HC Cannot set aside reopening of assessment without giving the reason

SAT held Ranbaxy Director Guilty of insider trading Posted: 02 Nov 2012 07:14 AM PDT It is highly improbable to believe the statement of Mrs. Bala Kaul that she bought shares of the target company because of its intrinsic value and strong fundamentals. If that was so, it is not clear, what made her sell these shares on April 10, 2008, when Solrex was still in the process of... No Penalty For failure to comply with section 269SS if Reasonable cause exist Posted: 02 Nov 2012 07:02 AM PDT The Tribunal has not rested its decision on the only circumstance that it is the business of the assessee to collect deposits and, therefore, it was entitled to collect them in cash even if it involves violation of Section 269SS; that is not the substratum of the decision. HC Cannot set aside reopening of assessment without giving the reason Posted: 02 Nov 2012 06:52 AM PDT On going through the impugned Order of the High Court, we find that no reasons have been given by the High Court for setting aside the re-opening of assessment. In the circumstances, the impugned Order of the High Court dated 23rd December, 2011, in Writ Petition No. 1807 of 2011, is set aside and... Non-compete fee paid for business purpose is revenue expenditure Posted: 02 Nov 2012 06:47 AM PDT It is not denied by the Revenue that U. Mohanrao was the Chairman and Managing Director of some of the companies which got merged with the assessee company. The said U. Mohanrao had access to all information starting from manufacturing process, knowhow to the clientele and the products, including... Extended limitation period u/s. 73 is not invocable if existence of bona fide belief is proved Posted: 02 Nov 2012 06:36 AM PDT In the show-cause notice it was conveyed that the assessee had not registered itself with a view to evading duty and that therefore larger period of limitation would be invoked. It may be that such issue of allegation was not in so many words denied by the assessee. Income Tax E-filing website to remain closed from 3rd to 8th November, 2012 Posted: 02 Nov 2012 05:58 AM PDT The current e-filing website is being revamped to a new e-filing website with additional services. The current web services will remain closed with effect from 3rd November to 8th November, 2012. The web services will resume from 9th November, 2012. the press release is given below. Disallowance U/s. 40(a)(ia) cannot be made for non submission of Form No.15-I Posted: 01 Nov 2012 09:29 PM PDT In our view, therefore, once the conditions of further proviso of section 194C(3) are satisfied, the liability of the payee to deduct tax at source would cease. The requirement of such payee to furnish details to the income tax authority in the prescribed form within prescribed time would arise... Rejection of application u/s 80G(5) cannot be passed without giving the institution Posted: 01 Nov 2012 09:15 PM PDT As per proviso attached to the sub-rule (5) of Rule 11AA of the Rules, it is a statutory requirement that no order of rejection of application u/s 80G(5) of the Act shall be passed without giving the institution, trust or fund an opportunity of being heard. In absence of illegality in procedure adopted, appeal is allowed – SC Posted: 01 Nov 2012 09:13 PM PDT We have found that the procedure laid down under Section 29 of SFC Act has been followed by the Corporations. The independent valuer submitted his report on 17.09.2010 and the off-set price of the unit was fixed after getting it valued by an independent valuer. It was based upon the valuation... AO can made addition for Non Submission of Confirmation from Creditors Posted: 01 Nov 2012 09:01 PM PDT It is evident from the order of the CIT(A) that the assessee was unable to produce confirmations and reconciliations at the time of assessment proceedings and since the details was produced before the CIT(A), the CIT(A), called for the remand report. DIT(E) cannot reject approval u/s 80-G without giving proper opportunity to the Assessee Posted: 01 Nov 2012 08:11 PM PDT As is apparent from the aforesaid objects, society has been created for providing medical relief to the needy and poor. The ld. AR contended before us that 1st proviso to amended provisions of section 2(15) of the Act inserted by Finance Act, 2008 w.e.f., 01.04.2009 was not applicable in their... Payment made to NR deputing technicians to render technical services is Fees for Technical Services if the NR is accountable for services Posted: 01 Nov 2012 12:24 PM PDT In the case before us also, technical services were rendered by Toyo through the medium of the said technicians. It is not the assessee's case that the technicians were not answerable to Toyo. Nor is it the assessee's case that there was a separate agreement between the technicians and itself and...

Amount paid on surrender of tenancy rights eligible for depreciation u/s. 32

Thane Woman I-T officer caught accepting 1.5 lakh bribe Posted: 01 Nov 2012 05:52 PM PDT A woman income tax (I-T) officer was remanded in police custody till Saturday after being caught red-handed by CBI sleuths accepting a bribe from a Thane builder. Accused Madhavi Chavan was picked up from the Wagle Estate I-T office late on Wednesday after she accepted Rs 1.5 lakh from Sandeep... International Tax – TDS On Overseas Commission Posted: 01 Nov 2012 07:20 AM PDT After withdrawal of circular No. 786 of 2000, vide CBDT circular 7/2009 there is a lot of confusion in mind of exporters relating to deduction tax at source on commission paid to non-resident agents who operates outside India. Further recent ruling by Authority of Advance Rulings (AAR) against the... Amount paid on surrender of tenancy rights eligible for depreciation u/s. 32 Posted: 01 Nov 2012 04:46 AM PDT Apex Court in the decision reported in CIT v. D.P. Sandu Bros. Chembur (P.) Ltd. [2005] 273 ITR 1 that the surrender of tenancy rights amounted to transfer and hence, being a capital receipt, on the facts thus placed before this Court that the amount paid on account of surrender of tenancy rights... Valuation Officer report cannot form the foundation for rejection of books of account Posted: 01 Nov 2012 02:58 AM PDT On a conjoint reading of the provisions of section 69 and section 142A of the Act, it appears that for the purpose of resorting to the provisions of section 142A of the Act, the Assessing Officer would first be required to record a satisfaction that the assessee has made investments which are not... If section 40(a)(i) disallowance been made, no liability arise u/s. 201 Posted: 01 Nov 2012 02:40 AM PDT Demand under section 201 cannot be raised once the entire amount has been disallowed in the computation of income under section 40(a)(i) and 40(a)(ia). An overview of Sustainability & Integrated Reporting Posted: 01 Nov 2012 02:25 AM PDT The focus on reporting formats these days have shifted from Financial Reporting to Non Financial Reporting. Sustainability Reporting and Integrated Reporting are synonymously used with Non Financial Reporting. What better information does it offer over financial statements? Transfer of Flat After issue of notice u/s. 6(1) of SAFEMA is null & void Posted: 31 Oct 2012 10:31 PM PDT It is true that the appellants had obtained encumbrances certificates from the Sub-Registrar prior to purchase which show that there were no encumbrances to the subject flat. It is also true that the appellants had obtained loan from Vijaya Bank, Brigade Road Branch, Bangalore for purchase of the... Only Joint Commissioner or Additional Commissioner can sanction issue of Reassessment Notice Posted: 31 Oct 2012 10:24 PM PDT Admittedly, the return was processed u/s 143(1), as per the assessment order, on 15.05.2002 and the notice u/s 148 was issued on 28.03.2008. Therefore, as per section 151, the Assessing Officer was required to obtain the sanction of Joint Commissioner of Income tax as four years had lapsed from the... Developer following percentage completion method entitled to deduction u/s. 80-IB(10) Posted: 31 Oct 2012 10:13 PM PDT The assessee is following Percentage Completion Method. This method is recognised by the Income-tax Act for disclosing the profit in the case of a builder. The purpose of granting deduction u/s. 80IB(10) is to promote housing projects. Service Tax SSI Exemption In case of co-owned property having rent of More than 10 Lakh? Posted: 31 Oct 2012 10:09 PM PDT Benefit of SSI exemption Notification No.6/2005-ST dated 01.3.2005 as amended vide Notification No.8/2008-ST dated 01.3.2008, grants the benefit of exemption of service tax per year, provided that the assessee has not crossed the threshold limit of rupees ten lakhs in the preceding financial year. A.O. not to to demonstrate tax avoidance before invocation of TP provisions Posted: 31 Oct 2012 10:07 PM PDT As per the mandate of section 92(1), income from International transaction between AEs has to be computed having regard to ALP. Thus, there is nothing in the statutory language to suggest that the AO must demonstrate the avoidance of tax before invoking these provisions. Provision for wage revision based on Past Experience & Other factors allowable Posted: 31 Oct 2012 10:03 PM PDT In this case, the Tribunal had noticed that there was no dispute as regards the terms of employment of the workers and officers. The only question was the exact quantification of the compensation or wage revision. The Tribunal also held that provision for wage revision was based on past experience,... Release of New book on Service Tax authored by Dr. Sanjiv Agarwal Posted: 31 Oct 2012 09:52 PM PDT A new book on Service Tax – New Law of Service Tax in India, authored by Dr. Sanjiv Agarwal, a Chartered Accountant and Service Tax expert was released by Mr. Gautam Bhattacharya, IRS, Commissioner of Service Tax, New Delhi at a function at Delhi. This 1600 page book is the latest book on Service... No penalty for delay in Late Filing of TDS return supported by reasonable cause Posted: 31 Oct 2012 09:47 PM PDT In the case under consideration, we notice that the requirement of filing form 24Q was new one for the assessee and as being the first year of filing such return, there is no dispute about the fact that the tax has been deducted by the assessee. As held by the I.T.A.T., Mumbai Bench in the case of... SC remit the case to CIT(A) as Cash Flow Statement filed by assessee isn't supported by relevant documents Posted: 31 Oct 2012 09:47 PM PDT High Court has stated that cash flow statements submitted by the assessee were not supported by documents. If so, the High Court should have remitted the case to CIT(A) giving opportunity to the assessee to produce relevant documents. Cessation of liability is not income from export & not eligible for deduction u/s. 80HHC Posted: 31 Oct 2012 09:31 PM PDT In the present case during the course of assessment proceedings it was noticed that there were credit balance in the names of two parties amounting to Rs.3,52,581/- appearing in the books of account of the assessee. On being asked to verify the same, the assessee agreed to surrender it. The said... Excise duty not to be included in valuation of closing stock – SC Posted: 31 Oct 2012 09:23 PM PDT On going through the records, we find that the assessee Company has been following the net method for valuing the closing stock. It includes excise duty at the time of removal of goods. Following the order of this Court in the case of CIT v. Shri Ram Honda Power Equipment Ltd. [2012] 26 taxmann.com... Extension of time to file ITR-V for AY 2010-11 and 2011-12 Posted: 31 Oct 2012 08:48 PM PDT CBDT has extended the time limit for filing ITR-V form relating to returns filed electronically without digital signatures for the AY 2010-11 and AY 2011-12 filed on or after 1st April, 2011 upto 31st December, 2012 or within a period of 120 days from the date of uploading return, whichever is... Standardized Packaging of 19 Commodities of Day- to-Day use made Mandatory Posted: 31 Oct 2012 08:47 PM PDT In the interest of common consumer, from today onwards 19 commodities of day- to-day use, like bread biscuits, tea etc. can be sold in specified standard packs only. Ministry of Consumer Affairs, Food and Public Distribution had issued a notice on June 5, 2012 in this regard by amending Legal... I-card mandatory for sleeper-class Rail passengers from Dec 1 Posted: 31 Oct 2012 08:44 PM PDT It will be mandatory for sleeper-class train passengers to carry identity proof from December 1, this year, Railways announced today, in a bid to facilitate travel by bonafide people and reduce the scope for misuse of tickets by touts. Protocol Amending the Convention between India, UK & Northern Ireland Posted: 31 Oct 2012 08:39 PM PDT Protocol Amending the Convention between India, UK and the Northern Ireland Signed for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains SEBi Circular on Change of Name in the Beneficial Owner (BO) Account Posted: 31 Oct 2012 08:27 PM PDT In order to simplify the procedure of change of name in individual Beneficial Owner's (BO) account, it has been decided that an individual BO may be allowed to change his/ her name, subject to the submission of following documents at the time of change of name of the individual in the BO account. RBI Guidelines for Rehabilitation of Sick Micro & Small Enterprises Posted: 31 Oct 2012 08:16 PM PDT The recent global slowdown has adversely impacted the Indian economy in general and more specifically the Micro and Small Enterprises (MSEs). The MSEs suffer the most in such situations especially from discontinuity of business, which they normally are not in a position to bear and become sick... Rate of exchange of conversion of each of foreign currency WEF 2nd November, 2012 Posted: 31 Oct 2012 08:08 PM PDT Notification No.97/2012-Customs (N.T.), Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect...

Know your Empanelment/ Audit Allotment Status with CAG

Know your Empanelment/ Audit Allotment Status with CAG Posted: 31 Oct 2012 08:38 PM PDT A CA firm who applied for empanelment with CAG for Financial Year 2012-13 can check the status of his Empanelment & Audit work allotted by following the procedure given below :- Court cannot create tenancy without the consent of the landlord Posted: 31 Oct 2012 07:17 PM PDT The company-in-liquidation admittedly does not own the property. The Court cannot force respondent either to sell or let it out to 'W'. Interim arrangement was made at the stage of admission of appeal considering the balance of convenience and inconvenience. Such interim arrangement could not be... HC dismisses petition Challenging Circular related to VAT on Builders Posted: 31 Oct 2012 06:58 PM PDT Writ petition in Builders case on Circular 14T of 2012 has been dismissed by Hon. Bombay High Court & Extension for administrative Relief and payment Date is also denied. List of enhancements in MCA21 XBRL validation tool – Version 2.0.1 Posted: 31 Oct 2012 06:37 PM PDT The following enhancements have been released in the validation tool. These enhancements do not impact the instance documents which have already been filed on the MCA21 portal. This version of the tool needs to be downloaded by only those stakeholders who are facing the below mentioned issues. Central Bank Of India – Empanelment of Stock auditors Posted: 31 Oct 2012 05:54 PM PDT Central Bank Of India Last Date : 03/11/2012 Empanelment of Stock auditors Address: Central Bank Of India Jamnagar Regional office, 2nd Floor,Central Bank of India Building, Mandvi Tower Road, Jamnagar-361001. Government to appoint auditor for state-run banks on its own – ICAI Posted: 31 Oct 2012 05:21 PM PDT Breakthrough in Our Efforts with Regard to Autonomy of Bank Audit: I am glad to communicate that, in a major breakthrough with regard to the autonomy of bank audit, the Government has agreed to handle the selection of auditors for state-run banks on its own instead of leaving it to the... No Refund for Failure to Furnish Reco of Income as per TDS certificate & P/L a/c Posted: 31 Oct 2012 12:54 PM PDT  There is no material evidence on record to show that the assessee had produced any reconciliation statement of interest and contractual receipts as per TDS certificate compared to turnover credited in the P & L Account as per the audited statement. In view of the provisions of Section 237 of... Pondicherry Act for protecting interests of small depositors is Valid – SC Posted: 31 Oct 2012 12:18 PM PDT The decision in K.K. Baskaran's case (supra) so far as it relates to protection of interests of depositors, cannot be ignored. In our view the decision rendered by the Madras High Court in K.K. Baskaran's case (supra) would be equally applicable to the facts of this case. CA from Chennai acquitted in Cheating Case Posted: 31 Oct 2012 12:08 PM PDT The Additional Chief Metropolitan Magistrate, Egmore, Chennai has convicted Sh. S.M. A.K.Rahman (a private person) and sentenced him to undergo four years Rigorous Imprisonment with fine of Rs.4 lakhs in a cheating case. CWA President Communique – November 2012 Posted: 31 Oct 2012 11:39 AM PDT I am glad to inform the members that on incessant representations of the Institute, Ministry of Commerce and Industry, Department of Commerce vide its Public Notice No. 22 (RE-2012)/2009-14 dated 11th October, 2012 has authorized Cost Accountants for certification of various documents under... If assessee advanced to sister concerns or others without interest for no business purpose, interest to that extent to be disallowed Posted: 31 Oct 2012 11:33 AM PDT Once it is borne out from the record that the assessee had borrowed certain funds on which liability to pay tax is being incurred and on the other hand, certain amounts had been advanced to sister concerns or others without carrying any interest and without any business purpose, the interest to the... Market development fee paid to UK based company not taxable in India as fee for technical services Posted: 31 Oct 2012 06:57 AM PDT Giving marketing services outside India, even if we consider it as technical services, nothing was made available to the assessee in the nature of any technical knowledge, experience, skill know-how or processes. Depreciation is to be allowed even if not claimed in Return Posted: 31 Oct 2012 06:42 AM PDT In view of Explanation 5 to section 32(1), the Assessing Officer was duty-bound to grant depreciation allowance, whether the same is claimed by the assessee or not, provided the conditions mentioned under section 32 are satisfied. Statement under section 132(4) can be retracted Posted: 31 Oct 2012 06:07 AM PDT The case of the assessee is that the statement/admission was made under the mistaken belief of law that Rs. 50 lakhs represents the sale value of stock found short was undisclosed income of the assessee instead of the correct legal position that the gross profit on suppressed sale is the income of... No prescribed time-limit for taking Cenvat credit Posted: 31 Oct 2012 05:52 AM PDT No where in the Central Excise Act as well as in the Cenvat Credit Rules not prescribed any period in which credit has to be taken. Although it is mentioned in the Cenvat Credit Rules that assessee can take the credit immediately, but there is no prescribed time limit neither in the Cenvat Credit... Two or more Assessing Officers having territorial jurisdiction in respect of same income, can exercise concurrent jurisdiction Posted: 30 Oct 2012 09:45 PM PDT In the present case we find that the petitioner had changed his registered office w.e.f. 4th November, 1989 from first floor and 6376 Naya Bans Delhi to Y-192, Loha Mandi, Naraina, New Delhi, and thereafter w.ef. 3rd October, 2000 from Y-92 Loha Mandi, Naraina, Delhi to Room No.9, Y-3C, Loha Mandi,... Notification No.96/2012 – Customs (N. T.) – Change in Tariff Value of RBD Palmolein, Brass Scrap (All Grades) Poppy Seeds, Gold &Silver Notified Posted: 30 Oct 2012 08:26 PM PDT Notification No.96/2012 – Customs (N. T.) New Delhi, 31th, October, 2012             S.O. ____ (E).– In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and... section 80-IA(7) provides for determination of amount of deduction not for deduction actually allowable Posted: 30 Oct 2012 01:20 PM PDT A combined reading of the provisions of sub sec. 7 of sec. 80-IA and sec. 80AB would suggest that (a) the Profits and gains of an eligible business, to which the provisions of sec. 80-IA(1) shall apply, shall be restricted to the amount of income of that nature that is included in the Gross total...