"15 August 2014" Archive

Interest Expense incurred to earn Interest Income is allowable – Section 57(iii)

Raj Kumari Agarwal Vs DCIT (ITAT Agra)

As long as the expense is incurred wholly and exclusively for the purpose of earning an income, even if it is not necessarily for earning that income, it will still be deductible in computation of income. What thus logically follows is that even in a situation in which proximate or immediate cause of an expenditure was an event unconnecte...

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Power to reassess cannot be exercised on the basis of mere change of opinion

Aroni Commercials Ltd Vs ACIT (Bombay High Court)

Mr.Chhotaroy learned counsel for the revenue mentioned that the profit and loss account of the assessee as furnished by the petitioners would clearly indicate that the Assessing Officer had not applied his mind to the same....

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No Disallowance U/s. 14A r.w. Rule 8D for Investments in subsidiaries

EIH Associated Hotels Ltd Vs DCIT (ITAT Chennai)

The first issue in the appeal of the assessee relates to dis-allowance made u/s. 14A r.w.r. 8D. The Assessing Officer has made dis-allowance to the tune of Rs. 4,32,66,500/-. The contention of the assessee is that the assessee has earned dividend income of Rs. 4.6 Lakhs which is fully exempt u/s. ...

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Transfer pricing Assessment does not mean that the PE of payee cannot be assessed

The Principal Officer, LG Electronics Inc. Vs Asstt. Director Of Income Tax, International Taxation & Ors. (Allahabad High Court)

Once the Assessing Officer is satisfied that a permanent establishment of the petitioner exists in India and business is being conducted from this permanent establishment, the attribution of profits is a necessary consequence....

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The lament assessee asks “Kya yehi hai ache din?”

The most awaited 2014-2015 Finance Budget was presented by Hon’ble Finance Minister, Arun Jaitley on 10th of July 2014. The sugar-coated budget did not aim at bringing any major change due to the reason that there was short time span but still changes in various issues have been introduced. The budget was both a shock […]...

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Posted Under: Income Tax | ,

DOT-COM Companies, Accounting Concepts and “Its Practical Treatments”

Naresh Kansala DOT-COM Companies, Accounting Concepts and “Its Practical Treatments” With the development of IT industry there is huge scope for growth not in the IT industry but in all other industries too and the growth of E-Commerce has revolutionized the way of conducting business. The buyers and the sellers are a mere click-of-th...

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Posted Under: Income Tax |

4% ACD/SAD Refund Procedures under Notification No. 102/2007 Custom

THE Customs Notification 102/2007 dated 14.9.07 providing for exemption of 4% Special Additional Customs Duty leviable in terms of Section 3(5) of Customs Tariff Act 1975 in respect of goods imported for sales as such, by the importers to others was purportedly issued to provide a level playing field to traders vis-à-vis manufacturers w...

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Posted Under: Income Tax |

Company Law Settlement Scheme – Opportunity for defaulting Companies

The Ministry of Corporate Affairs, in order to give an opportunity to companies who have failed to file annual statutory documents (Annual Return and Financial Statements), has launched Company Law Settlement Scheme, 2014 (CLSS-2014), vide General Circular no. 34/2014 dated 12.08.2014. ...

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Posted Under: Income Tax |

M.P. High Court Grants Stays recovery of Demand U/s. 234E

Shree Builders Vs UOI (Madhya Pradesh High Court)

In the Case of Shree Builders Vs. UOI, M.P.High Court issued notice to Union of India against validity of section 234E of Income Tax Act,1961 and granted stay of demand. Case was argued by A.P.Shrivastava Advocate accompanied by Advocate Sapan Usrethe....

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Domain registration fees paid to ICANN not liable to service tax as 'franchisee service'

Directi Internet Solutions Pvt Ltd Vs Commissioner of Service Tax (CESTAT Mumbai)

Appellant is engaged in the activity of registration of website domain names i.e. appellant is a registrar. The appellant is also accredited by International Corporation for Assigned Names and Numbers (ICANN) for certain top level domains....

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