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 …
CORPORATE AND PROFESSIONAL UPDATE FEBRUAY 7,2016 Direct Tax IT-HUF: Society is in Transition and so the Law – Woman can be Karta of a family (Delhi High Court). IT:TDS u/s 194J – Non deduction of TDS on payment towards Internet Band Width charges – Although the amendment was given retrospective effect legal maxim lex non …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 5,2016 Direct Tax Treatment of property lease income that is any income earned by the assessee by the operation of mall has to be taxed under the head of Profits and Gains of business OS Profession. [ Chennai Properties & Investments Ltd. Vs CIT 2015 (8) TMI 481 –SC] Penalty …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 4,2016 Direct Tax CBDT Officials directed to use new Performa to request info exchange from foreign tax authorities. Non-resident will not to be liable to deduct tax at source from payments made to persons resident in India, if the source of the aforesaid payments is located outside the Indian Territory. …