Whether when assessee engaged in trading of shares incurs expenses on unsecured loan and utilises same for buying shares for investment, such expenses are allowable as per Sec 36(1)(iii) - YES: HC

THE issue before the Bench is - Whether when assessee engaged in trading of shares incurs expenses on unsecured loan and utilises same for buying shares for investment, such expenses are allowable as per Sec 36(1)(iii). YES is the answer.

Facts of the case

The assessee concern was dealing in trading of shares. It was depicted in the order of Tribunal that as per clauses of memorandum, the company was authorised for investment and dealing.

IAS 28 Investments in Associates Overview

Investments in Associates Overview

The objective is:

• to prescribe the accounting for investments in associates, and
• to set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

IAS 28 is applied by all entities that are investors with joint control of, or significant influence over, an investee, but not to venture capital organisations or mutual funds, unit trusts or similar entities that upon initial recognition designate them at fair value through profit and loss or as held for trading

Hyderabad Tribunal rules on transfer pricing aspects of corporate guarantee

Executive summary

This Tax Alert summarizes a recent ruling of Hyderabad Income Tax Appellate Tribunal (ITAT) in the case of Four Soft Pvt Ltd, Hyderabad (Taxpayer) [TS-104-ITAT-2014(HYD)-TP]¹ on transfer pricing (TP) issues arising from the issuance of a corporate guarantee to banks in favor of associated enterprises (AEs). The Taxpayer, an Indian company, provided a guarantee to a third party bank on behalf of its foreign subsidiary. The Taxpayer did not charge its subsidiary a guarantee fee for provision of such corporate guarantee. During audit proceedings, the Transfer Pricing Officer (TPO)

SIN 142 under US GAAP.

Rules of SFAS No. 142, June 2001

Statement of Financial Accounting Standards (SFAS) No. 142        a.  Goodwill and Other Intangible Assets        b.  Issued in June 2001        c.  Supersedes APB Opinion No. 17, "Intangible Assets".

TAX PLANNING THROUGH PPF

	HOW TO OPEN A PPF ACCOUNT :
	A Public Provident Fund Account can be opened in a branch of State Bank of India or its subsidiaries and also at specified branches of other nationalised banks. It can also be opened at any Head Post Office or specified Sub-Post Offices. The account can be opened by :
	-	an adult individual in his/her own name or
	-	a guardian on behalf of a minor or
	-	karta or any member on behalf of HUF.

Sec 2(22)e is not attracted on Security deposit made in normal course of business

CIT Vs. M/s Atul Engineering Udyog (Allahabad High Court ), Income Tax Appeal No.223 Of 2011, Dated:26.9.2014
From a reading of Section 2(22)(e) of the Act, it is apparent that it has the effect of bringing to tax as dividend where any payment of any sum is made by way of advance or loan to a shareholder in which a shareholder holds a substantial interest or any payment is made on behalf of a shareholder or any payment is made for the individual benefit of a shareholder. Any of the above three conditions would

Whether when assessee revises return after being confronted by AO but before issue of notice for filing accurate particulars, penalty is warranted in such a case - YES: HC

THE issue before the Bench is - Whether when assessee revises return after being confronted by AO but before issue of notice for filing accurate particulars, penalty is warranted in such a case. YES is the answer of the High Court.

Facts of the case

The assessee company had gone into liquidation and the Official Liquidator had been appointed.

Whether sum paid for transfer of contractual obligation to sister concern, nomenclatured as commission is allowable u/s 37(1) as normal business expenditure - NO, rules Supreme Court

THE issues before the Bench are - Whether the sum paid for transfer of contractual obligation to its sister concern, nomenclatured as commission is allowable u/s 37(1) as a normal business expenditure and Whether expenditure incurred for rendering benefit to a particular director of the assessee company can be allowed as a business promotion expenses. And the verdict goes in favour of assessee.

Facts of the case

Penalty set aside - mass ignorance amongst service providers to include the value- bonafide conduct of the assessee.

H.M. Singh & Co. vs, Commissioner of Central Excise, Customs & Service Tax. [2014] 49 taxmano.com 417 (Allahabad)

 FACTS:

The assessee was engaged in providing taxable service of manpower recruitment and supply agency service. The assessee did not include provident fund payments received from service receiver in relation to manpower supplied to it, in the taxable value of services. The Department

Countrywise Withholding tax rates / Chart as per DTAA

A person responsible for making payment to non-resident or foreign company is required to withhold tax. Tax is deductible at the rates prescribed under the Act or under the relevant DTAA, whichever is more beneficial for non-resident. This write up provides all such rates as prescribed under various

CPC (TDS) issued Notice regarding Default TDS Return or Statements

Before two months CPC (TDS) team send consolidated default Notices to TDS Deductors regarding Short Payment, Late Deductions, Late Payment and Late Filing Interest from Fin. Year 2007-2008.  Financial year wise details of defaults are available online to you on TRACES (www.tdscpc.gov.in) under aggregated TAN compliance(www.tdscpc.gov.in/app/tap/supertanreq.xhtml)

Order u/s 201/ Intimation u/s 200A of the Income Tax Act, 1961 intimating the outstanding demand for different years have already been sent by Income Tax Department on Registered email address

Intimation for Outstanding TDS demand from Fin. Year 2007-08 by CPC (TDS)

Recently, CPC (TDS) has intimated to all TDS Deductors for outstanding TDS Demands from Fin. Year 2008-08 and onwards.  This intimation is issed u/s. 154 read with section 200A of the Income Tax Act, 1961 which is as under:

As per the records of the Centralized Processing Cell (TDS), there is an outstanding demand in different years from 2007-08 onwards on account of defaults identified in TDS statements. Table

Whether if remission of liability is made pursuant to premature repayment of loan, such remitted sum can be treated as income - NO: HC

THE issue before the Bench is - Whether if the remission of a liability is made pursuant to "premature repayment of loan", such remitted amount can be considered as a receipt on account of revenue. NO is the answer.

Facts of the case

The assessee M/s. Sulzer India Ltd. filed return of income for AY 2003-04 declaring total income at Rs.10,59,76,986/-, claiming deduction u/s 80HHC for the sum of Rs.82,48,864/-. During assessment, AO observed that the Assessee had credited amount of Rs.4,14,87,985/ to the capital reserve contending that the said amount was a remission of loan liability. The Assessee stated that under the Industrial Backward Area Scheme of the Government of Maharashtra, it was entitled to defer the Sales Tax liability for a period of 7 years under the Deferral Scheme of

NOTIFICATION No. 23/2014-SERVICE TAX

New Delhi, the 5^th December, 2014

14 Agrahayana, 1936 Saka

G.S.R.    (E).-    In exercise of the powers conferred by clause (k) of sub-section (2), read with sub-section (1) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules furtherto amend the Service Tax Rules, 1994,  namely:-

Understanding Penalty under Income tax with latest case laws – Part –II.

Now a days, in case of any addition whether justified or unjustified, the Income tax department in parallel initiated penalty proceedings on the taxpayer. Hence it is very important to deal with this penalty proceedings at the assessment stage only for the benefit of taxpayer. In this respect, given below few recent judgments which enable yourself to deal with penalty proceedings in the tax department.

Four Imp Verdicts On Controversial Topics

M/s. Nandini Delux vs. ACIT (ITAT Bangalore)

(i) S. 153A: Even in non-pending assessments where no incriminating material is found, AO is not limited to assessing “undisclosed” income, (ii) revenue expenditure on leased premises is not hit by sub-section (1A) to s. 32 or Explanation 1 to s. 32, (iii) Even income voluntarily disclosed in search is liable for 2. 234B/C interest
(i) The circumstance where proceedings are not pending and no incriminating material is found in the course of search has been left unanswered by the Delhi High Court in Anil Kumar Bhatia 352 ITR 493 (Del). In this case, the Court has held that even if the assessment order has been passed in respect of […]

CPC (TDS) advice to Government TDS Deductors for "Mismatch in BIN" in TDS Statements.

CPC (TDS) Team has found "Mismatch in BIN" in TDS Return which are submitted by Government Deductor.  Therefore, CPC (TDS) advised to Government TDS Deductors and communicated regarding "Mismatch in BIN" reported in TDS Return/Statement on 05th December, 2014 which is as under:

Whether when two of most important ingredients of sale such as receipt and delivery of possession are missing, there cannot be transfer of capital asset either under TPA or u/s 2(47) of I-T Act: ITAT

THE issue before the Bench is - Whether when two of the most important ingredients of sale/ transfer viz., receipt of sale consideration and delivery of possession are missing, there cannot be a transfer of capital asset either under the Transfer of Property Act or under section 2(47) of the IT Act. And the verdict goes in favour of the assessee.

Facts of the case

New window as "Taxpayer's Corner" by TIN-NSDL, what to Do's or Don'ts Taxpayer's ?

The Taxpayer’s Corner is a one stop information center for the Taxpayer. All important steps/procedures with respect to payment of taxes are available here.

CPC (TDS) : Online resolution of ‘Short Payment default’ on account of unmatched challans

We are glad to inform that the Online Correction functionality provided by CPC (TDS) has been availed by a large number of deductors for the purpose of carrying out corrections and over 2 Lakh Online Corrections have been submitted. The corrections include resolution of Short Payment Defaults that relate with unmatched challans. You are informed that TRACES enables Online resolution of “Short Payment default” on account of unmatched challans. The deductor has an online view of all available unconsumed challans, which can be tagged with unmatched challans, to