CORPORATE AND PROFESSIONAL UPDATES JULY 23, 2016
Today updates:
DIRECT TAX:
Income Tax: Excise and Customs duty on closing stock is deductible on payment basis as per sec. 43B Commissioner of Income-tax, Bangalore v. NCR Corporation India (P.) Ltd. [2016] 71 taxmann.com 211 (Karnataka)
Income tax : Where assessee, a tenant co-partnership housing society, constructed four additional tenements and thereafter four persons sought membership of society and after becoming members contributed to society an amount of Rs. 1.10 crores and subsequently society alloted four additional tenements to new members, aforesaid contribution received by society would be covered by concept of mutuality and it could not be treated as business income – [2016] 71 taxmann 179 (Bombay)
Income tax : Although technical reading of section 43B and the provisions of sub-section (2) of section 24 (x) read with section 36 (1) (va) creates the impression that the employees’ contribution would continue to be treated differently under a different head of deduction, as the head of deduction is separate under section 43B and section 36 but on a broader reading of the amendments made to section 43B repeatedly and the intention of Parliament, there appears to be sufficient justification for taking the view that the employees’ and the employer’s contribution ought to be treated in the same manner – [2016] 71 taxmann 247 (Patna)
INDIRECT TAX:
Excise : Purpose of showing freight separately is to ascertain its amount for deduction under rule 5 of Valuation Rules, 2000; hence, if freight is shown separately in commercial invoice, then, deduction thereof cannot be denied merely because same was not shown separately in excise invoice – [2016] 71 taxmann 187 (Mumbai – CESTAT)
Service tax : Where assessee was engaged in business of leasing Government land and also collecting charges for maintenance of street light and repair and maintenance of roads, etc. from entrepreneur allottees of land, activities carried out by assessee would fall under category of ‘management, maintenance or repair’ – [2016] 71 taxmann 109 (New Delhi – CESTAT)
COMPANY LAW UPDATES:
MCA has released National Company Law Appellate Tribunal Rules, 2016 vide Notification dated 21/07/2016 which shall come into force from the date of their publication in the Official Gazette.
OTHER UPDATES:
Where appellant company-SIL made unimplemented public announcements which were not bona fide and were made with fraudulent intentions to facilitate promoter group entities to off load shares of SIL at inflated prices, appellant and its directors were rightly restrained from accessing securities market for two years – [2016] 71 taxmann 183 (SAT – Mumbai).
Key dates :
E-Return of DVAT in form no-16 and CST-1 for the quarter ended June- 25/07/2016
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