"03 April 2013" Archive

NBFC – Factors

Q.1 What is Factoring? Ans. The Factoring Act, 2011 defines the ‘Factoring Business’ as “the business of acquisition of receivables of assignor by accepting assignment of such receivables or financing, whether by way of making loans or advances or in any other manner against the security interest over any receivables”. However, cr...

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Posted Under: Fema / RBI |

CBEC should withdraw draconian circular – Recovery proceedings during pendency of stay application

The Central Board of Excise and Customs (the CBEC or the Board) has issued its first Central Excise Circular No. 967/01/2013 – CX, dated January 01, 2013 (the Circular) on eve of New Year 2013, for recovery of confirmed demands during pendency of Stay applications. The Circular has rescinded seven previous circulars on the subject [...

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Posted Under: Fema / RBI |

Low Tax Effect Circular – Dept to show why CBDT instructions No.3/2011 not applies

The Commissioner of Income Tax Vs M/s. Sevak Pharma Pvt. Ltd. (Bombay High Court)

Moreover, this Appeal is filed from an order rejecting a Misc. Application for rectification. An appeal from an order dismissing a Misc. Application for rectification is not maintainable as held by this Court in the matter of Chem Amit v/s. ACIT reported in 272 ITR 397....

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No Disallowance U/s. 14A if Interest Free Fund exceeds fund Invested in Exempted Income Investments

CIT Vs. Suzlon Energy Ltd. (Gujarat High Court),

From the above portion, we noticed that the Tribunal has bifurcated the expenditure in two parts – first related to investment of Rs. 5907.18 lakhs in foreign subsidiaries, it was held that the dividend income from such subsidiaries is taxable in India and that therefore, Section 14A would have no applicability. The remaining amount per...

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Advance for Bogus Purchases cannot be written off as bad debt

Deputy Commissioner of Income-tax Vs Vistas Wind Technology India (P.) Ltd. (ITAT Chennai)

Para 2 of the order of Income Tax Settlement Commission dated 24.3.2008 deal with the purchases claimed to have been made by the assessee from M/s Sambhav Steel Distributors. Assessee had clearly admitted before Settlement Commission that the claim of purchase from M/s Sambhav Steel Distributors were all bogus. Additional income of Rs. 9,...

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No Penalty if Assessee voluntarily & bona fidely declare its income

Vaish Degree College Trust Vs Assistant Commissioner of Income-tax (ITAT Delhi)

Once in a particular trust, some default came to the notice of a trustee managing its affairs and the same trustee is also managing the affairs of other trust then, if the trustee of the second trust voluntarily comes forward before the department and discloses material facts, which have been duly accepted by the department, then it canno...

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State Government is a person for the purposes of collecting TCS

Collector Vs Income-tax Officer (TDS), Ward-2(2), Amravati (ITAT Nagpur)

Income Tax is a code in itself and for levying taxes certain terms have been defined in a particular manner and they carry special meanings. Word 'person' is one among them. So, in our humble opinion, State Government is a person for purposes of collecting tax at sources as per the provisions of Sec 206C of the Act....

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Addition based on mere Low GP Ratio not justified

Income-tax Officer Vs Sai International (ITAT Delhi)

It is well-settled law that merely on the ground of low gross profit ratio, the addition to the assessee's returned income cannot be made. Even if, the assessee's profit and loss account is discarded by the Assessing Officer, it has to be examined whether the Assessing Officer adopted the rational basis for making the addition. In the pre...

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Disallowance of expenses can not be made by Assessing Officer without verifying books of accounts

The Commissioner of Income Tax-III, Ludhiana Vs M/s Shree Krishna Enterprises (Punjab and Hariyana High Court)

We do not find any merit in such argument. The Commissioner of Income Tax (Appeals), Ludhiana, recorded a finding that the Assessing Officer has reported that the voluminous nature of entries cannot be verified. Once the Assessing Officer himself has failed to verify the entries, there is no reason to disallow the distribution expenses. I...

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ICAI Submits Post Budget Memorandum 2013 on Direct & Indirect Taxes

Download Post Budget Memorandum 2013 – Indirect Taxes as submitted by ICAI Download Post Budget Memorandum 2013 – Direct Taxes as submitted by ICAI...

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Posted Under: Fema / RBI |

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March 2021