CORPORATE & PROFESSIONAL UPDATE JANUARY 02, 2016
CORPORATE & PROFESSIONAL UPDATE JANUARY 02, 2016
INCOME TAX ACT
SECTION 69
UNEXPLAINED INVESTMENTS
Purchase of property : Where Tribunal after a detailed examination of documents had arrived at conclusion that assessee-firm failed to explain source of amount paid for purchase of property, same was rightly held as unexplained investment – [2015] 64 368 (Karnataka)
SECTION 92C
TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE
Comparables and adjustments/Adjustments General : Payment making good foreign exchanges losses in hands of AE due to unexplained delay in payment could not be considered as payment for management and consultancy services – [2015] 64 360 (Hyderabad – Trib.)
Comparables and adjustments : Where comparables had debtors, inventories and creditors, while assessee was not having any debtors and was entirely funded by advance received from AE against supplies, then in order to bring parity between results of selected comparables and that of assessee, it was essential that adjustment for working capital was made on results of such comparables – [2015] 64 370 (Bangalore – Trib.)
SECTION 158BA
BLOCK ASSESSMENT IN SEARCH CASES – ASSESSMENT OF UNDISCLOSED INCOME
Two set of books of account : Where document said to be maintained by assessee for invoking section 158BA(3) was very vague, without having details of dates and proof of transaction with parties except parties names and amount, this document would not be considered as ‘other documents’ maintained in normal course to exclude relevant amount from block period – [2015] 64 368 (Karnataka)
SECTION 206AA
DEDUCTION OF TAX AT SOURCE – REQUIREMENT TO FURNISH PERMANENT ACCOUNT NUMBER
Correction of PAN entries : System of processing TDS statements gives an option to assessee-deductor to correct invalid/No PAN entries in TDS statement through a correction statement without any restriction of correcting particular PAN with regard to number of characters – [2016] 65 2 (Ahmedabad – Trib.)
SECTION 221
COLLECTION AND RECOVERY OF TAX – PENALTY PAYABLE WHEN TAX IN DEFAULT
Defective notice : Where notice for initiation of penalty proceedings against assessee had not been issued under section 221 and penalty order had also not been passed under section 221 but under section 140A(3), this mistake was not covered under umbrella of provisions of section 292B – [2015] 64 367 (Delhi – Trib.)
SECTIONS 234A
ADVANCE TAX – INTEREST, CHARGEABLE AS
Rectification : Where rectification order was passed in respect of short levy of interest under sections 234A and 234B but she was never given opportunity to file her objections, said order, being in violation of principles of natural justice, was to be set aside – [2015] 64 363 (Kerala)
COMPANIES ACT
SECTION 433
WINDING UP – CIRCUMSTANCES IN WHICH COMPANY MAY BE WOUNDUP
Where company had raised a bonafide dispute in respect of debt alleging failure of winding up petitioner, a travel agent, to secure visa for company’s Managing Director, no order for winding up could be passed against company – [2015] 64 287 (Andhra Pradesh)
CENTRAL EXCISE ACT
SECTION 35G
APPEALS – CONDONATION OF DELAY – HIGH COURT
In case of delay in filing of appeal by department, condonation of delay application must be signed by department’s officials and signing of said application/affidavit by clerk of department’s counsel is highly condemnable – [2015] 64 314 (Allahabad)
CENVAT CREDIT RULES
RULE 2(a)
CENVAT CREDIT – CAPITAL GOODS
Where applicant gas transporter will engage contractor to lay pipelines and contractor will procure pipes and valves from manufacturer who will issue invoice to contractor showing applicant as consignee and pipes will be delivered directly at applicant’s work-site, applicant can avail cenvat credit on pipes and valves on basis of invoice issued by contractor, if contractor is a registered dealer – [2015] 64 282 (AAR – New Delhi)
STATUTES
DIRECT TAX LAWS
Section 197, read with sections 195, 206C, of the Income-tax Act, 1961 – Deduction of Tax at Source – Certificate for deduction at lower rate – Advisory for deductors- PRESS RELEASE DATED 1/1/2016
CORPORATE LAWS
Section 458, read with section 208, of the Companies Act, 2013 – Delegation by Central Government of its powers and functions – Delegation of powers to specified Regional Directors under section 208 -NOTIFICATION [F.NO.3/76/2015-CL-II],DATED 31-12-2015
Online System for Registration/Renewal of Broking Licenses – CIRCULAR NO.IRDA/INT/2016, DATED 1-1-2016
Investment by Gold ETFs in Gold Monetisation Scheme of Banks – CIRCULAR NO. IMD/DF/11/2015, DATED 31-12-2015
Procedure for ensuring Compliance with Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 (SECC Regulations) by listed Stock Exchanges – CIRCULAR NO.MRD/DSA/01/2016, DATED 1-1-2016
Extension of credit facilities to Overseas Step-Down subsidiaries of Indian Corporates -CIRCULAR DBR.IBD.BC.NO.68/23.37.001/2015-16, dated 31-12-2015
Revised contents of Application-Cum-Bidding form and Manner of Disclosure -CIRCULAR NO.CFD/DIL/1/2016, DATED 1-1-2016
Procedure to deal with cases prior to 1-4-2014 involving offer/allotment of securities to more than 49 up to 200 investors in a Financial Year – CIRCULAR NO.CFD/DIL/3/18/2015, DATED 31-12-2015
INDIRECT TAX LAWS
(ST.EX.CUS. & (CST & VAT))
Omnibus general exemption to goods specified in Chapters 1 to 98 of Tariff – Amendment in Notification No. 12/2012-C.E., Dated 17-3-2012 – NOTIFICATION NO.1/2016-C.E., DATED 1-1-2016
Cenvat Credit (Sixth Amendment) Rules, 2015 – Amendment in rule 9 – NOTIFICATION NO.27/2015-C.E. (N.T.), DATED 31-12-2015
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