"August, 2015" Archive

Less Time more Load, still done with ITR upload

Krishna, recently everyone has celebrated the festival of Raksha Bandhan along with that many Taxpayers have filed Income Tax Returns. Krishna please explain, what difficulties arise while filling Income Tax Returns, what Taxpayers should do now and what, if no return is filed. ...

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Posted Under: Income Tax |

ICAI President's Message – September 2015

These days quite justifiably, people of Indian origin are remarkably being appointed, elevated and accepted for higher administrative and management responsibilities across organisations globally. Most notably, companies like Microsoft, Google, NetApp, Oracle, Nokia and SoftBank have quite recently hired people of Indian origin to play a ...

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Posted Under: Income Tax |

CESTAT should consider merits before deciding the matter; 'Prima facie no case' cannot be the ground to decide the matter

CEAT Limited Vs The Commissioner of Central Excise (Bombay High Court)

The Hon’ble High Court found that the Tribunal in reaching the conclusion that the Appellant has not made out any prima facie case extensively dealt with the arguments as if it is called upon to decide the Appeal finally....

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Government asks RBI to reverse Income Tax deductions of Telengana

After careful examination and consideration of issues connected, it has been decided that the deductions made by the Reserve Bank of India (RBI) of an amount of Rs. 1274.21 crores on account of State of Telengana in response to the Income Tax Notice, are not in consonance with the Principle of Co-operative Federalism and RBI has been aske...

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Posted Under: Income Tax |

ITR Filing due date for Gujarat extended to 7th September, 2015

F.No. 225/154/2015/ITA.II (31/08/2015)

CBDT hereby extends the 'due-date' for filing Returns of Income from 31st August, 2015 to 7th September, 2015, in cases of Income-tax assessees in the State of Gujarat, who are liable to file their Income tax returns by 31st August, 2015...

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CESTAT should follow judicial precedence before deciding the matter

Sunbel Alloys Co. of India Ltd. Vs The Commissioner of Central Excise (Bombay High Court)

It has been repeatedly emphasized that judicial Tribunals and Courts of law have to follow the rule of consistency and certainty so also finality of judgments. There is a definite purpose being served because of all this and namely parties before the Court of law ...

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Delhi VAT- Submit Form DP-1 online by 30-09-2015

No. F.3(352)Policy/VAT/2013/625-36 (31/08/2015)

In exercise of the powers conferred on me by sub-section (1) read with sub-section (2) and (3) of section 70 and sub-section (2) of section 59 of Delhi Value Added Tax Act, 2004, notify that the Form DP-1 shall be submitted online by all the dealers latest by 30/09/2015....

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Guidance on Implementation on FATCA and CRS

F. No. 500/137/2011-FTTR-III (31/08/2015)

To combat the problem of offshore tax evasion and avoidance and stashing of unaccounted money abroad requiring cooperation amongst tax authorities, the G20 and OECD countries working together developed a Common Reporting Standard (CRS) on Automatic Exchange of Information (AEOI). The CRS on AEOI was presented to G20 Leaders in Brisbane on...

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Be More PATIENT Than Your Critics

Do you remember the person in your office who used to always criticize the efforts put in by management to improve the quality of processes and make life exciting for the staff by saying – ‘these guys have no idea how to run a business and they only think about themselves and not us’. Where is he/she now? ...

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Posted Under: Income Tax |

Notification No. 83/2015-Customs (N.T.), Dated: August 31, 2015

Notification No. 83/2015-Customs (N.T.) (31/08/2015)

NOTIFICATION NO. 83/2015-Customs(N.T.), Dated: August 31, 2015 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 Gover...

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Imperfection in Professional Work in SHEENA BORA MURDER CASE

On 28.08.2015, I was watching DNA on Sheena Murder Case on Zee News. The reporter Sudhir Choudhary disclosed the companies in which the Indrani Mukerjea was acting as Director. They showed on National Television the Form 32 being filed by the Indrani for her resignation from the directorship of the company in 2009 from 9X […]...

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Posted Under: Income Tax |

Income Tax Scrutiny Criteria for Assessment Year 2016-17

Instruction No. 08/2015 (31/08/2015)

Compulsory manual selection of cases for scrutiny during the Financial Year 2015-2016- (a) Cases involving addition in an earlier assessment year in excess of Rs. 10 lakhs on a substantial and recurring question of law or fact which is either confirmed in appeal or is pending before an appellate authority. Instruction No. 08/2015 ...

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If building is constructed by trust on land owned by trustee; the provisions of sec 13(1) does not gets attracted

M/s Natya Sankalpaa Vs DIT Exemptions (Madras High Court)

Madras High Court in M/s Natya sankalpaa Vs DIT Exemptions held that if the trustee would compensate the trust with the amount which trust had applied on the property of the trustee then it could not be said that the income of trust had applied to the benefit of trustee ...

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No wealth tax on land which remains vacant as per construction Plan

CIT Vs M/s MIL Industries Ltd. (Madras High Court)

Madras High Court held in CIT Vs M/s MIL Industries Ltd that the vacant land left on constructed property as per the construction plan of that property would not be treated as a vacant urban land because the vacant land left was the requirement of the construction plan...

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For computing income u/s 80I or 80 IA only losses and deductions of eligible business has to be considered from initial A.Y.

CIT Vs K Rajinikanth (Madras High Court)

Madras High Court in CIT Vs K Rajinikanth (Madras High Court) held that for computing the income for calculating the deduction u/s 80IA, only the profits & Losses of the eligible business had to be taken into consideration as if it was the only business of the assessee....

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Re-assessment proceedings cannot be initiated u/s 147 just because of change in opinion

CIT Vs M/s Schwing Stetter India P Ltd (Madras High Court)

Madras High Court held in CIT Vs M/s Schwing Stetter India P Ltd that the case only be opened for re-assessment u/s 147 only if there was a tangible material in the hand of AO , it could not be opened just because of the change in the opinion of AO....

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In case of failure to issue proper notice to assessee, ITAT has right to review its own order

CIT Vs M/s Sea Rose Marines Pvt Ltd (Madras High Court)

Madras High court in CIT Vs M/s Sea Rose Marines Pvt Ltd (Madras High Court) held that if the notice was not issued to the assessee properly then the ITAT had the right to review its own order. The ITAT had recalled the order and gave new decision after reviewing ...

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sec 80HHC- Taxation Laws (2nd Amendment) Act, 2005 have prospective effect

CIT Vs Ms Orient Express (Madras High Court)

Madras High Court held in CIT V/s Ms Orient Express that the amendment to sec 80HHC would have prospective effect from 2005 not retrospective effect....

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Income from sell of land is capital gain, if purchase and sell of land is not the business of Assessee

CIT Vs Ms Vidya Thangakumar (Madras High Court)

Madras High Court held in CIT Vs Ms Vidya Thangakumar that it would vary from case to case that whether the land in the hand of assessee is a capital asset or business stock. In the present case the assessee had got the land under settlement and it had to sell the land...

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Ownership of Capital goods not required for availing CENVAT credit

Commissioner of Central Excise Vs M/s. Modernova Plastyles Pvt. Ltd. (Bombay High Court)

The assessee is engaged in manufacture of plastic articles/components and parts by using injection moulding machines. In the present matter the moulds, used to manufacture, in this case cabinets for television sets­ the finished product...

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Appeal for determination of any question in relation to rate of duty or to value of goods for assessment would lie before Apex Court – HC

M/s. Greatship (India) Ltd. Vs Commissioner of Service Tax (Bombay High Court)

The Hon’ble Court is of the view that the present appeal does not involve an issue regarding the rate of duty in as much as even the assessee does not dispute the rate of duty i.e. payable for the services rendered. ...

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Issuance of Show cause notice mandatory for recovery of erroneous refund granted

The Commissioner of Central Excise Coimbatore Vs M/s. Pricol Ltd. Perinaickenpalayam Coimbatore 641 103 (Madras High Court)

The assessee is engaged in the manufacture of automobile parts and components. The assessee cleared waste and scrap and replacement of defective products without payment of duty. The period in question pertains to September, 1998....

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CENVAT credit of inputs lost during manufacturing process as floor sweepings is allowed- CESTAT

C.C.E. & S.T. Raipur Vs M/s. Cadbury India Ltd. (CESTAT Delhi)

The facts of the case are that assessee is a manufacturer of chocolates and coco products. During the course of the manufacturing final product certain floor spillage and sweeping arises which assessee is destroying. ...

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Service tax cannot be levied on Job work that amounts to manufacture – CESTAT

Alkyl Amines Chemicals Ltd. Vs Commissioner of Central Excise (Cestat Judgment)

The appellants manufacture excisable goods falling under Chapter 29 of Central Excise Tariff Act, 1985. On scrutiny of the records, departmental officers noticed that during the period 10/09/2004 to 28/02/2005 appellant had received some amount towards job-work charges and processing charges. ...

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Income having no nexus with exports is to be included while deducting 90% of receipt u/s 80HHC clause (baa)

Sesa Goa Ltd. Vs CIT, (Goa High Court)

In the case of Sesa Goa Ltd. vs. CIT, High Court has held that that independent income having no nexus with exports would be covered by the words other similar receipts in clause (baa) of the Explanation to Section 80HHC of the Act....

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A Much Awaited Indirect Tax Regime Called GST

There was continuous emphasis on bringing Goods & Services Tax (GST) that is already running in more than 140 countries. This is an indirect tax and seeks to end the multiple effects of taxes and incorporates indirect taxes like entertainment tax, CST, excise, service tax, VAT, luxury tax, octroi etc. ...

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Posted Under: Income Tax |

Donor’s Identity, Relationship & Occasion of Gift are essential to prove genuineness of Gift

Shri L. Syed Ibrahim Bahadusha Vs I.T.O (ITAT Bangalore)

A sum of Rs.7 lakhs, shown to have been received as gift from Shri Jamaluddin Sheik Fareed, was treated as unexplained cash credit in the hands of the assessee on the ground that the assessee has not furnished confirmation letter from the party....

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8 Most Difficult Jobs in the World

Each person makes a contribution to the society. Some get paid while some don't. Such contribution can be through a profession, job, or business. Even leading a county's governance is a job. Managing one's home and any social service is not reckoned here as they are of special nature and invaluable as well. ...

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Posted Under: Income Tax |

Expenses related with improvement in operations of existing business product line is revenue expense

CIT Vs M/s Southern Petrochemicals Industries Corporation Ltd (Madras High Court)

Madras High Court in the case of CIT Vs M/s Southern Petrochemicals Industries Corporation Ltd held that market research expense incurred to increase the efficiency of the existing business product line, the same should be treated as revenue expense. ...

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Only operational income related with main business activity of assessee will qualify for deduction u/s 80HHC

CIT Vs Funskool (I) Ltd (Madras High Court)

Madras High Court held in CIT Vs Funskool (I) Ltd (Madras High Court) that for calculating the cost of the finished product the process of designing or stickering which had been used to design or give a final look to the finished product ...

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MAT credit should be adjusted in priority to other credit of taxes like TDS, advance tax or other taxes

CIT Vs M/s Ambattur Clothing Limited (Madras High Court)

Madras High Court in the case of CIT Vs M/s Ambattur Clothing Limited held that for calculating the assessed tax priority has to be given to adjust the MAT credit then TDS and advance tax would be adjusted by relying on the decision of Supreme Court...

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Erroneous payment of duty on exempted goods would not render the goods dutiable

The Commissioner of Central Excise Vs Integral Coach Factory (Madras High Court)

The assessee Integral Coach Factory (ICF) belonging to the Central Government is engaged in the business of manufacturing passenger coaches both self-propelled and non-propelled, steel freight containers and parts of passenger coaches for railways under Chapter 86 of CET 1985. ...

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CENVAT credit on capital goods used in the construction/erection of plant is allowed

M/s. Thiru Arooran Sugars Vs The CESTAT (Madras High Court)

In the case of M/s.Thiru Arooran Sugars Vs. The Custom, Excise and Service Tax Appellate Tribunal, Hon’ble Madras High Court held that CENVAT credit on capital goods used in the erection of various capital goods, viz., M.S.Plates, M.S.Angles, M.S.Channels and H.R. Plates, which were purchased...

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‘Close up’ should be classified as dental cleaner, not toothpaste–SC

Commissioner Of Central Excise, Vapi Vs M/s. Global Health Care Products (Supreme Court of India)

In the case of Commissioner Of Central Excise, Vapi Vs. M/s. Global Health Care Products , the Supreme Court held that ‘Close up’ should be classified as dental cleaner, not toothpaste on account of different ...

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Mere Remanding back the case by Tribunal without going into Merits not sufficient

M/s. Thirumurugan Enterprises Vs The Customs, Excise & Service Tax Appellate Tribunal, Chennai (Madras High Court)

In the case of M/s.Thirumurugan Enterprises Vs The Customs, Excise & Service Tax Appellate Tribunal, Chennai, the Hon’ble Madras High Court held that remanding back the case by Tribunal, without going into merits and asking the adjudicating authority to re-adjudicate the matter will not suffice....

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CENVAT credit of outdoor catering & outward transportation upto place of removal allowed

Commissioner of Central Excise & Service Tax Vs M/s. Thiru Arooran Sugars Ltd. (Madras High Court)

In the case of Commissioner of Central Excise & Service Tax Vs. M/s. Thiru Arooran Sugars Ltd., Hon’ble Madras High Court held that the CENVAT credit of the service tax paid in respect of cell phone services, catering services ...

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Endorsement on bill of entry amount to raising demand under customs law and not mere a provisional assessment

M/s Swastika Enterprises Vs Commissioner of Customs (Supreme Court of India)

The Hon'ble Supreme Court in the case of M/s Swastika Enterprise held that the endorsement on the bill of entry to pay additional customs duty is a demand and not mere a provisional assessment. Thus, the duty payable due to such endorsement can be settled as settlement of demand under indirect taxes demand settlement scheme....

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Proceedings under Central Excise Act get abated on the death of assessee

Sahabina Abraham & Others Vs Collector of Central Excise (Supreme Court of India)

The Hon'ble Supreme Court in the case of Shabina Abraham & others held that the estate of a dead person cannot be attached for recovery of excise duty payable because there is no enabling provision in the Act to do so....

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Exemption Notification cannot discriminate between persons paying duty under different methods permissible under law

Union of India Vs M/s N.S Rathnam & Sons (Supreme Court of India)

Hon'ble Supreme Court in the case of M/s N.S. Rathnam& Sons held that when two methods are permissible under the statutory scheme itself to discharge duty liability then merely because with the adoption of one particular method the duty that becomes payable is lesser ...

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Job work – Valuation under Excise

A job work transaction triggers Excise Duty liability if the process involves manufacture. The consequent question that arises is how to determine assessable value of the goods involved. The various provisions that linger in one’s mind are Rule 10 A 0r Rule 8 or Rule 11 of the Central Excise Valuation Rules 2000....

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Posted Under: Income Tax |

Why PRACTICE over Employment

A small disclaimer before proceeding – this is my first write up and I hope you rate me on same basis. Before reasoning why I prefer Practice over the other, I would like to confess straight away that none of them is superior over the other. Choose what you would like be in future, choose where you want to see yourself some years down t...

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Posted Under: Income Tax |

Intention of letting out property is to be seen for section 23(1)(c)

ACIT Vs Suryashankar Properties Limited (ITAT Mumbai)

ITAT Mumbai held in case of ACIT vs. Suryashankar Properties Limited that Intention of letting out the property is to be seen for invoking clause (c) of section 23(1) for computing the annual letting value of the property and it is irrelevant whether the property is/was let out. ...

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No Penalty u/s 271FB if Assessee has no malafide intentions

M/s. Ashok Trading Co. Vs I.T.O (ITAT Kolkata)

In the case M/s. Ashok Trading Co. Vs. ITO the Hon’ble Kolkata ITAT held that as per sub-section (2) of 115WD, if the assessee had not filed the return of Fringe Benefit but in the opinion of the AO he should have filed the return...

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Materials collected & Statements recorded during Survey u/s 133A are not conclusive evidences

Pankaj Plastic Industies Vs I.T.O. (ITAT Kolkata)

In the case of Pankaj Plastic Industries Vs. ITO the Hon’ble Kolkata ITAT held that The materials found in the course of survey would not be the basis for making any addition in the assessment. The word “may” used in section 133A (3)(iii) of the Act makes it clear that the materials collected ...

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Acceptance of Deposits by Companies under Companies Act, 2013

Overview of dealing sections, provisions & rules - Chapter V of Companies Act, 2013, Section 73 to 76 of Companies Act, 2013, Companies ( Acceptance of Deposits ) Rule, 2014, Companies ( Acceptance of Deposits ) Amendment Rule, 2015, MCA general circular No. 09/2015...

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Posted Under: Income Tax |

Notes on Micro-Finance Institution

According to International Labor Organization Micro Finance is an economic development approach that involves providing financial services through institution to low income clients. The meaning of Finance is management of money. Microfinance institutions (MFIs) typically offer a variety of loan products and, increasingly, savings services...

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Posted Under: Income Tax |

CA FINAL Excise Duty Case laws relevant for Nov 2015 Exams

About Notes: The case laws are summarized from supplementary study material issued by The Institute of Chartered Accountants Of India for the Final Examination to be held in May 2015. For detail case study, please visit http://220.227.161.86/35311scasesp7.pdf .The case laws in italics are fresh addition in current supplementary module. ...

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Posted Under: Income Tax |

View taken on the basis of law prevailing on the date of order cannot be termed as erroneous

CIT Vs V. S. Dempo & Company Ltd. (Bombay High Court at Goa)

High Court of Bombay at Goa held in the case of CIT vs. V. S. Dempo & Company Ltd. Held that view taken by the Assessing Officer or by the Commissioner has to be on the basis of the law prevailing on the day the view was taken. ...

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All three conditions of 5(1)(ccv) are to be satisfied cumulatively by a society for being termed as co-operative bank

The Quepem Urban Co-operative Credit Society Ltd Vs ACIT (Bombay High Court at Goa)

In the case of The Quepem Urban Co-operative Credit Society Ltd vs. ACIT High Court of Bombay at Goa held that All three conditions of 5(1)(ccv) are to be satisfied cumulatively by a society for being termed as co-operative bank. ...

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Interest cannot be disallowed for interest free loan given to sister concerns for business purpose

Vassantram Mehta & Co.(P) Ltd. Vs Joint Comm. of Income Tax (Bombay High Court at Goa)

High Court of Bombay at Goa has held in the case of Vassantram Mehta & Co. (P) Ltd. vs. JCIT that Interest not to be disallowed if interest free advance granted to sister concern due to commercial expediency and is for business purpose of assessee....

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An issue of jurisdiction can be raised at any time even in appeal or execution

M/s Mavany Brothers Vs CIT (Bombay High Court at Goa)

High Court of Bombay at Goa has held in the case of In the case of M/s Mavany Brothers vs. CIT that that it is settled position that conferment of jurisdiction is a legislative function and cannot be conferred by consent of petitioner....

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Start Writing Now and Make Your Words Count!!!

We all as a Professionals and students of Professional Course have to write daily by compulsion or by passion. Then why not to make it a passion!!! Each day, we are writing some or the other official letters / emails, writing in various audit report, or a writing a reporting to seniors. No matter what our reason for writing may be, develo...

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Posted Under: Income Tax |

Assessee agreed to furnish BG as security in lieu of attachment order u/s 281B, HC directed to issue refund

Sociedade de Fomento Industrial Pvt. Ltd. Vs The ACIT (Bombay High Court at Goa)

In view of the petition filed by the assessee above, the court directed the respondent would vacate the attachment of the refund of Rs.105,95,04,390/- done u/s 281B of the act, as the petitioner was furnishing a Bank Guarantee of a Nationalised Bank for the equal amount ...

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India and Germany to Continue to Exchange Tax Related Information

Both Countries Agreed to Explore Other Possibilities of Enhancing Exchange of Information; They Agreed to Resume Negotiations on Partial Revision of the DTAA Between the two Countries with a View to Bring the Provisions Relating to Exchange of Information to International Standards ...

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Posted Under: Income Tax |

ICAI making efforts for extension of due date of filing Income-tax returns for AY 2015-16

As you are aware, the Direct Taxes Committee of ICAI has already made a representation for extension of due date for filing return of income and is very vigourously pursuing the same. The Direct Taxes Committee of ICAI with the help of the President, ICAI , the Vice-President, ICAI...

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Posted Under: Income Tax |

Clarifications on some commonly asked queries pertaining to elected representatives of ICAI and general members of ICAI

It is permissible for the elected representatives of the ICAI to reply to the general queries of members on email, mentioning their respective designation(s) held in ICAI at present and/or in past along with their photograph as signature of the email. Likewise, it is also permissible for the general members to reply to the members’ quer...

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Posted Under: Income Tax |

Reporting requirement under Foreign Account Tax Compliance Act and Common Reporting Standards

RBI/2015-16/165 DBR.AML.BC.No.36/14.01.001/2015-16 (28/08/2015)

Government of India has notified the amendments to Income Tax Rules (Rules) vide notification dated August 7, 2015 (copy attached) and have added Rule 114F (definitions), 114G (Information to be maintained and reported) and 114H (due diligence requirement) for operationalisation of IGA and CRS. ...

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CA- A Dream for MANY but a Reality for FEW

Ever dreamt of being in the world’s most elite profession? Yes I too did that. Realising your dreams not only needs the wish to achieve them but rather more the efforts & the will you put in to make it yours. We all have highs aims & ambitions in life. We have many hopes attached to our bright future. ...

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Posted Under: Income Tax | ,

CA in Practice Vs. CA in Service

The passing out with flying colors from the institute of Chartered Accountants of India in finals provides us two directions to explore , either to opt for a job in the corporate world and to start a public practice. It’s important to understand that this is a very important period of transition. Whether you are […]...

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Posted Under: Income Tax | ,

Why Crawl, When You Can Fly

Many a times in life, we define our self-worth based on how people treat us. If someone is bad to us, we wonder if something is wrong with us. Why should something be wrong with us? Can’t something be wrong with the person who treats us that way? If we keep treating ourselves like others do, we will never know that are worth much more t...

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Posted Under: Income Tax |

There is not concept of deferred revenue expenditure in Income Tax Act, 1961

G.E. Capital Services India Vs Addl. CIT (ITAT Delhi)

We find that there is no concept of deferred revenue expenditure under the Income Tax Act except under certain specific, provisions like section 35D. Therefore, unless statutory provision is there to defer the revenue expenditure over a period...

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Review of policy relating to forfeiture of partly paid-up shares

Forfeiture of shares is a process specified under Table-F (Articles of Association of a Company Limited by Shares) of Schedule I of the Companies Act, 2013. The standard procedure to be followed in case of forfeiture of partly paid-up shares is as follows:...

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Posted Under: Income Tax |

Limits Based Provisions with Consequences on Non-Compliance under Companies Act, 2013

During these days most of the professionals in our stream remains engaged with statutory audits. A part of statutory audit includes due verification of compliance under various laws. With the introduction of the Companies Act, 2013, numerous compliances are made applicable on Companies on the basis of quantum of their paid up share capita...

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Posted Under: Income Tax |

Companies (Management and Administration) Amendment Rules, 2015

Notification No. G.S.R. 669(E) (28/08/2015)

Central Government hereby makes the following rules further to amend the Companies (Management and Administration) Rules, 2014, namely Companies (Management and Administration) Amendment Rules, 2015...

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Comments on Arbitration and Conciliation Act, 1996

Carrying on business activities entails many issues one of which is parties entering into various contracts which lay down the terms and conditions. Although, generally, efforts are made for unhindered implementation of the contracts, it may so happen that, in their performance, disputes could arise which the existing stipulations cou...

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Posted Under: Income Tax |

Gist of Resolutions Under Companies Act, 2013

Companies (i.e Public and Private) are required to file various resolutions and agreement in e-form MGT-14 with RoC under the Companies Act 2013. Provisions are as under:- Section 117(Resolutions & Agreement to be file) of the Act; Section 179(3) (Powers of the Board) read with rule 8 of the Act and Under various other Sections and R...

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Posted Under: Income Tax |

No denial of Cenvat credit availed on invoices issued in the name of unregistered premises

The Hon’ble CESTAT, Delhi accepted the contentions of the Appellant and held that in the absence of any such dispute regarding availment of Impugned Services and their utilization for payment of Service tax or proper accounting of the same...

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Posted Under: Income Tax |

Income paid to member or to a cooperative society by a Co-operative Society is not liable to TDS

Almora Urban Co-operative Bank Ltd. Vs ITO (TDS) (ITAT Delhi)

Section 194A (3) (b) Imposes duty on a co-operative society engaged in banking to deduct TDS where amount exceeds Rs. 10,000/-, whereas section 194A (3) (v) grants specific exemption to cooperative societies where payment made by it to members or to another co-operative society. ...

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Purchase of application Software is revenue expenditure

G.E. Capital Services India Vs Addl. CIT (ITAT Delhi)

It is a general presumption that, expenditure in acquisition of assets is a capital expenditure there by not eligible for deduction u/s 37 (1) of the IT Act (However depreciation is allowed as per IT Rules) The honorable CIT (A) failed to note the difference in the nature of the soft-wares as dealt in Maruti Udyog Ltd. vs Deputy Commissi...

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Bad debt Actually Written Off is sufficient to claim allowance, there is no need to prove Debt as irrecoverable

G.E. Capital Services India Vs Addl. CIT (ITAT Delhi)

The decision of the case is based on the verdict by Apex Court of India in the case of TRF Limited Vs CIT, [323 ITR 397 (SC)] Where Honorable Court has held that, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable....

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No disallowance of interest for investment earning exempt income if investment are made out of interest free funds

G.E. Capital Services India Vs. Addl. CIT (ITAT Delhi)

If the investments are not made from borrowed funds, then there should not be any disallowance. Since in this case it was evidenced from the records and evidence s that the income accured was from internal accruals consequently addition deleted ...

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No disallowance of interest for loan advanced to Sister Concern out of Share Capital and Reserves

ACIT Vs M/s. Edicon Mining Equipment (ITAT Mumbai)

The first arguments which has been considered was regarding the source of advances in the 100% subsidiary comapy, which the assessee company argued to be out of reservs and suplus, which could not be contradicted by the Revenue....

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Revisesd procedure for Detection and reporting of Counterfeit Notes

RBI/2015-16/162 DCM (FNVD) No. 776/16.01.05/2015-16 (27/08/2015)

The procedure for detection of counterfeit notes has been reviewed in consultation with the Government and it has been observed that certain modifications are required for bringing improvement in reporting of counterfeit notes and facilitating maintenance of records by banks. Accordingly, the changes in the instructions are advised as und...

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Procrastination: Causes, Effects & Solutions

' What is due now, can be done tomorrow ' is a familiar mindset that links each one of us. Yes, it provides temporary relief to us. However, to secure a happy life, we should remove that instinct. Procrastination is like a disease spoiling a person’s life. We all suffer from it in varying degrees throughout the life. Many people do not ...

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Posted Under: Income Tax |

Section 263 could be invoked if both the ingredients are satisfied

CIT Vs Shri Varanasi Khanta Rao (Telangana and Andhra Pradesh High Court)

While discussing the Revisional powers of CIT(A) u/s 263 it was held that the Commissioner has to be satisfied of twin conditions, namely, i) the order is erroneous; and ii) it is prejudicial to the interests of the revenue....

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Godown Rent cannot be treated as business Income as it’s not a continuous activity from year to year

The Commissioner of Income Tax Vs M/s. Sileman Khan Mahaboob Khan (Telangana and Andhra Pradesh High Court)

High Court held that Business is a continuous activity which is done year to year. Here, in this case the Assessee let out his godown and shown income as Income from Business instead of Income from property to which the High court do not agree ...

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Explanation 3C to section 43B will have retrospective effect for actual payments

CIT Vs Pennar Profiles Ltd. (Telangana and Andhra Pradesh High Court)

In the present facts of the Case the Hon’ble High Court held that Explanation 3C to section 43B is having retrospective effect from 01/04/1989. Therefore, conversion of interest amount into loan would not be actually deemed to be actual payment....

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Section 48 applies only when expenses are ‘wholly and exclusively” for property

Kanniah Photo Studio Vs ITO (Madras High Court)

Hon’ble High Court while interprating section 48 held that while calculating Capital gain the expenses made will only be considered if it is made wholly or exclusive for that property. Also, the Hon’ble High Court held that The Hon’ble Tribunal was right in taking into consideration of the Judgement of Jurisdictional High Court....

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No interest u/s 234B during Block Assessment

ACIT Vs Akhil Jain (ITAT Delhi)

In the Case of ACIT v Akhil Jain, ITAT Delhi held that no interest will be levied u/s 234B during the Block Assessment by the virtue of Section 158BF....

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No Penalty could be levied u/s 271(1)(c) if only advance is received and no actual sale is made

ITO Vs M/s Akash Enterprises (ITAT Pune)

Hon’ble Tribunal held that whenever the consideration is received in advance for the particular sale, The money will be taxed in the year in which the sale is made and not in the assessment year in which the advances are received....

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Deduction u/s 80HHC is to be allowed to the extent of Gross Total Income

V. M. Salgaocar & Brother Pvt. Ltd Vs The ACIT (Goa High Court)

In the case of V. M. Salgaocar & Brother Pvt. Ltd vs. The Asst. Commissioner of Income Tax, Goa High Court has held that deduction u/s 80HHC is to be allowed to the extent of gross total income and not to the extent of business profit only....

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Empanelement with SBBJ for Forensic Audit

STATE BANK OF BIKANER & JAIPUR HEAD OFFICE, TILAK MARG JAIPUR Empanelment Of Chartered Accountants / Cost Accountants For Forensic Audit State Bank of Bikaner and Jaipur, Head Office, Jaipur invites application from eligible individuals! corporates! firms who display exceptional professional competence in forensic audit and are Member...

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Posted Under: Income Tax |

Surveyor Storm in Indian Car Insurance Industry

According to Carinsurance.in and other top sites covering Insurance market in India, there are over 2 crore claims coming every year in the Motor Insurance Industry. As per insurance norms, there needs to be a survey inspection for all claims above Rs. 20,000/- . The survey is done by Surveyors, who are paid by the insurers for conduct...

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Posted Under: Income Tax |

TARC- creation of Directorate General of Tax Payers Services in CBEC

F. No. A 11013/20/2015.Ad.IV (27/08/2015)

F. No. A 11013/20/2015.Ad.IV In order to create a dedicated institution for the taxpayer services, with the approval of the Competent Authority the following changes are notified with immediate effect and until further orders:...

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Income Tax provisions – Individual Salaried for A.Y 2015-16

The article covers Introduction, Residential Status, Tax Rates, Head-wise Taxation & Deduction available under the Act. Hope you will find it useful in this Return Filing Season....

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Posted Under: Income Tax |

9 Reasons for rejection of ST-3 returns

Now days we see that Service Tax Returns are being rejected for one or the other reasons. This article may help you some extent to file return without any problem of being rejected. REASON? Returns are being rejected due to some technical errors validated by the system. The following are some technical errors the reasons […]...

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Posted Under: Income Tax |

All about Nidhi Companies in India

Nidhi Companies in India were created for cultivating the habit of small savings targeted at the lower and middle class. Its investment structure consists of realigning funds within a growing group of members who benefit from returns at fixed durations....

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Posted Under: Income Tax |

All about Producer Companies in India

With the constant presence of upcoming multinationals in all production sectors such as agriculture and marketing there was a need for small time production companies to operate as a cooperative under an umbrella body such as the Ministry of Corporate affairs....

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Posted Under: Income Tax |

Penalty cannot be imposed for mere non acceptance of claim made by Assessee

TechNVision Ventures Ltd. Vs DCIT (ITAT Mumbai)

TechNVision Ventures Ltd. Vs. DCIT (ITAT Mumbai) Merely because the assessee had claimed the expenditure, where claim was not accepted or was not acceptable to the revenue, that by itself would not, attract the penalty under Section 271(1)(c)....

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GST Legislation Draft to be finalised by Sept 15’2015

The Revenue secretary , Mr Das has clarified that three draft legislations are being prepared by different committees comprising i) senior officers of the CBEC, ii) department of revenue and finance as well as iii)taxation department officials of state governments...

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Posted Under: Income Tax |

CBDT- Identify cases dismissed due to retrospective effect given to monetary limit Instruction

File No 279/Misc/142/2007-ITJ (27/08/2015)

File No 279/Misc/142/2007-ITJ Date : 27th August, 2015 To identify all the cases in their jurisdiction, where jurisdictional High Courts/ITATs have dismissed departmental appeals after applying the Instruction governing monetary limit retrospectively and without adjudicating the issue on merit....

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Service of Assessment order by hand delivery to kitchen boy of assessee company is bad service – SC

Saral Wire Craft P. Ltd. Vs Commissioner of CE & ST (Supreme Court of India)

The Hon’ble Supreme Court in the case of Saral Wire Craft P. Ltd. held that where the law provided a manner of doing certain thing then the same to be done in that manner only. The execution deviating the prescribed manner is of no cure....

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Services of non-resident agent facilitating fulfillment of export obligations are not in nature of technical services

CIT Vs M/s Orient Express (Madras High Court)

The Hon'ble Madras High Court in the case of CIT vs. M/s Orient Express held that services of non-resident agent facilitating the completion of export obligations cannot be termed as technical services provided in India because such services are not provided for the purposes of running of the business of the assessee in India....

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Agents not working exclusively for assessee and having no power to conclude contracts are not dependent agents

Director of Income Tax Vs B4U International Holdings Ltd. (Bombay High Court)

The Hon’ble Bombay High Court in the case of B4U International Holdings held that the agents of the foreign company if not exclusively working for assessee and they are not decision makers with no power of concluding contracts and as such their activities being incidental in nature....

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When interest was converted into loan or borrowing/advance, it shall not be deemed to have been actually paid

Rollatainers Ltd. Vs ACIT (ITAT Delhi)

In the cited case, ITAT inter-alia held in the light of the main provisions of section 43B read with Explanations 3C and 3D that the interest payable to banks and other financial institutions can be allowed as deduction only ‘if such interest has been actually paid...

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Mere non-production of proof for dispatch of documents does not entail disallowance

Malineni Babulu (HUF) Vs ITO (ITAT Hyderabad)

In the cited case, ITAT inter-alia held that the appellant failed to produce proof in support of dispatch of Form 15H to the CIT, this by itself does not entail any addition. It was only technical breach of law and the act provides for separate penal provisions for such default....

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ALP not to be computed if transaction is not with associated enterprise

Price Waterhouse & Anr. Vs Commissioner of Income Tax (Calcutta High Court)

In the case of Price Waterhouse & Anr. Vs CIT, Calcutta High Court through an interim order opined that if there was no relevant material in the hands of the Income Tax authorities with which it has come to an incontrovertible conclusion that the writ petitioner no.1 was an 'associated enterprise' ...

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Rebate u/s 88E is allowable from the business income be it speculative or not

DCIT Vs M/s. Envision Investment & Finance Pvt. Ltd. (ITAT Mumbai)

In the cited case, ITAT inter-alia held that the claim has been denied merely because the AO has treated the transaction as speculative loss. This cannot be any reason for declining the claim of rebate u/s. 88E of the Act as the claim is allowable from the business income be it speculative or not....

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Onus on assesse to prove true identity of an investor, its creditworthiness and genuineness of a transaction

CIT, Central Vs Anshika Consultants Pvt. Ltd. (Delhi High Court)

In the cited case, Delhi High Court held that had the AO cared, the identity of the investors, the genuineness of the transaction and the creditworthiness of the share applicants would have been apparent. Even otherwise...

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