Penalty cannot be levied on the basis of deeming provision

Penalty cannot be levied on the basis of deeming provision

Posted: 30 Jun 2012 08:44 PM PDT

Chimanlal Manilal Patel Vs. ACIT The AO has not disputed the consideration received by the assessee. The addition has been made on the basis of deeming provisions of section 50C. The assessee has furnished all the facts of sale, documents! material before the AO. The AO has not doubted the...

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S. 147 Reopening Void If Reasons Supplied After Reassessment Order

Posted: 30 Jun 2012 08:34 PM PDT

Tata International Ltd vs. DCIT - It is an undisputed fact that the reasons actually recorded by the Assessing Officer were not furnished to the assessee till 14.06.20012 despite repeated requests and demands and therefore, the gist of reasons as furnished vide letter dated 28th June 2007 cannot be...

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Empanelment of Technical/Financial/Management Consultants/Stock Auditors & Valuers with SBI

Posted: 30 Jun 2012 07:47 PM PDT

Tender Notice For Advertisement For Consultancy Cell For Empanelment Of Valuers / Stock Auditors / Technical / Financial Consultants For State Bank Of India, Kolkata . LHO, BANGALORE Invites Offers For Empanellment of Valuers/Stock Auditors In State Bank Of India For Bangalore Circle.

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Assessing Officer must record 'reasons' before issuing notice u/s. 148

Posted: 30 Jun 2012 09:58 AM PDT

Adverting to the present case, it is clearly evident that 'reasons recorded' were not provided to the assessee despite categorical directions by the ITAT and even when the so-called "reasons recorded" have been supplied after a gap of almost 11 years, it is amply clear from the face of it that the...

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Person reimbursing the freight not liable to pay Service Tax under 'Reverse Charge' mechanism

Posted: 30 Jun 2012 09:44 AM PDT

Entire demand on the freight element is based on Rule 2(1)(d)(v) of the Service Tax Rules, 1994. Sub-clause (v) was inserted in Rule 2(1)(d) only on 3.12.2004 and the same cast Service Tax liability on the person paying the freight. Prima facie, the appellant did not pay the freight and therefore...

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Service Tax Payable on Reimbursement of 'Integral and inseparable' expenses

Posted: 30 Jun 2012 09:08 AM PDT

Expenses incurred to provide taxable services shall be part of assessable value if such expenses are inseparable and are integrally connected with the performance of the taxable services. Such expenses shall necessarily form part of the assessable value. Therefore, the assessee was not entitled to...

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Section 531A Prohibits lease of property for 30 years by a Company one year prior to its winding up petition

Posted: 30 Jun 2012 08:52 AM PDT

The appellant is said to have entered into a lease agreement with the company-in-liquidation on 22-1-2000, for demised building of 8,400 sq.ft. along with adjacent vacant land (about 5.33 acres) for a lease rent of Rs. 5,000 per month for a period of 11 months, which expired on 21-12-2000. Again,...

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Penalty for Non payment of service tax due to sudden crash in stock market

Posted: 30 Jun 2012 08:30 AM PDT

The assessee had reflected the service tax liability on account of service provided by him during the period April, 2007 to September, 2007 in the ST-3 returns filed with the department. The reason for delay in making payment had been sufficiently explained by the assessee in his reply, stating...

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Service Tax on study materials provided by Commercial training or coaching service provider

Posted: 30 Jun 2012 08:29 AM PDT

Prima facie coaching material has intimate connection with the commercial coaching provided by the assessee and the contents of the study material are relevant to the coaching to make the later fruitful and meaningful so that the enrolled candidates are benefited out of commercial coaching. There...

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Service Tax – Things to consider to grant benefit of Section 80 of Finance Act, 1994

Posted: 30 Jun 2012 08:28 AM PDT

Since the appellant prays that it has a case for consideration under Section 80 of the Finance Act, 1994 it is desirable to bring to record about the date on which liability arose, date of return ought to have been filed, date on which admitted tax liability should have been discharged and the date...

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Lapse on the part of litigant concerned in filing appeal on time alone is not enough to turn down his plea

Posted: 30 Jun 2012 08:26 AM PDT

When the defendant has alleged non-receipt of the said letter dated July 31, 2006 and urges the same for not taking steps, the reasons stated by the appellant do not appear to be false or frivolous. It must be remembered that in every case of delay, there is some lapse on the part of the litigant...

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Party to the dispute entitled to know the grounds on which authority has rejected his claim

Posted: 30 Jun 2012 08:20 AM PDT

Recording of reasons in support of a decision on a disputed claim by a quasi-judicial authority ensures that the decision is reached according to law and is not the result of caprice, whim or fancy or reached on grounds of policy or expediency. A party to the dispute is ordinarily entitled to know...

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Common area has to be excluded while computing built-up area for benefit u/s. 80-IB(10)

Posted: 30 Jun 2012 07:40 AM PDT

Keeping in mind the fact that obstacles were put in assessees getting the benefit, the Legislature introduced the definition of built-up area in sub-section (14)(a) of section 80-IB. From a reading of the definition of built-up area, the intention is clear. In calculating the built-up area it is...

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Premium paid to LIC under Group Leave Encashment Scheme is deductible u/s. 37(1)

Posted: 30 Jun 2012 07:33 AM PDT

Calcutta High Court decision in Exide Industries case (supra). The Calcutta High Court held that leave encashment is neither a statutory liability nor a contingent liability and it is a provision to be made for the entitlement of an employee achieved in a particular financial year. Testing clause...

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Post amendment in S.36(1)(vii), assessee is not required to demonstrate that debt is bad

Posted: 29 Jun 2012 10:10 PM PDT

AO has not given any reason for disallowing the claim. We also find that the AO has simply followed the findings of earlier assessment years. As similar additions in earlier assessment year has been deleted by Ld. CIT(A) which has been accepted by the Revenue as Committee on Dispute declined to...

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Exemption to taxable services received by an exporter of goods & used for export of goods

Posted: 29 Jun 2012 09:10 PM PDT

Notification No 42/2012 Service provided by a commission agent located outside India and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him.

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Rebate of service tax paid on taxable services which are received by an exporter of goods &used for export of goods

Posted: 29 Jun 2012 09:05 PM PDT

Notification No. 41/2012-ST, the rebate shall be granted by way of refund of service tax paid on the specified services. specified services means- (i) in the case of excisable goods, taxable services that have been used beyond the place of removal, for the export of said goods; (ii) in the case...

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Law Minister again embarks on special drive to reduce pendency in courts

Posted: 29 Jun 2012 08:48 PM PDT

Encouraged by the success of the last year's Pendency Reduction Drive, undertaken for reduction in pendency in the courts from 1st July 2011 to 31st December 2011, the Minister of Law & Justice, Shri Salman Khurshid, has requested the Chief Justices of all the High Courts to undertake another...

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ICAI President's Message – July 2012

Posted: 29 Jun 2012 12:09 PM PDT

Representation on Definition of Accountant in Direct Taxes Code Bill: As the members are aware, widening of the scope of the definition of accountant has been recommended by the Standing Committee in its 49th report on the Direct Taxes Code Bill. As the report is still under consideration of...

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MRTP Commission can modify or revoke its interim order if it thinks that such a direction could only be considered at time of finally deciding complaint

Posted: 29 Jun 2012 12:00 AM PDT

On a perusal of the impugned order dated 4-3-2009, however, it is found that although the respondents cited the judgment of the Court in Ghaziabad Development Authority v. Ved Prakash Aggarwal [2009] 91 SCL 281 (SC) and contended before the MRTP Commission that the MRTP Commission had no authority...

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Amendment in Tatkal Scheme of Railway

Posted: 28 Jun 2012 09:21 PM PDT

With a view to further improve the delivery of Tatkal tickets to passengers, the Ministry of Railways has decided that with effect from 10.07.2012 booking of Tatkal ticket will start at 1000 hours on the previous day of journey from train originating station instead of 0800 hours at present.

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Salient Features of New All India Time Table 'Trains at a Glance'

Posted: 28 Jun 2012 09:12 PM PDT

The Ministry of Railways has released its new All India Railway Time Table known as TRAINS AT A GLANCE (TAG) which has come into effect from 1st July, 2012. In addition to this All India Time table, all the 17 zonal Railways have also released their zonal railway time tables which too have come...

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