Expense cannot be disallowed for Mistakes in form 15G

Notification of Profession Tax – Amendment in Rules for Providing PAN & TAN Posted: 25 Nov 2012 06:04 AM PST Government of Maharashtra is satisfied that circumstances exist which render it necessary to take immediate action further to amend the Maharashtra State Tax on Professions, Trades, Callings and Employments Rules, 1975 and to dispense with the condition of previous publication thereof under the... Providing adequate support staff to all assessment units – CBDT Posted: 25 Nov 2012 02:41 AM PST Assessment officers of many charges have conveyed to the Board that they are not being provided any secretarial assistance or other office help and they are left with no option but to make private arrangement to finalise their assessment orders and other time bound matters. Systematic corruption, is a human rights' violation – SC Posted: 25 Nov 2012 02:01 AM PST Corruption is not only a punishable offence but also undermines human rights, indirectly violating them, and systematic corruption, is a human rights' violation in itself, as it leads to systematic economic crimes. Thus, in the aforesaid backdrop, the High Court should not have passed the said... Public Servant Need No Sympathy for Corruption- HC Posted: 25 Nov 2012 01:49 AM PST Corrupt public servant deserves no sympathy and ruling out any leniency towards public servant who has been found guilty by the trial court, also made it clear that each of the criminal case is required to be decided with reference to the individual facts of each case. Validity of Reassessment notice if it mentions employee of company as agent? Posted: 24 Nov 2012 11:23 PM PST As per the Assessing Officer, the petitioner should be treated as an agent of Mr. Ivo Perica. For the salary income that Mr. Ivo Perica received for the work done in India having not paid tax, such tax could be recovered from the petitioner. For some strange reason, however, when the impugned... TPO to consider both external and internal comparables to determine ALP Posted: 24 Nov 2012 11:02 PM PST Even if the assessee as well as the authorities below agree that the internal comparables are sufficient for the TP study in the present case, that does not justify the legal compulsion of examining the external comparables as well. An agreement, arrived at on the basis of incorrect premises... Apex court can dismiss appeal on account of vagueness, leaving question of law open Posted: 24 Nov 2012 10:53 PM PST In the present case, we find that the Assessment Order does not give effect to the amount seized in the calculation of tax payable at the end of the Assessment Year in question. Further, there is no Demand Notice and there is no basis for claiming interest on advance tax due on 15th September, 15th... S. 2(22(e) – Mere transfer of profit by a company cannot be treated as loan Posted: 24 Nov 2012 10:46 PM PST Even though the assessment order mentions date of receipt of profit on sale of shares as 4.2.2004 and the amount is claimed to have been received from the company M/s DN Kansal & Securities (P) Ltd., the AO or the ld. CIT(A) did not analyse the nature of transaction as to how it is loan or... Extended period of limitation not invokable in case of revenue neutral situation Posted: 24 Nov 2012 10:37 PM PST There is no dispute that the appellants were eligible for CENVAT credit for the amount paid as Service Tax and, therefore, this is a situation which was revenue neutral and by not paying the Service Tax immediately, appellants have lost more than Rs.26,00,000/- paid by them as interest which would... Services provided by one unit of assessee to other unit not liable to service tax if Registration of Units based on same PAN Posted: 24 Nov 2012 10:26 PM PST We find from the Central Excise Registration and the other documents furnished by the applicant that the Registration by Central Excise Department has been given by including PAN Number of SAIL. There is no dispute that the applicant is an unit of M/s SAIL and the other units are also part of M/s... Expense cannot be disallowed for Mistakes in form 15G Posted: 24 Nov 2012 10:12 PM PST With respect to the deduction u/s.194-I,the learned Counsel for the assessee has submitted that the land lady being a senior citizen has submitted Form 15G to the assessee declaring that no tax should be deducted on the rent paid to her when the taxable limit for taxation in her hand was to be Rs.... Drilling of exploratory wells is part Mining Service Posted: 24 Nov 2012 09:43 PM PST While considering the scope of Survey and Exploration of Mineral, Oil and Gas Service, we limited the scope to the five elements of exploration and did not consider the drilling of exploratory wells as part of that service, it has to be treated as part of Mining Service since any service in... CENVAT Credit balance cannot be used for paying service tax by recipient of GTA services Posted: 24 Nov 2012 09:32 PM PST Since the appellant is not providing output services as categorized in Rule 2(p) of the Cenvat Credit Rules, 2004, debiting the said amount in the Cenvat account needs to be rectified by directing the appellant to debit or pay the entire amount invoked in both the appeals as service tax paid for... Delay in filing of application under sec. 84(3) is condonable Posted: 24 Nov 2012 09:28 PM PST The expression, including the provisions of sub-section (4) of section 129A is by way of clarification and has been so said expressly to remove any doubt about the applicability of the provision relating to cross objections to the applications made under section 129D(4) or else it may be said that... Unabsorbed depreciation to be set-off with income from other sources even if business losses not yet exhausted Posted: 24 Nov 2012 09:15 PM PST A reading of Section 32(2) thus makes it clear that if the unabsorbed depreciation allowance could not be wholly set off under clause (i) and clause (ii), the amount of depreciation not so set off can be set off from income from other head, if any, available for that assessment year. The language... Cenvat credit can be taken on machine procured prior to registration Posted: 24 Nov 2012 09:04 PM PST Ld. A.R has not been able to point out any provisions to the effect that Cenvat credit cannot be taken on machine procured prior to the date of issue of registration certificate. The argument of the lower authorities seems to be that the credit entries in the register for taking credit should not... Full value of consideration could not be substituted by market price if bona fide of the transaction not suspected Posted: 24 Nov 2012 09:04 PM PST When the bona fideof the transaction and the actual sale consideration received by the assessee has not been suspected, then for the purpose of computation of capital gains, the full value of consideration can not be substituted by market price or value of the capital asset as on the date of... ST Demand cannot be upheld under a category different than mentioned in show-cause notice Posted: 24 Nov 2012 08:55 PM PST Firstly, there is a legal infirmity that tax is demanded under a category of service different from the one for which demand was initially issued. There is also the issue that Clearing and Forwarding Service could be rendered using a godown made available by the service recipient. In this case the... Claim made Through invalid revised return can also be considered Posted: 24 Nov 2012 08:50 PM PST The AO examined the details of legal and professional charges paid by the company and noticed that the claim of Rs.5 lacs paid to M/s Kotak Mahindra Capital Company Ltd towards placement fees and earned dividend income which was claimed exempt u/s 10(34) of the Act. The company did not make any... Service Tax Penalty cannot be imposed u/s. 76 and 78 simultaneously Posted: 24 Nov 2012 08:29 PM PST We are of the view that even if technically, scope of sections 76 and 78 of the Act may be different, as submitted on behalf of the revenue, the fact that penalty has been levied under section 78 could be taken into account for levying or not levying penalty under section 76 of the Act. In such... Settlement Commission is barred from entertaining application after time limit prescribed for making an assessment order u/s. 143/144 expired Posted: 24 Nov 2012 08:24 PM PST Since no assessment order can be passed after the expiry of the prescribed time-limit, no proceeding can be taken in it. Moreover, proceeding for assessment/reassessment under section 147 are specifically excluded from the purview of case as defined under Section 245A(b). Thus, there is no question...

Online Tracking Facility to Check Corruption in Income Tax Refunds

ID Proofs Compulsory for Train Journey in All Reserved Classes from 1.12.2012 Posted: 23 Nov 2012 08:05 PM PST With effect from 01.12.2012, one of the passengers booked on a ticket for undertaking journey in any reserved class will have to produce any one of the prescribed proofs of identity failing which all the passengers will be treated as travelling without ticket and charged accordingly.   Online Tracking Facility to Check Corruption in Income Tax Refunds Posted: 23 Nov 2012 08:02 PM PST Instances of alleged corruption for settlement of refund claims and complaints come to notice from time to time. Whenever any such instance or complaints comes to notice, the same is verified and if it is found to be correct, the concerned officers/officials have to face penal consequences...   Measures to Contain Fiscal Deficit Posted: 22 Nov 2012 08:02 PM PST Government has imposed economy measures like rationalization of expenditure and optimization of available resources with a view to improve macroeconomic environment. These include a ban on holding of meetings and conferences at five star hotels, restrictions on foreign travel and ban on creation of...

Control on count of Tax Audits, No Option to download Final Acknowledgment

IT – Control on count of Tax Audits, No Option to download Final Acknowledgment Posted: 23 Nov 2012 07:40 PM PST Government has put the facility for CAs to upload 3CA, 3CB, 3CD etc. If Govt. makes upload of the same compulsory from AY 2013-14 by making appropriate rules under I T Rules, 1962, then we will be able to track - how many reports are filed with the department in our name? [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Applicability of Service Tax for Software Freelancer Posted: 23 Nov 2012 06:51 PM PST Software is not exempted from Service Tax because it does not appear in the List of Negative Services. Service Tax shall be levied or not is decided on case to case basis depending upon the location of service recipients. If the service recipient is located outside India, Service Tax is not... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] ITAT introduces 'e-bench' to hear appeals through video conferencing Posted: 23 Nov 2012 06:18 PM PST It is directed that appeals and applications fixed before the Income Tax Appellate Tribunal, Nagpur Bench will be heard through Video Conferencing by the Members of the ITAT sitting at ITAT, Mumbai. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Registration to a trust can be denied if it was charging fees for citizen services in addition to statutory fees Posted: 23 Nov 2012 10:02 AM PST The present society is doing its business and charging huge fees from the public which was in addition to the prescribed fee of the Punjab Government. Even otherwise, the fees charged by the present society is in addition to the burden forced upon the common-man. Because of this service has to be... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Income from sale of abandoned cargo by a custodian of goods not liable to Service tax Posted: 23 Nov 2012 07:41 AM PST The counsel for the appellant submits that in Board's Circular No. 11/1/2002-TRU dated 01/08/2002 it has been clarified that Service Tax is not leviable on the activities of the custodian when he auctions abandoned cargo and VAT/ST is paid in respect of such cargo. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Taxability of Share Profit of Assessee maintaining separate investment and trading portfolio Posted: 22 Nov 2012 10:47 PM PST There is no dispute that the assessee is maintaining two separate portfolios i.e. investment portfolio and trading portfolio. The A.O. has admitted the said position consistently in the past. It is pointed out that the shares in question which are subject matter of short term capital gain and long... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Extension of time to submit ITR-V cannot validate a time-barred S.143(2) notice Posted: 22 Nov 2012 09:40 PM PST The scheme frame by the CBDT clearly says that where the return was filed electronically with digital signature the acknowledgment generated electronically shall be evidence for filing of the return. Wherever, the return was filed electronically without digital signature, on successful... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Water supply project not coverd under Erection, Commissioning or Installation Services Posted: 22 Nov 2012 08:18 PM PST Water supply project is an infrastructure facility and a civic amenity which the State provides in public interest and not an activity of commerce or industry. Therefore, the appellants are not covered under the category of Erection, Commissioning or Installation Services." Following the precedent... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] No addition to income for festival discount given, if the same is Practice in Industry Posted: 22 Nov 2012 08:10 PM PST The question, whether the above difference between the fair market price and the concessional price should or should not be added to the total income of the assessee(s) Society, needs to be re-looked by Commissioner of Income Tax (Appeals) [for short, 'CIT(A)']. Apart from the afore-stated... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Regulatory function performed by BIS is not a business activity Posted: 22 Nov 2012 08:08 PM PST Statutory bodies (including BIS) are empowered to frame rules or regulations, exercise coercive powers, including inspection, raids; they possess search and seizure powers and are invariably subjected to Parliamentary or legislative oversight. The primary object for setting up such regulatory... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Penalty cannot be presumed to be passed on to another person Posted: 22 Nov 2012 08:08 PM PST In view of the presumption in the law that an penal liability can never be passed on to another person who has not committed the offence, the view taken by the Tribunal in the case of Offshore Hook-up that department has to prove that unjust enrichment would mean that some extra effort is required... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Order passed by appellate authority without application of mind liable to be set aside Posted: 22 Nov 2012 08:05 PM PST Appellate authority has not applied his own independent mind to various issues involved in the appeal and various contentions raised by the appellant. It stand simply observed by the appellate authority that all the issues stand discussed in detail by the adjudicating authority and he find himself... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Service Tax – Penalty u/s. 76 and 78 cannot be levied simultaneously Posted: 22 Nov 2012 08:05 PM PST As regards the judgment relied upon by the learned SDR in the case of Bajaj Travels Ltd. (supra) I find that the issue involved in the: case was the issue therein the show cause notices were issued prior to 10.05.2008, i.e. on 17.10.2005 invoking the provisions of sections 76 and 78 of the Finance... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Assessee can resort to section 264 proceedings, even if he has approached appellate authority Posted: 22 Nov 2012 08:05 PM PST The penalty was based on certain quantum additions. Such additions came to be deleted by the Commissioner(Appeals). Further appeal by Revenue before the Tribunal was rejected. When the Commissioner was deciding the revision petition of the assessee, what was prevailing was the order of the Tribunal. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] India Do not have the Concept of Tax Free Zones Posted: 22 Nov 2012 07:59 PM PST There is no concept called Tax Free Zones as such in operation. However, there are schemes like Special Economic Zones (SEZs) and Export Oriented Units (EOUs) which provide tax exemptions. Both above schemes are administered by the Department of Commerce. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] CItywise detail of Income tax Search in last 3 and half years Posted: 22 Nov 2012 07:56 PM PST The Income tax Department conducts search and seizure operations based on the credible companies, association of 'persons' which includes individuals, hindu undivided families (HUFs), firms, companies, association of persons (AoPs), body of individuals (BoIs), local authorities and any artificial... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Today is last date to E-File Non-XBRL 23AC and 23ACA without additional fees Posted: 22 Nov 2012 07:49 PM PST General Circular No.38 /2012 , Dated 23.11.2012 In continuation of General Circular No. 30/2012 dated 28.09.20 12 on the subject cited above, I am directed to say that Due date of filing of e-forms 23AC(Non-XBRL) and 23ACA (Non XBRL) as per new schedule VI (applicable for the accounting year... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Measures for promoting cost efficiency of imports by Indian Trade and Industry – regarding Posted: 22 Nov 2012 07:42 PM PST Trade has represented that with the growing container traffic in India, allowing the importers to transfer the goods from foreign containers to domestic shipping containers under Customs supervision in respect of imported goods lying uncleared for more than five days in a Customs area (CFSs /... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]