INCOME TAX UPDATE NOV 17, 2015
INCOME TAX UPDATE NOV 17, 2015
INCOME TAX ACT- Kind of ITR
SECTION 9
INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA
Royalty/Fees for technical services : Where assessee-company engaged a company registered in USA, for review of design of cranes but it could not be discerned from records whether suggestions given by U.S. company would bring brought any major change or improvisation in design of crane, matter should be reconsidered afresh – [2015] 375 (Mumbai – Trib.)
SECTION 50B
CAPITAL GAINS – SLUMP SALE, COST OF ACQUISITION IN CASE OF
Where assessee had sold tea estate and assigned values to every movable property transferred to buyer, it could not be said that transfer was slump sales only for the reason that the tea estate was transferred to buyer as a going concern. – [2015] 149 (Kolkata – Trib.)
SECTION 92C
TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE
Comparables and adjustments – AMP expenses : Where assessee challenged demand made on account of T.P. adjustment on basis of Tribunal’s decision, but High Court had disallowed said decision, assessee had good prima facie case for stay on said demand – [2015] 63 (Mumbai – Trib.)
SECTION 222
COLLECTION AND RECOVERY OF TAX – CERTIFICATE PROCEEDINGS
Attachment : Where Assessing Officer raised huge tax demand upon assessee and in meantime bank account including cash credit account of assessee had been attached by income tax authorities, in view of decision of Madras High Court in case of K.M. Adam v. ITO [1958] 33 ITR 26, cash credit account of assessee could not be attached and it was entitled to be discharged – [2015] 38 (Calcutta)
SECTION 271(1)(c)
PENALTY – FOR CONCEALMENT OF INCOME
Revised return, effect of filing : Admission of income by assessee in revised return cannot give jurisdiction to Assessing Officer to levy penalty under section 271(1)(c) – [2015] 40 (Calcutta)
SECTION 276
OFFENCES AND PROSECUTION
High Court upheld criminal proceedings initiated against an assessee under Section 276(c) for non-payment of tax. The Court sets aside the contention of assessee that prosecution proceedings could not be initiated when no notice of demand under section 156 was furnished. The High Court held that separate notice of demand was not required if intimation under section 143(1) regarding tax payable by assessee was furnished. – [2015] 150 (Andhra Pradesh)
COMPANIES ACT
SECTION 3
PROHIBITION OF AGREEMENTS – ANTI-COMPETITIVE AGREEMENTS
Where opposite parties i.e. Jet Airways, Indigo and Spice Jet had acted in a concerted manner in fixing and revising fuel surcharge (FSC) rates for transporting cargo, conduct of OPs was anti – competitive and penalty was to be imposed upon them – [2015] 147 (CCI)
SERVICE TAX
SECTION 65(3)
TAXABLE SERVICES – ADVERTISING AGENCY’S SERVICES
Media costs incurred for advertisement campaign undertook outside India cannot be included in value advertisement agency services and cannot, therefore, be taxed in hands of advertising agency – [2015] 31 (Mumbai – CESTAT)
SECTION 65(68)
TAXABLE SERVICES – MANPOWER RECRUITMENT OR SUPPLY AGENCY’S SERVICES – STAY ORDER
Where Tribunal had found that employees deputed by foreign group company were actually appointed by assessee in India and only a portion of their salary was paid to employees by foreign group company and reimbursed on actual basis, same would not, prima facie, amount to manpower supply services – [2015] 33 (Andhra Pradesh)
CUSTOMS ACT
SECTION 113
CONFISCATION – SMUGGLING/ILLEGAL EXPORT
Since ‘illegal export’ is preceded by an ‘attempt towards illegal export’, confiscation under section 113 and penalty under section 114 are attracted against ‘attempt of illegal export’ even after goods have been actually exported – [2015] 34 (Madras)
CST & VAT
SECTION 5 OF CENTRAL SALES TAX ACT, 1956
SALE – SALE PRECEDING EXPORT
As per SEZ Act, Sales to SEZ unit is regarded as taxable sales unless any specific exemption in respect thereof is provided under CST Act or under the respective state legislation. In the instant case, it was held by the High Court that sale of sandalwood from Kerala to SEZ unit in Madras does not qualify to be export sales under Kerala VAT as no specific exemption has been provided either under Kerala VAT Act or under CST Act. –[2015] 148 (Kerala)
STATUTES
DIRECT TAX LAWS
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 – Kuwait – Protocol amending said Agreement – PRESS RELEASE, DATED 18-11-2015
CORPORATE LAWS
Companies (Management and Administration) Third Amendment Rules, 2015 – Substitution of Form MGT-7 –NOTIFICATION [F.NO.01/34/2013-CL-V-PART-I], DATED 16-11-2015
INDIRECT TAX LAWS (ST./EX./CUS. & (CST & VAT)
Delhi Value Added Tax (Amendment) Rules, 2015 – Amendment in Forms DVAT-16, DVAT-30, DVAT-31 and insertion of Annexure IE – NOTIFICATION NO.F.3(20)/FIN(REV-I)/2015-2016/DSVI/906, DATED 12-11-2015
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