"11 February 2016" Archive

Guidance Note on Accounting for depreciation under CA, 2013

GN (A) 35-  Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013 Background 1. Schedule II to the Companies Act, 2013, specifies useful lives for the purpose of computation of depreciation. The said Schedule II was further amended by the Ministry of Corporate Affairs (MCA) [&h...

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Posted Under: Company Law | ,

S. 80IC: Despite substantial expansion there cannot be two initial A.Y.

Sh. Sumit Kumar Vs ITO (ITAT Chandigarh)

The initial assessment year has been defined and the expression or' has been used in respect of new units by stating commences operation' or complete substantial expansion'. Here the expression or' is to be read as a mutually exclusive expression which refers to a particular situation by excluding the other situation....

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Ind AS compliant Schedule III* vis a vis IAS 1

Ministry of Corporate Affairs issued a notice dated February 09, 2016 invited for comments on Revised Schedule III applicable to a company required to comply with Ind AS. Internationally IAS 1 – Presentation of Financial Statements prescribes the minimum set of requirements for IFRS compliant financial statements. However, it does n...

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Buy Back Tax – Fair Enough?

Mr. P. Chidambaram, plugged one of the most common tool of profit distribution used by unlisted companies. Finance Act 2013, introduced Sections 115-QA to 115-QC in the Income Tax Act — effective from June 1, 2013 — to tax income distribution by unlisted companies through buyback of shares u/s 77A of the Companies Act 1956. ...

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Posted Under: Company Law |

No Penalty for non disclosure of Income manner, if same was not asked during statement recorded U/s/ 132(4)

DCIT Vs Shri Rajiv Chopra (ITAT Chandigarh)

Where no question was asked during statement recorded under section 132(4), in respect of manner of earning income surrendered, assessee could not be expected to substantiate same later on; penalty could not be levied under section 271AAA...

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Search and seizure are reasonable cause for delay in filing & Payment of Wealth Tax

Loknath Prasad Gupta Vs DCIT (ITAT Kolkata)

We understand that in case of search, assessee is to comply with law and various declaration and formalities which certainly take lot of time. From the aforesaid situation and circumstances, it is clear that there was sufficient cause which prevented the assessee to pay wealth tax in the wealth tax return...

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Assessment completed by AO relying on estimations cannot be remanded back by CIT to reverify some aspects of estimation relied on

Sri Surakshitha Homes Vs ITO (ITAT Hyderabad)

The ITAT Hyderabad in the case of Sri Surakshitha Homes vs. ITO held that where the AO has assessed income on estimation basis then CIT cannot order to revise the assessment by picking and choosing some aspects of estimation to be re-verified....

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Unilateral claim based on internally generated documents without any independent evidence cannot be allowed as business expenditure

DCIT Vs M/s Leroy Somer& Controls(India) P.Ltd (ITAT Delhi)

The ITAT Delhi in the case of DCIT vs. M/s Leroy Somer & Controls held that the internally generated documents by company without confirmation of the same by the other party are not sufficient to make a claim of discount....

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Expense on gifts to doctors allowed being not prohibited in law, CBDT circular only applicable A.Y. 2013-14 onwards

Syncom Formulations (I) Ltd. Vs DCIT (ITAT Mumbai)

ITAT Mumbai held in the case Syncom Formulations (I) Ltd. vs. DCIT that receiving of gifts by doctors is prohibited by MCI guidelines but giving of the same by manufacturer is not prohibited under any law for the time being in force....

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Addition u/s 153A for completed assessments not valid if no incriminating material found during search

M/s. Ideal Appliances Co. Pvt. Ltd. Vs DCIT (ITAT Mumbai)

ITAT Mumbai held In the case of M/s. Ideal Appliances Co. Pvt. Ltd. vs. DCIT that it is settled legal position that no addition can be made to the income already assessed since no incriminating material was unearthed during the search....

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