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INCOME TAX ACT

SECTION 2(15)

CHARITABLE PURPOSE

Object of general public utility/Trade promotion association : Where assessee-association was formed with an object to promote leather trade, in view of fact that assessee's receipt of rent from non-members by allowing them to keep their stalls in trade fairs organised by assessee was negligible in comparison to total trade receipts, assessee's case could not be said to be covered under proviso to section 2(15) - [2015] 64 taxmann.com 406 (Kolkata - Trib.)

SECTION 10(23C)

EDUCATIONAL INSTITUTIONS

Profit motive : At stage of registration, under section 10(23C) authority is only required to examine nature, activity and genuineness of institution and mere existence of some profit does not disqualify applicant if sole purpose of its existence is not profit making but educational activities - [2016] 65 taxmann.com 30 (Allahabad)

SECTION 44AD

CIVIL CONSTRUCTION BUSINESS

Merely because, assessee's income from civil construction work had been accepted at six per cent of contract receipt in earlier year, it could not be ground to claim that for relevant year also, assessee's income was to be assessed at six per cent of contract receipt - [2016] 65 taxmann.com 19 (Patna - Trib.)

SECTION 69

UNEXPLAINED MONEY

Seized books : Addition to assessee's income merely on basis of papers seized from possession of assessee's brother was unjustified when material sought to be relied on was not corroborated - [2016] 65 taxmann.com 29 (Calcutta)

SECTION 92C

TRANSFER PRICING - COMPUTATION OF ARM’S LENGTH PRICE

Comparables and adjustments - Method of computation/RPM v. TNMM : Where Tribunal held in earlier year in assessee's case that RPM was appropriate method as assessee was distributor, but prima facie facts of relevant year suggested that assessee was not merely a distributor, matter should be reconsidered afresh -[2016] 65 taxmann.com 21 (Mumbai - Trib.)

SERVICE TAX

SECTION 65(25b)

TAXABLE SERVICES - COMMERCIAL OR INDUSTRIAL CONSTRUCTION SERVICES

Abatement in respect of construction services cannot be denied where 'minor credit' inadvertently taken by assessee has been reversed with interest - [2016] 65 taxmann.com 27 (Ahmedabad - CESTAT)

SECTION 80

PENALTY - NOT TO BE IMPOSED IN CERTAIN CASES

Where internal auditor of company perpetrated fraud by booking 'service tax due' as 'income'/'commission' in books of account and it was found that directors of company were aware thereof, company was liable to evasion penalty for consequent non-payment of service tax - [2016] 65 taxmann.com 25 (Mumbai - CESTAT)

Where delayed payment was not due to any bona fide confusion occurring in prevalent statue and related provisions were quite crystal clear, penalty cannot be waived merely on ground of ignorance of law, as it is not a reasonable cause under section 80 - [2016] 65 taxmann.com 23 (Ahmedabad - CESTAT)

CST & VAT

SECTION 8 OF KERALA VALUE ADDED TAX ACT, 2003

TAX INCIDENCE AND LEVY - COMPOUNDED TAX RATES

Where for assessment years 2005-06 and 2006-07, assessee applied for payment of tax on compounded basis at lower rate under section 8(a)(i) and in meanwhile section 8(a)(i) was amended on 28-8-2005 with effect from 1-4-2005 and assessee in order to satisfy conditions laid down in amended section 8(a)(i) applied for cancellation of its central sales registration for assessment year 2005-06 after 28-8-2005 and for assessment year 2006-07 at commencement of said year, assessee was not entitled to concessional rate of tax for assessment year 2005-06 but not for assessment year 2006-07 - [2016] 65 taxmann.com 22 (Kerala)

CENVAT CREDIT RULES

RULE 2(l)

CENVAT CREDIT - INPUT SERVICE - INSURANCE SERVICES

Mediclaim of employees is in nature of welfare measure and is voluntary and is not taken in compliance with any statutory requirement; therefore, a provider of advertising services cannot take input service credit of mediclaim insurance premium - [2016] 65 taxmann.com 26 (Ahmedabad - CESTAT)

STATUTES

CORPORATE LAWS

Competition Commission of India (Procedure in Regard to the Transaction of Business Relating to Combinations) Amendment Regulations, 2016 – Amendment in Regulations 5, 6, 9, 13, 14, Schedule I & Form I and Omission of Regulation 31 - NOTIFICATION F.NO.CCI/CD/AMEND/COMB.REGL./2016, DATED 7-1-2016

Establishment of Local Office of SEBI at Jammu - NOTIFICATION NO.SEBI/LAD-NRO/GN/2015-16/028, DATED 1-1-2016

Payment of Contribution by Employers by 15th of following Mont H – Removing of Grace Period of 5 Days -CIRCULAR NO.WSU/9(1)2013/SETTLEMENT, DATED 8-1-2016

Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2016 – Amendment in Regulation 2 - NOTIFICATION NO.SEBI/LAD-NRO/GN/2015-16/29, DATED 11-1-2016   Wish You Happy and Prosperous Utrayan and Lohri,  Meetesh Shiroya