"04 March 2016" Archive - Page 4

Tax Incentives to International Financial Services Centre

With a view to incentivise the growth of International Financial Services Centres into a world class financial services hub, it is proposed to amend the section 10 so as to provide for exemption from tax on capital gains to the income arising from transaction undertaken in foreign currency on a recognised stock exchange located in an Inte...

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Posted Under: Income Tax |

No MAT on foreign companies for the period after to 01.04.2001

Under the existing provisions contained in sub-section (1) of the 11 5JB in case of a company, if the tax payable on the total income as computed under the Income-tax Act, is less than eighteen and one-half per cent of its book profit, such book profit shall be deemed to be the total income of the assessee and the tax payable by the asses...

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Posted Under: Income Tax |

Budget 2016: Exemption for diamond trading in SEZ

The existing provisions of Section 5 of the Act provides for the scope of total income. In case of non-resident person, the taxation of income in India happens only if the income accrues or arises in India or is deemed to accrue or arise in India or is received in India. Section 9 of the Act provides circumstances under which income is de...

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Posted Under: Income Tax |

Budget 2016: Phasing out of deductions and exemptions

The Finance Minister in his Budget Speech, 2015 has indicated that the rate of corporate tax will be reduced from 30% to 25% over the next four years along with corresponding phasing out of exemptions and deductions. The Government proposed to implement this decision in a phased manner....

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Posted Under: Income Tax |

Benefit of initial additional depreciation for power sector

Under the existing provisions of section 32(1 )(iia) of the Act, additional depreciation of 20% is allowed in respect of the cost of new plant or machinery acquired and installed by certain assessees engaged in the business of generation and distribution of power . This depreciation allowance is over and above the deduction allowed for ge...

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Posted Under: Income Tax |

Sec. 263-Revision valid where no enquiry/verification of provisions

M/s Crompton Greaves Ltd. Vs CIT (ITAT Mumbai)

AO has not made any enquiry with respect to the claim of deduction of the assessee company with respect to provisions for warranty charges, excise duty, sales tax and liquidity damages amounting to Rs.17.72 crores....

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Client codes modification permissible having no shifting of profits

ITO Vs M/s Pat Commodity Services P. Ltd. (ITAT Mumbai)

It is a fact that the movement of prices of commodities cannot be predicted by anyone with accuracy and hence it is inconceivable or unlikely that the assessee could have made profits consistently, even if it is assumed for a moment that the assessee had actually carried out the transactions for its own benefit. ...

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Sec. 271AAA-No penalty where demand paid before penalty order

DCIT Vs M/s. Tapadia & Kasliwal Associates (ITAT Pune)

It was held that wherein entire tax and interest has been duly paid well within the time limit for payment of notice of demand under section 156 and well before the penalty proceedings were concluded, the assessee could not be denied the immunity under section 271AAA (2) only because entire tax, along with interest, was not paid before fi...

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Sec.206AA–Higher TDS not valid where benefit of DTAA available

M/s. Wipro Ltd. Vs ITO (ITAT Bangalore)

n this case, it was held that it is not a simple case of deduction of tax at source by applying the rate only as per the provisions of Act, when the benefit of DTAA is available to the recipient. Therefore, the question of applying the rate of 20% as provided u/s 206AA is an issue which requires a long drawn reasoning and finding. ...

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Rationalisation of scope of tax incentive under section 32AC

It is proposed to amend the sub-section (1A) of section 32AC so as to provide that the acquisition of the plant & machinery of the specified value has to be made in the previous year. However, installation may be made by 31.03.2017 in order to avail the benefit of investment allowance of 15%...

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Posted Under: Income Tax |