Income earned by trust from business activities eligible for exemption if primary objects were charitable

Income earned by trust from business activities eligible for exemption if primary objects were charitable

Posted: 12 Jan 2013 08:00 PM PST

Even though the Tribunal had not given any finding as regards the primary purpose, yet a reading of the order of the Assessing Officer shows that he had considered the clauses in the trust deed to arrive at the finding that the primary objects of the trust are charitable in nature and that the...

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Reassessment initiated to disallow loss on hedging of metals losses is untenable if losses were allowed originally

Posted: 12 Jan 2013 07:59 PM PST

The petitioner has been claiming that he is dealing in hedging besides in the wholesale business of gold and silver ornaments. To insure against price fluctuations, he has been hedging in such metals in MCX. The claim of the assessee, therefore, had to be examined in terms of clause (a) to...

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Decision on debatable point of law or fact cannot be corrected by rectification u/s. 254(2)

Posted: 12 Jan 2013 07:19 PM PST

A bare look at section 254(2) of the Act, which deals with rectification, makes it amply clear that a 'mistake apparent from the record' is rectifiable. In order to attract the application of section 254(2), a mistake must exist and the same must be apparent from the record. The power to rectify...

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AP High Court grant interim stay against CBEC's Circular on recovery of confirmed demand during pendency of stay application

Posted: 12 Jan 2013 03:24 AM PST

The Central Board of Excise and Customs (CBEC) has issued its first Central Excise Circular No. 967/01/2013 - CX, dated January 01, 2013 on eve of New Year 2013, for recovery of confirmed demands during pendency of Stay applications. The Circular has rescinded seven previous circulars on the...

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Credit is to be allowed in respect of TDS made on higher amount of reimbursement than actually offered to tax

Posted: 11 Jan 2013 10:02 PM PST

Undisputedly, the assessee company earned income of Rs. 4,65,00,000/- only by way of Engineering fees. Another amount of Rs 4,65,00,000/- had been received as tooling advance. This latter amount was to be paid to the vendors of M/s. Mahindra and Mahindra Ltd. This payment was a reimbursement.

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Addition not justified merely on the basis of discrepancy in TDS certificate

Posted: 11 Jan 2013 09:29 PM PST

The tribunal took the view that the addition made was only on the basis of the discrepancy in the TDS Certificate and not on the basis of any finding that some extra charges were received by the assessee, but had not been accounted for.

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No addition for difference in income as per profit and loss account & TDS certificate

Posted: 11 Jan 2013 09:19 PM PST

Admittedly, as per TDS certificate issued by Mysore Breweries Limited, the total reimbursement made to the assessee as per their newly arrangement was Rs. 3,35,85,000/-. However, in the books of assessee, it was only Rs. 2,54,97,000/-. The assessee had explained that a credit note of Rs....

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Assessee eligible for deduction U/s. 80IB(10) on SRA project developed under scheme of State Government duly notified by CBDT

Posted: 11 Jan 2013 08:28 PM PST

Rigours of the conditions enumerated in clauses (a) and (b) of section 80-IB, has been relaxed by the legislature to achieve certain socio-economic object and, therefore, proviso to section 80-IB should be given a liberal interpretation so as to not to defeat a genuine claim for deduction by a...

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Reversal of Interest on NPA by NBFC to comply with RBI's direction cannot be questioned

Posted: 11 Jan 2013 08:27 PM PST

Assessee secured a licence from the RBI under section 45-I of the RBI Act, to carry on the business of non-banking finance, including micro-finance services. There exists Prudential Norms, issued by the RBI. The assessee, being a licensed NBFC, it had to follow the directives of the RBI. It was in...

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