CORPORATE AND PROFESSIONAL UPDATE JANUARY 10,2016
Table of Contents
CORPORATE & PROFESSIONAL UPDATE JANUARY10,2016
INCOME TAX ACT
SECTION 24
INCOME FROM HOUSE PROPERTY – DEDUCTIONS
Interest : Interest on loan, which was taken subsequent to purchase of property, cannot be allowed as deduction under section 24(b).
SECTION 37(1)
BUSINESS EXPENDITURE – ALLOWABILITY OF SAME BUSINESS
Expenditure incurred by assessee, engaged in manufacturing of ice-creams, on aborted project of ‘Mawa’, which was covered by nature of assessee’s declared business of dairy/milk products, and was under same management and control, was allowable deduction .
SECTION 50C
CAPITAL GAINS – SPECIAL PROVISION FOR FULL VALUE OF CONSIDERATION IN CERTAIN CASES
Applicability of : For the purpose of computing capital gain on transfer of land or building, if valuation ascertained by Valuation Officer doesn’t exceed value adopted by State Stamp Duty Authority then value ascertained by valuation officer would prevail.
SECTION 54F
CAPITAL GAINS – EXEMPTION OF, IN CASE OF INVESTMENT IN RESIDENTIAL HOUSE
Ownership : Where assessee had acquired substantial domain over ownership of property since 2004, however there being a dispute could get it registered in its favour only in 2007; having held property for more than 36 months it will be entitled for deduction under section 54F on sale of property as claimed by it.
SECTION 69B
UNDISCLOSED INVESTMENTS
Stock : Where revenue failed to establish that there was any difference in quantity of stock and Assessing Officer didn’t make any enquiry in respect of explanation of assessee that stock belonging to another entity was included in stock statement submitted to bank, addition for unaccounted stock was liable to be deleted.
SECTION 147
INCOME ESCAPING ASSESSMENT – NON-DISCLOSURE OF PRIMARY FACTS
Section 143 v. Section 147 : Requirements of section 147 cannot be dispensed with when an assessment made under section 143(1) is sought to be reopened.
SECTION 196
DEDUCTION OF TAX AT SOURCE – PAYMENTS TO GOVERNMENT, RBI, ETC.
Where assessee failed to prove that interest paid by it to a cooperation was a payment to Government and would fall under section 196(i), it was liable to deduct tax at source on such interest at applicable rate.
COMPETITION ACT
SECTION 3
PROHIBITION OF AGREEMENTS – ANTI-COMPETITIVE AGREEMENTS
Private super specialty hospital’s exclusive tie-up with a stem-cell bank for collection of stem-cells from patients availing maternity services in the hospital and not allowing other stem cell banks to collect stem cells from its maternity services patients has no adverse effect on competition in the facts of the instant case.
SERVICE TAX
SECTION 65(68)
TAXABLE SERVICES – MANPOWER RECRUITMENT OR SUPPLY AGENCY’S SERVICES
Lumpsum contract for doing ‘hamali work’ cannot be regarded as contract of ‘manpower supply services’, as there is no supply of labour per se and it is only a contract for doing ‘work’.
CENVAT CREDIT RULES
RULE 2(l)
CENVAT CREDIT – INPUT SERVICE -TRANSPORTATION SERVICES
Services by way of hiring of vehicles to be used by employees: (a) for their movement within refinery premises or (b) for outward travelling in connection with business, is eligible for input service credit.
STATUTES
CORPORATE LAWS
Filing of micro Insurance Products Subsequent to Implementation of IRDAI (Micro Insurance) Regulations, 2015 – CIRCULAR NO.IRDA/LIFE/CIR/MIN/007/01/2016, DATED 8-1-2016
INDIRECT TAX LAWS (ST./EX./CUS. & (CST & VAT))
Notified Conditions for Downloading Central Statutory Forms Online – NOTIFICATION NO.F.3(556)/POLICY-II/VAT/2015/1271-82, DATED 8-1-2016
Delhi Sugam-2 (DS2) – DS2 to be one of documents to be carried by owner, driver or person in-charge of Goods Vehicle who is bringing Goods into Delhi – NOTIFICATION NO.F.7(433)/POLICY-II/VAT/2012/PF/1259-70, DATED 8-1-2016
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