"21 June 2018" Archive

Brand is an intellectual property eligible for depreciation U/s. 32

Dy. CIT Vs Kuantum Papers Ltd. (ITAT Delhi)

As per para 7, 8 and 9 of the Accounting Standard 26 (AS 26) issued by the ICAI, the definition of intangible asset and trade mark specifically includes brand names.It was held by the Hon’ble Mumbai Tribunal that brand is an intangible asset eligible for depreciation under Section 32 of the Act....

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No disallowance under rule 8D(2)(ii) r.w. sec. 14A in absence of diversion of interest bearing funds

DCIT Vs SIL Investment Ltd. & Vice-Versa (ITAT Delhi)

In the present case As assessee had established nexus of interest expenses with its main activity of financing and there was not a single amount of interest bearing borrowings which could be related with investment which yielded tax-free dividend income, no disallowance under rule 8D(2)(ii) was called for. AO was directed to compute disal...

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Reopening for non-disclosure of S. 14A disallowance calculation method is invalid

The Nainital Bank Ltd. Vs Asstt. (ITAT Delhi)

The Nainital Bank Ltd.  Vs Asstt. (ITAT Delhi) When the assessee furnished all the facts and figures including the earning of the tax free income and the expenditure which was accepted by the learned AO, it is not open for the AO to say that the income escaped assessment because assessee did not reveal the […]...

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Prompt investigation in fresh series of cases pertaining to ‘Panama Papers’

The fresh release made in the media today under ‘Panama Paper Leaks’ is being promptly looked into by the law enforcement agencies under the aegis of the Multi Agency Group (MAG) already constituted for facilitating coordinated and speedy investigation. ...

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Posted Under: Income Tax |

Only those goods can be detained in respect of which there is a violation of GST Law

Circular No. 49/23/2018-GST (21/06/2018)

Further, it is clarified that only such goods and/or conveyances should be detained/confiscated in respect of which there is a violation of the provisions of the GST Acts or the rules made thereunder....

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Penalty U/s. 272A (2)(k) cannot be imposed for a mere technical venial breach

The New India Assurance Co. Ltd. Vs JCIT (ITAT Kolkata)

Explanation offered by the assessee would constitute ‘reasonable cause’ within the meaning of section 273B of the Act and hence the assessee would be entitled for immunity from levy of penalty u/s 272A(2)(k) of the Act. ...

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S. 69C Bogus Purchases: Right of cross-examination is not absolute

Soman Sun Citi Vs JT. CIT (ITAT Mumbai)

This appeal, filed by the assesseee, being ITA No. 2960/Mum/2016, is directed against the appellate order dated 16.02.2016 passed by learned Commissioner of Income Tax (Appeals)-3, Thane (hereinafter called the CIT(A)), for assessment year 2011-12, appellate proceedings had arisen before learned CIT(A) from the assessment order dated 25.0...

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What actually happened in PNB scam?

What actually happened in PNB scam? Let’s start from the concept. First, Let’s understand how things work. Some importer, let’s call him Nirav Modi or NM, wants to import pearls or diamonds and then sell them. The purchase requires money, so NM approaches a bank, say Punjab National Bank (PNB). PNB says look, I’ll give […]...

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Posted Under: Income Tax |

Payment by firm to ex-partners or to spouses of deceased partners cannot be treated as application of money

The Astt. CIT-11(2) Vs. M/s. Deloitte Haskins & Sells (ITAT Mumbai)

Granting tax relief to Deloitte India, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) held that the provisions relating to Tax deduction at Source (TDS) are not applicable to the professional fee paid by them to its Group Entities in US and Singapore....

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Discussion Paper- Discharge from Responsibility as IRP, RP or Liquidator

IBBI releases Discussion Paper on Discharge from Responsibility as Interim Resolution Professional, Resolution Professional or Liquidator of the Corporate Processes under the Code for comments...

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Posted Under: Income Tax |