CORPORATE AND PROFESSIONAL UPDATE JANUARY 18, 2016 DIRECT TAX: Making of fresh claim during assessment proceedings allowed [Goetze (India) Ltd. Vs. CIT (2006) 284 ITR 323 (SC)]. Proposal to not to retain Income Tax Refund for Completion of Scrutiny Proceeding. HC allows depreciation on ROC fee after capitalizing it in cost of plant [2016] 125 …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 16, 2016 INCOME TAX ACT SECTION 2(15) CHARITABLE PURPOSE Object of general public utility : SLP granted against order of High Court wherein it was held that since dominant objective of ICAI was to regulate profession of Chartered Accountancy in India, it was a charitable institution and conduction of coaching classes …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 14, 2016 INCOME TAX ACT SECTION 37(1) BUSINESS EXPENDITURE Allowability OF Interest : SLP granted against High Court’s ruling that interest which was paid after slump sale was effected and where factory was in operation could not be capitalized and therefore, such expenses were revenue in nature – [2016] 65 67 (SC) Share …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 8,2016 Company Law: Query:Kindly let us know about the appointment of auditor in a Government company? Answer:The appointment and re-appointment of auditor of a Government Company or a government controlled company is governed by the provisions of section 139 of the Companies Act, 2013 which are summarized as under: The …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 07,2016 DIRECT TAX: Issues Guidance Note on FATCA. Disallowance of deduction of interest expenditure from interest Income – there is a director nexus between the interest earned from the company and the interest paid to the bank. Under these circumstances the interest expenditure in our opinion was rightly allowed. Condonation …
CORPORATE & PROFESSIONAL UPDATE DECEMBER 21, 2015 INCOME TAX ACT SECTION 28(i) BUSINESS LOSS/DEDUCTIONS – ALLOWABLE AS In the case of a contractual dispute between the parties, liability of the assessee to pay arises only when the claimant against the assessee acquires some legal right to receive the amount – [2015] 64 260 (Delhi – Trib.) (SB) …
CORPORATE & PROFESSIONAL UPDATE DECEMBER 15, 2015 INCOME TAX ACT SECTION 5 INCOME – ACCRUAL OF Income : Where interest income from security accrued in terms of books of account maintained by assessee, but same was offered to tax on actual receipt, and Tribunal passed detailed order in favour of assessee in earlier year, which it …
CABINET APPROVES REAL ESTATE (REGULATION AND DEVELOPMENT) BILL, 2015 The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Real Estate (Regulation and Development) Bill, 2015, as reported by the Select Committee of Rajya Sabha. The Bill will now be taken up for consideration and passing by the Parliament. The Real …
CORPORATE & PROFESSIONAL UPDATE DECEMBER 10, 2015 1. INCOME TAX ACT SECTION 4 (a) HUF – ASSESSABLE AS Where father of assessee got registered HUF, doing lottery business two months before his death and thereafter, assessee carried on said lottery business as karta of HUF, undisclosed income related to said business declared on search was …
CORPORATE AND PROFESSIONAL UPDATE ON DECEMBER 9, 2015 1. INCOME TAX ACT SECTION 9 INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA Interest: Interest on refund of tax is not covered by definition of ‘interest’ mentioned under article 12(4) of India-Italy DTAA, and, therefore, Assessing Officer is justified in imposing TDS at higher rate while …