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INCOME TAX ACT

SECTION 4 HINDU UNDIVIDED FAMILY – ASSESSABLE AS Pursuant to Hindu Succession (Amendment) Act, 2005, plaintiff, a female, being first born amongst co-parceners of HUF property, would by virtue of her birth, be entitled to be its Karta - [2016] 66 taxmann.com 28 (Delhi)

SECTION 9

INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA

Deduction of export commission paid to foreign agents for sourcing of export orders in favour of assesse-firm without deduction of tax at source under section 195 is to be allowed where export commission paid to foreign brokers is not a sum chargeable to tax in hands of foreign brokers as contemplated under section 195 and is neither a fee for technical/managerial services as defined in explanation 2 to Section 9(1)(vii) so as to bring it to tax under fiction created by deeming provisions of Section 9 - [2016] 66 taxmann.com 30 (Mumbai - Trib.)

SECTION 14A

EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME

Interest paid to partners on capital contribution is not a statutory allowance under section 40(b) but is an expenditure under section 36(1)(iii) and, thus, if this expenditure is incurred in relation to income which does not form part of total income as envisaged under section 14A, same shall only be allowed as deduction only against exempt income under section 14A or in other words, such interest expenditure on partner's capital shall be disallowed under section 14A - [2016] 66 taxmann.com 30 (Mumbai - Trib.)

SECTION 271(1)(c)

PENALTY - FOR CONCEALMENT OF INCOME

Where assessee had only claimed expenditure which was disallowed by AO and due to which carry forward loss arose. It could not be said that assessee had furnished inaccurate particulars of income by showing carried forward loss as once a loss was shown in e-return, the software suo-motu reflects the returned loss as carried forward loss. Further, the fact that assessee had not claimed carry forward loss in subsequent year was evident of the fact that there was no intent on part of assessee to furnish inaccurate particulars - [2016] 66 taxmann.com 27 (Bombay)

ARBITRATION AND CONCILIATION ACT

SECTION 9

COMPOSITION OF ARBITRAL TRIBUNAL - GROUNDS FOR CHALLENGE

As per principles of tracing benefits acquired by fraud, breach of confidence, breach of fiduciary relationships or by other wrongdoings do not get benefit under the defence of change of position. Change of position as a defence has to be casually linked to the receipt that makes it inequitable for the recipient to make restitution. Mere fact that the recipient has spent the money in whole or in part does not make it inequitable as expenditure might have been incurred by him in any event in ordinary course of things. But a bona fide recipient is entitled to establish the defence that he had increased his outgoings as a result of the receipt. Since analogous principles have to be applied in the instant case, the sketchy pleadings and no material save and except the shareholding pattern in Southend does not entitle VSL to any tracing order against Southend which is an independent entity -[2016] 66 taxmann.com 29 (Delhi)

CUSTOMS ACT

SECTION 112

PENALTY - SMUGGLING/ILLEGAL IMPORT

Penalty under Customs can be imposed simultaneously on firm and its partners: Larger bench of HC - [2016] 66 taxmann.com 49 (Bombay)

STATUTES

DIRECT TAX LAWS

Government Sets up Tax Policy Research Unit and Tax Policy Council - PRESS RELEASE, DATED 2-2-2016 Thanks & Regards, Meetesh Shiroya