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