"October, 2015" Archive

Filing fees for belated filing under Companies Act, 2013 – opportunity or advantage

Section 611 of the Companies Act, 1956 provided for payment of filing fees in accordance with Schedule X to that Act. There is no Schedule in the Companies Act, 2013 for 'filing fees'. Accordingly, section 403 of the Companies Act, 2013 provides for payment of filing fees as prescribed by rules made under the Companies Act, 2013. Rule 12 ...

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Posted Under: Company Law |

Service Tax Exemption to Intermediate Production Processes

Certain job work and production processes have been exempted from service tax. Carrying out an intermediate production process as job work in relation to –(a) agriculture, printing or textile processing; (b) cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter ...

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Posted Under: Company Law |

Service Tax on Education Sector

Education sector is one of the most important sectors in our country. Service tax has become an important source of revenue collection for Indian Government. Since all the services are taxable w.e.f. 01.07.2012 except services covered under Negative List...

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Posted Under: Company Law |

Liability to pay interest on issue of supplementary invoice owing price variation

(12/06/2015)

The respondent was engaged in manufacture of cables and it entered into a contract with customer for supply of such cables & incorporated price variation clause in the agreement entered between them. The respondent paid duty provisionally at the time of removal of goods from the factory ...

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Posted Under: Company Law |

Reopening of assessment not permissible where charges on Assessee are not specific: HC

Oracle Systems Corporation Vs ADIT (Delhi High Court) (08/10/2015)

Delhi High Court held In the case of Oracle Systems Corporation vs. ADIT that it is clear that when a regular assessment is completed in terms of Section 143(3), a presumption can be raised that such an order has been passed upon a proper application of mind. ...

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Conclusions based on suspicion cannot take the place of proof : SC

Umacharan Shaw & Bros. Vs Commissioner Of Income-Tax (Supreme Court of India) (15/05/1959)

Umacharan Shaw & Bros v. CIT: (1959) 37 ITR 271 (SC)- there was no material on which the Income-tax Officer could come to the conclusion that the firm was not genuine and further observed that the conclusion is the result of suspicion which cannot take the place of proof in these matters....

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Gift from abroad cannot be taxed on mere suspicion: HC

CIT , DELHI (CENTRAL-2) Vs MRS SUNITA VACHANI (Delhi High Court)

In our opinion, the Tribunal had, on merits, come to the conclusion that the gifts were genuine. This is a pure question of fact. The Tribunal has examined the evidence which was available on the record and has arrived at the aforesaid finding. ...

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Reopening to rectify Mistake committed during Original Assessment not permissible

Jindal Photo Films Ltd. Vs The Deputy Commissioner Of Income Tax (Delhi High Court)

Jindal Photo Films Ltd. vs. DCIT (Delhi High Court) 1998 234 ITR 170- Following the settled trend of judicial opinion and the law laid down by their Lordships of the Supreme Court time and again, different High Courts of the country have taken the view that if an expenditure...

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No addition for Gift from abroad if Donor gives statement before AO regarding his capacity despite non production of any document

CIT Vs Sudhir Budhraja (Delhi High Court)

Delhi High Court held In the case of CIT vs. Sudhir Budhraja that the findings of the Tribunal are based on sufficient material and cannot be stated to be perverse. On the other hand that the AO had no material ...

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Re-opening of assessment not permissible on same set of materials considered in original assessment

Turner Broadcasting Systems Asia Pacific Inc. Vs DDIT (Delhi High Court)

Delhi High Court held In the case of Turner Broadcasting Systems Asia Pacific INC. vs. DDIT that the assessing officer has merely intended to revisit the concluded assessments and it is a clear case of change of opinion...

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Sec 2(29BA) Process of drawing wire of thinner gauge from thicker gauge would amount to manufacture

Commissioner of Income Tax Vs Pawan Agarwal and others (Himachal Pradesh High Court)

Himachal Pradesh High Court in the case of CIT vs. Pawan Agarwal and others that the activity of drawing wires of thinner gauges from wires and rods of thicker gauges amount to manufacture as the paper insulated wires ...

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Rejection of books of accounts merely for inconsistent GP ratio is bad in law: HC

CIT Vs M/s Swastik Food Products (Himachal Pradesh High Court)

The Hon'ble Himachal Pradesh High Court in the case of CIT vs. Swastik Foods held that the rejection of basis by merely expressing a doubt about the correctness of profit declared taking inconsistent GP ratio as basis cannot be a said to be rejection of books for incompleteness or incorrectness....

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SEBI : Disclosures in Abridged Prospectus and Price Information of past issues handled by Merchant Bankers

CIR/CFD/DIL/7/2015 (30/10/2015)

It has been observed that the abridged prospectus has become voluminous and thereby defeats the very purpose of abridged prospectus....

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No liability on Flipkart under KVAT as no clear finding to held sale as Interstate sale which already taxed under CST Act: HC

Flipkart Internet (P.) Ltd. Vs State of Kerala (Kerala High Court)

Kerala High Court held In the case of Flipkart Internet (P.) Ltd. vs. State of Kerala that It is well settled that show cause notices issued by statutory authorities particularly in case of imposition of penalty on an assessee, cannot pre-determine the guilt of an assessee. ...

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Loan To Directors under Section 185 of Companies Act, 2013

CS Santosh Pandey As per the provision of Section 185 of the Companies Act, 2013- No Company shall directly or indirectly give loan to any of its directors or any other person in whom the director is interested, or provide any guarantee or security in connection with the loan taken by him or other person. […]...

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Posted Under: Company Law |

All about Income Computation And Disclosure Standards (ICDS)

CBDT constituted Accounting Standard Committee in 2010.The committee has submitted its final report in August 2012. And on March 31st 2015 i.e. after two years, 10 Income Computation & Disclosure Standards (‘ICDS’) notified by the CBDT under section 145(2) of the income tax act 1961(the act) vide ‘notification No. 32/2015 [F.NO.134/...

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Posted Under: Company Law |

Credit of EC & SHEC can be used for payment of Service tax

CG vide Notification No. 22/2015-Central Excise (N.T.) dated October 29, 2015 (“the Notification”) has amended the Credit Rules once again to allow use of Credit of Cess charged on Inputs, Input Services and Capital Goods received on or after June 1, 2015 for payment of output liability of Service tax on or after June 1, 2015 on simil...

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Posted Under: Company Law |

Penalty u/s 271E not maintainable if notice is issued after the period specified in Section 275(1)(c)

Principal CIT Vs JKD Capital & Finlease Ltd. (Delhi High Court)

Delhi High Court held In the case of Principal CIT vs. JKD Capital & Finlease Ltd. that in terms of the provision u/s 275 (1) (c), there are two distinct periods of limitation for passing a penalty order, and one that expires later will apply....

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Issue of notice u/s 143(2) before finalisation of reassessment order is mandatory

Principal CIT Vs Shri Jai Shiv Shankar Traders Pvt. Ltd. (Delhi High Court)

Delhi High Court held In the case of Principal CIT vs. Shri Jai Shiv Shankar Traders Pvt. Ltd. that the failure by the AO to issue a notice to the Assessee under Section 143(2) subsequent to 16th December 2010 ...

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Ad-hoc provision for transit breakage is contingent liability & not required to be recognised as per AS- 29 of ICAI

Seagram Distilleries Pvt. Ltd. (Now Pernod Ricard India Pvt. Ltd.) Vs CIT (Delhi High Court)

Delhi High Court held In the case of Seagram Distilleries Pvt. Ltd. vs. CIT that in the current case there is no reasonable scientific method adopted by the Assessee to estimate the transit breakages to justify such provision. ...

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Sec. 10B Interest on FDRs on margin kept in bank for utilization of letter of credit limits is business Income

Principal CIT Vs Universal Precision Screws (Delhi High Court)

Delhi High Court held In the case of Principal CIT vs. Universal Precision Screws that interest on fixed deposits has the requisite characteristic of business income and has a nexus to the business activities of the Assessee....

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Clarification regarding Self-sealing and self-Examination of Bulk cargo -reg

Circular No. 1011/18/2015-Central Excise (30/10/2015)

Circular No. 1011/18/2015-CX The assessee who desires to avail facility of export of bulk cargo without sealing shall write to the Principal Chief Commissioner/ Chief Commissioner of Central Excise with a copy to jurisdictional Assistant/ Deputy Commissioner of Central Excise, giving details of bulk cargo to be exported with proper justif...

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Notification No. 23/2015-Central Excise (N.T.) Dated 30th October, 2015

Notification No. 23/2015-Central Excise (N.T.) (30/10/2015)

Notification No. 23/2015-Central Excise (N.T.) Provided that where the nature of goods is such that the goods cannot be sealed in a package or a container such as coal or ore, etc., exemption from sealing of package or container may be granted by the Principal Chief Commissioner or Chief Commissioner of Central Excise subject to safeguard...

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AO not empowered to initiate reassessment proceedings upon a mere change of opinion

Commissioner Of Income-Tax Vs Kelvinator Of India Ltd. (Delhi High Court)

CIT vs Kelvinator of India Ltd. (Delhi High Court -Full Bench) [2002] 256 ITR 1/123- When a regular order of assessment is passed in terms of section 143 (3) of the Act, a presumption can be raised that such an order has been passed on application of mind....

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Govt. notifies Sovereign Gold Bonds Scheme, 2015

Notification G.S.R. 827(E) (30/10/2015)

1. Short title and commencement.-(1) This scheme may be called the Sovereign Gold Bonds Scheme, 2015. (2) It shall come into force on the date of its publication in the Official Gazette....

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Notification No. 102/2015-Customs (N.T.) Dated- 30th October, 2015

Notification No. 102/2015-Customs (N.T.) (30/10/2015)

Notification No. 102/2015-CUSTOMS (N.T.) Tariff Notification in respect of fixation of T V of Edible oil, Brass, Poppy seed, Areca nut, gold and Sliver ...

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All about Sovereign Gold Bonds, 2015-16 including Taxability

RBI/2015-16/218 IDMD.CDD.No.939/14.04.050/2015-16 (30/10/2015)

The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. Person resident in India is defined under section 2(v) read with section 2 (u) of the Foreign Exchange Management Act, 1999....

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Section 10B Foreign exchange fluctuation includible in export turnover: HC

The Commissioner of Income Tax Vs M/s. Pentasoft Technologies Ltd. (Madras High Court at Judicature)

CIT vs. M/s. Pentasoft Technologies Ltd. (Madras High Court)- In order to allow a claim under Section 10A of the Act, what all is to be seen is whether such benefit earned by the assessee was derived by virtue of export made by the assessee....

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Sale proceeds of scrap is not turnover for section 80HHC: SC

CIT Vs Punjab Stainless Steel Industries (Supreme Court of India)

To ascertain whether the turnover would also include sale proceeds from scrap, one has to know the meaning of the term ‘turnover’. The term ‘turnover’ has neither been defined in the Act nor has been explained by any of the CBDT circulars....

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Delhi VAT- Central Sales Tax [(Delhi)(Amendment)] Rules, 2015

No. F.3(18)/Fin(Rev-I)/2015-2016/DS-VI/886 (30/10/2015)

No. F.3(18)/Fin(Rev-I)/2015-2016/DS-VI/886 In exercise of the powers conferred by sub-section (3) and( 4) of section 13 of the Central Sales Tax Act, 1956 (Act No. 74 of 1956), and all other powers enabling it In this behalf, the it. Governor of the National Capital Territory of Delhi, hereby, makes the following rules further to amend th...

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Reopening for not considering a SC Judgment in original assessment not valid

Coperion Ideal Pvt. Ltd. Vs CIT (Delhi High Court)

Delhi High Court held In the case of Coperion Ideal Pvt. Ltd. vs. CIT that the mere fact that there was a judgment of the Supreme Court of 1997 which was not noticed by the AO when he framed the original assessment cannot per se constitute the only material on the basis of which the assessment could have been reopened....

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Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Tenth Amendment) Regulations, 2015

Notification No. FEMA.354/2015-RB (30/10/2015)

Total Foreign Investment shall include all types of foreign investments, direct and indirect, regardless of whether the said investments have been made under Schedule 1, Schedule 2, Schedule 2A, Schedule 3, Schedule 6, Schedule 8, Schedule 9 and Schedule 10 of Foreign Exchange Management (Transfer or Issue of Security by a Person Residen...

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Notification No. 87/2015 – Income Tax Dated 30.10.2015

Notification No. 87/2015 - Income Tax (30/10/2015)

Notification No. 87/2015 - Income Tax S.O. 2965 (E) - In exercise of the powers conferred by section 118 of the Income-tax Act, 1961 (43 of 1961) and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue, published in the Gazette of India, Extraordinary, Part-II, section 3, sub-...

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RBI to issue 8 Years Sovereign Gold Bonds for Resident Indians

(30/10/2015)

Government of India, in consultation with Reserve Bank of India (RB), has decided to issue Sovereign Gold Bonds. The Bonds will be issued on November 26, 2015. Applications for the bond will be accepted from November 05, 2015 to November 20, 2015. The Bonds will be sold through banks and designated post offices as may be notified. The bor...

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Posted Under: Company Law |

Notification No. 53/2015-Customs (ADD) Dated- 30th of October, 2015

Notification No. 53/2015-Customs (ADD) (30/10/2015)

Notification No. 53/2015-Customs (ADD)- Seeks to order provisional assessment on imports of Clear Float Glass of nominal thickness ranging from 4 mm to 12 mm (both inclusive), the nominal thickness being as per BIS 14900:2000, falling under the headings 7003, 7004, 7005, 7009, 7013, 7015, 7016, 7018, 7019, 7020 of the First Schedule to t...

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Govt. notifies tolerance limit of 1% and 3% under new Transfer Pricing Rule

Notification No. 86/2015 - Income Tax (29/10/2015)

Notification No. 86/2015 - Income Tax Central Government hereby notifies that where the variation between the arm's length price determined under section 92C and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one percent. of the latter in respect of wholesal...

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Tax Audit Report Filing Due Date also extended to 31-10-2015

F.No.225/207/2015/ITA.II (29/10/2015)

Vide order under section 119 of the Income-tax Act, 1961 ('Act') dated 01.10.2015 infile of even number, Central Board of Direct Taxes had extended the 'due-date' for E­ filing Return of Income from 30th September, 2015 to 31st October, 2015 in case of income-tax assessees which are covered under clause (a) of Explanation 2 to sub-sectio...

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CBEC allows Education and SHE cess to be utilized for payment of service tax

Notification No. 22/2015-Central Excise (N.T.) [G.S.R. 818(E)] (29/10/2015)

Notification No. 22/2015-Central Excise (N.T.) Credit of Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the premises of the provider of output service on or after the 1st day of June, 2015 can be utilized for payment of service tax on any output service:...

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Taxation of income from off-shore Rupee Denominated Bonds-reg.

The Reserve Bank of India has recently permitted Indian corporates to issue rupee denominated bonds outside India. The matter of taxation of income from such bonds under Income-tax Act, 1961 has been considered by the Government. In so far as taxation of interest income from these INR off-shore bonds in the case of non-resident investors ...

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Posted Under: Company Law |

Hamdard eligible for exemption u/s 10(23C) (iv) for business held in trust, as dominant purpose of assessee is charitable

Hamdard Laboratories India And Anr Vs ADIT (E) & DGIT (E) (Delhi High Court)

Delhi High Court held In the case of Hamdard Laboratories India and Anr vs. ADIT (E) & DGIT (E) that Hamdard‟s objects are charitable in nature and its activities relating to manufacture and sale of unani medicines ...

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Regrouping in audited financials is not permitted after signing of accounts: HC

CIT Vs Morgan Securities & Credits Pvt. Ltd. (Delhi High Court)

Delhi High Court held In the case of CIT vs. Morgan Securities & Credits Pvt. Ltd. that any changes in the audited financials like for e.g., the 'regrouping' of shares in the present case, if at all permissible, has to be preceded by a legally acceptable procedure adopted by the Assessee...

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AO is time bound to dispose of objections in response to notice u/s 148 by a speaking order: HC

CIT Vs M/s Multiplex Trading & Industrial Co. Ltd. (Delhi High Court)

Delhi High Court held In the case of CIT vs. M/s Multiplex Trading & Industrial Co. Ltd. that the requirements regarding recording the reasons to believe; communicating the same to the Assessee; permitting the Assessee to file the objections...

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ITAT empowered to allow deduction u/s 80IB (10) even if requirement u/s 80AC is not complied with, in case of conflict of opinions: HC

CIT Vs M/s Unitech Ltd. (Delhi High Court)

Delhi High Court held In the case of CIT vs. M/s Unitech Ltd. that where there are conflicts of opinions of the various benches of the ITAT on the provision u/s 80AC of requirement of return filing before due date to claim deduction u/s 80IB (10)...

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Mere copy of notice given during reassessment proceedings will not meet mandatory requirement of issue & service of notice

Principal CIT Vs Atlanta Capital Pvt. Ltd. (Delhi High Court)

Delhi High Court held In the case of Principal CIT vs. Atlanta Capital Pvt. Ltd. that the requirement of both the issuance and the service of such upon the Assessee for the purposes of Section 147 and 148 of the Act are mandatory ‘jurisdictional requirements’. ...

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Provision made for liability in terms of proposed recommendation of 6th Pay Commission was to be allowed as deduction

Gujarat Energy Transmission Corpn. Ltd Vs ACIT (ITAT Ahmedabad)

In case of Gujarat Energy Transmission Corpn. Ltd vs. ACIT, assessee-company the company has provided certain sum towards employees cost for arrears payable upto 31st March, 2008 . It debited said sum in respect of 6 th Pay Commission arrears...

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Analysis of Final Rules on ‘Range Concept’ &‘Multiple year data’ in Transfer Pricing provisions

The Government has notified the amended Rules for determining ALP vide S.O. No. 2860 (E) dated 19/10/2015. The amended regime will be applicable for computation of ALP of international transactions and specified domestic transactions undertaken on or after 1/04/2014 i.e. on and after PY 2014-15....

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Posted Under: Company Law |

HDFC Life Click 2 Retire: The Easiest Way to Plan your Retirement

Everyone is going to retire at some point of time. Different people approach retirement differently. Many prefer to retire early to fulfill their ambitions of a start-up or maybe just to live out a peaceful life. Yet for others who enjoy the financial security, work till they are of the retirement age.   Retirement is early […]...

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Posted Under: Company Law |

Transfer of shares of loss-making company by shareholder-company to its subsidiary not hit by section 79

CIT Vs AMCO Power Systems Ltd (Karnataka High Court)

CIT vs. AMCO Power Systems Ltd (Karnataka High Court) Whether the Tribunal was correct in holding that the assessee would be entitled to carry forward and setoff of business loss despite the assessee not owning 51% voting powers in the company as per Section 79 of the Act by taking the beneficial share holding of M/s. Amco Properties & In...

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Educational Materials on Indian Accounting Standards (Ind ASs)

The Ministry of Corporate Affairs (MCA) has recently notified IFRS-converged Indian Accounting Standards (Ind AS) and the roadmap for its applicability for certain class of companies from the financial year 2015-16 voluntarily and from 2016-17 on mandatory basis....

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Posted Under: Company Law |

Maharashtra VAT- Discontinuance of Issue of Bill on Thermal Paper Reg.

Trade Circular No. 15T of 2015 (29/10/2015)

As per the provisions of section 86(3) of the MVAT Act 2002 a dealer, liable to pay tax under the Act, is required to issue to the purchaser either a tax invoice or a bill or a cash memo. Such tax invoice, bill or cash memo should be serially numbered, signed and dated by him or his servant, manager or agent....

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Share Transaction in Kolkata Shares cannot be held Bogus on mere suspicion

D.C.I.T, C.C-I, Kolkata Vs Sunita Khemka (ITAT Kolkata)

D.C.I.T. Vs. Sunita Khemka (ITAT Kolkata)- AO has treated the transactions as bogus only on the basis of the suspicion that the difference in purchase and sale price of these shares are unusually high. It is a settled law that assessment cannot be made on the basis of suspicion or surmise....

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Expense on medical treatment of eyes is Personal Expenditure: HC

Dhimant Hiralal Thakar Vs The Commissioner of Income Tax (Bombay High Court)

Dhimant Hiralal Thakar vs CIT (Bombay High Court)- Eyes are thus essential not only for the purpose of business or profession but for purposes other than these which are so many. It is therefore clear that the said expenditure as claimed by the applicant is not in the nature of the expenditure wholly...

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A liaison office of a foreign co identifying suppliers/ material is not a permanent establishment under Article 5 of India-USA DTAA

Columbia Sportswear Company Vs DIT (Karnataka High Court)

Columbia Sportswear Company vs. DIT (Karnataka High Court)- A liaison office of a foreign company which identifies a manufacturer in India, negotiates the price, helps in choosing raw material to be used, ensures compliance with quality,...

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KYC- Change in name on account of marriage or otherwise

RBI/2015-16/213 DBR. AML.BC. No. 46/14.01.001/2015-16 (29/10/2015)

Reserve Bank has been receiving references/representations from banks and individuals regarding the problems faced by persons who change their name due to marriage or otherwise, in submitting an ‘Officially Valid Document’ (OVD) while opening a new bank account or during periodic updation exercise or incorporating the name change in t...

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MEIS Additions/amendments Table 2 [containing ITC (HS) code wise list of products with reward rates] of Appendix 3B

Public Notice No. 44/2015-2020 (29/10/2015)

Public Notice No. 44/2015-2020 Additions/amendments in Table 2 [containing ITC (HS) code wise list of products with reward rates] of Appendix 3B under the Merchandise Exports from India Scheme (MEIS) are notified....

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Education Society can claim depreciation in respect of assets, cost of which is claimed by them as application

M/s. Kamineni Educational Society Vs Joint DIT (Exemptions) (ITAT Hyderabad)

M/s. Kamineni Educational Society vs. Joint DIT (Exemptions)-Issue- The common issue involved in these appeals is about the disallowance of depreciation claimed by assessee in respective assessment years on the reason that the cost of assets had been claimed as application of income by assessee ...

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Two days Conference of Chief Commissioners/Pr. Commissioners of Central Excise in Chandigarh concludes

Two days Conference of Chief Commissioners/Pr. Commissioners of Central Excise in Chandigarh concludes; resolves most of the issues to bring-out certainty in assessment, uniformity in practice across the country and clarity in understanding the legal issues. A two days conference of Chief Commissioners/Principal Commissioners of Central E...

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Posted Under: Company Law |

No fresh permission/ renewal of permission to LOs of foreign law firms- SC’s directions

RBI/2015-16/215 A. P. (DIR Series) Circular No. 23 (29/10/2015)

The Hon’ble Supreme Court vide its interim orders dated July 4, 2012 and September 14, 2015, passed in the case of the Bar Council of India vs A.K. Balaji & Ors., has directed RBI not to grant any permission to any foreign law firm, on or after the date of the said interim order, for opening of Liaison Office (LO) in India....

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Subscription to National Pension System by Non-Resident Indians (NRIs)

RBI/2015-16/216 A.P. (DIR Series) Circular No. 24 (29/10/2015)

With a view to enabling NRIs’ access to old age income security, it has now been decided, in consultation with the Government of India, to enable National Pension System (NPS) as an investment option for NRIs under FEMA, 1999. Accordingly, NRIs may subscribe to the NPS governed and administered by the Pension Fund Regulatory and Develop...

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MCA extends last data of filing of ADC-4, AOC-4 XBRL and MGT-7 E-Forms to 30.11.2015

General Circular No. 14/2015 (28/10/2015)

In continuation of this Ministry's General Circular No. 10/2015 dated 13.07.2015, keeping in view the request received from various stakeholders, it has been decided to relax the additional fee payable on forms AOC-4 and AOC-4 XBRI upto 30th November, 2015, The additional fee requirement for MGT-7 E-Form is also relaxed for all such form...

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Self Assessment Tax explained in simple manner with charts and diagrams

Self Assessment Tax  alongwith interest is required to be deposited before furnishing the return of income and the proof of such payment should be attached with the return of income. Note 1: Where the amount paid by the assessee under section 140A is less than the amount required to be paid under section 140A, then […]...

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Posted Under: Company Law |

Analysis of materials after reopening of assessment is post mortem exercise which is not permitted u/s 147 : HC

Principal CIT Vs G & G Pharma India Ltd. (Delhi High Court)

Delhi High Court held In the case of Principal CIT vs. G & G Pharma India Ltd. that this is basic requirement of law u/s 147 that before reopening of assessment, AO must have apply his mind to the available materials ...

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Allegation against Counsel of Revenue prima facie constitutes criminal contempt of court

CIT Vs M/s. Escorts Ltd. (Delhi High Court)

Delhi High Court held In the case of CIT vs. M/s Escorts Ltd. that in view of the nature of the conduct displayed by Sh. Gupta, i.e. preferring an application for intervention which was rejected, being Intervener Application No. 5779/2008...

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Revenue not authorized to rewrite terms of agreement & adjudge Commercial expediency: SC

M/s. Mangalore Ganesh Beedi Works Vs CIT (Supreme Court of India)

Supreme Court held In the case of M/s. Mangalore Ganesh Beedi Works vs. CIT that Act does not clothe the taxing authorities with any power or jurisdiction to re-write the terms of the agreement arrived at between the parties with each other at arm’s length...

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Netting of interest paid on borrowed fund against interest income earned on same fund is permitted

Vodafone South Ltd. (Formerly known as M/s Vodafone South Essar and Hutchison Essar South Ltd.) Vs CIT (Delhi High Court)

Delhi High Court held In the case of Vodafone South Ltd. vs. CIT that the netting of the interest paid on the borrowed sum against the interest income earned is allowed. There was a direct nexus between the earning of interest on the loan advanced by the Assessee and payment of interest to the bank. ...

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Reopening after 4 years not permissible if all accounts & records were made available at the time of original assessment – HC

Consultating Engineering Services (India) Ltd. Vs DCIT (Delhi High Court)

Delhi High Court held In the case of Consultating Engineering Services (India) Ltd. vs. DCIT that for reassessment as per first proviso of section 147, it is pre- condition that the assessee has not made a full and true disclosure of the material particulars necessary for the assessment....

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Aftermath of National Judicial Commission

Supreme Court Advocates-On-Record Association and Anr. Vs Union of India (Supre Court of India)

In conclusion, it is difficult to hold, in view of the factual position expressed above, that the wisdom of appointment of Judges, can be shared with the political-executive. In India, the organic development of civil society, has not as yet sufficiently evolved. ...

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Posted Under: Company Law |

Commission based on profit per cent taxable in year in which profits of company gets finalized

Assistant Commissioner of Income Tax Vs Sri Sandip Somany (ITAT Kolkata)

ACIT Vs. Sri Sandip Somany (ITAT Kolkata)- We find that the assessee being a Joint Managing Director of M/s Hindustan Sanitary Ware and Industries Ltd was in receipt of commission based on net profits of the company determined and finalized in the subsequent year ...

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Taxation of Works Contracts under TN VAT Vs Profit maximization in project execution

Meaning of Works Contract in TN VAT: Sec 2(43) defines as Works Contract includes any agreement for carrying out for cash, deferred payment or other valuable consideration, building construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or ...

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Posted Under: Company Law |

Books of account cannot be rejected on the basis of general findings

The ACIT Vs Shri Laxmi Narain Agarwal (ITAT Jaipur)

ACIT Vs. Shri Laxmi Narain Agarwal (ITAT Jaipur)- It is contended that the order of the ld. CIT(A) will reveal that no specific defects in the books of account were found by the AO. The assessee's working site being at remote place, cash payment to labourer through self made vouchers...

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Profit on sale of Agricultural Land cannot be taxed as Business Income for mere absence of Agricultural Activity

Mr.Vinod D Motiwala Vs Income Tax Officer (ITAT Mumbai)

Mr.Vinod D Motiwala Vs. ITO (ITAT Mumbai)- AO has considered the fact that the assessee did not carry on any agricultural activity. In our view, the absence of agricultural activity cannot be considered to be the sole ground to determine the intention of the assessee....

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Payment of PF, ESI made belatedly but within due date of filing of Income Tax return, cannot be disallowed u/s 43B

The ACIT Vs M/s. Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (ITAT Jaipur)

ACIT Vs. M/s. Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (ITAT Jaipur)- he AO disallowed the payment on the ground that though the amount was paid by the assessee but was not paid within the due date as given under the respective Acts of GPF, CPF and ESI....

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S. 194H Discount by BSNL to its franchisee on recharge coupon is not commission

ITO-TDS Vs Bharat Sanchar Nigam Ltd (ITAT Hyderabad)

In the Case of ITO-TDS vs. BSNL, the Hyderabad Tribunal observed that the relationship between the BSNL and the franchisee was recognised by the CBDT by inserting third proviso to S.194H. The assessee being public sector undertaking stands on a different footing and the view taken by Delhi High Court ...

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TDS on EPF and Submission of Form 15G & 15H

Simplification of Tax Deduction at Source (TDS) mechanism for Employees Provident Fund Scheme (EPFS) Under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (EPF & MP Act, 1952), certain specified employers are required to comply with the Employees Provident Fund Scheme, 1952 (EPFS). However, these employers are also...

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Posted Under: Company Law |

Sec. 54F exemption for deposit in saving a/c instead of capital gain a/c scheme

Sri M.S. Lakshmana Rao Vs DCIT (ITAT Hyderabad)

In deciding the exemption u/s 54F in the case of Sri M.S. Lakshmana Rao vs. DCIT, Hyderabad Tribunal held that non-compliance to condition of depositing sale proceeds in capital gain account scheme as required u/s 54 will not be so fatal to debar the assessee from getting benefit of section 54F....

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Expenses on repairs to put new flat in habitable condition allowable U/s. 54

JCIT Vs Smt. Armeda K. Bhaya (Supreme Court of India)

JCIT vs Smt. Armeda K. Bhaya 95 ITD 313 (Mum.) Section 54 Benefit cannot be reduced proportionately merely because in the Purchase or Sell deed of Property Purchased or Sold name of a Family Member incorporated as co-owner for the sake of convenience...

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5 Reasons for Investing Early in ULIPs

Wouldn’t it be great if you could buy an insurance policy that also multiplies your wealth? That’s a Unit Linked Insurance Plan (ULIP) for you. A ULIP gives you the advantage of investing in an insurance policy and a mutual fund without having to make two separate investments. They are investment products that offer good […]...

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Posted Under: Company Law |

Representation of cases before Authority for Advance Ruling-reg.

F.No. 225/26112015/ITA.II (28/10/2015)

F.No. 225/26112015/ITA.II As per provisions of sub-section (6) of section 245R of the Income-tax Act, 1961 ['Act'], the Authority for Advance Ruling (AAR) [hereinafter referred to as 'Authority] is required to pronounce its advance ruling, on an application made by an applicant desirous of obtaining such ruling,within six months from the ...

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Shortage on sales allowable despite Shortage claim at the time of Purchase

Manikanta Concerns Vs DCIT (ITAT Hyderabad)

In the case of Manikanta Concerns vs. DCIT, ITAT Hyderabad held that the shortage at the time of purchase and the shortage at the time of sale are two different issues and it cannot be said by any stretch of imagination that once the assessee has claimed shortage at the time of purchase...

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Anti dumping duty on imports of Narrow woven fabrics having pile weave

Notification No. 52/2015-Customs (ADD) (28/10/2015)

Notification No. 52/2015-Customs (ADD) - Anti dumping duty on imports of Narrow woven fabrics having pile weave, originating in, or exported from, the People’s Republic of China and Chinese Taipei extended up to and inclusive of the 5th day of October, 2016, unless revoked earlier....

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No Penalty u/s 271(1)(C) on Bonafide claim of wrong deduction

Pooja Industries Vs ITO (ITAT Chandigarh)

In the case of Pooja Industries vs. ITO, ITAT Chandigarh held that mere denial of deduction u/s 80IC, which the assessee has claimed on roller flour mills with a bonafide belief, would not lead to panel consequences....

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Filing of online return for second quarter of 2015-16 – extension of period thereof

CIRCULAR NO. 27 of 2015-16 (28/10/2015)

CIRCULAR NO. 27 of 2015-16 However, the tax due shall continue to be paid in the usual manner as per the provisions of section 3(4) of the Delhi Value Added Tax Act, 2004. The dealers filing the returns through digital signature need not file hard copy of the return/Form DVAT-56....

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Permission for export of Finished Leather, Wet Blue and EI Tanned Leather also through ICDs at Jalandhar and Nagpur

Public Notice No. 43(RE-2015)/2015-2020 (28/10/2015)

Now, in addition to ports/ICDs notified by DGFT from time to time, export of finished leather, Wet Blue and EI Tanned Leather would also be permitted through ICDs at Jalandhar and Nagpur. Procedure for drawal of samples and its testing and certification by CLRI notified in Public Notice No. 23 dated 13.08.2013 would continue....

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SEBI (Issue of Capital and Disclosure Requirements) (Seventh Amendment) Regulations, 2015

Notification No. SEBI/LAD-NRO/GN/2015-16/025 (27/10/2015)

(I) Information as is material and appropriate to enable the investors to make an informed decision shall be disclosed in the abridged prospectus. (II) An issuer making a public issue of specified securities shall make the disclosures in the abridged prospectus as per the format specified by the Board from time to time....

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FM Lanuches e-Sahyog project of Income-tax Department

The Income-tax Department is committed to the ‘Digital India’ initiative of the Government of India.The Finance Minister today launched an e-Sahyog pilot project which furthers the Department’s commitment to work in an e-environment and reduces the need for the taxpayer to physically appear before tax authorities....

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Posted Under: Company Law |

Govt set up Committee to Simplify Provisions of Income Tax Act, 1961

The Terms of Reference (ToR) of the Committee shall be as follows: i) To study and identify the provisions/phrases in the Act which are leading to litigation due to different interpretations; ii) To study and identify the provisions which are impacting the ease of doing business; iii) To study and identify the areas and provisions of th...

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Posted Under: Company Law |

Non Appealable order of Commissioner (Under Service Tax)

We all know that, were an amount had been collected in the name of Excise Duty/Service Tax, which was collected in excess or was not required to be collected at all, has to be paid to the credit of Central Government. The respective Covering Sections are 11D of Central Excise Act, 1944 & 73A of The Finance Act, 1994. Under both the sectio...

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Posted Under: Company Law |

Lease cannot be termed as sale if ownership rights not extinguished

Teletube Electronics Ltd Vs Commissioner Of Income Tax (Delhi High Court)

The Delhi High Court in case of Teletube Electronics Ltd Vs CIT held that there has to be an extinguishment of ownership rights in order that a Lease transaction can be said to be a 'sale'. The leasehold right is only for a period of ten years and at the end of that period the leased facilities revert to the owner....

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Exemption u/s 10 (23C) (vi) available only to approved educational institutions in existence

Ram Piyari Devi Charitable Trust Vs Director General Of Income Tax (Delhi High Court)

In case of Ram Piyari Devi Charitable Trust Vs. Director General Of Income Tax, Delhi High Court held that in order to claim exemption u/s 10 (23C) (vi) , there should be existence of educational institution and approval of prescribed authority....

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Installation of plant and machinery in building would amount to use of building to claim depreciation u/s 32

Stitchwell Qualitex (RF) Vs Income Tax Officer (Delhi High Court)

The Delhi High Court has held in case of Stitchwell Qualitex (RF) Vs. ITO that Installation of plant and machinery in building would amount to use of the building and therefore assessee is eligible to claim for depreciation u/s 32 on said building ....

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Discount on issue of ESOP is allowable expenditure u/s 37: ITAT

HDFC Bank Limited Vs DCIT (ITAT Mumbai)

HDFC Bank Limited vs. DCIT (ITAT Mumbai)- Also the judgment of Biocon Ltd vs. Dy. CIT [2013] 25 ITR (Trib) 602 (Bang) (SB) in which it was held that discount on the issue of shares to employee under the ESOP is an allowed expenditure u/s 37 is binding on us....

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Benefit of exemption notification only for goods covered in notification & cannot be extended to similar goods: SC

M/s Larsen & Toubro Limited Vs CCE (Supreme Court of India)

Supreme Court in the case of M/s Larsen & Toubro Limited v CCE held that the particular product which has been manufactured by the assessee for captive consumption will only be considered for any kind of exemption if covered by any exemption notification. ...

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Execution of outsourced transportation work by third parties without assistance of outsourcer is sub-contract liable to TDS

M/s Palam Gas Service Vs Commissioner of Income Tax (Himachal Pradesh High Court)

Himachal Pradesh High Court in the case of M/s Palam Gas Service Vs. CIT held that execution of outsourced transportation work without any assistance from the outsourcer is a clear case of sub-contracting making the person outsourcing his contract liable to deduct tax on the payments made to sub-contractors u/s 194C....

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Distinct or Different use in an article after transformation is Manufacture : SC

CCE Vs M/s Fitrite Packers, Mumbai (Supreme Court of India)

In case of CCE v M/s Fitrite Packers, Hon’ble Supreme Court held that the product could be termed as 'Manufactured' only when there is a transformation in the original article and this transformation should bring out a distinctive or different use in the article....

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CVD payable on import of Concentrates: SC

M/s Star Industries Vs Commissioner of Customs (Import) (Supreme Court of India)

In case of M/s Star Industries v Commissioner of Customs (Import), Hon'ble Supreme Court while interpreting Notification No.4/2006-CE held that it is an exemption notification where only 'Ores' were exempted and if after the process of manufacture...

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Report on Analytical Model for Widening of Taxpayers Base

Tax Research Cell of National Institute of Public Finance and Policy (NIPFP) has released a report on Development of an Analytical Model for Widening of Taxpayer’s Base. This study was undertaken for the Central Board of Direct Taxes to analyse and develop an Analytical Model for the number of taxpayers in the personal income tax syste...

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Posted Under: Company Law |

Merely having same partners or employees doesn't mean that a new entity is formed by splitting of existing business

CIT Vs M/s Yash International Inc (Himachal Pradesh High Court)

The Hon'ble Himachal Pradesh High Court in the case of CIT vs. M/s Yash International Inc. held that the fact that the new firm has almost the same partners and some workers of existing firm shifted to new firm’s unit cannot make the new entity arising as result of splitting up of the existing one....

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Mere transfer of title in immovable property is exempted from Service Tax

No Service Tax on Transfer of Immovable Property if entire consideration received after issue of Occupancy Certificate. In order to resolve a long standing issue relating to levy of Service Tax on sale of flats/dwellings etc. after issue of occupancy certificate but before issue of completion certificate in areas under the jurisdiction of...

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Posted Under: Company Law |

Is there a need to apply Fuzzy Logic? in Sec 44AA & 44AB

Sec 44AA of the Income tax Act stipulates about the compulsory maintenance of Accounts by Certain persons carrying on business or profession and return their income under the head Profits & Gains of Business or Profession. ...

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Posted Under: Company Law |

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