Service cannot form a part of 'sale price' u/s 2(25) of the Maharashtra Value Added Tax Act, 2002

We are pleased to release a Tax Alert on the decision of Maharashtra Sales Tax Tribunal in the case of M/s Sujata Printers vs State of Maharashtra and M/s. B.L. Kashyap and Sons Ltd v. State of Maharashtra [2015-VIL-06-MSTT].

Whether insertion of Explanation to Sec 80-IB(9) vide Finance Act, 2009 with retro effect explaining the meaning of term 'undertaking' is unconstitutional and ultra vires to Article 14 of Constitution - YES: HC

THE issue before the Bench is - Whether the insertion of Explanation to Section 80-IB(9) of the Income Tax Act, 1961 by Finance (No.2) Act, 2009 with retrospective effect from 1.4.2000 explaining the meaning of the term "undertaking" is unconstitutional and ultra vires to Article 14 of the Constitution of India. YES is the answer.

Facts of the case

Service tax return for october to march 15 notified.

Service Tax Return (ST-3) for October 2014 to March 2015 period will be made available from 01.04.2015 for e-filing by the assesses in both offline and online version. The last date for filing the returns for the said period is 25th April 2015. The assesses can file return online or use the offline utility by downloading the latest version from http://acesdownload.nic.in/ or from 'DOWNLOADS' Section of ACES website. For details on how to file the returns in ACES or any further information/assistance, you may visit www.aces.gov.in or contact your jurisdictional Service Tax Officer. Please file your returns in ACES well in advance to avoid rush and inconvenience at the last moment.

Sections applicable to Private Companies under new company act.

As 99 sections of Companies Act, 2013 already notified and more to follow in the near future, it’s time for private companies in India to get started with the understanding of the Act and the possible implications, it can have on the functioning of their Companies, more so when we know that the new Act is rigid on private companies. The new Act holds a lot for such companies, in terms of difficulty in transacting related party

Indian E – voting Rules 2015

Indian E – voting Rules were under criticism from various quarters of corporate world since. Their application has been postponed some point of time. Now, the Rule 20 of the Companies (Management and Administration) Rules 2014 has been substituted by the Companies (Management and administration) amendment Rules, 2015. We have discussed, original Rules related voting through electronic Means .

These rules will come into force from the date of publication of these rules in official gazette i.e.

Highlights of Tamil Nadu Budget 2015-16.

In order to boost the manufacturing sector bogged down by negative sentiments, the State Government has come forward with some relief in electricity tax, and reversal on Input Tax credit when stocks are moved out of State in pursuance of stock transfer, interstate sales etc., in the budget presented on 25.03.2015 in the TN State Assembly. There are already cases pending before the

SC over-rides decision of AP HC, holds transfer of "auction purchased goods " by branch to HO in another State not to be an inter-state trade

 


 

This Tax Alert summarizes the decision of the Supreme Court in the case of Commissioner of Commercial Taxes, Hyderabad v. Desai Beedi Company.

Service cannot form a part of 'sale price' u/s 2(25) of the Maharashtra Value Added Tax Act, 2002

 

This Tax Alert summarizes the decision of the Maharashtra Sales Tax Tribunal in the case of M/s Sujata Printers vs State of Maharashtra and M/s. B.L. Kashyap and Sons Ltd v. State of Maharashtra. 

 

Employing expatriate employees of group concerns to work in India and paying their social security benefits to the companies abroad is not liable to tax under Manpower Recruitment/Supply Service.

CCE vs Computer Science Corporation India (p) Ltd. (2014) 52 taxmann.com 256(Allahabad)

 

FACTS:

The assessee, a part of group of companies situated in US,UK and Singapore etc. hired certain expatriate employees overseas. Some employees were transferred from group companies to the assessee in India. A letter of employment was

Latest e-TDS/TCS RPU Utility from Fin. Year 2007-2008

Finally NSDL has provde JAVA base Utility Ver. 1.0 as CBDT Income Tax Return Utility to TDS Deductors for Preparing TDS/TCS Quarterly Statement from Financial Year 2007-2008 and on-wards.  This new latest e-TDS/TCS Return Preparation Utility is fully based on JAVA Plate-form (RPU Ver. 1.0). Apart from this new utility, we already working with RPU utility ver. 4.5 and 4.2 for preparation of e-TDS/TCS Return.  This new RPU JAVA Base Utility is very simple with following Key features :

Whether Sec 50C will have any application when WDV is computed in terms of Sec 43(6) - NO: ITAT

The assessee concern is a cotton merchant, whose business is seasonal in nature. It had incurred certain direct nature expenditures, which were disallowed u/s 14A r/w rule 8D(2)(i), by the AO. The expenses incurred also includes interest on borrowings, in relation to income/s not forming part of the total income. AO found no purchases of yarn for the months of July to October, 2008, while that for the months of June and November, 2008 were also, at a little over

Income Tax Department - Defaulters - Name and Shame

THE Income tax department yesterday published a list of 18 names of persons and companies who are tax defaulters of more than Rs. 10 crores. The Department wants these defaulters to pay the taxes immediately. As per the list, all the defaulters are either not traceable or do not have assets. The very first name in the list is of a company, which SEBI found not traceable in 2005 - that too after investigation for five years. And this missing company owes Rs. 75 crores. Maybe the Government hopes that the company will see this information in the Department's website hidden in an obscure corner and will feel ashamed and rush to the nearest bank to pay off this Rs. 75 Crores. There is also a dead man in the list of the Department. Of course they hope to collect the tax due of Rs. 38 crores from his son.

 

List of Defaulters

Scope of Exemption to G T A Service-Rs.750/- Per consignee and Rs.1500/-per consignment Explained

(mad)-cce vs. Suibramania Siva co op sugar Mills Ltd. (2014)52 taxmann.com 339

 

FACTS:

The assessee availed the services of goods transport agency in respect of transport of sugarcane into the factory and paid service tax on freight Inward that exceeded Rs 1500/- but did not pay service tax on the amount of freight that

“Maintenance and Repairs Contract”- Agreement & invoice providing bifurcation of material portion and service portion. –service tax applicable only on service portion

CCE vs Goverdhan Transformer Udyog (p) ltd. (2014) 52 Taxmann. Com 377 (Allahabad)

.

FACTS:

The assessee   provided management, maintenance and repairs service for the repairs service for the repair of old and damaged transformers. Whether transformer oil, HV/LV oil and spare parts which are goods incorporated into the transformers belonging to the customer should be considered for the purpose

Acche Din! NAMO Cracks Whip On Income-Tax Dept For Harassing Taxpayers

 

Prime Minister Narendra Modi a.k.a NAMO has come to the rescue of beleaguered taxpayers. According to a terse note dated 26th March 2015 addressed by Hon’ble Ms. Anita Kapur, Chairperson of the CBDT, to the Income-tax department, she and the Revenue Secretary had a conference with NAMO regarding the status of public grievances against the department. At the

CBDT circular clarifies overseas dividend not covered by indirect transfer provisions of the ITL

The Central Board of Direct taxes (CBDT), the apex administrative body for taxation in India, recently issued Circular 4 of 2015 (dated 26 March 2015), clarifying that declaration of dividend outside India by a foreign company would not be taxable in India under the indirect transfer provisions of the Indian Tax Laws (ITL) since such declaration and payment of dividend does not have an effect of transfer of any underlying asset located in India.

We are pleased to release an alert which highlights the above CBDT Circular.

Central Action Plan for the First Quarter TDS Statement for the Asstt. Year 2016-17.

Recently CBDT has issued a letter to all CCITs about Action Plan for 1st Quarter i.e. April, 2015 to June, 2015 of the Financial Year 2015-16.  The CBDT exhibit the Interim Action Plan for the First Quarter of Financial Year 2015-16.  In this action Plan key result for Assessment Units (including Central Charges, Int'I Taxation, TDS and Exemptions is takes place.  The CBDT further states about

Whether when a project fulfils criteria for being approved as housing project, in that case, deduction u/s 80IB(10) cannot be denied, merely on basis that assessee had obtained separate plan permits for various blocks - YES: HC

THE issue before the Bench is - Whether when a project fulfils criteria for being approved as housing project, in that case, deduction u/s 80IB(10) cannot be denied, merely on basis that assessee had obtained separate plan permits for various housing blocks. And the verdict goes against the Revenue.

India’s Delhi High Court rules on transfer pricing aspects relating to development & enhancement of marketing intangibles

India’s Delhi High Court rules on transfer pricing aspects relating to development & enhancement of marketing intangibles

 

mportant Judgement Of Supreme Court On 'Matching Concept' And Deferred Revenue Expenditure

Taparia Tools Ltd vs. JCIT (Supreme Court)

S. 36(1)(iii)/ 37(1): Normally revenue expenditure incurred in a particular year has to be allowed in that year and if the assessee claims that expenditure in that year, the Department cannot deny the same. Fact that assessee has deferred the expenditure in the books of account is irrelevant. However, if the assessee himself wants to spread the expenditure over a period of ensuing years, it can be allowed only if the principle of 'Matching Concept' is satisfied

Important Judgement Of Supreme Court On Retrospective Amendment To S. 143(1A)

CIT vs. Sati Oil Udyog Ltd (Supreme Court)

S. 143(1A): As the object of s. 143 (1A) is to prevent tax evasion, it can apply only to tax evaders and not to honest assessees. The burden of proving that the assessee stated a lesser amount in the return in an attempt to evade tax is on the revenue

The object of Section 143 (1A) is the prevention of tax evasion. Read literally, both honest asessees and tax evaders are caught within its net. We feel that since the provision has the deterrent effect of preventing tax evasion, it should be made to apply only to tax evaders. Section 143 (1A) can only be invoked where it is found on facts that the lesser amount stated in the return filed by the assessee is a result of an attempt to evade tax lawfully payable by the assessee. The burden of proving that the assessee has so attempted to evade tax is on the revenue

Mumbai Tribunal rules on legality and taxability of certain gift transactions by corporates (KDA Enterprises)

We are pleased to release a Tax Alert which summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (Tribunal), in the case of KDA Enterprises Pvt. Ltd. (Taxpayer), on the issue of possibility of an Indian company making a transaction of a gift and the tax consequences in the hands of the recipient Taxpayer. In this case, the Taxpayer received, as gift from four companies (Donors), their entitlement to receive dividends

Delhi Tribunal Larger Bench decision on taxability of service element in works contract prior to 1.6.2007

We are pleased to release a Tax Alert on the decision of the five member Larger Bench of the Delhi Tribunal [2015-VIL-147-CESTAT-DEL-ST-LB], regarding the taxability of service element in works contract prior to 1 June 2007.

Larger Bench of the High Court has held that mens rea is not relevant for imposition of penalty for failure to comply with statutory civil obligation

We are pleased to release a Tax Alert on the Larger Bench decision of the Rajasthan High Court; [TS-87-2015-(RAJ)-VAT]. The issue in question was regarding relevance of mens rea for purpose of determining liability for penalty in terms of section  78(5) of Rajasthan Sales Tax Act, 1994 (RST Act).

Supreme Court rules on year of deductibility of debenture interest paid upfront

This Tax Alert summarizes a recent ruling of the Supreme Court (SC), in the case of Taparia Tools Ltd. (Taxpayer), wherein the issue was whether a taxpayer can be permitted full deduction under the provisions of the Indian Tax Laws (ITL) for upfront payment of debenture interest, though such payment has been amortised over the tenure of the debenture in the books of account. The SC, based on the facts, held that since the Taxpayer had claimed deduction for the full amount of upfront interest payment, the same should be allowed in the year of payment and should not be spread over the term of the debentures. The SC reiterated that there is no concept of deferred revenue expenditure under the ITL. Furthermore, the SC also ruled that the treatment given in the books of account is not an estoppel against the statute to claim deduction.

Five Important Judgements On Core And Controversial Issues

ACIT (Agr. IT) vs. Netley ‘B’ Estate (Supreme Court)

While an amendment to overrule a judgement is not valid, it is permissible to retrospectively alter the character of the levy so as to save it from illegality

In exercising legislative power, the legislature by mere declaration, without anything more, cannot directly overrule, revise or override a judicial decision. It can render judicial decision ineffective by enacting valid law on the topic within its legislative field fundamentally altering or changing its character retrospectively

S. 263 :Commissioner-Revision of orders prejudicial to revenue –Non mentioning in the assessment order cannot be held to be erroneous

. [S.43A, 80IA, 115JB, 143(3)]

The assessee was a company engaged in generation of power.After verifying the books of account and

information submitted by the assessee, the AO completed the assessment under section 143(3) after

allowing deduction under section 80-IA while accepting the book profit under section 115JB.

AO in course of scrutiny proceeding conducted detailed enquiry assessee also submitted its

explanation explaining why it should not be treated as income. Since in view of decision of Supreme

S.254(1): Appellate Tribunal-Stay- Order of Tribunal granting stay of 50 per cent of amount demanded did not require any interference

.[S. 5, 6, 9(1)( vi), 90,201(1), 201(1A)]

Assessee company was engaged in business of providing telecom services to its subscribers in India.

It entered into agreements with non-resident telecom operators (NTOs) for providing bandwidth and

interconnect capacity outside India. AO opined that payments made in consideration of said services

Book on assessment procedure

Dear Patron,

The book on assessment procedure launched today. The cost of the book is Rs. 500/-. Please place your order at taxbymanish@yahoo.com.  The contents of the book is given below.

SN	Contents	Page Number
1	Understanding income tax assessment u/s 143 with latest case laws	3-11
2	Understanding section 145 of Income tax with latest case laws	12-41
3	Understanding Re-assessment with latest case laws	42-51
4	Understanding rectification of mistake under section 154 of Income tax act with latest case laws.	52-61
5	Understanding process of obtaining lower rate of TDS certificate u/s 197	62-71
6	Understanding stay application under Income tax with latest case laws	72-89
7	Understanding tax on interest payable under section 234 with latest case laws	90-94
8	Understanding  interest on refund under section 244A with latest income tax case laws	95-107
9	Understanding Income Tax Settlement Commission with latest case laws	108-126
10	Understanding Advance Ruling under Income tax with latest case laws	127-141
11	Understanding CIT appeal under income tax	142-148
12	Understanding ITAT appeal under income tax	149-178
13	Understanding High Court Appeal under Income Tax with latest case laws	179-187
14	Understanding section 263 & 264 of Income tax act with latest case laws	188-197
15	Understanding Penalty under Income tax with latest case laws	198-207

S.220: Collection and recovery-Stay of Demand-Writ- Prima facie case, balance of convenience

 

The assessee was a wholly owned subsidiary of DHPL and all the shares of DHPL were held by

Shroff group. For purpose of restructuring the group organization, certain equity shares in companies

Whether loan & advances made by a company to its shareholder from profit reserve account, would fall within the purview of Sec 2(22)(e), if such company is not in business of money lending - YES: HC

THE issue before the Bench is - Whether loan & advances made by a company to its shareholder from the profit reserve account, would fall within the purview of Section 2(22)(e), if such company is not in the business of money lending. YES is the answer.

Facts of the case

The assessee is an individual. He had filed his return for A.Y 2009-2010, declaring an income of Rs.24.33,877/-, which was processed u/s 143(1). The case was selected for scrutiny and a

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

Imp Verdicts Of Supreme Court And High Courts

Premier Breweries Ltd vs. CIT (Supreme Court)

S. 37(1): principles for deduction of business expenditure reiterated

The question that was posed by the High Court was whether acceptance of the agreements, affidavits and proof of payment would debar the assessing authority to go into the question whether the expenses claimed would still be allowable under Section 37 of the Act. This is a question which the High Court held was required to be answered in the facts of each case in the light of the decision of this Court in Swadeshi Cotton Mills Co. Ltd. Vs. Commissioner of Income Tax 1967 (63) ITR 57 and Lachminarayan Madan Lal vs. Commissioner of Income Tax West Bengal 1972 (86) ITR 439

 

CIT vs. M/s S. M. Construction (Bombay High Court)

S. 271(1)(c): Law laid down in Zoom Comm 327 ITR 510 (Del) does not apply if claim of assessee is bona fide and not in defiance of the law

The decision of the Delhi High Court in Zoom Communication P. Ltd. 327 ITR 510 (Del) is not applicable in the present facts for the reason that in this case, the stand taken by the assessee cannot be said to be in defiance of law and thus not bonafide

 

CIT vs. Muzafar Nagar Development Authority (Allahabad High Court – Full Bench)

S. 12AA: Non disposal of an application for registration before the expiry of six months as provided u/s 12AA (2) would not result in deemed grant of registration. Assessee will have to file a Writ to compel CIT to consider application

Providing that an application should be disposed of within a period of six months is distinct from stipulating the consequence of a failure to do so. Laying down a consequence that an application would be deemed to be granted upon the expiry of six months can only be by way of a legislative fiction or a deeming definition which the Court, in its interpretative capacity, cannot create. That would be to rewrite the law and to introduce a provision which advisedly the legislature has not adopted

Online Correction facility not availed after sending "Intermediate Communication for Short Payments" - CPC (TDS)

CPC (TDS) has been instructed to TDS Deductors after sending "Intermediate Communication for Short Payments" notice, the facility of Online Correction not availed.  The CPC (TDS) in this regard further state that as follows :

India Budget 2015: Introduction of Place of Effective Management

THE much-awaited Budget by the Modi Government is here and is being welcomed on a positive note in spite of it not doling out tax freebies. The Government has shown a commitment towards a simple, predictable and robust tax regime as opposed to one that uses tax incentives for encouraging business.One of the cornerstones of the Budget is to curb tax evasion by making the tax regime robust and in line with the internationally accepted taxation principles. In

Reimbursement Expenses - Whether it is tax on Services?

IN the Finance Bill 2015, the Explanation to Section 67 - Clause (a) has been substituted. As per the new amendment, all reimbursement expenses incurred by the service provider, have to be included in the consideration.

The amendment is as below:

'(a) "Consideration” includes–

(i) any amount that is payable for the taxable services provided or to be provided;

(ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed;

(iii)  ............................................'

Whether if assessee Trust generates huge surplus and utilises same to acquire assets, it is sufficient to make inference that assessee does not exist solely for philanthropic purpose - YES: HC

THE issue before the Bench is - Whether achieving of huge surplus and the consequent utilization of such surplus funds to generate assets, is sufficient to draw an inference that the institution does not solely exist for philanthropic purposes. YES is the answer.

Facts of the case

The assessee was registered as a Public Trust under the Bombay Public Trust Act, 1950. The objective of the assessee in its Memorandum and Articles of Association was to relieve persons

Delhi High Court upholds bundling approach for benchmarking AMP expenses in a landmark transfer pricing judgement

 

This Tax Alert summarizes a recent ruling of the Delhi High Court (DHC) involving a group of taxpayers, with the lead case being that of Sony Ericsson Mobile Communications India Pvt. Ltd. (now known as Sony India Ltd.) (Taxpayer) v. Commissioner of Income-tax on the issue of a transfer pricing (TP) adjustment for “excessive” advertising, marketing and promotional (AMP) expenditure incurred by the Taxpayers during the Assessment Year (AY) 2008-09.  

New features for unmatched challans online corrections as "Moving Deductee rows" by CPC (TDS)

Recently, CPC (TDS) has been issued a new notification with a new features regarding online correction for unmatched Challans as "Moving Deductees".  Which is as under :

Dear Deductor,