| INCOME TAX ACT |
| SECTION 2(47) |
| CAPITAL GAINS – TRANSFER |
Sale of partnership business as going concern to company : Sale
of business of assessee-firm as a going concern to company for
consideration of paid up share capital does not amount to transfer
liable to tax as capital gains - [2016] 66 taxmann.com 249 (Gujarat)
|
| SECTION 28(i) |
| BUSINESS INCOME - CHARGEABLE AS |
Business income v. Capital gains - Dealing in Land : Where
an individual engaged in manufacture and sale of pharmaceutical
products and, also earned income from sale of undivided share of land
and construction of flats on said land, income would be treated as
business income - [2016] 66 taxmann.com 250 (Madras)
|
| SECTION 69C |
| UNEXPLAINED EXPENDITURE |
Construction of flats : Where
Assessing Officer had no case that assessee had received any excess
consideration from flat buyers, nor was it case of any flat buyers that
something more was realized from them, no addition on account of
unexplained expenditure could be made - [2016] 66 taxmann.com 250 (Madras)
|
| SECTION 80-IA |
| DEDUCTIONS - PROFITS AND GAINS FROM INFRASTRUCTURE UNDERTAKINGS |
Condition precedent/Setting off losses : Where
loss of eligible business undertaking was already absorbed against
other income of business enterprises, assessee was entitled to claim
deduction under section 80-IA -[2016] 66 taxmann.com 251 (Madras)
|
| CUSTOMS TARIFF ACT |
| SECTION 3 |
| CHARGE/LEVY - ADDITIONAL DUTY OF CUSTOMS/SPECIAL CVD |
Even
if special CVD on imports was paid using balance lying in DEPB scrips,
same is refundable "in cash" on resale of goods; Circulars
denying/restricting refund of Special CVD in such cases are ultra vires
Notification No. 102/2007-Cus. and are void. - [2016] 66 taxmann.com 253 (Delhi)
|
| STATUTES |
| DIRECT TAX LAWS |
Section
139A of the Income-tax Act, 1961 - Permanent Account Number -
Processing of core field updation requests - Identification of duplicate
Pans allotted to A Person and Resolution by RCC - ITBA-PAN INSTRUCTION NO.3 [F.NO.PDGIT(S)/ADG(S)-1/ITBA-P
|
Section
190 of the Income-tax Act, 1961 - Administration of TDS - Redressal of
taxpayer grievances raised due to TDS mismatches - LETTER, DATED 15-2-2016
|
Economic Survey 2015-16 - PRESS RELEASE, DATED 26-2-2016
|
| CORPORATE LAWS |
Circular on Mutual Funds - CIRCULAR NO.SEBI/HO/IMD/DF2/CIR/P/2016/
|
Know Your Customer (KYC) Direction, 2016 - CIRCULAR DBR.AML.BC.NO.81/14.01.001/201
|
Alteration in name of Bank Internasional Indonesia to PT Bank may Bank Indonesia TBK in Second Schedule of RBI Act, 1934 - CIRCULAR DBR.NO.RET.BC.80/12.07.104A/20
|
Inclusion of National Bank of Abu Dhabi PJSC in Second Schedule of RBI Act, 1934 - CIRCULAR DBR.NO.RET.BC.79/12.07.138A/20
|
Review of Prudential Guidelines – Revitalizing Stressed Assets in Economy - CIRCULAR DBR.BP.BC.NO.82/21.04.132/2015
|
| INDIRECT TAX LAWS (ST./EX./CUS. & (CST & VAT)) |
Extension of date for filing return in GE-II for first three quarters of 2015-16 - NOTIFICATION NO.F.3(619)/POLICY/VAT/2016/14
Thanks & Regards,
Meetesh Shiroya
|
Monday 29 February 2016
Daily Updates and News
Sunday 28 February 2016
Daily Updates
| INCOME TAX ACT |
| SECTION 40(a)(i) |
| BUSINESS DISALLOWANCE – INTEREST, ETC., PAYABLE OUTSIDE INDIA |
Commission
payments to the nonresident agents are not taxable in India, as the
agents are remaining outside, services are rendered abroad and payments
are also made abroad. The services rendered by the non-resident agent
could at best be called as a service for completion of the export
commitment and would not fall within the definition of "fees for
technical services" and, therefore, section 9 was not applicable and,
consequently, section 195 did not come into play. Therefore, the
disallowance made by the Assessing Officer u/s 40(a)(i) towards export
commission paid by the assessee to the non-resident was rightly deleted
by the Tribunal. In GE India Technology's case, it was held by SC that
the tax deducted at source obligations under Section 195 (1) of the Act
arises, only if the payment is chargeable to tax in the hands of the
non-resident recipient. When the transaction does not attract the
provisions of Section 9 of the Act, then there is no question of
applying Explanation 4 to Section 9 of the Act. Consequently, the ratio
of SC decision in G.E. India Technology's case would apply
notwithstanding insertion of Explanation 4 to Section 9 (1) (i) of the
Act with corresponding introduction of Explanation 2 to Section 195 (1)
of the Act, both by the Finance Act, 2012, with retrospective effect
from 01.04.1962 - [2016] 66 taxmann.com 321 (Madras)
|
| SECTION 74 |
| LOSSES UNDER HEAD CAPITAL GAINS |
Setting off deemed short term capital gain : Where
deemed short term capital gain arose on account of sale of depreciable
assets that was held for a period to which long term capital gain would
apply, assessee would be entitled to claim setting off said gain against
brought forward long term capital losses and unabsorbed depreciation - [2016] 66 taxmann.com 330 (Bombay)
|
| SECTION 132A |
| SEARCH & SEIZURE - REQUISITION OF BOOKS OF ACCOUNT, ETC. |
Reassessment : Accounts
which were duly verified during regular assessment of assessee could
not be reappreciated merely because further a search was conducted in
premises of assessee as same would amount to reopening of concluded
assessment - [2016] 66 taxmann.com 264 (Karnataka)
|
| COMPANIES ACT |
| SECTION 445 |
| WINDING UP - COPY OF WINDING UP ORDER TO BE FILED WITH REGISTRAR |
Contract of Company (in liquidation) with its employees comes to an end on passing of winding up order - [2016] 66 taxmann.com 243 (Bombay)
|
| SECTION 529A |
| WINDING UP - OVERRIDING PREFERENTIAL PAYMENTS |
Bonus is not included in category of wages under sections 529 and 529A and cannot be accorded priority - [2016] 66 taxmann.com 243 (Bombay)
|
| CENTRAL EXCISE ACT |
| SECTION 35C |
| APPEALS - ORDERS OF - APPELLATE TRIBUNAL |
Remand
order of Tribunal may be 'conditional' i.e., Tribunal may impose
suitable conditions including making of certain deposit as a condition
of remanding matter back to adjudicating authority, only if same is
necessary due to reasons attributed to assessee - [2016] 66 taxmann.com 268 (Gujarat)
|
| CUSTOMS ACT |
| SECTION 27 |
| REFUND – GENERAL |
Refund
of customs duty paid by SEZ units is governed by section 27 of Customs
Act; hence, said refund claim units would lie before Customs Authorities
and not before SEZ authorities under the SEZ Act/rules - [2016] 66 taxmann.com 271 (Gujarat)
|
| SECTION 130E |
| APPEALS - MAINTAINABILITY OF - SUPREME COURT |
Where
High Court has dismissed review petition against its own judgment,
then, proper course is to challenge 'main order'. If 'main order' of
High Court is not challenged, appeal/special leave petition against
'order of High Court dismissing review petition' is not maintainable
before Supreme Court - [2016] 66 taxmann.com 269 (SC)
|
| STATUTES |
| DIRECT TAX LAWS |
Section
139A of the Income-tax Act, 1961 - Permanent Account Number -
Jurisdiction of PANs of trusts submitting ITR-7 for assessment years
2014-15 and 2015-16 as on 28-1-2016 - LETTER F.NO.DGIT(S)/DIT(S)-3/AST/CIT EXEMPTION JURIS/98/2015-16, DATED 22-2-2016
|
| CORPORATE LAWS |
Chartered
Accountants Procedures of Meetings of Quality Review Board, and Terms
and Conditions of Service and Allowances of the Chairperson and Members
of the Board (Amendment) Rules, 2016 - Amendment in rule 9 - NOTIFICATION NO. GSR 148(E) [F.NO.1/30/2015/PI], DATED 8-2-2016
Thanks & Regards,
Meetesh Shiroya |
Daily Updates and News
Economy & News
Difficult job ahead, no magic wand to push growth: CEA Arvind Subramanian
The
government will have to go through a "very difficult process" of
pushing reforms and projects to propel India to a high-growth path as it
will not happen through some magic wand, Chief Economic Advisor Arvind
Subramanian said today. The CEA said he has taken a "realistic" view
while projecting a growth rate of 7-7.75 per cent for the next fiscal
and the growth path could be derailed in the event of an 2008-like
"extreme crisis" in the world. "We highlight somethings which could have
been [….] Read more at:
Nitin Gadkari bats for robust infrastructure in North-East region
Development
of road and rail connectivity as well as robust power and communication
network will bring development, attract industries and give employment
to youth in Assam, Union Minister Nitin Gadkari said today.
Acknowledging connectivity is the biggest problem of the north east
region, Gadkari said, "After our government came to power last year, we
decided to work for the development of the region and set the National
Highway Road Development Corporation". Stating [….] Read more at:
India will post double digit growth despite bottlenecks: KV Kamath
Indian
economy will eventually touch double digit growth rate despite
bottlenecks like the stalemate over Goods and Services Tax (GST) as it
has conducive conditions, eminent banker and President of BRICS New
Development Bank KV Kamath said today. "I am wearing a different hat. I
will talk wearing that hat. India is one of outlier in what is happening
around the world. In economic context we are stable. We have both the
deficits under control," he said, commenting on the economic [….]
Read more at:
Eco Survey 2016: PM Narendra Modi’s chiding of the rich taken seriously
The
Economic Survey estimates India's potential growth rate to be 8-10 per
cent, but concludes that, given global headwinds, economic growth in
2016-17 is likely to be capped at 7.75 per cent. Inflation will be kept
in check, too, it says because the government will stay committed to
fiscal discipline, never mind having to implement the 7th Pay Commission
recommendations that will add about half a percentage point of GDP to
the Centre's wage bill. While the Centre might be [….] Read more at:
Hilsa preservation and research centre set up in Sultanpur
The
West Bengal government has set up a Hilsa preservation and research
centre in Sultanpur. The state government has also provided
temperature-controlled mobile vans and cycle-mounted ice boxes for
selling fish. These activities are regulated by fishermen's cooperatives
have ensured a steady income for the cooperatives. Counting the success
of the fish farming segment in Bengal, state finance Minister Amit
Mitra said, "Fish farming in West Bengal is a big industry now [….]
Read more at:
Export of coconut & coconut products grow in rupee terms between April-January 2015-16
Export
of coconut and coconut products grew in rupee terms for the period
April-January 2015-16. Cumulative value of exports of coconut and
coconut products from India other than coir and coir products was Rs
1188.27 crore as against Rs. 1092.90 crore during the corresponding
period of 2014-15, thus registering a growth of 8.73%. Activated carbon,
virgin coconut oil, coconut oil, dry coconut, desiccated coconut,
copra, coconut shell charcoal etc. are the major coconut products
[….] Read more at:
Karnataka CM Siddaramaiah asks for hike in professional tax ceiling and better devolution of funds to states
Ahead
of the union budget, chief minister Siddaramaiah of Congress-ruled
Karnataka has sought a five-time increase in the ceiling of professional
tax and suggested better management of centrally-devolved funds to the
states. In a memorandum submitted to union finance minister Arun Jaitley
last week, Siddaramaiah, who holds the finance portfolio and has
presented 10 budgets under three different governments in the state,
pointed out that the ceiling of Rs 2,500 per annum on [….] Read more
at:
Major economies to slow down, India's demographics favourable: DBS
The
decline in growth rate of some major economies including some Asian
countries will continue in the coming years barring India, where
demographics will favour growth numbers, says a DBS report. According to
the global financial services major, a sharp fall in working age
population growth has lowered potential growth in the US, Japan,
Germany, France, Italy, the UK and Asia, and will continue to do so in
the coming years. This share of working age population will fall sharply
in the [….] Read more at:
Government to mobilise Rs 10 lakh crore investment under Sagarmala project
Under
its ambitious Sagarmala project, the government is looking to mobilise
at least Rs 10 lakh crore investment, including Rs 4 lakh crore in the
infrastructure sector alone. Sagarmala is a project unveiled by the
Narendra Modi government that aims to accelerate economic development by
harnessing the potential of India's 7,500 km coastline. "Sagarmala NPP
(national perspective plan) envisages viable infrastructure investment
worth Rs 4 lakh crore and industrial investment [….] Read more at:
Dinesh Sharma elected as Chairperson of IFAD
Additional
Finance Secretary Dinesh Sharma has been elected as the Chairperson of
the Governing Council of International Fund for Agriculture Development
(IFAD). Sharma, who is India's governor to Rome-based IFAD was
unanimously elected as the chairperson of the Governing Council for a
period of two years in 39th session held in Rome on February 17-18, a
Finance Ministry press release said. According to the statement,
speaking on the occasion, the Italian President Sergio [….] Read more
at:
First BRICS bank loan to India likely for solar project: Kamath
The
New Development Bank set up by BRICS countries aims to lend up to USD 2
billion this year starting in about two months and the multilateral
lender's first loan to India could be for a green solar energy project,
its president K V Kamath said. "For this year, if we can approve
one-and-a-half to two billion dollars I will be happy. We are six months
into setting up the bank. We do not want to take steps which are too
fast," Kamath told PTI. While the bank is in the process of finalising
its set of loans [….] Read more at:
Why Make in India is stumbling over our labour laws
What's
the one assurance investors want before setting up manufacturing base
in India? The ease of making workforce adjustments in line with changing
market conditions. In this area, Indian labour laws are among the most
restrictive. The Industrial Disputes Act of 1947 has two provisions in
the way of workforce adjustments. Chapter VB of the Act requires prior
approval of the appropriate government before resorting to any layoff,
retrenchment or closure in establishments employing 100 or more [….]
Read more at:
Thanks & Regards,
Meetesh Shiroya
Friday 26 February 2016
Daily Updates and News
| INCOME TAX ACT |
| SECTION 28(i) |
| BUSINESS INCOME - CHARGEABLE AS |
Subsidy : Where
it was only before High Court assessee-cement manufacturer took stand
that out of total transportation subsidy to which it was entitled, it
was assessable for amount actually received in concerned year, while its
stand before Assessing Authority at initial stage was totally opposite,
said issue could not be addressed before High Court - [2016] 66 taxmann.com 252 (Punjab & Haryana)
|
| SECTION 90 |
| DOUBLE TAXATION RELIEF – WHERE AGREEMENT EXISTS |
Where
assessee, a US based company, engaged in manufacture and production of
business support software, entered into a software duplication and
distribution licence agreement with Indian subsidiary in terms of which
said subsidiary sub-licenced software products to various customers in
India, since in course of assessment Assessing Officer accepted that
amount received by assessee under said agreement was taxable as
'royalty' under article 12 of India – USA DTAA, he could not
subsequently initiate reassessment proceedings merely on basis of change
of opinion that income in question was linked to assessee's PE in India
and thus same was to be taxed at higher rate as 'business profits'
under article 7 of the India – USA DTAA by applying rule of 'force of
attraction - [2016] 66 taxmann.com 286 (Delhi)
|
| SARFAESI ACT |
| SECTION 13 |
| ENFORCEMENT OF SECURITY INTEREST |
Where
applicant bank being sole secured creditor had already initiated
measures under provisions of SARFAESI Act, liquidator subsequently
appointed under BIFR's order was to be directed to handover possession
of mortgaged assets to applicant - [2016] 66 taxmann.com 225 (Gujarat)
|
| PREVENTION OF CORRUPTION ACT, 1988 |
| SECTION 2(c) |
| PUBLIC SERVANT |
Chairman,
Directors and Officers of a private bank are public servants for the
purposes of their prosecution in respect of offences punishable under
Prevention of Corruption Act, 1988 - [2016] 66 taxmann.com 302 (SC)
|
| SECTION 73 |
| RECOVERY - OF DUTY OR TAX NOT LEVIED/PAID OR SHORT-LEVIED/PAID OR ERRONEOUSLY REFUNDED - INVOCATION OF EXTENDED PERIOD OF LIMITATION |
Burden
of proof is on revenue to show that there was wilful suppression of
facts by assessee with a view to evade service tax; but, once revenue
brings out certain material, then, burden shifts back to assessee - [2016] 66 taxmann.com 256 (Gauhati)
|
| CST & VAT |
| SECTION 6 OF KERALA VALUE ADDED TAX, 2003 |
| TAX ON SALE OR PURCHASE OF GOODS - LEVY OF |
Where
aerated branded soft drink excluding soda had already found a place as
specific entry chargeable at 20 per cent Kerala Kerala VAT, 'Appy Fizz',
being a aerated branded soft drink would fall therein and would not
fall within residuary entry - [2016] 66 taxmann.com 301 (Kerala)
|
| STATUTES |
| CORPORATE LAWS |
Notice inviting comments on the draft Companies (Cost Records and Audit) Amendment Rules, 2016 - PRESS RELEASE, DATED 23-2-2016
Thanks & Regards,
Meetesh Shiroya
|
Daily Updates and News
Economy & News
Economic Survey for 2015-16 to be tabled today
The Economic Survey for 2015-16 will be tabled in Parliament by Union Finance Minister Arun Jaitley on Friday.
The Economic Survey is the Finance Ministry's view on the annual
economic development of the country that gives a broad idea on the
macro-economic data, which will impact the budget decisions. The survey,
a flagship annual document of the Ministry of Finance, reviews the
developments in the economy over the previous 12 months, which
summarises the performance [….] Read more at:
Jain Irrigation founder chairman Bhavarlal Jain passes away
Jain
Irrigation System founder Chairman and Padmashri awardee Bhavaralal
Jain -- who pioneered micro-irrigation system in India -- died here
today after a brief illness. Jain, who was a renowned industrialist in
Jalgaon and a pioneer in Indian agriculture, passed away in Jaslok
Hospital today afternoon. He had been undergoing medical treatment at
the hospital for the past 10 days, the company said in statement. His
mortal remains are being taken to Jalgaon where the cremation will
[….] Read more at:
Skill India will provide trained workforce to Railways: Rajiv Pratap Rudy
Union
Minister Rajiv Pratap Rudy today said the Skill India campaign will
provide an efficient and trained workforce to the Indian Railways. "Nine
crore man-days employment by 2017-18 and 14 crore man-days by 2018-19
is a big opportunity for skilled workforce, that the Rail budget has
presented today. "Skill India will ensure maximum support in providing
efficient and trained workforce for the railways in the country," Rudy
said. Ficci's ex-President Jyotsna Suri said the [….] Read more at:
Solar mission: India to appeal against WTO ruling
India
will once again appeal against a World Trade Organization ruling, which
declared that support provided by the Jawaharlal Nehru National Solar
Mission to domestic manufacturers was inconsistent with the Trade
Related Investment Measures agreement signed by the country. "We will
appeal to the WTO. Several options are still open to us. This does not
affect the domestic content requirement (DCR) rules or the 'Make in
India' programme," said Tarun Kapoor, joint secretary [….] Read more
at:
Govt plans DBT in fertiliser subsidy
Government
plans to directly transfer the fertiliser subsidy to farmers and a
pilot project for the same is also being considered in 20 districts. The
Department of Fertilisers (DoF) is working on a road-map to capture the
details of farmers so that sales data can be captured and subsidy can
be transferred to farmers' accounts directly, according to a
Parliamentary Standing Committee report. "The Department (DoF) is
working closely with the Mission Directorate (DBT) to implement DBT in
[….] Read more at:
Rs 1,000 crore to be given for Kapu Corporation in Budget: CM Chandrababu Naidu
Andhra
Pradesh Chief Minister N Chandrababu Naidu today said Rs 1,000 crore
would be allocated for Kapu Corporation in the 2016-17 state Budget. The
CM also said the government would take necessary steps to give Backward
Classes (BC) status to Kapu community as soon as the Backward Classes
Commission submits its report. The community has been agitating for
inclusion in the BC list. "Rs 1,000 crore would be allocated by the
state government [….] Read more at:
India should avoid divisions among BRICS: Chinese media
India
should shed its "long-standing bias against China" and avoid divisions
among the five-member BRICS bloc specially in the backdrop of US
attempts to rewrite international rules, a Chinese media report said
today. "India should focus on how to improve solidarity within BRICS,
especially to overcome its long-standing bias against China due to
historical reasons. New Delhi believes that Beijing should reflect on
why it is always misunderstood by its neighbouring countries. But
[….] Read more at:
Bihar presents Rs 1.44 lakh cr budget, imposes no fresh tax
Bihar
finance minister Abdul Bari Siddiqui today presented a Rs 1.44 lakh
crore state budget for 2016-17 with no fresh tax proposals. Presenting a
revenue surplus budget of Rs 14,649.46 crore for 2016-17, an increase
of Rs 24,010.95 crore from the current financial year's (2015-16) budget
of Rs 1,20,685.32 crore, departments of education, health, energy and
road construction got a major thrust. The budget had the imprint of
Chief Minister Nitish Kumar's 'Saat Nischay' (seven resolves), whic
[….] Read more at:
India's growth rate to accelerate to 8-10% in 2-5 years: CEA Arvind Subramanian
India
is expected to accelerate to 8-10 per cent growth rate in two to five
years on account of structure reforms and encouraging competitive
federalism. "Basically, next 2-5 years, we will reach 8-10 per cent
growth. There is no contradiction in saying that this year the world
economy is weak and therefore we need to focus on domestic demand,"
Chief Economic Adviser Arvind Subramanian told reporters today after
Economic Survey 2015-16 was tabled by Finance Minister Arun Jaitley in
[….] Read more at:
Hilsa preservation and research centre set up in Sultanpur
The
West Bengal government has set up a Hilsa preservation and research
centre in Sultanpur. The state government has also provided
temperature-controlled mobile vans and cycle-mounted ice boxes for
selling fish. These activities are regulated by fishermen's cooperatives
have ensured a steady income for the cooperatives. Counting the success
of the fish farming segment in Bengal, state finance Minister Amit
Mitra said, "Fish farming in West Bengal is a big industry now [….]
Read more at:
Forex reserves fall $1.46 bn, first weekly decline in five
The
Reserve Bank of India's foreign exchange reserves fell $1.46 billion as
of Feb. 19 from a week earlier, marking the first weekly fall in five,
as the central bank was seen as selling dollars to prevent the rupee
from hitting a record low. Foreign exchange reserves stood at $350.4
billion for the week ending Feb. 19, down $1.46 billion from the
previous week; and its first weekly fall since Jan. 22, according to RBI data on Friday. The rupee is dangerously close to touching a record low [….] Read more at:
BRICS Bank to begin funding of projects from April: Kamath
The
New Development Bank (NDB) set up by the BRICS countries will approve
one project from each member nation in April followed by finalisation of
about 10 to 15 projects, mostly green energy ventures, its President K V
Kamath said today. Addressing media here in the Communist giant's
financial hub ahead of signing of the bank's headquarters agreement with
China tomorrow, Kamath said the NDB will commence funding by finalising a project from each of the BRICS (Brazil [….] Read more at:
K P Sharma Oli hardsells Nepal to Bollywood, India Inc
Visiting
Nepalese Prime Minister K P Sharma Oli today called upon India Inc to
invest in the Himalayan nation as it presents tremendous business
opportunities. "Nepal presents a conducive atmosphere for doing business
in the areas of manufacturing, hydropower, IT and tourism," Oli said,
according to a statement by All India Association of Industries that
organised the meeting with industry and tinsel town leaders. Oli further
said though investors from many countries are keen on [….] Read more
at:
Thanks & Regards,
Meetesh Shiroya
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