Daily Updates and News

INCOME TAX ACT

SECTION 4

INCOME - CHARGEABLE AS

Subsidy : Where assessee company had received subsidy to be utilised for specific purpose, amount of unutilised subsidy could not be treated as income - [2016] 66 taxmann.com 88 (Delhi)

SECTION 72A

LOSSES - CARRY FORWARD AND SET-OFF OF ACCUMULATED LOSSES ETC. IN CASE OF AMALGAMATION

Commencement of business by amalgamating company : Where in year 2000, amalgamating company started work for establishment of power generation unit and power generation commenced from 8-8-2003, on its amalgamation with assessee company with effect from 1-3-2005, benefit of section 72A ought to have been granted to assessee because amalgamating company was in business for more than three years prior to date of amalgamation - [2016] 66 taxmann.com 84 (Karnataka)

INCOME ESCAPING ASSESSMENT – GENERAL

Where Assessing Officer merely recorded transaction of transfer of sizable number of shares having considerable market value without consideration and concluded that income chargeable to tax had escaped assessment, there being no valid reason to believe that income chargeable to tax had escaped assessment, impugned notice re-opening assessment was to be set aside - [2016] 66 taxmann.com 149 (Gujarat)

CONTEMPT OF COURTS ACT, 1971

SECTION 12

PUNISHMENT FOR CONTEMPT OF COURT

Where respondent-directors were in a position to ensure compliance of the direction contained in the said order dated 21.10.2013, i.e., order requiring respondent-directors to make payment of Rs. 67.50 Crores along with interest @ 12% to petitioners, yet they deliberately failed to comply with such order and also they were making false statements to the court on affidavits thereby interfering with due course of justice, the conduct of respondent-directors amounted to contempt of Court for willful disobedience of the Court's directions and, accordingly, the Court sentenced simple imprisonment to respondent-directors along with imposition of penalty -[2016] 66 taxmann.com 156 (Bombay)

CENTRAL EXCISE ACT

SECTION 2(f)

MANUFACTURE

Where assessee procured indigenous goods and imported goods and claimed that it had exported said goods after re-packing and labelling, activity of re-packing and labelling amounted to manufacturing activity squarely covered by definition of manufacture as provided under EXIM Policy - [2016] 66 taxmann.com 100 (Mumbai - CESTAT)

CENTRAL EXCISE RULES

RULE 18

EXPORT - REBATE OF DUTY

Rule 18 of the Central Excise Rules, 2002 grants rebate of 'excise duties' paid on 'domestically manufactured goods' and not 'import duties/CVD' paid on 'imported goods'; hence, in case of supplies of 'imported goods' by DTA unit to SEZ units, CVD paid at time of import is ineligible for rebate under rule 18 ibid - [2016] 66 taxmann.com 104 (Gujarat)

STATUTES

DIRECT TAX LAWS

Actionable Information Monitoring System (AIMS) – Addition of New Address Functionality for NMS Cases in Aims Module - EFS – INSTRUCTION NO.52 [F.NO.DGIT (S)/DIT(S)-2/AIMS/14/2015], DATED 10-2-2016

CORPORATE LAWS

Section 30 of the Right to Fair Compensation and Transparency in Land Acquisition, Rahabilitationand Resettlement Act, 2013 - Solatium – Award of – Notified Factor in Case of Rural areas by which market value is to be Multiplied - NOTIFICATION NO.SO 425(E) [F.NO.13011/04/2015-LRD], DATED 9-2-2016

Section 46 of the Right to Fair Compensation and Transparency in Land Acquisition, Rahabilitationand Resettlement Act, 2013 - Rehabilitation and Resettlement to Apply in Case of Certain Persons other than Specified Persons - Provisions Relating to – Notified Limit of Land in Urban and Rural Areas - NOTIFICATION NO.SO 424(E) [F.NO.13011/04/2015-LRD], DATED 9-2-2016

Section 1 of the Regional Rural Banks (Amendment) Act, 2015 – Act – Enforcement of – Notified Date on which provisions of said Act shall come into force - NOTIFICATION NO. SO 363(E) [F.NO.7/9/2011-RRB], DATED 4-2-2016

Clarification of Sourcing/Servicing of Motor Insurance Business - CIRCULAR NO.IRDA/NL/CIR/MISC/024/02/2016, DATED 10-2-2016     Thanks & Regards, Meetesh Shiroya