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 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 DATED MARCH 1, 2016 Service Tax amendments by Union Budget 2016 The Finance Bill, 2016 presented by the Finance Minister, Mr. Arun Jaitely on 29th February, 2016 has brought with it a whole new set of changes in the indirect taxes. The basic purview taken by the government behind rationalizing the transformations …
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 23, 2016 Direct tax Update Extension of due date to file returns in form GE-II for 1st three quarters of F.Y.2015-16 to 07.03.2016. Notification no. F3 (619)/POLICY/VAT/2016/1496-1506. Business set up expenses deductible despite of no business income. [Multi Act Realty Enterprises Pvt. Ltd vs. ACIT (ITAT Mumbai)]. Expenses not generating capital asset are revenue in …