Seven Important Judgements On Core And Controversial Issues

Sardar Balbir Singh vs. ITO (ITAT Lucknow)

S. 147/ 151: Sanction of CIT instead of JCIT renders reopening void. The error cannot be saved u/s 292BB
Since the approval was not obtained from the competent authority, notice issued under section 148 of the Act is void ab-initio and the assessment framed consequent thereto is not a valid assessment. The error is fatal and cannot be saved under section 292BB
 

How to surrender extra / Additional PAN Online / Manually?

An assessee may have been allotted multiplePAN Card. The multiple PAN card may havebeen allotted to the Assessee for many reasons i.e. He may have applied multiple times for allotment of PAN and every time he has been allotted a PAN card or may haveinadvertently allowed multiple PAN card byIncome tax Department , NSDL or UTI. Assessee who have more than one PAN should immediately Apply for surrender of additional PAN number(s) allotted to them as having more than one PAN may make them liable to a penalty of Rs. 10,000/-

Introduction to IND AS

Purpose

• Sets out the concepts for preparation and presentation of financial statements in accordance with IND AS
• Assist in development of future Indian Accounting Standards and review the existing
• Assist in promoting harmonization of regulations, AS and procedures relating to presentation of IND AS

S. 92C:Transfer pricing - Arms’ length price –Comparables and adjustments.[S.92CA]

 

The assessee was engaged in the export of network security and administrative software solutions  which were developed exclusively for its parent company (BDC).For purpose of determining the  Arm's Length Price, the assessee selected 11 comparables and determined the Average Arithmetic  Mean at 10.30%.Since the mean operating profit/Total cost of comparable companies was less than  the OP/TC of 12.90% of the assessee, it was claimed that its international transaction relating to software development services was at Arm's Length Price.

Latest e-Tutorial for Online Correction of unmatched Challans & Quarterly TDS Statement.

CPC (TDS) has been issued a new notification recently with new features to correct e-TDS/TCS Return along with unmatched Challans.  CPC (TDS) has found Short Payment Defaults in quarterly TDS Statements due to Unmatched Challans and thus they further enhanced the Online Correction facility at TRACES, providing you with the feature of "Move Deductees" from Unmatched Challans to any other Unconsumed OLTAS Challan.  To facilitate closure of Short Payments due to Unmatched Challans, CPC(TDS) has further improved the intelligence, simplicity and convenience of Online Correction feature.

Appointment of Women Directors by listed companies before March 31, 2015.

Appointment of Women Directors – compliance with clause 49 (II) (A) (1) of Listing agreement and Section 149 of Companies Act, 2013 As you are well aware that SEBI vide its circular dated 17th April, 2014 has made it mandatory for all the listed companies to appoint atleast one Woman Director on their Board of Directors by 31st March, 2015 in alignment with the requirement of Section 149 of the Companies Act, 2013, under corporate governance norms. With just 10 days left to meet the

INTRODUCTION OF THE UNDISCLOSED FOREIGN INCOME AND ASSETS (IMPOSITION OF TAX) BILL, 2015

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi

Dated: 20th March, 2015

PRESS RELEASE

INTRODUCTION OF THE UNDISCLOSED FOREIGN INCOME AND ASSETS (IMPOSITION OF TAX) BILL, 2015

ST on Advances received before Tax rate increases

BUDGET 2015-16 has proposed an Increase in the rate of service tax from 12% to 14% and abolishment of Education cess & Secondary & Higher Secondary education cess and new Swachh Bharat cess of 2% to increase Service Tax rate from present 12.36% to 16%.
The rate of Service Tax is being increased from 12% to 14% & like Excise Duty now there will not be any cess on Service Tax, from a date yet to be notified. Notification for change in rate of service tax and cess is still awaited.

Extended credit period to AE attracts TP adjustment

M/s Goldstar Jewellery Limited (ITAT Mumbai), Appeal No. 6570 of 2012 , Date of pronouncement- 14.01.2015

Context: The amendment made by Finance Act 2012 (‘FA 2012′) by way of explanation to Sec. 92B w.r.e.f. 1 April 2002 included many transactions in the definition of international transaction for Transfer Pricing (‘TP’) purpose. In this case, the ITAT ruled that extended credit period allowed to the Associated Enterprises (‘AE’) amounted to short term funding without interest and thus attracted

Capital Gains - some issues

INTRODUCTION

The concept of Capital gains needs a thorough study and interpretation to understand and apply them practically. Hence, the issues on capital gains are mostly concept oriented and often vary on the interpretation between different cases. However, the following basic questions are to be answered

Whether once habitable asset is acquired, any expenditure incurred on additions or improvements of habitable asset is eligible for deduction u/s 54F - YES: HC

THE issue before the Bench is - Whether any addition or improvements made on a habitable asset acquired by the assessee is eligible for the benefit u/s 54F. YES is the answer.

Facts of the case

The assessee an individual, was owner of an immovable property in Bangalore. Upon sale of the property, the assessee received a sum towards her share as a co-owner. The assessee declared a capital gain of Rs 34,31,912/-. She claimed exemption u/s 54F as she had invested the said amount in purchase of another property. The assessment was processed, but later on a notice u/s 148 was issued on 24.11.2006 calling upon her to show-cause as to why the return of Income should be revised, as the income declared under the head capital gains was not correct. The assessee had claimed the fair market value as on 01.04.1981 at Rs.280/- per sq. ft.

Detaied note on section 14A.

1. Section 14A was first inserted by the Finance Act, 2001. However, same was inserted with retrospective effect from 1-4-1962. The inserted section reads as under:—

’14A. Expenditure incurred in relation to income not includible in total income.—For the purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act.’

Purpose for which the section was introduced, and given in the explanatory memorandum issued with the Finance Bill, 2001, reads as under:—

‘Certain incomes are not includible while computing the total income as these are exempt under

Commissioner of central Excise Allahabad vs. amitdeep motors

 [2014] 50 taxmann.com 435(New Delhi – CESTAT)

The hon’ble Delhi tribunal held that it is an accepted fact that one of the crucial elements of C& F agent services is that it works on the direction of the principal in the present case the respondent was actually taking orders from the government departments and therefore it was basically facilitating the supply of cars to them

Repairs and maintenance of gas Cylinders no services tax paid on sale of value which is separately indicated on invoice – CENVAT on such input requires reversal being ‘inputs ‘ cleared as such matter remanded

AIMS industries ltd. Vs. Commissioner of central Excise Daman [2014] 50 taxmann.com 434 (Ahmadabad – CESTAT)

 .

   Facts:

Assessee was supplying valves in course of repair and maintenance of gas cylinders and did not pay services tax thereon. CENVAT credit was taken of duty paid on the said Valves. Revenue included value of valves in the value of

Note on DTAA for NRI

If you are going abroad to make a living , leaving behind investments or other sources of income, you will have to pay tax on these earnings here. Worse, you will be liable to pay tax on this income in your country of residence too, as earnings in India will be added to calculate your total global income and taxed in the country of residence.

To avoid paying tax on same income twice , one can use the provisions of the Double Taxation Avoidance Agreement (DTAA), a tax treaty India has signed with many countries.

Note on Capital gain for NRI.

Capital Gains The profit on sale of Capital asset is treated as Capital Gains. The Capital Assets (which are not held as stock - in - trade) are Shares, Debentures, Government securities ,Bonds Units of UTI and Mutual Funds ,Immovable property, jewellery, archeological collections, drawings, paintings, sculptures, any work of art etc. The Capital gains are segregated into long term capital gains and short term capital gains in the following manner :-

Key Changes in Service Tax in the Finance Budget 2015

Key changes being made in the Service Tax in the Union Budget 2015-16, by amending the clauses 105 to 116 of the Bill under Chapter V of the Finance Act, 1994 and Chapter VI of the Bill (clause 117) to levy Swachh Bharat Cess @ 2% of the value of taxable services. These changes are categorized below based on the dates on which they would come into effect.

Date to be notified after the enactment of the Finance Bill 2015.

Whether advance tax liability can be adjusted against cash lying in account of Revenue which was seized from assessee during search and seizure operation - YES, rules High Court

THE issue before the Bench is - Whether advance tax liability can be adjusted against the cash lying in the account of the Revenue which was seized from the assessee during search and seizure operation. YES is the answer.

Facts of the case

A search and seizure operation was conducted at the residence and business premises of the a

Understanding section 68, section 69, section 69A, section 69B and section 69C

Section 68 -Cash credits

Section  69-Unexplained investments

Section 69A-Unexplained money, etc

Section 69B -Amount of investments, etc., not fully disclosed in books of account

Section 69C- Unexplained expenditure, etc

Important Verdict Of Supreme Court On Taxation of Charities And Non-Profit Organisations

Queens Educational Society vs. CIT (Supreme Court)

S. 10(23C)(v) & (vi): Mere surplus does not mean institution is existing for making profit. The predominant object test must be applied. The AO must verify the activities of the institution from year to year

The 13th proviso to Section 10(23C) is of great importance in that assessing authorities must continuously monitor from assessment year to assessment year whether such institutions continue to apply their income and invest or deposit their funds in accordance with the law laid down. Further, it is of great importance that the activities of such institutions be looked at carefully. If they are not genuine, or are not being carried out in accordance with all or any of the conditions subject to which approval has been given, such approval and exemption must forthwith be withdrawn. All these cases are disposed of making it clear that revenue is at liberty to pass fresh orders if such necessity is felt after taking into consideration the various provisions of law contained in Section 10(23C) read with Section 11 of the Income Tax Act