S. 271(1)(c): The giving up of a bogus claim for deduction to eschew inquiry by AO/ TPO is not voluntary & bona fide & attracts levy of penalty

Deloitte Consulting India Pvt. Ltd vs. ACIT (ITAT Mumbai)

 

The assessee entered into a software development service agreement with Deloitte Consulting, USA (“Deloitte”), to provide software related services to Deloitte. Deloitte enters into consulting assignments with its US clients. For such assignments, the areas pertaining to software development and information technology services are provided by the assessee. The assessee’s income was

Faq’s on NRI Income tax for AY 2014-15

Q) Who is NRI as per Income Tax Act?

A) Residential status of an individual or HUF or a company is of great importance in Indian Income Tax Act as the liability to pay tax in India does not depend on the nationality or domicile of the Tax payer but on his residential status. Residential Status is determined on the basis of physical presence i.e. the number of days of stay in India in any year.

IT OMBUDSMAN: - SIMPLIFIED WAY TO RESOVE COMPLAINTS AGAINST IT DEPARTMENT.

Late receipt of refund vouchers, getting envelop with the intimation of refunds with refunds vouchers, Breaking the FIFO method in issuing the refunds, rude and unwarranted behavior of IT officials, non disclosures of reasons of taking up the case for Scrutiny etc. are the common

Registration of hypothecation of Motor Vehicles under Companies Act, 2013

Introduction
Hypothecation is a method of creation of security of movable property. However, the goods so hypothecated continue to be in the possession of the owner, that is the borrower. Hence, it is a way of creating security without delivery of title or possession and as in the literal sense of term, the lender is ‘hypothetically’ in control of the property.
The only point of distinction between pledge and hypothecation is that in case of pledge, the beneficial possession of goods is transferred to the lender whereas in hypothecation, possession remains with the

REGISTER OF DEBENTURE HOLDERS OR ANY OTHER SECURITY HOLDERS

Every company shall keep a register of register of debenture – holders and Register of any other security holders in accordance with Section 88(1) of the Companies Act, 2013. Rule 4 of the Companies (Management and Administration) Rules 2014 discuss the particulars in the register of debenture – holders and register of any other security holders. Every company which issues or allots debentures or any other

Whether value of property declared by assessee-seller before Settlement Commission would bind the purchasers - NO: HC

 THE issues before the Bench are - Whether the value declared before the Settlement Commission by the seller of the property can bind the purchasers and whether when the purchaser of the property declares the difference between the value of the property and the amount shown in its return of income before the Settlement Commission, the same amounts to concealment of income. And the verdict goes against the Revenue.

Arranging 'Supply of Tangible goods service' for use at the job worker's premises and bears the incidence of Service Tax – whether Cenvat allowed?

LARSEN & TOUBRO LTD Vs CCE (MUMBAI CESTAT) (Appeal no. E/86264/14-Mum)

Facts:

The appellant, M/s Larsen & Toubro Ltd. under Rule 14 of the CENVAT Credit Rules, 2004 being ineligible CENVAT credit amount taken. The credit taken pertains to the supply of tangible goods for use at the job workers premises. Appellant submitted that the supply relates to material handling equipments and diesel generator sets for handling of the raw materials and finished products and manufacturing activities. The appellant had

Cochin Tribunal rules no disallowance of expense for not withholding taxes as payment became taxable on account of amendments made subsequently with retrospective effect

This Tax Alert summarizes a recent ruling of the Cochin Income Tax Appellate Tribunal (Tribunal) in the case of M/s. Kerala Vision Ltd. (Taxpayer) on the issue of disallowance of expense on account of not withholding taxes on payment which became chargeable to tax in the hands of the recipient due to retrospective amendments in the Indian Tax Laws (ITL).

The Taxpayer, which was engaged in the business of distributing cable signals, made payments to channel companies, without withholding tax at source. The Tax Authority disallowed the said payment expenses in the hands of the Taxpayer, contending the same to be in the nature of “royalty” and, hence, liable to tax at source.

The Tribunal held that the Taxpayer cannot be held liable to withhold tax on account of subsequent amendments made in the ITL with

Communications from CPC(TDS)

Dear Professional Colleague,

Re: Communications from CPC(TDS)
As you may be kindly aware, the Direct Taxes Committee of ICAI, has in all its endeavors, tried to strengthen the relationship between the taxpayers and the Department by submitting representations on various issues arising out of direct tax laws.

One of the important areas where issues are being faced by the assessees is TDS. The issues reported to ICAI are being regularly taken up with the appropriate authorities. During the course of one such meeting with CPC(TDS), it was informed to ICAI that majority of the issues can be resolved if the communications sent by CPC(TDS) at the registered id of the deductors receive their due attention. Since majority of the TDS returns are filed through our members, ICAI consented to bring the aforesaid communications to the notice of its members.

Meaning, Formation, Taxation, Membership and Partition of HUF

The Hindu Undivided Family can best be defined as a family that consists of a common ancestor and all his lineal male descendants and their wives and unmarried daughters. The Hindu Undivided Family (HUF) cannot be created by acts of any party. The only exceptions are in the case of an adoption or a marriage when a stranger may become a HUF member. An undivided family, which is a normal condition of Hindu society, is ordinarily joint, not only in estate but also in food and worship.

A HUF is a separate entity for taxation under the provisions of S.2 (31) of the Income Tax Act, 1961. This

Cost of Inflation Index

Cost of Inflation Index

Cost Inflation Index for FY  2014-15 announced at 1024 vide notification mo. 31/2014 dated 11-6-2014.
 

Financial Year	Cost of Inflation Index (CII)
1981 - 82	100
1982 - 83	109
1983 - 84	116
1984 - 85	125
1985 - 86	133
1986 - 87	140

REGISTER OF MEMBERS

Every company shall keep a register of members in accordance with Section 88(1) of the Companies Act, 2013. Rule 3 of the Companies (Management and Administration) Rules 2014 discuss the particulars in the register of members.

Every company Limited by shares shall from the date of its registration maintain a register of its member in Form MGT – 1. [Rule 3(1)]

GOOD NEWS FOR CS

Ministry of Corporate Affairs has made it compulsory vide notification No. G.S.R. 390(E) dated 09.06.2014 for A company other than a company covered under rule 8 which has a paid up share capital of five crore rupees or more shall have a whole-time company secretary. Extract of Rule- 8 is as follows :-

8. Appointment of Key Managerial Personnel.-

Every listed company and every other public company having a paid-up share capital of ten crore rupees or more shall have whole-time key managerial personnel.

Related Notification is as follows :-

India-Liechtenstein Tax info exchange agreement wef 01.04.2013 as notified by CBDT.

Notification No. 30/2014 , Dated 6-6-2014

Whereas, an agreement (hereinafter referred to as the said agreement) between the Government of the Republic of India and the Government of the Principality of Liechtenstein, for the exchange of information on tax matters was signed at Berne, Switzerland on the 28th day of March, 2013;

2 .And whereas, the date of entry into force of the said agreement is the 20th of January, 20014, being one

Whether for purpose of determining time-frame for completion of assessment, date on which requisition u/s 132A is made, is irrelevant - YES: HC

THE issue before the Bench is - Whether for the purpose of determining the time frame for completion of the assessment proceedings, the date on which the requisition under Section 132A is made, would not be material and the time period must run from the date when AO is in a position to proceed with the assessment proceedings and conclude the same. And the verdict goes in favour of the assessee.

Facts of the case

Understanding Tax impact of AMP under Indian Transfer Pricing.

Income earned from intangible property is one of the most challenging issues in Transfer Pricing (TP), more so in the context of India and its growing economy. More often than not, the transactions pertaining to intangible property are between Associated Enterprises (AEs) and hence the challenges to ensure that such transactions reflect arm’s length dealings.

Provision for Expenses - Allowable expenditure

We have to make provision for various expenses based on the estimates at the year end as we are following the accrual system of accounting. But the income tax department was disallowing the same on the ground that same being contingent in nature and hence not allowable. Here are some of the

Return in respect of buyback of Securities.

 The Return shall be filed in Form SH – 11.

The return need following particulars:

1. Income Tax permanent Account Number of company
2. Whether company is listed, name of stock exchange and date of Listing
3. Name of the Merchant Banker appointed by the company
4. Details of paid –up capital as per latest audited balance sheet

Must Check Common Deductions and Exemptions before Filing of ITR for Asstt. Year 2014-15

E-filing of tax returns has grown manifold in the past 6 years. In 2007-8, less than 22 lakh taxpayers filed their returns online. Last year, more than 2.15 crore taxpayers took the online route. The end of the current financial year is still more than 3 months away but e-returns have already crossed the 2 crore mark. The surge is also due to the new rule that requires taxpayers with an annual income of Rs 5 lakh to file their tax return online.

CBDT Releases ITR-3 (Income Tax Return Utility) for AY 2014-15

ITR 3 – For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship – Income Tax Department has released ITR-3 (Income Tax Return Utility) for Assessment Year 2014-15 for e-filing of Income Tax Returns. ITR-3 for Assessment Year 2014-15 has been released by CBDT vide Notification No. 28/2014, Dated- 30th day of May, 2014.

Link to Download ITR-3 (Income Tax Return Utility) for Assessment Year 2014-15

https://incometaxindiaefiling.gov.in/e-Filing/