"07 February 2019" Archive

Standards On Internal Audit – A Bird’s Eye View

The Internal Audit Standard Board of the ICAI has, with other pronouncements, issued five Standards on Internal Audit (SIAs) in November 2018. The SIAs are a set of minimum requirements that apply to all members of the ICAI while performing internal audit of any entity or body corporate. However these are not mandatory to be undertaken ...

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Posted Under: CA, CS, CMA |

Cabinet Approves Abolition of Institution of Income-Tax & Indirect Tax Ombudsman

Union Cabinet chaired by PM Narendra Modi has approved the proposal for Abolition of Institution of Income-Tax Ombudsman and Indirect Tax Ombudsman....

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Posted Under: CA, CS, CMA |

Cash payment cannot be disallowed if not claimed as business expense or capitalized

Kalyan Constructions Vs ITO (ITAT Hyderabad)

Kalyan Constructions Vs ITO (ITAT Hyderabad) Where assessee had not claimed cash payment of Rs. 1.50 crores for purchase of land as business expenditure or treated as stock or capitalized the same in order to claim depreciation in the future, disallowance under section 40A(3) could not be made. FULL TEXT OF THE ITAT JUDGMENT This [&hellip...

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Receipt of share capital cannot be added when assessee filed all necessary details

Deputy Commissioner of Income Tax Vs Gyscoal Alloys Ltd. (ITAT Ahmedabad)

DCIT Vs Gyscoal Alloys Ltd. (ITAT Ahmedabad) Assessee had received share capital along with premium from its group concern and to prove the same, assessee had filed all the necessary details such as share applicants PAN card, audited accounts, income tax returns, confirmation, Demat statements, Inspectors inquiry report, copy of ledger ac...

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Detention of goods pending adjudication of assessment

Seyadu Beedi Company Vs Asstt. Tax Officer (Intelligence), State Tax Officer (Intelligence) & Ors. (High Court Kerala)

Seyadu Beedi Company Vs Asstt. Tax Officer (Intelligence), State Tax Officer (Intelligence) & Ors. (High Court Kerala) An identical matter has been disposed in W.A.No.1802 of 2017, directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of Rule 140(...

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Checklist For Name Restoration of Companies whose name Are Struck Off From ROC

Procedural Checklist For Name Restoration Of Companies Whose Name Are Struck Off From ROC √ Applicable Act: The Companies Act 2013 √ Applicable Rule: The National Company Law Tribunal Rules, 2016 read with The National Company Law Tribunal (Amendment) Rules 2017 √ Applicable Sections under Companies Act 2013 – Section 248 (Power o...

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Posted Under: CA, CS, CMA |

A discussion on Deferred tax asset and Deferred tax liability

Background- There are differences in profit calculated by a business entity in its books and income calculated as per income tax act. We pay tax as per income calculated as per income tax act. There are 2 types of differences- 1) Permanent differences These are differences between our accounting income and taxable income that originate [&...

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Posted Under: CA, CS, CMA |

Disallowance of purchases in cash justified when banking channels were available

Madhav Govind Dhulshete Vs ITO (Bombay High Court)

Madhav Govind Dhulshete Vs ITO (Bombay High Court) Section 40A is inserted in Income Tax Act with an aim and object to discourage payment of money in cash beyond a certain limit. That is to encourage cheque transactions and banking operations. Thus, in these circumstances, Assessing Officer is correct in making disallowance of  Rs. 36,16...

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Debit Notes in GST Law

Debit Notes in GST is an altogether different concept from the earlier practices. Under the GST Law, the debit note or a supplementary invoice is a convenient and legal method by which the value of the goods or services in the original tax invoice can be enhanced. Background As per GST Law, a supplier of […]...

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Posted Under: CA, CS, CMA |

Special Audit reference U/s. 142(2A) without application of mind is invalid

Consulting Engineering Services India Pvt. Ltd. Vs ACIT (ITAT Delhi)

Consulting Engineering Services India Pvt. Ltd. Vs ACIT (ITAT Delhi) It is true that noticed dated 21.11.2011 was for both the A.Ys i.e. 2008-09 and 2009-10. However, each A.Y is considered to be a separate unit and, therefore, for each A.Y, the Assessing Officer must bring out his case. A perusal of the said notice, […]...

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