Daily Updates and News

INCOME TAX ACT

SECTION 12A

CHARITABLE OR RELIGIOUS TRUST - REGISTRATION OF

Condition precedent : While granting registration to a trust, authorities is empowered to examine only genuineness of trust and its activities; during assessment only eligibility in terms of sections 10, 11 and 12 is to be verified as to whether or not what was professed was indeed in Deed of trust - [2016] 67 taxmann.com 230 (Kerala)

SECTION 69C

UNEXPLAINED EXPENDITURE

Reassessment : Where assessee had furnished its explanation on each and every seized document and after considering same Assessing Officer completed original assessment, reopening of assessment on basis of observation of first appellate authority in subsequent assessment year that for relevant assessment year, Assessing Officer should work out exact figure of bogus purchase on basis of seized bill book, was invalid -[2016] 67 taxmann.com 231 (Allahabad)

SECTION 115JB

MINIMUM ALTERNATE TAX

Where assessee company incurred loss on transfer of its investment division to another company which was debited to profit and loss account, said loss could not be added back for computation of its book profit under section 115JB and, thus, revisional order passed by Commissioner on aforesaid basis deserved to be set aside -[2016] 67 taxmann.com 281 (Calcutta)

SECTION 253

APPELLATE TRIBUNAL - APPEAL TO

Cross objections : No cross objections are maintainable in an appeal against order of revision in terms of section 253(4) - [2016] 67 taxmann.com 229 (Karnataka)

SECTION 263

REVISION - OF ORDERS PREJUDICIAL TO INTEREST OF REVENUE

Scope of jurisdiction : Where original assessment order had been revised under section 264 and, thus, no longer existed, order passed by Commissioner under section 263 revising original assessment was void ab initio -[2016] 67 taxmann.com 229 (Karnataka)

COMPANIES ACT

SECTION 391

COMPROMISE AND ARRANGEMENT

Where a company sought sanction of de-merger of its real estate divisions, as company had no operative real estate business or undertaking, scheme of de-merger appeared to be a plain transfer of land to avoid tax, capital gains and stamp duty and hence could not have been sanctioned - [2016] 67 taxmann.com 227 (Rajasthan)

STATUTES

DIRECT TAX LAWS

Section 10(46) of the Income-tax Act, 1961 - Exemptions - Statutory Body/Authority/Board/Commission - notified body or Authority - NOTIFICATION NO. SO 1139(E) [NO.15/2016 (F.NO.196/6/2015-ITA.I)], DATED 16-3-2016

Section 90 of the Income-tax Act, 1961 – Double Taxation Agreement – Agreement for avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Indonesia - NOTIFICATION NO. SO 1144(E) [NO.17/2016 (F.NO.503/4/2005-FTD-II)], DATED 16-3-2016

Senior Citizens' Welfare Fund Rules, 2016 - NOTIFICATION NO.GSR 322(E) [F.NO.13/20/2014-NS.II], DATED 18-3-2016

INDIRECT TAX LAWS (ST./EX./CUS. & (CST & VAT))

Review under section 129A(2) or section 129D of Customs Act, 1962; section 35B(2) or section 35E of Central Excise Act, 1944 and section 86(2A) or section 86(2) of Finance Act, 1994 - INSTRUCTION F.NO.390/REVIEW/36/2014-JC, DATED 17-3-2016 Thanks & Regards, Meetesh Shiroya