"27 November 2015" Archive

Welfare of a particular community can also be a charitable purpose for registration u/s 12AA

Ranpariya Solanki Sukhadiya Parivar Trust Vs CIT (Exemptions) (ITAT Ahmedabad)

The ITAT Ahmedabad in the case of Ranpariya Solanki Sukhadiya Parivar Trust vs. CIT(Exemption) held that the application made u/s 12AA cannot be rejected even a trust’s object is to function in the interest of a particular community ...

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Merely because assessment order of AO is Brief & Cryptic it cannot be considered as erroneous & prejudicial to revenue interest

M/s Ved Parkash Contractors Vs CIT (ITAT Chandigarh)

ITAT Chandigarh held in M/s. Ved Parkash Contractors Vs CIT that if the AO had passed brief and cryptic assessment order but had checked and verified all the related documents submitted by the assesse in reply to the questionnaire of the AO...

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Speculative loss can be carried forward even if revised return claiming loss is filed u/s 139(5)

ITO Vs Ramesh Kumar Jajodia (ITAT Kolkatta)

ITAT held in ITO Vs Ramesh Kumar Jajodia that if the assessee had filed its original return u/s 139(1) but forgot to claim the speculative loss in its original return and filed revised return u/s 139(5) and claimed the loss in its revised return then the speculative loss should be allowed to be carried forward....

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Revenue expenses after setting up of business allowable despite non-commencement of business

Reliance Gems & Jewels Ltd. Vs DCIT (ITAT Mumbai)

ITAT Mumbai held in Reliance gems & Jewels ltd Vs DCIT that the revenue expenditure would be allowed as an expense after the setting up of the business before the commencement of the business. The expense incurred on recruitment of employees gave indication that the business had been set up ...

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Interest on IT Refund/ FDR, Other interest and Tender fees eligible for deduction u/s 80IA

M/s Hiranandani Builders Vs ITO (ITAT Mumbai)

ITAT Mumbai held in M/s Hiranandani Builders Vs ITO that the followings receipts were also eligible for deduction u/s 80IA considering the same to be profits from undertakings: 1.Interest on IT refund 2.Other Interest 3. FDR Interest 4. Tender fees...

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If income been disclosed by assesse after search by filing return u/s 153A then penalty u/s 271(1)(c) is imposable

Mrs Sarita Manjeet Singh Chopra Vs ITO (ITAT Pune)

ITAT Pune held in Mrs Sarita Manjeet Singh Chopra Vs ITO that if the assesse had disclosed its unaccounted income filing return u/s 153A only after it was caught in search by the income tax department then that disclosed income through return would be considered as undisclosed income ...

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Discount on shares under ESOPs is allowable expenditure

M/s GlaxoSmithKline Consumer Healthcare Ltd. Vs The JCIT (ITAT Chandigarh)

ITAT Chandigarh held In the case of M/s GlaxoSmithKline Consumer Healthcare Ltd vs. The JCIT that it is a settled law that an unascertained liability has to be allowed even if the same is quantified on a future date....

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CIT must establish that order is erroneous before remanding matter to AO u/s 263

Lakshya Seth Vs ITO (ITAT Delhi)

ITAT Delhi held In the case of Lakshya Seth vs. ITO that CIT cannot remand the matter to the AO to decide whether findings recorded are erroneous. In the case where there is inadequate inquiry but not lack of inquiry...

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Income Surrendered as business income cannot be treated as deemed income u/s 69A

M/s Dev Raj Hi-Tech Machines Ltd. Vs DCIT (ITAT Amritsar)

ITAT Amritsar held In the case of M/s Dev Raj Hi-Tech Machines Ltd. vs. DCIT that it is apparent that assessee had made a surrender as additional income over and above the normal profits of the concern and since the income has been declared as business income...

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Share application money not to be included in average investment in disallowance u/s 14A r.w. Rule 8D

ITO Vs M/s LGW Ltd. (ITAT Kolkata)

ITAT Kolkata held In the case of ITO vs. M/s LGW Ltd that share application money is only in the nature of an offer to buy shares made by the assessee. It is only after the offer is accepted by the company; the Assessee becomes the shareholder in a company. ...

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Expenses having no nexus with earning of income u/s 57 not allowed

M/s. M.R.M. Plantations P. Ltd. Vs DCIT (ITAT Chennai)

ITAT Chennai held In the case of M/s. M.R.M. Plantations P. Ltd. vs. DCIT that u/s 57 only expenditure incurred in connection with earning of income was allowable as deduction. The assessee admitted that the entire income is by way of interest from the bank deposits....

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No disallowance on non-deduction of TDS if payee discharged tax liability on income; Applicable retrospectively: ITAT

M/s. Ravi Spice Processors P. Ltd Vs ACIT (ITAT Bangalore)

ITAT Bangalore held In the case of M/s. Ravi Spice Processors P. Ltd vs. ACIT that amendment to Sec. 40(a) (ia) whereby a second proviso was inserted by the Finance Act, 2012, w.e.f. 1-4-2013 which state that if the payee has considered the income in return of income and tax has been paid by the payee...

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CBDT Invites Suggestions on Issues In ICDS

After notification of ICDS, it has been brought to the notice of the Central Board of Direct Taxes by the stakeholders that certain provisions of ICDS may need further clarification/ guidance for proper implementation. These implementation issues raised by the stakeholders have been referred to an expert committee comprising of department...

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Posted Under: Income Tax |

Mere non-intimation of amendments in Trust Deed cannot lead to cancellation of registration

The ITO (E) Vs Bhansali Trust (ITAT Mumbai)

Issue- The Assessing Officer has denied the exemption under section 11/12 to the assessee on the ground that the objects of the assessee Trust have been amended after the grant of Registration under section 12A of the Act without getting itself re-registered...

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Assets being part of block of assets eligible for depreciation even if same are related to discontinued business

CIT Vs Sonic Biochem Extractions Pvt. Ltd (Bombay High Court)

The respondent assessee had claimed depreciation in respect of its machinery valued at Rs.16.96 lacs which was used in its business of refining edible oil. The machinery had not been used during the assessment year as the respondent has discontinued its business of refining edible oil. ...

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Wake up call! 30th November 2015! Get your annual returns certified at the earliest

What the new Act say? Who needs certification and who can do? Signing requirement for Annual returns? One person Company and Small Company – By CS or Director. Listed Companies and Other Companies having Paid up 10 Cr or More or having turnover 50 Cr or more – by Director and CS and Certified by PCS. Other than above Companies - By...

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Posted Under: Income Tax |

Note on Performance Licenses in India

Under the Copyright Act, 1957, it is mandatory to take a phonographic performance license for playing pre-recorded music in a public place, irrespective of commercial or non-commercial nature of the establishment or event. Any communication or playing of pre-recorded music in commercial establishments like hotels, bars, cafes, gyms, rest...

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Posted Under: Income Tax |

Why we Need Swachh Bharat Cess (SBC) In India?

In today’s scenario, all are discussing about Swachh Bharat Mission which was launched by Prime minister, Narendra Modi with the aim to improve the sanitation in rural and urbn areas so that the overll quality of life improves. Since its launch govt. has made substantial expenditure on the programme. With the objective to finance and Pr...

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Posted Under: Income Tax |

Reopening of Assessment merely on the basis of change in opinion is invalid

Waves Food Private Ltd. Vs DCIT (ITAT Ahmedabad)

The ITAT Ahmedabad in the case of Waves Food Private Limited vs. DCIT held that reopening of assessment to disallow provision for damaged goods returned is not valid as the issue had been specifically dealt by AO during the course of regular assessment and such disallowance by reopening ...

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VAT collected but not paid is to be added to income even if amount has not routed through P&L Account

Munaf Ibrahim Memon Vs The Income Tax Officer (ITAT Pune)

VAT collected by the assessee was in respect of traded goods dealt in by the assessee and in view of the provisions of section 145A of the Act, the value of the VAT was to be included as part of sale consideration of the traded goods and once the same is to be included as part of the sale goods...

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Format for financial results for listed entities which have listed their debt securities and/or non-cumulative redeemable preference shares

Circular No. CIR/IMD/DF1/9/2015 (27/11/2015)

In order to enable investors to make well-informed investment decisions, timely, adequate and accurate disclosure of financial results on a periodical basis is critical. At the same time, to ensure comparability, uniformity and parity in disclosures made by listed entities across stock exchanges, is essential....

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ICAI releases Exposure Draft of Accounting Standard 8, Accounting Policies, Changes in Accounting Estimates and Errors for comments

Exposure Draft of the Accounting Standard (AS) 8, Accounting Policies, Changes in Accounting Estimates and Errors (Comments to be received by December 07, 2015)...

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Posted Under: Income Tax |

Government provides further Indirect Tax Incentives to Domestic Shipbuilding Industry

The Government has decided to provide further indirect tax incentives for domestic shipbuilding industry. Accordingly, the Central Government has issued Notification Nos. 44/2015-Central Excise, 45/2015-Central Excise, 54/2015-Customs and 55/2015-Customs all dated 24.11.2015 so as to provide the following indirect tax incentives to the af...

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Posted Under: Income Tax |

Format for statements/reports to be submitted to Stock Exchange(s) by listed entity which has listed its securitised debt instruments

Circular No. CIR/IMD/DF1/10/2015 (27/11/2015)

CIRCULAR No. CIR/IMD/DF1/10/2015 Regulation 82(3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifies that the listed entity shall submit statements/reports to stock exchange within seven days from the end of the month/ actual payment date, either by itself or through t...

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Sovereign Gold Bond Scheme gets Overwhelming response

Overwhelming response received from the retail investors for Sovereign Gold Bond Scheme (SGB) ; 63,000 applications received for a total of Rs 246.20 crore by the Banks and Post Offices for 917 kgs of gold; Number of decisions taken to improve the reach of Gold Monetisation Scheme (GMS). ...

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Posted Under: Income Tax |

Systems Alert for monitoring realisation of export proceeds: CBEC

F. No. 609/59/2012-DBK (27/11/2015)

F. No. 609/59/2012-DBK Systems Alert for monitoring realisation of export proceeds in EDI under the BRC Module for ICES (introduced in year 2009) and the new RBI BRC Module introduced under DG (Systems) letter dated 28.8.2014...

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Explanatory Notes to Provisions of Finance Act, 2015

Circular No. 19/2015 - Income Tax (27/11/2015)

CIRCULAR No. 19/2015- INCOME-TAX ACT- Finance Act, 2015 as passed by the Parliament, received the assent of the President on the 14th day of May, 2015 and has been enacted as Act No. 20 of 2015. This circular explains the substance of the provisions of the Act relating to direct Taxes....

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Significant development related to accounting profession :ICAI

The ICAI elections for 23rd Central and 22nd Regional Councils will be held at 620 polling booths across the nation on 4th and 5th December, 2015. On the part of the Institute, I would assure that the Institute is committed to hold fair and transparent elections. We all must exercise our power of democracy and give preferences to all can...

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Posted Under: Income Tax |

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