CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 29, 2016 THE UNENDING SAGA OF ERRONEOUS APPLICABILITY OF DIVIDEND DISTRIBUTION TAX FINALLY ENDS: During the past quarters, the provisions of law regarding buy-back of shares since introduction of dividend distribution tax (‘DDT’) under section 115Q of the Act w.e.f. 01.04.2003 till 31.05.2013 are being interpreted in a conflicting …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 28, 2016 CRATE RENTALS RECOVERED BY BEVERAGE MANUFACTURERS LIABLE TO VAT AND NOT SERVICE TAX In the case of Hindustan Coca Cola Beverages (P.) Ltd. v. Commissioner of Service Tax, Delhi (2016) (New Delhi – CESTAT), The New Delhi CESTAT has held that such crate rentals would be liable to …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 27, 2016 Direct Tax: The validity of assessment – if a matter falls u/s. 153(2A) of the Act i.e. if the Tribunal has set aside or canceled the assessment then the fresh order by the AO of assessment shall be passed within the period as prescribed u/s. 153(2A) – Tri …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 26, 2016 INCOME TAX ACT SECTION 12A CHARITABLE OR RELIGIOUS TRUST – REGISTRATION OF Cancellation of : Where assessee-educational trust undertook only one activity of running of school out of 21 objects for charitable purposes and it was charging reasonable fees from students and it also gave a concession to poor …
Expectations from Union Budget 2016 The countdown for the Budget 2016 has begun. From average taxpayer to tax experts, all eyes are transfixed on the Union Budget 2016. It is to our credit that many of our predictions came true in the Union Budget. This time also we have recommended substantive/procedural changes and various other …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 24, 2016 ROLE OF DEEMING FICTION OF SEC. 50C TO CLAIM RELIEF UNDER SEC. 54/54F Introduction: Section 50C of the Income-tax Act (the Act) was introduced with effect from 1st April, 2003 by the Finance Act, 2002. The purpose of this section was explained thus by the Memorandum to the Finance …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 23, 2016 Direct tax Update Extension of due date to file returns in form GE-II for 1st three quarters of F.Y.2015-16 to 07.03.2016. Notification no. F3 (619)/POLICY/VAT/2016/1496-1506. Business set up expenses deductible despite of no business income. [Multi Act Realty Enterprises Pvt. Ltd vs. ACIT (ITAT Mumbai)]. Expenses not generating capital asset are revenue in …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 22, 2016 DIRECT TAX Loss on revaluation of investments – valuation of stock in trade – the securities of the Banks are investment and have to be valued at costs or market price whichever is less – claim of loss allowed- (The Commissioner of Income Tax (Large Tax Payer Unit) …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 21, 2016 DIRECT TAX CBDT had issued Clarifications for implementation of FATCA and CRS Vide Press release dated 19.02.2016 ITAT: Rejects double-deduction on BSE membership card; Special provisions u/s 50 override Sec 55(2)(ab) [TS-75-ITAT-2016(Mum)] IT: Tax cannot be levied on assessee at a higher amount or at a higher rate merely because …
CORPORATE & PROFESSIONAL UPDATE FEBRUARY 20, 2016 Direct Tax Bogus purchases – CIT(A) was fully justified in deleting the addition made by the AO on account of alleged bogus purchases particularly when the GP rate declared by the assessee was progressive and was accepted by the AO. – ITO, Ward 2 (2) , Ghaziabad Versus Ray …