Today Day:

Direct Tax:

Systematic / Regular sub-leasing of premises is taxable as business income. [Bombay Plaza Pvt. Ltd. vs. A.C.I.T. (ITAT Kolkata)]

No penalty for not declaring STCG due to bonafide mistake/clerical error. [Shri Raj Dutta vs. JCIT (ITAT Delhi)]

Section 145A is not applicable on taxable services.[CIT vs. Knight Frank (India) Pvt. Ltd. (Bombay High Court)].

IT: Once it has been held as deemed income of the assessee or an addition u/s.68 has been made the character of the said amount / addition will not remain as a loan or deposit and section 269-SS will not be applicable – No penalty u/s 271D – Gyarsi Lal Vijay Vs CIT & Ors (2016 (9) TMI 117 – Rajasthan High Court)

IT: In between agricultural land and the nearest municipality if there is a mountain or lake or private lands or government properties and in such other cases where the public has no access to reach the municipality the distance has to be measured only through the access road and not in a straight line or horizontal plane -CIT, Chennai Vs Dr. R. Rangarajan (2016 (9) TMI 115 – Madras High Court)

IT: Waiver of interest u/s 220 is a discretion to be exercised in terms with the statute and once such a discretion has been exercised the scope of judicial review is very limited – Smt. Nimmi John Chackola Vs CCIT, Cochin & Ors (2016 (9) TMI 160 – Kerala High Court)

IT: Capital Gain on transfer of shares – The applicant, a resident of Mauritius holds a valid tax residency certificate. The treaty will apply and the applicant is not liable to tax in India – In Re: Shinsei Investment I Ltd. (Authority For Advance Rulings, New Delhi)

HC orders action against complainant who paid Rs 20 lakh for admission in Medical College : Voicing concern over use of money to get medical seats, Madras High Court today ordered action by police and Income Tax authorities against a complainant who has claimed to have paid Rs 20 lakh to a person in a bid to get admission in a medical college.

“If doctors are going to be qualified only on the basis of money and not on merits, the safety of the patients, who undergo treatment under them is a million dollar question,” Justice S Vaidyanathan said.

He was dismissing the anticipatory bail plea of one S K Durai who apprehended arrest over the complaint that he received Rs 20 lakh on the promise of getting medical seat.

“Since the offence alleged against the petitioner is serious in nature, requiring custodial interrogation I am not inclined to grant the relief,” the Judge ruled.

Observing that giving bribe was also a serious offence, the Judge directed police to ascertain as to how the complainant was able to pay such a huge amount for a medical seat and said the I-T department should also ascertain the source of income of bribe givers in such type of cases.

“The one who receives bribe alone cannot be punished, even the person who gives bribe, under any circumstance, is also to be blamed,” Justice Vaidyanathan said.

To put an end to this offence, the Income Tax Department should be set in motion, so that they will probe into the assets and liabilities of such offenders and ascertain their source of income through which they have paid the bribe, the Judge said.

He directed the Court Registry to mark a copy of this order to the Commissioner of Income Tax, Nungambakkam, enabling him to initiate action in such type of offences.

The Judge also directed the police authorities to furnish the details of the offenders to the Income Tax Department to enable them to take action against the person, who is alleged to have given bribe.

INDIRECT TAX:

ST: Taxability of club membership fee – The money/contribution received by company against shares from the prospective members for raising funds which can be used for achieving the sole object of the company i.e. establishing a luxurious club is taxable as service – M/s Avadh Infratech Ltd. Vs C.C.E., Surat-II, Surat (Authority For Advance Rulings)

Erection / Construction of pipeline cannot be considered as part of construction of building of civil structure or part thereof. Thus appellant is eligible for credit on service tax paid. [M/s. Rastriya Ispat Nigam Ltd. Versus CCE, C&ST, Visakhapatnam – 2016 (9) TMI 194]

ST: Import of Services – The transfer of funds by gross outflow or by netted inflow between head office and branches is nothing but reimbursements and taxing of such reimbursement would amount to taxing of transfer of funds which is not contemplated by Finance Act 1994 – Milind Kulkarni Vs C.C.E., Pune-I (2016 (9) TMI 191 – CESTAT Mumbai)

MCA UPDATE

Restrictions on Promoters and Whole-Time Directors of compulsorily delisted companies pending fulfillment of exit offers to the shareholders.   SEBI/HO/CFD/DCR/CIR/P/2016/81

MCA has made Annual filing forms available for Companies Act, 1956 – Form 23AC, Form 23ACA, Form 23B, Form 20B, Form 21A, Form 66 and are available on MCA21.

MCA : MCA has designated Special Courts for the States of Chhattisgarh, Manipur, Rajasthan, Punjab, Haryana, Union Territory of Chandigarh, Districts of Coimbatore, Dharmapuri, Dindigul, Erode, Krishnagiri, Namakkal, Nilgiris, Salem and Tiruppur, Union Territory of Puducherry for the purposes of providing speedy trial of offences punishable with imprisonment of two years or more under the Companies Act, 2013. The Special Courts of the above-mentioned States and UTs are provided in the notification. MCA has already designated Special Court in respect of jurisdiction of National Capital Territory of Delhi.

MCA: The Ministry of Corporate Affairs has modified the LLP e-Form 4, Form 5 and Form 8. The new version of e-Form 4 (Notice of appointment, cessation, change in name/ address/ designation of a designated partner or partner and consent to become a partner/designated partner), Form 5 (Notice for change of name) and Form 8 (Statement of Account & Solvency) available w.e.f. 8th September, 2016. Only new version of e-form will be acceptable and Stakeholders are requested to plan accordingly.

FAQ ON COMPANY LAW:

Query: The share capital of a limited capital is divided into 450000 equity shares of Rs.10/- each and 250000 preference shares of Rs.10/- each. Our company holds 300000 equity shares in that company. Whether it would be subsidiary company of our company or not. Kindly clarify

Answer: No, as per Section 2(87) of the Companies Act 2013, “subsidiary company” or “subsidiary”, in relation to any other company (that is to say the holding company), means a company in which the holding company—

(i) controls the composition of the Board of Directors; or

(ii) exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies:

As in your case, there should be more than one-half control over total share capital of Company.

Key Dates:

E-Payment of TDS/TCS deduced/collected for the month of August: 07/09/2016

Submission of Form No. 27C (TCS) received in August to IT Commissioner: – 07/09/2016

ER-1 Return for Non SSI assessee for the month of August: – 10/09/2016

ER-2 Return for EOUs for the month of August: – 10/09/2016

TDS Return for June quarter in DVAT-48:- 10/09/2016

 “अवसर के बिना काबिलियत कुछ भी नहीं है।” ~ नेपोलियन बोनापार्ट

“Time and Life are both great teachers. Time teaches us the value of life and life teaches us the value of time.” ~ Anonymous

Knowledge comes, but wisdom lingers.        -Alfred Lord Tennyson

Do not be like a parrot in life, Be like an eagle. A parrot speaks but can not fly high whereas an eagle is silent and has the willpower to touch the sky.

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W:  www.caindelhiindia.com  E: info@ca indelhiindia.com       T: 011-233-4-3333, 9-555-555-480

**********************************************************

If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.

Legal Disclaimer:
The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.