CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 4, 2016 INCOME TAX ACT SECTION 36(1)(iii) INTEREST ON BORROWED CAPITAL Expansion of business : Where assessee paid interest on borrowed capital which was used for acquisition of windmill for extension of existing business of generation of electricity through windmill, interest could not be allowed till capital asset acquired by …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 3, 2016 DIRECT TAX IT: Transfer pricing adjustment – the unusual features which remained unexplained by the assessee influenced the TPO and the AO to resort to transfer pricing adjustment and determine ALP by adopting the CUP method for the procurements from Sumitomo Japan – Denso India Ltd. Vs. CIT (2016 …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 2, 2016 Direct Tax Salaries were not reflected in the profit and loss account – if an assessee under some misapprehension or mistake fails to make an entry in the books of account and although under the law a deduction must be allowed by the Income Tax Officer the …
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 …
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 …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 19, 2016 INCOME TAX ACT SECTION 4 INCOME – CHARGEABLE AS Interest : Where assessee engaged in generating electric power, kept margin money in form of fixed deposits for procurement of various capital goods for setting up of power project, interest earned on said deposits would be in nature of capital receipt not …
CORPORATE & PROFESSIONAL UPDATE FEBRUARY 17, 2016 INCOME TAX ACT SECTION 9 INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA Capital gain : Where assessee, a Netherlands based company, tendered part of shares in an Indian company under scheme of buy back on direction of High Court, said arrangement did not fall under definition of …