Carbon Credits entitlement is capital receipt & can’t be taxed as a revenue receipt

Carbon Credits entitlement is capital receipt & can't be taxed as a revenue receipt Posted: 06 Nov 2012 07:21 PM PST Carbon credit is not an offshoot of business but an offshoot of environmental concerns. No asset is generated in the course of business but it is generated due to environmental concerns. Credit for reducing carbon emission or greenhouse effect can be transferred to another party in need of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 'Jab tak hai Jaan' won against 'Son of Sardar' – CCI finds no contravention Posted: 06 Nov 2012 05:55 PM PST The Competition Commission of India has held that there is no contravention of the provisions of the Act by the alleged agreement between Yash Raj Films Private Limited and its various associated enterprises. The Competition Commission of India passed its order in the case filed by Ajay Devgn Films... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] First Financial Year of a company & first AGM – Issues involved Posted: 06 Nov 2012 09:21 AM PST Usually financial year of a company consists of 12 months. However, in some cases it may not be so. In case of newly incorporated company, financial statements have to be prepared from the date of incorporation of the company till the year-end date of the financial year which may not be of 12... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Mere possession of valuable items not sufficient to form a belief that same not been or would not be disclosed Posted: 06 Nov 2012 09:05 AM PST Mere possession of money, bullion, jewelery or such valuable article or thing per-se would not be sufficient to enable the competent officer to form a belief that the same had not been or would not be disclosed for the purpose of the Act. What is required is some concrete material to enable a... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Delay in filing appeal required to be construed liberally – HC Posted: 05 Nov 2012 11:22 PM PST The expression 'sufficient cause' may be required to be construed liberally, provided adequate and proper reasons exist. Liberal approach is advocated in condoning the delay and not being liberal to sufficiency of the cause where it does not exist. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Addition can't be made Merely Because Transaction not made through banking Channel Posted: 05 Nov 2012 10:03 PM PST At the time of hearing the ld. Counsel appearing on behalf of assessee by referring to the paper book at page nos.9 to 31 which contain copies of Kishanlal M.Dayama's I.T.Return Ack., P&L A/c Capital A/c, Balance Sheet and Banker's Certificate, Copies of Rajesh Kaishchand Vyasa's I.T.Return... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Powers of Commissioner of Income Tax co-terminus with that of Assessing Officer Posted: 05 Nov 2012 09:56 PM PST It is a settled law that the powers of the Commissioner of Income Tax is co-terminus with that of Assessing Officer. Under the circumstances, the particular enquiry that was not made by the Assessing Officer which was necessary in the facts of the case, should have been done by the Ld. Commissioner... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Winding up petition may be rejected for non quantification of Debt Posted: 05 Nov 2012 09:29 PM PST In the present case, the learned Judge rightly observed that the conduct of the company was dishonest. There had been transactions galore running into crores. More than Rupees sixty-four lacs were admittedly paid by the company. Even then, the company initially denied the relationship, subsequently... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Non CTS cheque to Bounce from 01.01.2013 Posted: 05 Nov 2012 07:02 PM PST CTS-2010 standard" is a set of benchmarks towards achieving standardisation of cheques issued by banks across the country. These include provision of mandatory minimum security features on cheque forms like quality of paper, watermark, bank's logo in invisible ink, void pantograph, etc., and...

A.O. to certify correctness of demand before adjustment against refund

A.O. to certify correctness of demand before adjustment against refund Posted: 05 Nov 2012 07:40 PM PST . The assessing officers are required to verify uploaded arrear demands in CPC portal in these cases and certify their correctness before they are considered for adjustment against refunds. This is to ensure that no undue hardship is faced by tax payers, consequently generating grievances.  Trust not entitled to exemption if carrying only incidental objects which are not charitable Posted: 05 Nov 2012 07:32 PM PST An assessee that engages itself only or predominantly in activities relating to its ancillary or incidental objects which do not relate to any charitable purpose and does not carry on any activity relating to its main object which pertains to a charitable purpose is not entitled to an exemption... Cost auditors to intimate their appointment to till 17-12-2012 to avoid disciplinary proceedings Posted: 05 Nov 2012 06:59 PM PST GENERAL CIRCULAR NO. 35/2012 Ministry of Corporate Affairs vide General Circular No. 15/2011, dated April 11, 2011 had prescribed a revised procedure to be followed for appointment of cost auditors. As per the revised procedure, each company is required to e-file its application with the Central... Notional interest on deposit not includible in Annual Letting Value (ALV) Posted: 05 Nov 2012 05:14 PM PST While deciding the issue relating to determination of actual value of the assessee' s property in Mumbai the income from house property must be computed on the basis of the sum which might reasonably be expected to let from year to year and with the annual Municipal value provided such a value is... SEZ units continue to be exempt from MAT Posted: 05 Nov 2012 05:00 PM PST Unit in SEZ will be covered by sub-section(6) to section 115JB of the Act irrespective of the fact that those units were claiming deduction u/s.10A of the Act. We also observe that benefit given to SEZ unit from the applicability of provisions of section 115JB has been withdrawn by the Finance Act,... Overview of insurance laws in India Posted: 05 Nov 2012 04:33 PM PST Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident,... Whether ratio of expenditure disallowance in lieu of interest payments u/s 14A has to be in the ratio of dividend income to total turnover? Posted: 05 Nov 2012 02:33 PM PST Once it is not in dispute that the facts of the case are materially similar to the facts of ISG Traders Ltd. vs. CIT, WB-II, Kolkata (I.T,A No.264 of 2003-2011- TIOL-621-HC-KOL-IT). And that the said decision applies in this case, the computation of disallowance has to be done on the same basis as... Additions u/s. 69A without providing basis of such additions not valid Posted: 05 Nov 2012 10:46 AM PST The assessment order is bereft of any discussion as to what were the materials adverse to the assessee and what was the inference that could be drawn in the light of those materials and documents. Consequently, even while we do not fault the Tribunal's reasoning about the denial of... SC refuses to interfere with policy on FDI in retail Posted: 05 Nov 2012 10:40 AM PST The Supreme Court today refused to interfere with the policy on FDI in retail, saying that if it does not stand in Parliament then it would be at government's peril. A Bench of Justices R.M. Lodha and A.R. Dave said that the policy making is the sole prerogative of the executive and refused to... Standard assets of banks are not provision for bad and doubtful debts Posted: 05 Nov 2012 10:39 AM PST A look into the original assessment order clearly show that but for the deduction allowed to the assessee as claimed by it in its return, there was no discussion as to how Section 36(1)(viia) was applied and whether the limits were corrected worked out. Admittedly, no question was asked to the... Excise duty is to be excluded from value of closing stock of finished goods Posted: 05 Nov 2012 10:34 AM PST The judgement of the Bombay High Court in the case of CIT v. Indo Nippon Chemical Co. Ltd. [2000] 245 ITR 384 squarely applies to this case and the same has been affirmed by this Court, which is reported in CIT v. Indo Nippon Chemicals Co. Ltd. [2003] 261 ITR 275 . The assessee followed the net... How to calculate Installment on term loan? Posted: 05 Nov 2012 05:50 AM PST The given sheet is a simple example of the subject matter and by this you can easily understand that what is the methodology is being adopted for calculation of installment. actually it is the implication of PV Factor that we used for calculation. Following steps are used for calculation: 1....

Service Tax On Works Contract – Exemptions – After 01-07-2012

Service Tax On Works Contract – Exemptions – After 01-07-2012 Posted: 04 Nov 2012 06:17 PM PST Service tax provisions in respect to Works Contracts have undergone major changes after introduction of new service tax regime. Works contract in itself is a very lengthy subject and law relating to Works Contract in Service Tax is available in a very scattered way. I am trying to summarize all the... VAT on under construction flats – A.O. to decide whether a particular contract for Building construction is a works contract or not – HC Posted: 04 Nov 2012 06:51 AM PST Judgments of the Bombay High Court in the case of Marathi Bandhkam and Ashok Gokani (Flat buyer) vindicate my stand that the MCHI judgment had merely decided the constitutional validity of the amendment made to the definition of sale and not whether a particular contract is a works contract or not, MVAT – Updated List of Suspicious Dealers as on 03.11.2012 Posted: 04 Nov 2012 05:35 AM PST The Department of Sales Tax, Maharashtra State has declared UPDATED list of Suspicious Dealers on 3rd November 2012 totaling to 1555 nos. Earlier return, after a revised return, cannot form the basis of assessment Posted: 04 Nov 2012 05:27 AM PST It is well settled that when a revised return is filed by the assessee, the original return is totally substituted and the revised return alone has to be taken into consideration in completing the assessment. The earlier return, after a revised return has been furnished, cannot form the basis of... Cost Accountants in Full-Time Employment Can Sign Specified Compliance Reports Relating To Cost Records Posted: 04 Nov 2012 05:18 AM PST The Central Government vide the following notifications, has allowed cost accountants in full time employment, in addition to certification by members in full-time practice, to certify the Compliance Report to be filed with the Central Government in compliance with the following rules, namely:- In case of foreign gift, Assessee to prove Credit worthiness of donor Posted: 04 Nov 2012 05:10 AM PST The burden is on the assessees to show that the amount received by purported gift(s) from the two donors was a gift in the legal sense. Assessees have not led evidence to show whether the alleged donors had adequate funds in their respective accounts to make these purported gift(s) in Singapore... Can bank claim depreciation on stock in trade shown as Investment in Balance Sheet Posted: 04 Nov 2012 05:05 AM PST In the instant case, we would like to convey that in so far as the books of account are concerned, namely, the balance sheet, the assessee was supposed to follow the mandate of the Reserve Bank of India and, therefore, that by itself would not be a ground to label the securities as 'investment'.... Arrears of rent received as mesne profits taxable in year of receipt & not in year of accrual Posted: 04 Nov 2012 04:46 AM PST Arrears of rent received by the assessee (as mesne profits) could not be brought to tax for the previous years, when they fell due. They could be brought to tax only during the year of receipt. The revenue had further argued that during the year of receipt, the assessee had shown the amount so... Deduction u/s. 80-IA is to be allowed unit-wise without deducting losses in other unit Posted: 04 Nov 2012 04:33 AM PST Gross total income of the assessee is at Rs. 8,03,26,598 lakhs after adjusting the losses suffered by it in the eligible as well as profits of the non-eligible units. There are no brought forward losses or unabsorbed depreciation. The claim of deduction under section 80-IA was in respect of... Company wind-up power is conferred on Court & notwithstanding any arbitration agreement Posted: 04 Nov 2012 04:17 AM PST Power of winding up of a company was conferred on the Court and notwithstanding any arbitration agreement between the parties the arbitrator would have no jurisdiction to pass the said order. We fail to appreciate, how this decision would help us to decide the present controversy. If debt itself is disputed than winding petition deserve to be dismissed Posted: 04 Nov 2012 04:07 AM PST It is therefore necessary that there must be debt due and the company must be unable to pay it. If the debt is a disputed debt and the defence is substantial one order of winding up should not be passed. It is also note worthy that after the petitions were admitted no other persons have raised any... Capping of TP adjustments to combined group profits not possible Posted: 04 Nov 2012 03:54 AM PST Interra Information Technologies (India) Private Limited, a company incorporated under the Companies Act, 1956, is a 100% subsidiary of Interra IT Inc., a US based company. Interra IT Inc. enters into contract with customers and subcontracts a part/whole of the work to Interra India. No addition if Assessee was not beneficiary of accommodation entry business Posted: 04 Nov 2012 01:09 AM PST It is seen from the statement of 'M' that the assessee's name was not mentioned by him at all as beneficiary of the accommodation entry business carried by him. Since despite being obliquely prompted, he did not mention the assessee's name and merely stated that he did not deal with any... If Excess excise duty paid not refunded, buyer can claim the refund Posted: 03 Nov 2012 11:43 PM PDT Learned counsel for the appellant submits that even if the duty has been paid in excess of the amount finally held to be payable, unless the excess duty paid has been refunded, the assessee could claim cenvat credit as the department could not get the duty twice. HC to decide reduction of 90 per cent of net commission received by assessee from profits of business for computation of deduction u/s. 80HHF Posted: 03 Nov 2012 09:19 PM PDT Whether, on the facts and circumstances of this case and in law, the Income Tax Appellate Tribunal was correct in directing the Department to reduce 90% of the net commission received by the assessee from the profits of the business for computation of deduction under Section 80HHF of the Income Tax...