Its known to all that the law of amalgamation, mergers & acquisition is little bit complicated and cumbersome. In this write-up an attempt is made to ease the law to reach the readers and to highlight the beauty of the relevant legal provisions.
Basically what the provisions of service tax contained in finance act 1994 lack was the definition of service. What the service actually is? Answer to this question has also became important because now all the services are being taxable except those which has been provided in negative list or are being specifically exempted by way […]
The provisions of Rent Control Act can be applied only in case of bonafide letting out of properties and not in case of colourable transactions which are only an arrangement to reduce tax liability. In this case the company had let out the property to the daughter of the director who controlled the company and is responsible for taking all decisions Instead of letting out the property at market rate which is very high, the director had let out property to her daughter at a very low rent, obviously to reduce tax liabilities. Therefore, in our view, the provisions of Rent Control Act can not be applied to such arrangements.
Moment the commercial surcharge is recovered irrespective of the provisions of the agreement entered into by and between the landlord and tenant it immediately become exigible to tax as rental income from house property for agreement binds the parties thereto and it becomes irrelevant the moment it is found to be in conflict with legal provision on the subject.
The assessee’s prime grievance is the non-examination by the Assessing Officer of the material adduced before Commissioner (Appeals) for the first time. At the same time, there has been, without doubt, a clear violation of rule 46A. The question of consideration of the additional evidence/s by the Commissioner (Appeals) comes only subsequent to first qualifying for admission in terms of rule 46A, which is mandatory in nature.
The CBDT has taken serious view of non-filers (of tax deducted at source) and has incorporated a new section 234E in the Act which levies a fee of Rs 200 for everyday of delay and the system does not accept the TDS statement until the delay fee has been paid
Some machinery and equipment relating to the construction of the projects were not actually put to use, though they were kept ready for use and this factual position is not in dispute.
In Item No. 1 of the list of articles or thing in Schedule XI, the items include beer, wine and other alcoholic spirits. The percentage of alcohol in the spirits is not given. With the same object the percentage of tobacco is also not given in ‘tobacco preparation’.
Section 44BB is a special provision for computing the profits and gains of a non-resident in connection with the business of providing services or facilities in connection with, or supplying plant and machinery on hire, used or to be used, in the prospecting for, or extraction or production of mineral oils including petroleum and natural gas. Section 44DA is also a provision which applies to non-residents only.
Section 37(2) inter alia provided for disallowance of entertainment expenses. The said provision has been omitted with effect from 01.04.1998. The fact of this omission is that from assessment year 1998-99 no disallowance in respect of entertainment can be made if the expenses are otherwise incurred for the business purposes.
