Daily Updates and News

INCOME TAX ACT

SECTION 37(1)

BUSINESS EXPENDITURE - ALLOWABILITY OF

Commission : Where assessee claimed deduction in respect of commission paid to various agents, matter was to be remanded back to Assessing Officer for disposal afresh after finding out identity of agents and genuineness of payments by utilising his power under section 131 - [2016] 66 taxmann.com 36 (Madras)

SECTION 69

UNEXPLAINED INVESTMENTS

Land : Where Assessing Officer on basis of an agreement to sell seized from one 'S' and statement of 'S' recorded under section 131 made additions in crores under section 69 to income of assessee and Tribunal upheld addition to extent of Rs. 11 lakhs, since revenue had failed to bring on record any evidence to prove that assessee had made actual investment in crores, order of Tribunal deserved to be upheld - [2016] 66 taxmann.com 41 (Gujarat)

SECTION 92C

Comparables and adjustments/Adjustments - AMP expenses : Where TPO made addition to assessee's ALP in respect of incurring AMP expenses on behalf of its AE, matter was to be remanded back for disposal afresh with a direction to firstly ascertain if any part of AMP expenses was for purpose of creating marking intangibles for AE - [2016] 66 taxmann.com 47 (Delhi)

COMPANIES ACT

SECTION 34

COMPANY - INCORPORATION OF

Wherever necessary to give effect to the policy of law, sale of shares of a company may be regarded as sale of its assets by piercing the corporate veil. - [2016] 66 taxmann.com 72 (SC)

CST & VAT

SECTION 45 OF GUJARAT VALUE ADDED TAX ACT, 2003

RECOVERY - PROVISIONAL ATTACHMENT

Where assessee, a Hindu undivided family, was a dealer and Assessing Authority, vide order passed under section 45, attached property of wife of Karta of Hindu undivided family towards dues of Hindu undivided family, property in question could not be attached under section 45 - [2016] 66 taxmann.com 42 (Gujarat)

CENVAT CREDIT RULES

RULE 7

CENVAT CREDIT - MANNER OF DISTRIBUTION OF CREDIT BY INPUT SERVICE DISTRIBUTOR

Requirement of registration is procedural; hence, credit cannot be denied to input service distributor even if it is unregistered, provided assessee has maintained all records for verification by revenue - [2016] 66 taxmann.com 31 (Gujarat) Thanks & Regards, Meetesh Shiroya