The Bombay High Court held that a corporate guarantee cannot be equated with a bank guarantee and upheld a 0.5% guarantee commission rate. The Court rejected the Revenue’s challenge to the 3% rate adopted by the Transfer Pricing Officer.
The article explains how residential status under the Income-tax Act and FEMA impacts taxation, foreign income reporting, business connections, and cross-border transactions.
The Karnataka High Court condoned the delay in filing appeals after noting that the issue relating to contributions under Section 57(2A) of the KCS Act had remained unresolved for over a decade. The Court also directed the CIT (Appeals) to decide the remanded matter within four months.
The Karnataka High Court held that a Magistrate conducting recovery proceedings under the KVAT Act has no authority to determine the validity of statutory ‘H’ Forms. The Court directed the taxpayer to approach the Assessing Authority instead.
ITAT Ahmedabad upheld reassessment proceedings after finding that seized diaries recorded unaccounted cash transactions exceeding prescribed limits. The Tribunal held that statutory conditions for reopening were satisfied.
The Allahabad High Court quashed a reassessment after finding that the Section 148 notice was based on an incorrect allegation of property sale. The Court held that reopening requires bona fide reasons supported by relevant material.
The Income-tax Act provides presumptive taxation schemes under Sections 44AD, 44ADA, and 44AE to reduce compliance burdens by allowing eligible businesses and professionals to declare income at prescribed rates. The key takeaway is that taxpayers opting for these schemes can avoid maintaining detailed books of account and tax audits, subject to specified eligibility conditions and turnover thresholds.
ESG initiatives create greater value when linked to financial measurement and operational decisions. Integrating costing with sustainability enables organizations to improve both profitability and ESG performance.
The DPDP Act places direct responsibility on professionals handling client information to implement encryption, access controls, and privacy safeguards. Failure to comply may lead to substantial financial penalties.
Failure to file ITRs can result in interest, late fees, loss of refunds, and missed tax benefits. Beyond taxation, it may also affect financial credibility and access to credit.
