"03 August 2015" Archive

Capital gain would only be charged in the year in which stock-in-trade would be sold

ACIT Vs M/s Upper India Paper Mills Company Pvt. Ltd. (ITAT Lucknow)

These are the appeals filed by revenue against which assessee also filed cross-objection relevant to three AYs. In these cases ITAT examined various issues and held that capital gain on transfer of land held as stock-in-trade can be made only in the year in which stock-in-trade was sold and not in year in which agreement was made. ...

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Interest free loans extended as quasi capital to 100% subsidiary cannot have nil ALP

Soma Textiles & Industries Ltd. Vs Addl. CIT (ITAT Ahmedabad)

In this case ITAT examined that whether Arm’s Length Price (ALP) adjustments will also be warranted in case of interest free loans extended as quasi capital and what are the connotations of expression ‘quasi capital’ in the context of the transfer pricing legislation. ...

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Expected business profit on entering into development agreement in respect of land held as stock-in-trade cannot be taxed as capital gain

Dheeraj Amin Vs ACIT (ITAT Banglore)

Dheeraj Amin Vs. ACIT (ITAT Banglore),- In this case ITAT examined the issue that where an assessee entered into an land development agreement by holding land as stock-in-trade, the expected business profits arose as a result of agreement can be taxed as income from capital gain....

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Entire capital gains have to be included without computing benefits of indexation while computing 'book profits'

Dharmayug Investments Ltd. Vs ACIT (ITAT Mumbai)

115JB lays down that every assessee for the purpose of this section shall prepare its Profit & loss account for the relevant previous year in accordance with the provisions of part II & III of Schedule 6 of the Companies Act, 1956....

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Continuance of Assessment Proceeding Under Central Excises and Salt Act, 1944 on Death of Assessee

Whether An Assessment Proceeding Under The Central Excises and Salt Act, 1944, Can Continue Against The Legal Representatives/Estate Of A Sole Proprietor/Manufacturer After His/ Her Demise, Where There Is No Provision In This Respect In The Tax Statute?...

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Posted Under: Income Tax |

Comparison of GST Bill 2014 and Recommendations of Select Committee of Rajya Sabha, 2015

The Constitution (122nd Amendment) Bill, 2014 was introduced in Lok Sabha on December 19, 2014 and was passed by it on May 6, 2015. The Bill was referred to a Select Committee of Rajya Sabha for examination which submitted its Report on July 22, 2015. The Report contained various recommendations along with three Notes of Dissent submitted...

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Posted Under: Income Tax |

Reassessment on the basis of change of opinion is forbidden by law

Plus Paper Food Pac Ltd. Vs Income Tax Officer & Anr (Bombay High Court)

The Assessing Officer had issued notice u/s 148 of IT act to reopen the assessment giving reasons to believe that assessee's claim for set off of brought forward unabsorbed depreciation against long term capital gain was not allowable as it was being set off after a lapse of 8 years....

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Issues under Voluntary Compliance Encouragement Scheme, 2013

As you may be aware, Voluntary Compliance Encouragement Scheme, 2013 was introduced vide Chapter VI of the Finance Bill, 2013, to encourage voluntary compliance by the assessees who have failed to pay 'tax dues' for the period 01.10.2007 to 31.12.2012 without interest, penalty and other legal proceedings including prosecution. The assess...

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Posted Under: Income Tax |

SEBI releases FAQs on delisting of securities

1. What is meant by delisting of securities? The term “delisting” of securities means permanent removal of securities of a listed company from a stock exchange. As a consequence of delisting, the securities of that company would no longer be traded at that stock exchange....

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Posted Under: Income Tax |

CBEC decides to create GST Directorate in Delhi

01/Ad.IV/2015 (03/08/2015)

Consequent upon, the decision of the Board to create a GST Directorate in Delhi by shifting the headquarters of DGST, Mumbai to Delhi, it has been decided that Directorate General of Service Tax (DGST) will henceforth be re-named as Directorate General pf Goods & Service tax (DGGST) w.e.f. 01.08.2015....

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