Business Expense not deductible against rent income in the absence of business activity

No addition for shortage in excisable goods if no discrepancy found by Excise Authorities Posted: 02 Oct 2012 07:55 PM PDT The Tribunal, on a consideration of the rival submissions arrived at the following findings:  a.  The search commenced on 29.8.1996 and was finally concluded on 30.8.1996. It is impossible for anybody to accurately take stock in a span of just one day and this itself vitiated the entire process of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Reopening on the basis of information of accommodation entries justified Posted: 02 Oct 2012 07:44 PM PDT In the case of the assessee, it is clear that a precise and definite information was received by the Assessing Officer regarding receipt of accommodation entries in respect of capital from various persons aggregating to Rs. 14.45 lakhs. He compared the information with the information available in... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Business Expense not deductible against rent income in the absence of business activity Posted: 02 Oct 2012 07:24 PM PDT The main claim in the present year is a sum of Rs. 14,50,123 which represents interest expenses on the loans used for construction of the building and which according to assessee deserves to be allowed under section 24(b) of the Income-tax Act, 1961 against the rental income. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Interest income linked with power plant set up is capital receipt not revenue receipt Posted: 02 Oct 2012 07:13 PM PDT The proviso to s. 36(1)(iii) enacts that any amount of the interest paid towards capital borrowed for acquisition of an asset or for extension of existing business regardless of its capitalization in the books or otherwise, [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Inclusion of 'closing amount of Modvat' in closing stock without modifying figures of purchases, sales & opening stock not justified Posted: 02 Oct 2012 12:25 PM PDT AO observed that the assessee has not included the excise duty in the valuation of closing stock. Under the provisions of section 145A of the Act, the assessee should include the excise duty component of purchase price of raw material while valuing closing stock of raw material, Work-in-Progress... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Lease is not a hire purchase where lessor bound to maintain the asset Posted: 02 Oct 2012 11:56 AM PDT  Air Conditioners have been leased out with option to the assessee to purchase the Air Conditioners, though it may be on nominal price, but at the same time, it is clear that the assessee, in the relevant year, corresponding to assessment year, did not exercise that option so as to complete the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Government suggests Phasing out Concurrent Audit Systems

Service Tax on Railway Passengers Travelling in AC Classes/First Class from 01.10.2012 Posted: 01 Oct 2012 07:42 AM PDT Levy of Service Tax on Railway Passengers Travelling in AC Classes/First Class from tomorrow i.e. 1st October 2012. No Service Tax to be Levied on Tickets Issued Prior to 1st October 2012. In Case of Cancellation of Tickets Issued on or after 1st October 2012, the Applicable Amount Including... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Filing of ST-3 only for the period 1st April to 30th June 2012 & in Revised Format Posted: 01 Oct 2012 07:18 AM PDT In terms of sub-rules (1) and (2) of Rule 7 of the Service Tax Rules, 1994, the half yearly return for the period 1st April to 30th September 2012, is to be filed by 25th October, 2012. In the current financial year , an assessee would have had to give data with respect to specific services and... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Now Railway Fare & Freight Go Up Posted: 01 Oct 2012 06:47 AM PDT While the levy of Service Tax on railway freight was introduced in the year 2006 but could not be enforced due to Railway Ministry being headed by one of the ruling party's allies in the alliance, the levy of Service Tax on transport of passengers was introduced by Finance Act, 2012 w.e.f. 1st... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Government suggests Phasing out Concurrent Audit Systems Posted: 01 Oct 2012 06:04 AM PDT It has been observed that there is a multiplicity of overlapping audits in the Public Sector Banks (PSBs). While the audit is essential for the health of the PSBs, it has been observed that multiple overlapping audits throughout the year engage a lot of attention, resources and time of the PSBs. It... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Exemption of Assam Comilla Cotton from export restriction Posted: 30 Sep 2012 10:30 PM PDT Export of 5,000 bales of Assam Comilla Cotton will be exempted from any export restrictions subject to registration with DGFT. Registration Certificate for such exports will be valid for 30 days only. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] DGFT approves 14 new PSIA as Pre Shipment Inspection Agencies (PSIA) Posted: 30 Sep 2012 10:22 PM PDT The following agencies are approved as Pre Shipment Inspection Agencies (PSIA) and enlisted in Appendix 5 of the Handbook of Procedures (Vol-I), Appendices and Aayaat Niryaat Forms: [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Procedure & conditions for export of cotton w.e.f 1st October 2012 Posted: 30 Sep 2012 10:18 PM PDT Notification No. 17 (RE-2012)/2009-14 The Procedure and conditions for export of cotton w.e.f 1st October 2012 have been notified. This is similar to Notification number 113 of 4th May 2012, except appropriate changes in para 2(iii). [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Policy Guidelines for issuance & operation of Prepaid Payment Instruments in India- Amendments Posted: 30 Sep 2012 09:25 PM PDT A. Rationalisation in the categorisation and value limits of PPIs - The five categories of semi-closed PPIs as indicated in our previous guidelines have been replaced with three broad categories as under: Semi-closed system prepaid payment instruments can be issued upto Rs.10,000/- by accepting... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Notification No. 41/2012 [F.NO. 203/38/2011/ITA-II], dated 28-9-2012 Posted: 30 Sep 2012 12:28 PM PDT It is hereby notified for general information that the organization National Law School of India University, Bangalore has been approved by the Central Government for the purpose of clause (iii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules 5C and 5E of...