CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 8,2016
Table of Contents
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 v. Textile Dye Chem Corporation
Property of Karta’s wife can’t be attached to recover tax dues of HUF[2016] 66 42 (Gujarat) State of Gujarat v. Jwelly Tea Co.
HC set aside addition made on account of unexplained investments as no reliable evidence was furnished by Dept [2016] 66 41 (Gujarat) Principal Commissioner of Income-tax v. Vivek Prahladbhai Patel
Penalty levied u/s 271(1)(c) – penalty imposed by the AO @ 200% – a penalty of 100% of tax which the appellant has tried to avoid will meet the end of justice in such cases- (The A.C.I.T. Circle – 38 (1) , New Delhi Versus Shri Jagdish Chander – 2016 (2) TMI 227 – ITAT DELHI).
Entitlement to exemption u/s 11 – payment was for the purpose of the education of the Fathers who serve in various schools run by the assessee as teachers supervisors and prin ci pals etc. – expenditure have been incurred for charitable purposes allowed- (Assistant Commissioner of Income Tax, Hoshiarpur Versus M/s. Carmelite Charitable Society, – 2016 (2) TMI 226 – ITAT AMRITSAR)
IT: CIT (A) has erred in allowing deduction claimed by the assessee on expenditure for increasing the authorized share capital of the assessee – ACIT, Raigad Vs. Johnson Matthey Chemicals India Pvt. Ltd. (ITAT Pune)
IT: There was a reasonable cause for non deduction of TDS on interest payment to NOIDA which is supported by a notification issued as well as several orders of the coordinate benches -No penalty-Central Bank of India Vs. ACIT (TDS) , Ghaziabad (ITAT Delhi)
Wealth Tax: The intention of the assessee to utilize the urban land only for the purpose of its hotel business is proved beyond doubt by the subsequent activities of the assessee – Not taxable – I.T.O., Ward-3 (1) , Kolkata Versus Happy Homes & Resorts Pvt. Ltd. (ITAT Kolkata)
Indirect Tax
Service Tax : Where assessee had himself taken registration under service tax, he could not later claim that non-payment of service tax was due to his confusion as to liability to service tax[2016] 66 33 (Ahmedabad – CESTAT) D S Service v. Commissioner of Central Excise & Service Tax
No interest could be levied on amount of tax suo motu paid by assessee, though not demanded in SCN
Service Tax: Where tax demanded in notice was Rs. 2,40,780, interest can be demanded only on that amount; department cannot order recovery of interest on suo motu belated payment by assessee, if said payment was not specified in notice[2016]66 32 (Chennai – CESTAT) S & S Constructions v. Commissioner of Central Excise & Service Tax
Clandestine removal: Shortages suggested by the statutory auditors – A case of clandestine removal can not be considered to be established based only upon the statutory auditors of the Respondent- (Commissioner of Central Excise, Kolkata-IV Versus M/s Birla NGK Insulators Pvt. Ltd – 2016 (2) TMI 200 – CESTAT KOLKATA).
Company Law
Query: I have a query that “In case 1 director is passed away of a private limited company having 2 directors then is there any time limit within which the company needs to appoint another director ? Or we have to appoint a director in the company from back date i.e on or before the death of the director?
Answer: No time limit has been prescribed in the Companies Act 2013. However you may appoint another director at back date as well.
Technically you are required to appoint director in his place in the very next Board meeting or General meeting of the Company, as the case may be. But no time limit has been specified anywhere in the Companies Act 2013 regarding the same.
Other Updates
RBI has revised nine regulations issued under the Foreign Exchange Management Act, 1999 (FEMA). Consequently, the respective original notifications and subsequent amendments stand repealed.
ICAI:Draft Bank Branch Auditors’ Panel 2015-16 has been again hosted at http://www.meficai.org
Electricity Price at Power Trading Exchanges dropped below Re.1 for off-peak demand periods in areas with excess power generation.
ICAI announced Standard on Assurance Engagement (SAE) 3420 Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus.
ICAI announced Revision of Standard on Auditing (SA) 610, Using the Work of Internal Auditors.
ICAI notifies Manner of Signing of Certificates by Chartered Accountants.
Key Dates
Return for Non SSI assessee for January: 10/02/2016
Return for EOU’s for January: 10/02/2016
Return by units paying duty > 1 Crore: 10/02/2016 (CENVAT+PLA for January)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances;Hope the information will assist you in your Professional endeavors. For query or help, contact: info@caindelhi india.com or call at 011-233-43-333
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