It may be noted that initially transactions relating to securitization and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by banks and financial institutions, as defined under the SARFAESI Act, are to be registered in the Central Registry. The records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property. Availability of such records would prevent frauds involving multiple lending against the security of same property as well as fraudulent sale of property without disclosing the security interest over such property. It may be noted that under the provisions of Section 23 of the SARFAESI Act , particulars of any charge creating security interest over property is required to be filed with the Registry within 30 days from the date of creation.
The Supreme Court today banned the employment of children in circuses and directed the government to rescue children employed in the sector and formulate a rehabilitation programme for them. A bench headed by Justice Dalveer Bhandari said that in order to protect the fundamental rights of children, it is imperative that the government issues notification to prohibit employment of children in this sector.
Siemens Aktiencesellschaft v. DCIT – ITAT Mumbai held that royalty received by the taxpayer was in pursuance to agreement entered into before 1976 and therefore not covered under Section 1 15A of the Act. The Tribunal has meticulously examined concepts such as novation/recession/modification and alteration as provided in the Contract Act to analyse the substance of the agreement and in conclusion rule that the 1981 agreement was an extension of 1974 agreement.
A top Income Tax official has said that the diamond trade has one of the highest prevalence of black money, with investigations revealing that books in the sector are “completely manufactured”. “(In) certain areas like real estate or diamond trade there is a lot of circulation of black money…but in the case of diamond merchants, the books are completely manufactured,” Director General of Income Tax (Investigations) B P Gaur told reporters here late last evening.
Finance Ministry is likely to finalise the proposed changes in the takeover code on mergers and acquisitions after a meeting with industry and other stakeholders tomorrow. The Takeover Regulations Advisory Committee chaired by Chief Economic Advisor Kaushik Basu will discuss the amendments in the code as proposed by the C Achuthan headed Sebi panel, a Finance Ministry official said.
In a significant order, the Bombay High Court has held that the Union Government cannot ban exports of any product with retrospective effect, while allowing a private company to go ahead with exports of milk powder. It also said that such restriction cannot be applied to concluded contracts where letters of credit were opened prior to the imposition of the ban.
The Supreme Court will decide whether the interest paid on overdues to the Department of Telecom (DoT) can be treated as operating expenditure by operators. A three-judge bench has admitted a petition filed by Vodafone Essar Gujarat and decided to adjudicate whether such interest could be treated as operating expenditure.
CIRCULAR NO 135/4/2011-ST – The existing Service Tax Audit Manual has been in use since 2003. With experience gained while conducting audits and rapid change in service tax law over the years, growth in service tax categories, assessee base as well as revenue, a need was felt to update the manual. The Board had set up a Working Group in 2009. The manual prepared by the Working Group was discussed in Board meetings for considering the various amendments and proposals to be included in the manual. The Board has since approved the Service Tax Audit Manual 2011 and will be circulated by the Directorate General of Audit. All Service Tax audits should henceforth be carried out in accordance with the principles laid down in the said Manual and the extant prevalent instructions. This Manual is for the use of departmental officers only.
Terming cooperatives as one of the strongest pillars of Indian agriculture, Farm Minister Sharad Pawar today said he has asked Finance Minister Pranab Mukherjee to consider income tax exemption to Indian cooperatives. “I have written a letter to the Finance Minister to look into the issue of I-T exemption to cooperative societies,” Pawar said at a national level meeting with the state cooperative ministers here.
The income tax department will soon post 10 of its officers in tax haven nations to collect information about alleged tax evasion by Indians from these countries, an official in the finance ministry said. Concerns have been raised in the recent past over suspicion of round tripping or routing of Indians’ illicit money back into the country through tax havens.
