the provision for bad and doubtful debts created in the books of accounts u/s 36(1)(viia) of the Act or it is restr...

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Revision of Return on cancellation of Incentive Shceme by Government is valid

Commissioner of Income Tax Vs Gujarat Industrial Development Corporation & 1 (Gujarat High Court)

Assessee is a limited company. The Government of Gujarat floated Sale Tax Deferment Scheme. For facilitating the industrial units to avail such benefit of the Sale Tax Incentive Scheme in the State, pari passu charge was to be created in favour of the Sales Tax Department, as decided by the Government of Gujarat and as such deferred amoun...

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List of 141 ITOs Selected For Appointment As ACIT

CBDT Letter (27/04/2013)

Vide letter dated 27.04.2013 the CBDT has informed the names of 141 Income Tax Officers who are to be appointed in the grade of Assistant Commissioner of Income-tax (ACIT) in the pay scale of Rs. 15,600 – 39,100 (plus grade pay of Rs. 5,400 in Pay Band -3). Download CBDT letter dated. 27.04.2013...

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Procedure for Incorporation Of A Private Limited Company

1. For incorporating a private limited company, there must be: At Least 2 Promoters: Promoters who will promote/ incorporate the company. Promoters may be individual or body corporate. AND...

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Posted Under: Income Tax |

HC recommends US-like ‘restatement of law’ to consign a large body of useless case law to dustbin of legal history

Commissioner of Income-tax, Raipur Vs Union of India (High Court of Chhattisgarh)

'In the United States, these 'fact-cases' are likened to railroad-tickets: 'valid for single journey only'. The Americans are not greatly enamoured (as we or the British are) about precedent, and every ten or fifteen years they appoint a body of very learned and wise lawyers, who go into the hundreds of cases reported in all the decisions...

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No Question of Law on Exercise of Revisionary power by CIT after recording cogent reasons if ITAT upheld the same

Adani Agro Pvt Ltd Vs. Deputy Commissioner of Income Tax (Gujarat High Court)

The Commissioner after recording cogent reasons found that the order passed by the Assessing Officer was erroneous and also prejudicial to the interest of the Revenue. He was therefore, on facts of the case entitled to exercise revisional powers under section 263 of the Act. While doing so, he remanded the proceedings before the Assessing...

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Dearness Allowance payable to CG Employees increased to 80% wef 01.01.2013

Notification No. 1(2)/2013-E-II (B) (25/04/2013)

Government issued order enhancing the Dearness Allowance payable to Central Government Employees with effect from 1.1.2013 from the existing 72% to 80%....

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DRP entitled to enhance by questioning very existence of transaction

M/s. Hamon Shriram Cottrell Pvt. Ltd. Vs The Income Tax Officer (ITAT Mumbai)

With this amplification of the scope of the power of the DRP, now even the matters not agitated by the assessee before the DRP can also be considered for the purposes of enhancement....

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Consistent losses show mistake/ absence of intention to evade taxes

Amruta Organics Pvt. Ltd. Vs. DCIT (ITAT Pune)

Mere mistake in making of a claim in the return of income would not ipso facto reflect concealment or furnishing of inaccurate particulars of income in terms of section 271(1)(c) of the Act. The wrong claim of depreciation in the present case cannot be said to be made with an intention to evade taxes in as much as even after the disallowa...

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Coaching institute cannot be treated &registered as a charitable institution

M Star Charitable Society Vs Commissioner of Income-tax (ITAT Cochin)

From the above judgment of the Apex Court it would be abundantly clear that there should be a systematic instruction to the students by way of normal schooling. Mere coaching classes may provide some kind of knowledge to the students. But that kind of acquisition of knowledge through coaching classes cannot fall within the meaning of "edu...

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S. 80G Registration cannot be denied for mere non utilization of Government Grant

Commissioner of Income-tax-I Vs Association For The Prevention of Blindness (Allahabad High Court)

Section 80G(5)(i)(b) provides the condition for exemption or rejection of the application for renewal, if the donation made to the institution or funds are not used by it directly or indirectly for the purpose of such business. In the present case the Commissioner did not record any such finding that the funds, which was earmarked and was...

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No Criminal Prosecution if demand itself been set aside

Assistant Collector of Central Excise Vs M/s Karnataka Chemicals (Karnataka High Court)

It is the case of the accused that he has preferred an appeal before the Collector of Central Excise, Madras and by order dated 27.03.1987, the appeal was allowed, whereunder, the order passed by the Collector of Central Excise, Hubli Division on 16.12.1986 was challenged and the same was set aside. The learned Magistrate has further obse...

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Interest expenses not allowable if used for acquisition of capital asset & not put to use

Vishal Paper Industries Vs Joint Commissioner of Income-tax (ITAT Chandigarh)

This is undisputed fact that the interest has been paid by the assessee, as is evident from perusal of the profit and loss account, as mentioned by the AO. It is also undisputed fact that the assessee had purchase assets. Therefore, the provisions of section 36(1)(iii) and proviso thereunder, which is inserted w.e.f. 1.4.2004 vide Finance...

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Anti-dumping duty on Carbon black imported from China, Thailand, Russia, Australia

Notification No. 09/2013-Customs (ADD) (26/04/2013)

The anti-dumping duty imposed under this notification shall be levied from the date of publication of this notification in the Official Gazette and valid up to the 29th July, 2014 and shall be payable in Indian currency....

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Change in Tariff of Gold wef 26.04.2013

Notification No. 50/2013-Customs (N.T.) (26/04/2013)

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 makes the following amendment in the notification of the ...

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Software developed as per customer’s specifications are liable to service tax

3i Infotech Ltd. Vs Commissioner of Service Tax (CESTAT Mumbai)

From the impugned order, it does not come out clearly how the service tax liability has been computed. If the appellant has purchased from third parties and sold the same on payment of VAT and also supplied hardware on payment of VAT, the same would not be liable to service tax. The liability to service tax would arise only in respect of ...

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Mistake in show-cause notice can be rectified before adjudication

Cauvery Iron & Steel (India) Ltd. Vs CCE (CESTAT Bangalore)

One important question survives for consideration and the same is whether the legal mistake committed by the Department can be corrected to ensure that the offender does not escape punishment under the Central Excise law. There is a clear distinction between a mistake of fact and a mistake of law. The former cannot be rectified at later s...

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Reimbursement of expenses cannot be treated as fees for technical services

Obeetee (P.) Ltd. Vs Addl. Commissioner of Income Tax (ITAT Allahabad)

In this case Payment was made for reimbursement of the permission granted to the assessee for using trade mark ‘Wool, New Zealand’. Such payment cannot be said to be fee for technical services. Even otherwise also, in the light of the detailed discussions made in paragraph nos. 13, 14 and 15 of this order, such reimbursement of expens...

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No charity in providing assistance to entrepreneurs for fees in setting up industries

Tamil Nadu Industrial Guidance & Export Promotion Bureau Vs Assistant Director of Income Tax (ITAT Chennai)

In the instant case, the assessee although an extended arm of State Government formed as a society to carry out charitable activities in the nature of 'general public utility' is in fact providing assistance to industrial houses and entrepreneurs for setting up of industry in the State of Tamil Nadu. The assessee facilitates in providing ...

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Proceeding u/s 153C based on the basis of books of firm seized from place of partner is valid

Bharat Ginning & Pressing Factory Vs Income Tax Officer (ITAT Ahmedabad)

The search operation was carried out at the residence as well as business premises of Shri Yakub A. Colddrink where from the books of account of the firm as per Annexure A/11 & A/12 and loose paper as per Annexure-3 were found and seized. As per Section 153C, the books of account belonging to the other person is required to be found and s...

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Exemption U/s. 11 cannot be denied on mere Non-compliance with provisions of Trust Act in earlier years

Director of Income-tax (Exemption), Mumbai Vs G.K.R. Charities (Bombay High Court)

Once the registration has been granted under section 12AA of the Act, the exemption under Section 11 cannot be withdrawn unless there is violation of provisions of Section 13 of the Act or the registration under Section 12AA(3) of the Act is cancelled. The Tribunal held that the decision of this Court in the matter of CIT v. Pruthivi Trus...

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What Gold Means Now

According to one estimate, Indian households alone holds gold wroth over Rs. 70 lakh crores. The fundamental reason for buying gold and jewellery is deep rooted in Indian culture itself, besides being considered auspicious for weddings etc. Besides, Indian peasants are also gold obsessed to a large extent. ...

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Posted Under: Income Tax |

List of Income Tax Forms (Other than ITRs) available for e-Filing

We are providing below the list of 45 Income tax Forms other than ITRs which can filed online on the Income tax E-Filing website namely https://incometaxindiaefiling.gov.in/e-Filing/ . These Forms includes Tax Audit Reports, transfer Pricing Audit Reports, MAT Computation Report, Special Audit Reports , Audit Reports which are required to...

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Posted Under: Income Tax |

Posting Of Probationer Assistant Commissioners Of Income-tax – Order No. 71/2013

Order No. 71 of 2013 (25/04/2013)

Vide Order No. 71 of 2013 dated 25.04.2013, the CBDT has posted several Assistant Commissioners of Income-tax (probationers) in the Pay Scale of Rs. 15,600-39,100 (Plus Grade pay of Rs. 5,400 in PB-3), on completion of training at National Academy of Direct Taxes, Nagpur in the Region of CCIT(CCA)/Station/Charge indicated against each wit...

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Be Cautious While E-Filing Income-Tax Returns

CA Members may note that ICAI has received a letter from Directorate of Income-tax (Systems) requesting it to impart information regarding correct procedure of e-filing of returns. The following are the major concerns of the Department:- a) ITR-V is not received or is belated for the assessment year at CPC b) ITR-V is not signed by the ta...

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Posted Under: Income Tax |

Excise paid on Inputs and ST on Input services used in construction sector can be utilized for discharging ST liability on renting of immovable property

Oberoi Mall Ltd. Vs. Commissioner of Service Tax (CESTAT Mumbai)

The Hon'ble Tribunal has held that Excise duty paid on Inputs and Service Tax paid on Input services used in the construction of immovable property can be taken and utilized for discharging ST liability on the renting of such immovable property and granted unconditional waiver from the pre-deposit of the dues adjudged against the Appellan...

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TDS liability U/s. 194I do not arise in absence of existence of landlord-tenant relationship

Assistant C.I.T. Vs Serco BPO Pvt. Ltd. (ITAT Delhi)

The revenue have not placed any material suggesting that the assessee had any interest either as a lessee or sub-lessee or a tenant in any of the aforesaid 13 premises. The fact that the assessee was allowed use of premises by IISPL in terms of agreement dated 1-12-2008, cannot lead to the conclusion that the assessee had any interest as ...

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Transfer Pricing – If more than one price is determined by the most appropriate method, the ALP has to be the arithmetical mean of such prices

Commissioner of Income Tax Vs Mentor Graphics (Noida) Pvt. Ltd. (Delhi High Court)

In this case Tribunal was wrong in holding that if one profit level indicator of a comparable, out of a set of comparables, is lower than the profit level indicator of the taxpayer, then the transaction reported by the taxpayer is at an arm's length price. The proviso to section 92C(2) is explicit that where more than one price is determi...

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Gujarat HC order on 97th amendment to India’s Constitution of 2012 vs MCS (Amendment) Ordinance, 2013

Gujarat HC has recently held that 97th amendment to India’s Constitution of 2012 is unconstitutional. Post this order we have discussed the implication of the order on MCS (Amendment) Ordinance, 2013.                   ...

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Posted Under: Income Tax |

Matter remanded back for re-examination of issue as revenue agreed for the same

Competent Software (P.) Ltd. Vs Commissioner of Service Tax, New Delhi (CESTAT Delhi)

Revenue agrees to grant an opportunity to the appellant to reduce the dispute at the grass root level. In view of the limited opportunity of rebuttals as above pleaded the matter is remanded to the learned Adjudicating Authority to re-examine the issue of input credit admissibility as stated above including the documents referred to in Pa...

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Declaration U/s. 158A not provide any immunity from payment of tax due

The Karnataka Chamber of Commerce & Industry Vs The Commissioner of Income Tax (Karnataka High Court)

It is to be noted here that the claim made by the assessee under section 158-A will not however preclude the Assessing Officer from making an order disposing of the relevant case without awaiting the final decision on the question of law in other case. When the decision on the question of law becomes final, it shall be applied to the rele...

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Expenditure on registration of lease agreement is allowable as revenue expenditure

Deputy Commissioner of Income-tax Vs Columbia Asia Hospitals (P.) Ltd. (ITAT Bangalore)

It is not disputed by revenue that the said lease agreement dt.29.6.2006 entered into by the assessee give rise to a lease in favour of the assessee and no other legal rights in the hospital building are granted to the assessee. As such, the view of the Assessing Officer that the said lease agreement brings into existence an asset of endu...

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Penalty justified for claiming of deduction for R&D activity after discontinuance of business

The Assistant Commissioner of Income-tax Vs M/s. Harvey Heart Hospitals Ltd. (ITAT Chennai)

The first question is whether the assessee-company had produced reasonable evidence to support its claim of incurring expenditure to the extent of Rs. 32,99,650. The answer is a categorical "no". This position has been upheld even by the Tribunal. The assessee has not produced details or any evidence to support its claim of expenditure to...

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Deduction u/s. 80IA not allowable on interest on Margin Money, I-T refund, employee’s loan

M/s Essar Power Limited Vs. Addl. Commissioner of Income Tax (ITAT Mumbai)

On the question as to whether the assessee is entitled to deduction u/s 80IA of the Act on the net interest income on employees loans & advances, interest on margin money and interest income on dues towards income tax refund adjustment from Essar Project Ltd., we are of the opinion that the issue involved in the present case is no more re...

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When Seized documents explains unexplained expenditure, no addition is warranted

Vivek Kumar Kathotia Vs Deputy Commissioner of Income-tax (ITAT Kolkata)

The brief facts leading to above issue are that assessee incurred undisclosed expenditure for furniture, fixture, flooring etc. incurred in respect of Flat No. 501, at 20 Lee Road, Kolkata for asst. yr. 2008-09. The said expenditure was found recorded in RM-1 and RM-2. The expenditure of Rs. 35 lakhs was incurred by the assessee in connec...

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Notification No. 49/2013-Customs (N.T.) Dated: 25/04/2013

Notification No. 49/2013-Customs (N.T.) (25/04/2013)

In exercise of the powers conferred by sub-section (1) of section 4 and sub-section (1) of section 5 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby appoints the Additional/Joint ...

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Notification No. 48/2013-Customs (N.T.) Dated: 25/04/2013

Notification No. 48/2013-Customs (N.T.) (25/04/2013)

In exercise of the powers conferred by sub-section (1) of section 4 and sub-section (1) of section 5 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby appoints the Additional/Joint ...

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Expenses liable to be considered as fringe benefits only to extent same are incurred in consideration for employment

Desai Brothers Ltd. Vs. Addl. CIT, Range-1 (ITAT Pune)

First is the issue of entertainment expenditure. The stand of the assessee is that the provisions of FBT can be invoked in respect of expenses which are incurred on employees or their family members but in the present case, as mentioned on page No.5 of the paper book, the entertainment expenses have been incurred for guests of the company...

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Delhi VAT – Due Date extended for Return for the period ending on 31st March 2013

Circular No. 3 of 2013-14 (25/04/2013)

However, the tax due for the above mentioned period shall be deposited as per the provisions of Section 3(4) of the DVAT Act, 2004. Penalty and interest on late deposit of tax due shall be imposed as applicable....

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No Transfer Pricing adjustments can be made if actual transaction price is within safe harbour limit of +/- 5%

ADIT (IT) 3(2) Vs. Ballast Nedam Dredging (ITAT Mumbai)

In the case of dredger Hector even though there is no dispute with reference to the examination of the international transactions in this year under the provisions of transfer pricing, while determining the ALP what is required to be considered is whether the price paid has any significant impact on the income. As submitted by assessee, t...

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Reopening on the ground on which AO already held detailed discussion during original Assessment is not valid

M/s Bothra International Vs. The ITO-1(3) (ITAT Jodhpur)

In the instant case also, the assessee furnished all the details relating to its claim for deduction u/s 80IB of the Act and the Assessing Officer thoroughly examined the claim while framing the assessment u/s 143(3) and on being satisfied the claim was allowed. Therefore, in the present case, reopening of the assessment by issuing notice...

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Advance booking period for train tickets reduced to 60 days

Railways has reduced advance booking period from four months to two months from May 1 as part of its efforts to prevent touts from cornering bulk of tickets....

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Posted Under: Income Tax |

Carrying of passengers through ropeway not amount to Tour Operator’s services

Shail Shikhar Associates Vs Commissioner of Central Excise, Meerut- (CESTAT Delhi)

In this case appellant was allowed to operate the ropeway of Nagar Palika and such factual aspect called for testing by the Revenue Authorities with the provision of law under which the appellant was brought to tax. Section 65(105)(n) of the Act has taxing entry and meaning of the term Tour Operator is given by section 65(115) of the Act....

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TIN user who have registered on TRACES but not activated their account within 24 hours will have to register as new user

TIN users who have registered on TRACES but not activated their account within 24 hours will have to register as new user. Click on  ‘Register as New User’ and select user as ‘Deductor’ to proceed....

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Posted Under: Income Tax |

No Disallowance U/s 14A if investment been made by assessee out of its own interest free funds

Director of Income Tax (IT)-II Vs. M/s. BNP Paribas SA (Bombay High Court)

In the instant case the dividend earned on shares by the respondent assessee is from its investments in shares out of the respondent-assessee's own funds. Consequently, the question of invoking Section 14A of the Income Tax Act,1961 to disallow expenditure would not arise....

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No S. 40(a)(ia) Disallowance for non deduction of TDS on Salary Reimbursement to Sister concerns

The Commissioner of Income Tax-II Vs. OCB Engineers (Bombay High Court)

Respondent assessee was interalia engaged in the business of execution of contracts for erection and commissioning of plants. The Assessing officer disallowed an amount of Rs.16.86 lacs paid by way of reimbursement to sister concerns for payment of salaries to their employees as they were deputed to the respondent assessee. This was disal...

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Compensation paid for termination of lease arrangement which was for expansion of business is allowable

Commissioner of Income Tax I Vs UTI Bank Ltd. (Gujarat High Court)

The factual matrix or the case is that the assessee had contracted with landlord to take a premise on lease for opening its branch though no formal agreement with the landlord was entered into. Based on the understanding, the landlord had started the construction of the premises as per the requirement of the assessee. Before the construct...

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Interest and penalty due of private limited company cannot be recovered from its Directors

Nayan M. Shah Vs Income Tax Officer (Gujarat High Court)

In case of Ratanlall Murarka and others (supra), as already noted, Kerala High Court did hold that under section 179 of the Act not only the tax dues but also interest can be recovered from the director of a public company. This was on the basis that according to the Court, the company was liable for interest under section 220(2) of the ...

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Deduction U/s. 80IB(10) allowable to Assessee on development of a housing project even if the land is not owned by him

Commissioner of Income Tax, Ahmedabad- IV Vs Mahadev Developers (Gujarat High Court)

Issue pertains to deduction claim by the assessee under section 80IB(10) of the Act on development of a housing project. Revenue, however, holds a belief that the respondent-assessee had not developed the housing project on the ground that the land was not owned by the assessee. The Tribunal, however, held that as per the development agre...

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Service Tax On Educational Institutions – After Finance Act 2013

Taxation on educational institutions has always been a matter of various issues and disputes. I am summarizing below the provisions under the Service Tax Laws as applicable to Educational Institutions as amended by Finance Bill 2013. ...

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Posted Under: Income Tax |

Overseas entity having equity participation shall not offer financial products linked to Indian Rupee without RBI approval

RBI/2012-13/481 A.P. (DIR Series) Circular No. 100 (25/04/2013)

It has been observed that eligible Indian parties are using overseas direct investments (ODI) automatic route to set up certain structures facilitating trading in currencies, securities and commodities. It has come to the notice of the Reserve Bank that such structures having equity participation of Indian parties have also started offer...

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Exemption notifications not retrospective unless legislature specifically provides so

M/s. Srilankan Airlines Vs Commissioner of Service Tax (CESTAT Chennai)

The Airlines Industry represented to the authorities that they were receiving payments in Indian currency and the new amendment would cause hardship to the exporters and to them. Consequently the exemption under Notification 29/2005-S.T., dated 15-7-2005 was issued restoring exemption to such services from Service Tax as was available in...

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Delay caused due to administrative mechanism of Government not condonable

State of Gujarat Vs Sonia Industries (Gujarat High Court)

The Department appears to have sent a proposal to the Finance Department which had approved it on 4th September 2012 and after the same was received back alongwith necessary papers and orders permitting the Office of the Government Pleader to file Tax Appeal, it appears that the Tax Appeal which was to be filed on or before 10th November ...

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Interest on refund could not be denied / delayed unless same is due to assessee’s failure to submit details

M/s Metso Minerals (I) Pvt. Ltd. Vs. DCIT (ITAT Delhi)

In this case the assessee's contention for interest under section 244A was not accepted by the Assessing Officer. The Assessing Officer observed that according to section 244A(2), if the proceedings resulting in refund are delayed for reasons attributable to the assessee, whether wholly or in part, the period of the delay so attributable ...

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Advances written off not allowable unless the same were for the purpose of business

M/s. Mitsu Limited Vs. Asst. CIT (ITAT Ahmedabad)

The AO has noted that during the course of assessment proceedings, the assessee-company had vide a letter dated 4/3/2002 voluntarily offered for taxation by disallowing a sum of Rs. 15,54,260/-. In view of the said voluntary offer, the impugned amount was added back to the income of the assessee. When the matter was carried before the fir...

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Gain from sale of ESOP rights surrendered after 12 months chargeable as LTCG

ACIT, Circle 46(1) Vs. Sh. Ambrish Kumar Jhamb (ITAT Delhi)

In this case, assessee was given ESOP by Gillette Co. In his submissions and ESOP plan it has been observed that these ESOPs are cashless. Assessee has to pay nothing on exercise of ESOP. The assessee has been granted ESOP in earlier years without any cost. On the date of exercise the amount under ESOP to the assessee was deducted from th...

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Section 50C do not prescribe any tolerance band

Heilgers Development & Construction Co. (P.) Ltd. Vs Deputy Commissioner of lncomc-tax, Central Circle-II, Kolkata (ITAT Kolkata)

The safeguard built in section 50C does envisage a situation that whenever assessee claims that the fair market value of the property is less than the stamp duty valuation of the property, a reference can be made to the Departmental Valuation Officer and all these issues relating to valuation of the property - either on the issue of allow...

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Assessee can claim exemption under both Sec. 54 & 54F for investment in same house

Venkata Ramana Umareddy Vs Dy. CIT (ITAT Hyderabad)

Section 54 and 54F apply under different situations. While sec. 54 applies to long term capital gain arising out of transfer of long term capital asset being a residential house, sec. 54F applies to long term capital gain arising out of transfer of any long term capital asset other than a residential house. However the condition for avail...

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97th amendment on co-ops unconstitutional -Gujarat HC

Rajendra N Shah Vs Union Of India & Anr. (Gujarat High Court at Ahmedabad)

As it appears from the portion highlighted by us, the question involved in that matter regarding the validity of the State Laws included in the Ninth Schedule cannot have any application to the facts of the present case. Regarding constituent power under Article 368, we have already relied upon the observations of the nine-bench-judgment ...

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ST-3 Due date of Oct 12 to Mar 13 extended to 31.08.2013

Order No: 03/2013-Service Tax (23/04/2013)

n exercise of the powers conferred by sub-rule(4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3, for the period from 1st October 2012 to 31st March 2013, from 25th April, 2013 to 31st August, 2013. The circumstanc...

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Even if e-Return filed after due date but tax audit report obtained & not furnished no penalty u/s 271B

Navbharat Powerloom Cooperative Society Vs ITO (ITAT Indore)

We found that assessee's case is squarely covered by the decision of Mumbai Bench in the case of B.D. Leasing and Finance Limited, (2013) 49(II) ITCL 148, wherein it was held that penalty u/s 271B for non-filing of tax audit report cannot be levied in view of the CBDT Circular No.9/2006 dated 10.10.2006, which provided that in case of ele...

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Service Tax Makes Eating Out Costlier

April 1, 2013 has brought a new levy of tax in the form of service tax on all restaurants who serve food and beverages to customers in their restaurants. ...

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Posted Under: Income Tax |

Honest tax-payer should not be subjected to unnecessary harassment – HC

Vijay Prakash Agrawal And Others Vs Commissioner Of Income Tax (Central) And Another (Allahabad High Court)

In the result, the writ petition succeeds and is allowed. The respondents are directed to refund in all Rs.25 Lakhs seized from the petitioners on 17th of October, 2006 along with interest at the prevalent rate as provided for under section 132 B(4) for the period 16.12.2007 to 31.12.2008 and simple interest under section 244A on the said...

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Sexual Harassment of Women at Workplace Act, 2013

No. 14 of 2013 (22/10/2019)

The President of India has given his assent to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Bill, 2013. It has now been published in the Gazette of India, Extraordinary, Part-II, Section-1, dated the 23rd April 2013 as Act No. 14 of 2013. MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi...

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Transfer Pricing – Even Business Advance Has To Be At Libor ALP – ITAT Mumbai

Aurionpro Solutions Ltd Vs The Addl Commr of Income Tax (ITAT Mumbai)

Since the issue of LIBOR has been considered and decided by the Tribunal in various cases as relied upon by the assessee (supra); therefore, to maintain the rule of consistency, we follow the decision of the coordinate Benches of this Tribunal, and accept LIBOR for benchmarking interest on interest free loans to AEs. Since the LIBOR is a ...

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