CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 14, 2016 INCOME TAX ACT SECTION 2(47) CAPITAL GAINS – TRANSFER Sale of partnership business as going concern to company : Sale of business of assessee-firm as a going concern to company for consideration of paid up share capital does not amount to transfer liable to tax as capital gains …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 12, 2016 DIRECT TAX Income Tax: Computation of MAT u/s 15JB – Book Profit – Once it is realized that the assessee had correctly debited the profit and loss account for the loss arising out of the transfer of investment division, there remains no difficulty in realizing that the CIT …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 9, 2016 DIRECT TAX TDS u/s 194J or 194C – payments made to various TV channels – section 194J is attracted to the facts of the instant case. Merely because in earlier years this issue was not examined and the assessee’s contention got accepted without verification, cannot give license …
CORPORATE AND PROFESSIONAL UPDATE MARCH 8, 2016 INCOME TAX ACT SECTION 92C TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE Where assessee had benchmarked its international transactions on TNMM basis and TPO had neither disputed assessee’s claim that TNMM was most appropriate method, nor comparables selected by assessee, it was not open for TPO to …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 8, 2016 INCOME TAX ACT SECTION 2(47) CAPITAL GAINS – TRANSFER Sale of partnership business as going concern to company : Sale of business of assessee-firm as a going concern to company for consideration of paid up share capital does not amount to transfer liable to tax as capital gains …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 5, 2016 Direct Tax Clarification issued on taxability of surplus on sale of shares and securities-Capital Gains or Business Income-Instructions in order to reduce litigation vide circular no. 06/2016 – Clarification issued by clarifying TDS provisions by television channels and publishing houses to advertisement companies for procuring or canvassing …
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 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 29, 2016 THE UNENDING SAGA OF ERRONEOUS APPLICABILITY OF DIVIDEND DISTRIBUTION TAX FINALLY ENDS: During the past quarters, the provisions of law regarding buy-back of shares since introduction of dividend distribution tax (‘DDT’) under section 115Q of the Act w.e.f. 01.04.2003 till 31.05.2013 are being interpreted in a conflicting …
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 …