Whether when revised return includes an expenditure disallowable u/s 37(1) it would automatically follow that inaccurate particulars were furnished even in originally filed return - YES: HC

THE issue before the Bench is - Whether when revised return includes an expenditure disallowable u/s 37(1) it would automatically follow that inaccurate particulars were furnished even in originally filed return. YES is the verdict.

Facts of the case

The assessee is a sugar manufacturing company. After the assessee had filed its return, the assessment u/s 143(3) was completed showing a total income of Rs. 5,91,48,819/- and tax was charged u/s 115JB. Subsequently, the assessee filed a revised return showing a total income of

What can be imported by post? - Bangalore Customs Instructions

THE Bangalore Customs Commissioner has reviewed the current practice of assessment of goods imported by Post as followed by the Postal Appraising Department, keeping in view the stakeholders feedback, provisions of the Customs Act, 1962, Foreign Trade Policy, notifications issued by the government, from time to time, instructions of the Board and practice followed at Mumbai Customs. He has issued instructions for guidance of the officers in respect of assessment and clearance of the various categories of articles imported by post.

1. Import of goods for personal use:

India and Mauritius reach tentative understanding on revised tax treaty

We are pleased to release an alert which highlights recent media reports which indicate that India and Mauritius have reached a tentative understanding on a revised tax treaty. While there is no formal announcement as yet from the two Governments on this development, it has been reported that the revised tax treaty is expected to contain a “Limitation of Benefit” (LOB) provision which could potentially deny benefits of the tax treaty to cases involving treaty abuse. It has also been reported that the revised tax treaty could provide for a more beneficial rate for taxing interest income earned by a Mauritius tax resident from investment in Indian debt instruments. It is likely that the Indian authorities may seek to have a stronger provision for “exchange of information” in the revised tax treaty.

Whether once losses and other deductions were set off against income of previous year, same cannot be reopened again for computation of current year benefits under Ss 80I or 80IA - YES: HC

THE issue before the Bench is - Whether once losses and other deductions were set off against income of previous year, the same cannot be reopened again for computation of current year benefits under Ss 80I or 80IA. YES is the answer.

Facts of the case

The assessee is a manufacturer of cotton yarn. The assessee had claimed deduction under section 80-IA. It had incurred losses which were already set off and adjusted against the profits of the earlier years. During relevant year, the assessee exercised the option under section 80-IA

REAL ESTATE TRANSACTIONS IN INCOME TAX ACT, 1961

 

 

 

 

INTRODUCTION –

 

 

Real estate transactions are one of the main source for generation and application of black money. The Government is regularly trying to plug loop holes in such transactions by inserting various provisions from time to time in the Income Tax Act and for this number of amendments have been introduced in the Income Tax Act in recent years. The most important amendments in this regard are sections 56(2)(vii), section 50C and section 43CA which covers more or less all types of transactions related to transfer of immovable property. The Finance Act, 2013 has also introduced section 194IA for deduction of tax at source in case of sale of immovable property.

 

Government issues clarifications in form of FAQs on one time compliance window scheme of the Black Money Taxation Act

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the Black Money Taxation Act) was enacted on 26 May 2015 and has been made effective from 1 July 2015. The Black Money Taxation Act provides for separate taxation of undisclosed income in relation to foreign income and assets. Such income will henceforth not be taxed under the Income-tax Act, 1961 but under the provisions of the Black Money Taxation Act.

Decoding Secretarial Standards – Passing of resolution by circulation

In this post, I will discuss Secretarial Standards related to Passing of resolution by circulation under SS – 1.

The Indian Companies Act 2013 requires certain business to be approved only at Meetings of the Board. However, other business that requires urgent decisions can be approved by means of Resolutions passed by circulation. Resolutions passed by circulation are deemed to be passed at

Whether once losses and other deductions were set off against income of previous year, same cannot be reopened again for computation of current year benefits under Ss 80I or 80IA - YES: HC

THE issue before the Bench is - Whether once losses and other deductions were set off against income of previous year, the same cannot be reopened again for computation of current year benefits under Ss 80I or 80IA. YES is the answer.

Facts of the case

The assessee is a manufacturer of cotton yarn. The assessee had claimed deduction under section 80-IA. It had incurred losses which were already set off and adjusted against the profits

Utilisation of CENVAT credit on capital goods is allowed

Utilisation  of CENVAT credit   on  capital   goods is  allowed    to  the  extent   of  50%  in  financial year  of  receipt   and  balance   in  subsequent   financial  year, even  if capital  goods  are pending installation.

 

FACTS:

Assessee was a provider of port services and availed credit of duty paid on capital goods during the period F.Y.2006-07 and 2007-0B.   Department denied CENVAT credit on the g

Five Imp Verdicts Of ITAT On Transfer Pricing, Development Agreement, Unclaimed Liabilities, S. 80-IB(10) And S. 263 Revision

Soma Textile & Industries Limited vs. ACIT (ITAT Ahmedabad)

Transfer Pricing: Even if the loan to the 100% subsidiary is intended to be a long term investment in the subsidiary and it has a crucial role to play in the assessee's business plans, it cannot be treated as "quasi capital". The ALP of the loan has to be determined on the basis of LIBOR interest

The expression ‘quasi capital’ is relevant from the point of view of highlighting that a quasi-capital loan or advance is not a routine loan transaction simplictor. The substantive reward for such a loan transaction is not interest but opportunity to own capital. As a corollary to this position, in the cases of quasi capital loans or advances, the comparison of the quasi capital loans is not with the commercial borrowings but with the loans or advances which are given in the same or similar situations

Services inextricably linked to prospecting, extraction or production of mineral oil eligible for presumptive taxation under the Act

The Supreme Court of India (SC) has disposed off a batch of appeals filed by the taxpayer as a representative of non-resident oil and gas service providers with whom it had entered into separate contracts for rendering drilling, seismic surveys, inspection, testing, training, supply and installation of software, data analysis etc. services in connection with prospecting, extraction or production of mineral oil in India.

Whether when assessee, on cancellation of purchase of flats, refunds sum with a part of excess amount collected from new purchaser, such excess payment is to be construed as interest, liable to TDS u/s 194A - NO: HC

THE issue before the Bench is - Whether when the assessee, on cancellation of purchase of flats, refunds the sum with a part of the excess amount collected from new purchaser, such excess payment is to be construed as interest, liable to TDS u/s 194A. NO is the answer.

Facts of the case

The assessee is a builder. The assessee had entered into an agreement which provided for construction of a flat by the assessee for and on behalf of the purchaser. Payments were to be made by the purchaser in instalments. Subsequently, the purchaser opted out of the agreement

Guidelines for e–records and digitally signed invoices issued by CBEC

With the budget announcement this year, Rule 4C of the Service Tax Rules, 1994 was introduced to prescribe provision for issuing digitally signed invoices, bill or challan along with the option of maintaining of records in electronic form and their authentication by means of digital signatures effective from 01.03.2015.

 

Guidelines for Scrutiny of Service Tax Returns issued by CBEC

The CBEC has prescribed revised guidelines for detailed scrutiny of Service Tax Returns (ST-3 Returns) to be followed by the department with effect from 1^st August, 2015.

Service available at CPC

Dear Tax Payer, Sub: Greetings from Central Processing Centre, Bengaluru The following online services are available at the e-filing website of the Income Tax Department for returns filed electronically (Logon to www.incometaxindiaefiling.gov.in with your user id and password)

Amendments to regulations relating to combinations introduced on 3 July 2015 by CCI

We are pleased to release an alert which summarizes amendments to the Competition Commission of India (Procedure in regard to transaction of business relating to combinations) Regulations, 2011 (“Combination Regulations”), namely Competition Commission of India (Procedure in regard to transaction of business relating to combinations) Amendment Regulations, 2015 (“Amendment Regulations“) by the Competition Commission of India (“CCI”) and announced via press release dated July 3, 2015. The same is yet to be notified in the official gazette.

SC rules on presumptive taxation; activities inextricably linked with prospecting, extraction or production of mineral oil eligible for presumptive taxation- (ONGC)

We are pleased to release a Tax Alert which summarizes a recent decision of the Supreme Court (SC) in the case of Oil and Natural Gas Corporation Ltd.  (Taxpayer). The Taxpayer was treated as a “representative assessee” on behalf of various nonresident (NR) companies (FCos) with which the Taxpayer had entered into separate agreements for availing of diverse services. The services rendered by the FCos to the Taxpayer included various services, such as provision of personnel with expertise and experience in operation and management of an oil rig, engineering and technical support, processing of seismic data, consultancy and training service, analysis of data, geological and feasibility study, inspection and repair service etc.

Three Important Verdicts On Core Issues

Institute for Development and Research in Banking Technology (IDRBT) vs. ADIT (ITAT Hyderabad)

S. 2(15)/ 11: Important principles of what is a "charitable purpose" and the scope of the proviso to section 2(15) of the Act explained

As regards the proviso to Section 2(15) of the Act, it is clearly discernible from the CBDT’s Circular No.11 of 2008, dated 19.12.2008 and speech of the Hon’ble Finance Minister that the intention of Parliament in introducing the proviso to Section 2(15) of the Act is to deny exemption to those organizations or entities, which are purely commercial or business in nature or the commercial business entities, which wear the mask of a charity. The genuine charitable organizations are not affected in any way

 

CBDT Top Brass Expresses Shock And Dismay At Apathy Of Dept Even In Sensitive Search Cases

 

Hon’ble Shri. S. K. Ray, Member (A&J), CBDT, has addressed a letter dated 03.07.2015 in which he has expressed his dismay at the fact that despite several instructions on the subject, necessary due diligence and caution is not being exercised while granting authorization for filing of appeals. He has referred to several decisions where courts have taken an adverse view against the Department. He has also referred to a “shocking incident” in a “sensitive search case” where he says the “apathy of the Department Officers is evident”. He has warned that Courts are taking a “stern and inclement view” of the Department’s actions in litigation matters. He further points out that litigation not only entails financial costs but also tarnishes the image of the Department and strains its resources. He has stated that it is imperative that the available resources are optimally utilised to obtain maximum benefit out of litigation

Amendments to regulations relating to combinations introduced on 3 July 2015 by CCI

 

This alert summarizes amendments to the Competition Commission of India (Procedure in regard to transaction of business relating to combinations) Regulations, 2011 (“Combination Regulations”), namely Competition Commission of India (Procedure in regard to transaction of business relating to combinations) Amendment Regulations, 2015 (“Amendment Regulations“) by the Competition Commission of India (“CCI”) and announced via press release dated 3 July 2015. The same is yet to be notified in the official gazette.