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 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 …
UNION BUDGET 2016-17 Budget 2016 expectations: It is that time of the year when everybody is hoping that the Finance Minister has some good news for them in the Budget. With reforms by the Indian government to encourage foreign investment in the country, the upcoming budget is expected to introduce an investor-friendly tax regime and …
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 …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 15, 2016 INCOME TAX ACT SECTION 35 SCIENTIFIC RESEARCH EXPENDITURE Sub-section (2AB) : Where deduction under section 35(2AB) would be allowed to assessee, if its research and development facility was recognised by DSIR and approval in prescribed Form No. 3CM was obtained – [2016] 66 94 (Hyderabad – Trib.) SECTION 44 INSURANCE …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 14, 2016 DIRECT TAX TDS : challenge to the notices / summonses issued u/s 201 – no order u/s 201(i) can be passed for which limitation had already expired prior to amended section 201(3) as amended by Finance Act No.2 of 2014 – The impugned notices / summonses held to …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 13,2016 DIRECT TAX: Disallowance u/s 14A – no separate books of account are maintained for taxable income and exempt income – some expenditure on account of administrative expenses has to be disallowed on reasonable estimate basis- (M/s. Coated Fabrics Pvt. Ltd. Versus ACIT, Circle-1 (1), Pune – 2016 (2) TMI 373 …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 12,2016 DIRECT TAX: When the Assessing Officer and the Commissioner concurrently found that there was unexplained expenditure and source of such income was not satisfactorily explained section 69C of the Act would certainly be applicable. – HC – Income Tax RAVIKIRAN CERAMICS PVT LTD Versus PR. COMMISSIONER OF INCOME TAX (CENTRAL) …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 9,2016 Direct Tax IT: Interest paid to partners on capital contribution is not a statutory allowance u/s 40(b) but is an expenditure u/s 36(1)(iii) – If the income is exempt corresponding interest paid to partner will be disallowed u/s-14A – ACIT-19(3), Mumbai Vs. Pahilajrai Jaikishin & Vice Versa (ITAT Mumbai) IT: Expenditure …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 8,2016 Direct Tax IT : Where assessee claimed deduction in respect of commission paid to various agents, matter was to be remanded back to Assessing Officer for disposal afresh after finding out identity of agents and genuineness of payments by utilising his power under section 131 [2016] 66 36 (Madras) CIT …