Updates from www.taxguru.in 22.01.2010

UPDATES FROM TAX GURU (in this message: 16 new items)

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Electronic Clearing System of the Income Tax Department hacked: Hacker Diverted around Rs 15 crore; CBI asked to investigate

Posted: 21 Jan 2010 07:46 PM PST

The Electronic Clearing System (ECS) of the Income Tax (I-T) Department has been hacked into, jeopardising the functioning of department across Mumbai. On Wednesday, three days after the incident, the I-T department handed over the investigation to...

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Disallowance of expenditure u/s 40(a) in a case where assessee follows completed contract method

Posted: 21 Jan 2010 07:22 PM PST

On plain reading of above section, we find that certain expenditures are not allowable if the assessee failed to deduct tax or after deduction same was not paid in time. However, such expenditures are allowable Provided that where in respect of any...

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Registration u/s 80G(5)(vi) cannot be denied to charitable trust even if it is running some activity that yields profit

Posted: 21 Jan 2010 07:19 PM PST

As a rule, if the terms of the trust permit its operation 'for profit' they become, prima facie, evidence of a purpose falling outside charity. They would indicate the object of profit-making unless and until it is shown that the term of the trust...

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Commissioner is empowered to satisfy himself that the trust activates are genuine and in consonance with its objects before granting approval u/s 80G

Posted: 21 Jan 2010 07:12 PM PST

From the above facts, it is clear that Once the society during a period of almost 12 years has not carried out any activity, except purchasing land, to construct school/college building for imparting education, which was the main object of the...

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In case of transfer of an asset distributed by a company in liquidation, cost of acquisition of same has to be taken as cost to previous owner for purpose of computing capital gains thereon

Posted: 21 Jan 2010 07:08 PM PST

Section 46(2) provides that when a shareholder receives money or any other asset from a company on its liquidation, then such shareholder shall be charged to capital gains tax. This capital gain is on account of transfer of shares effected by...

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Advance Against Depreciation (AAD) is not a reserve so section 115JB not applicable

Posted: 21 Jan 2010 06:53 PM PST

For the aforestated reasons, we hold that AAD is a timing difference, it is not a reserve, it is not carried though profit and loss account and that it is "income received in advance" subject to adjustment in future and, therefore, clause (b) of...

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If the Assessing Officer has made the assessment by making such inquiries as he deemed fit, the order cannot be termed as erroneous

Posted: 21 Jan 2010 06:47 PM PST

When AO, who is both an adjudicator as well as an investigator, is acting in a quasi judicial capacity, it is his perception which counts and not that of CIT sitting in revisionary proceedings. It is not an error on the part of the AO not to conduct...

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Once data stored in electronic form, it becomes a customized electronic data which can be exported to qualify for deduction u/s 10A

Posted: 21 Jan 2010 06:42 PM PST

If the intention of the legislature was that in order to qualify for deduction u/s 10A, every activity should be carried out through electronic means, then the purpose of enacting section 10A would have been totally defeated. The exact language of...

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TDS is deductible on ESOP

Posted: 21 Jan 2010 10:00 AM PST

Employee Stock Options Plans (ESOPs) and its different variants like Employees Stock Purchase Plans, Stock Appreciation Rights, Stock Awards, etc, have been used by employers to attract, retain and motivate employees. ESOPs have been popular...

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RCOM asked ministry to reject special audit report and demanded action against its special auditor

Posted: 21 Jan 2010 09:36 AM PST

Reliance Communications (RCOM), India's second-largest telecom company by subscribers, has asked the communications ministry to reject the special audit on it by Parakh & Co and alleged that the report `was issued for malafide purpose, based on...

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Government considering increase in the income-tax exemption limit for individuals in next budget

Posted: 21 Jan 2010 09:32 AM PST

The government is exploring an increase in the income-tax exemption limit for individuals to compensate for the high recent inflation, but revenue considerations and the fact that the limit was hiked sharply in 2008-09 could force it to maintain...

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C&AG requested government intervention to access financial records of Cairn India-operated Rajasthan oil fields

Posted: 21 Jan 2010 09:29 AM PST

The Comptroller & Auditor General of India, country's statutory auditor, has sought government intervention to access financial records of Cairn India-operated Rajasthan oil fields. It has not yet received records of Cairn's Barmer oil fields...

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Results of the Chartered Accountants PE–II, PCE and IPCE held in November, 2009 are likely to be declared on Friday, the 29th January, 2010 around 2 P.M.

Posted: 21 Jan 2010 09:18 AM PST

January 21, 2010 The results of the Chartered Accountants Professional Education – II, Professional Competence Examinations and Integrated Professional Competence Examination held in November, 2009 are likely to be declared on Friday, the 29th...

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Results of the MAC (Part-I), IRM and [ITL & WTO] Examinations held in November, 2009 are likely to be declared on 29th January, 2010 around 2 P.M.

Posted: 21 Jan 2010 09:12 AM PST

January 21, 2010 The results of the Management Accountancy Course (Part-I), Insurance and Risk Management [IRM] and International Trade Laws & World Trade Organisation [ITL & WTO] Examinations held in November, 2009 are likely to be...

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Deductibility of premium on forward contracts in the year of entering into such contracts

Posted: 21 Jan 2010 09:03 AM PST

The Delhi High Court (HC) [2010-TIOL­42-HC-DEL-IT] in the case of CIT v. Industrial Finance Corporation of India (Taxpayer) which held that the difference between forward rate and exchange rate prevailing on the date of entering into forward...

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Trade defence measures available to the domestic industry to counter unfair trade practices followed by exporters of goods from other countries

Posted: 21 Jan 2010 08:23 AM PST

Trade defence measures are available to the domestic industry to counter unfair trade practices followed by exporters of goods from other countries. In case a product is imported into the country at less than its normal value, and it causes injury...

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With Regards, 
CA Sandeep Kanoi 
Website: http://www.taxguru.in/ 
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