RETURN OF CHANGES IN SHAREHOLDINGS

According to Section 93 of the Companies Act, 2013, every listed company shall file a return with the Registrar with respect to change in the number of shares held by promoters and top ten shareholders of such company, within fifteen days of the change.

According to Rule 13 of the Companies (Management and Administration) Rules 2014, Every listed company shall file with the Registrar, a return in Form MGT – 10 along with the fee with respect to changes

Whether when Search leads to papers relating to sale & purchase of land outside books and same is admitted by MD in his statement, any addition with respect to unexplained investments is legally sustainable - YES: ITAT

THE issue before the Bench is - Whether when the Search conducted by the Revenue leads to papers relating to sale and purchase of land outside the books and the same is admitted by the Managing Director in his statement, any addition with respect to unexplained investments is legally sustainable. And the verdict goes against the assessee.

Facts of the case

A) The assessee-company is engaged in real estate and construction business. During the year, company purchased land and sold plots after undertaking development works. There were search

Circumstances leading to formation of PE and estimation of profit attributable therto under Rule 10 explained. Even foreign assessees are liable for interest u/s 234B

Nortel Networks India International Inc vs. DDIT (ITAT Delhi)

Nortel Networks India Pvt. Ltd, an Indian company, entered into a contract with Reliance Infocom for supply, installation, testing, commissioning of hardware equipment. Immediately thereafter, the Indian company assigned the supply part of the contract to the assessee, a USA company, without any consideration. The Indian company retained the other obligations of the

S. 153A: Addition in a search assessment for a AY which is not pending can be made only if incriminating material is found during search

Sanjay Aggarwal vs. DCIT (ITAT Delhi)

The Tribunal had to consider whether in a case where a search is conducted u/s 132 but no incriminating evidence is found, the AO could make an addition u/s 153A of the Act. The assessee relied on All Cargo Global Logistics 137 ITD 287 (SB) (Mum) & Pratibha Industries 141 ITD 151 (Mum) in support of

All about Form 26AS, Pan Ledger & Tax Credit Statement - FAQs

What is Form 26AS?
It is a form issued under Rule 31AB, wherein the following information in relation to a PAN is published:

• TDS – Part A & A1 of Form 26AS
• TCS – Part B of Form 26AS
• Details of tax paid other than TDS / TCS – Part C of Form 26AS
• Details of Refund – Part D of Form 26AS
• Details of AIR transactions – Part E of Form 26AS

New ITR-1 (Sahaj) Free Download (Excel Base) for Asstt. Year 2014-15

Now a time to submit Annual Income Tax Return for Asstt. Year 2014-15 without delay. If ITR submission delay due to any other caused Assessee may face the consequies arising on behalf of it as per Income Tax Law binding for Asstt. Year 2014-15. Due to this "Excelhub" prepared "Excel Base Utility for Indiviuals/Salaried Employee, those who submit Income Tax Return in Form ITR-1 for Asstt. Year 2014-15 in easy way. A new ITR-1 (Sahaj) Excel Base Software as per amended rules and circulars issued by Income Tax Department on 17.04.13. ITR-1 (Sahaj) is Developed by www.excelhub.blogspot.com.

CLOSURE OF REGISTER OF MEMBERS ETC

A company may close its register of members or debenture – holders and other security holders according to Section 91 of the Companies Act, 2013. Rule 10 of the Companies (Management and Administration) Rules 2014 prescribes related procedures.

A company may close the register of members or the register of debenture – holders or the register of other security holders for any period or periods not exceeding in the aggregate forty-five days in each

WHAT IS FORENSIC ACCOUNTING?

Simply put, forensic accounting is accounting that is suitable for legal review, offering the highest level of assurance, and including the now generally accepted connotation of having been arrived at in a scientific fashion. That is, forensic accounting is sufficiently thorough and complete so that an accountant, in his/her considered independent professional judgement, can deliver a finding as to accounts, inventories, or the presentation thereof that is of such quality that it would be sustainable in some adversarial legal proceeding, or within some judicial or administrative review. Findings are based upon the scientific detection and interpretation of the evidences of phenomena introduced into the books and records of an accounting system (expansively defined) and the effects of such phenomena upon the accounts, inventories, or the presentation thereof. (Alternatively, if there is no impact on an accounting system, there is no accounting

THE issues before the Bench are - Whether production of steam can be construed as generation of power and Sec 80IA benefits cannot be denied even if such steam is utilised for internal manufacturing process and Whether market value of the goods transferred in cases, where provisions of section 80-IA(8) are applicable, has to be determined having regard to the price charged in uncontrolled transaction. And the verdict goes in favour of the assessee.

THE issues before the Bench are - Whether production of steam can be construed as generation of power and Sec 80IA benefits cannot be denied even if such steam is utilised for internal manufacturing process and Whether market value of the goods transferred in cases, where provisions of section 80-IA(8) are applicable, has to be determined having regard to the price charged in uncontrolled transaction. And the verdict goes in favour of the assessee.

Facts of the case

S. 40(a)(ia): If an amount is made taxable by a retrospective amendment, the payer cannot be held liable to deduct TDS on a payment made earlier and to suffer disallowance u/s 40(a)(ia)

Kerala Vision Ltd vs. ACIT (ITAT Cochin)

In view of the retrospective insertion of Explanation 6 by the Finance Act, 2012, the payment made by the assessee as “Pay Channel Charges” constitutes “royalty” as defined in clause (i) of Explanation 2 to s. 9(1) of the Act. However, as the decision of the assessee not to deduct TDS was supported by Asia Sat, the assessee cannot be held to be liable to deduct tax at source by relying on the subsequent amendments made in the Act with retrospective effect (Channel Guide 139 ITD 49 (Mum), Sonata Information Technology & Infotech Enterprises followed)

S. 263: The CIT can revise an assessment only if he can show unmistakably that the order of the AO is unsustainable. Fact that the AO has passed a non-speaking order does not mean that he has not applied his mind

CIT vs. J. L. Morrison (India) Ltd (Calcutta High Court)

 

(i) If the AO has taken a possible view, it cannot be said that the view taken by him is erroneous nor the order of the AO in that case can be set aside in revision. It has to be shown unmistakably that the order of the AO is unsustainable. Anything short of that would not clothe the CIT with jurisdiction to exercise power u/s 263 of the Act

Green Shoe Option

This is a post listing price stabilizing mechanism, by which the company intends to ensure that the shares price on the Stock exchanges does not fall below the issue price.

The term “Green shoe option” derived its name from the company in US which excercised this mechanism for the first time.

The Securities and Exchange Board of India (SEBI) guidelines permit exercise of the greenshoe option by a company making a public issue. A pre-issue contract is required to be entered into for this purpose with an existing shareholder — often

Notification by MCA in respect of obtaining PAN by Non Resident Director.

To read the circular click the link below.


http://www.mca.gov.in/Ministry/pdf/Circular_16_2014.pdf

Recent Direct Tax case laws update

Subsequent commercial-use cannot disentitle Sec 54F exemption if building constructed for residential-purpose: Relevant factor to judge is whether construction is made for residential house or commercial purpose, merely because building used as a school cannot change nature and character of building from residential to commercial; Also holds that law is settled that ‘a residential house’ does not mean a single residential house; Sec 54F exemption entitled even where assessee constructs or receives a number of flats adjacent to each other or in different floor of same building; Relies on jurisdictional HC ruling in Syed Ali Adil. [N. Revati v. ITO (ITA 67/Hyd/2013) (Hyd ITAT) dated 2 April 2014]

Whether when assessee, a lyricist by profession, has both professional and residential setup in same apartment, sums spent on installation of LIFT can be claimed as revenue expenditure - Only Partly: ITAT

THE issues before the Bench are - Whether a lift installed by an assessee in the premises of the society apartment can be claimed as revenue expenditure, considering the person has both professional and residential set up in the same apartment; Whether the entire amount of such expenditure can be allowed as business expenditure when the advantage and facility of the new lift is not restricted exclusively for the professional activity of the assessee, but also enjoyed by assessee as well as family members of the assessee – Whether it is a relevant criterion for the purpose of considering the allowability of expenditure that the lift is also being used by other

ITAT issues strictures against AO & CIT & fines them for filing a frivolous appeal

ITO vs. Growel Energy Co. Ltd (ITAT Mumbai)

 

The department filed an appeal before the Tribunal raising several grounds relating to s. 69C etc. The CIT(A) had allowed relief to the assessee on the ground that as the expenses were duly recorded in the books and there was no dispute as to their genuineness, s. 69C had no application. HELD by the Tribunal dismissing the appeal:

Non Compete fees – Taxability issues

 

The question whether a particular receipt has been a revenue receipt or a capital receipt has constantly been inviting the attention of tax payers, the law makers, the tax advisors and the Courts. The controversy around this concept has been there in the taxing laws, occupying a long list of litigation judgment by various Courts. Before going ahead for discussion on this issue one has to look and understand the exact meaning of a capital receipt and a revenue receipt.

 

Updated Income Tax Return Forms ITR-1, ITR-2, ITR-3 and ITR-4S for Asstt. Year 2014-15

Latest updated Income Tax Return Form ITR-1, ITR-2, ITR-3 and ITR-4S has released by CBDT.

An assessee required to furnish a report of audit specified under section 10AA, section 44DA, section 50B or section 115VW of the Act, shall furnish the said report of audit and the return of Income electronically for AY 2014-15 and onwards [Refer Notification No: 28/2014 dated 30/05/2014].

Whether extending financial assistance or scholarship, to students for educational purpose would fall within connotation of 'education' - YES: ITAT

THE issues before the Bench are - Whether without bringing something positive on record to distinguish the facts of earlier year and current year, it can be argued that the assessee has changed its nature of charitable activities and Whether extending financial assistance or scholarship, to students for their educational purpose would fall within the connotation of "education". And the verdict goes in favour of the assessee.

Facts of the case

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