CORPORATE & PROFESSIONAL UPDATE DECEMBER 10, 2015
CORPORATE & PROFESSIONAL UPDATE DECEMBER 10, 2015
1. INCOME TAX ACT
- SECTION 4
(a) HUF – ASSESSABLE AS
Where father of assessee got registered HUF, doing lottery business two months before his death and thereafter, assessee carried on said lottery business as karta of HUF, undisclosed income related to said business declared on search was to be assessed in hands of HUF and not in hands of assessee in his individual capacity .
(b) ASSOCIATION OF PERSONS – ASSESSABLE AS
Where seized material showed that finance business was carried on by AOP consisting of three persons including assessee, notice under section 158BC in relation to that business was issued in status of AOP and return of income was also filed in status of AOP, undisclosed income of said business was to be assessed in hands of AOP and not in hands of assessee in his individual capacity
- SECTION 5
INCOME – CONCEPT OF REAL INCOME
Mercantile system of accounting : Where assessee was in fact not receiving any interest on loan advanced and it had to write off said loan finally in subsequent year, no addition could be made on account of accrued interest just because assessee was following mercantile system of accounting
- SECTION 9
INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA
Business profits : Where Japanese company executed Engineering, Procurement, Construction and Commissioning contracts in India through Indian project office, income from offshore services, though chargeable under section 9(1)(vii) was exempt under DTAA and, hence, could not be charged to tax in light of section 90(2)
- SECTION 23
INCOME FROM HOUSE PROPERTY – ANNUAL VALUE
Others : Where assessee had given a building on rent to Government and Assessing Officer fixed rent of building at a higher amount than disclosed by assessee and record showed that penalty proceedings under section 271(1)(c) were initiated against assessee and on verification of matter they were dropped, once penalty proceedings were dropped, rent for building must be taken as disclosed by
- SECTION 54F
CAPITAL GAINS – EXEMPTION IN CASE OF INVESTMENT IN RESIDENTIAL HOUSE
Time limit for utilization of capital gain : When sale consideration/capital gains has been utilized for purchase or construction of new asset before due date for furnishing return of income under section 139(4), assessee is entitled to claim deduction in respect of amount so utilized under section 54F
- SECTION 143
ASSESSMENT – GENERAL
Others : Levy of tax on two assessees for same premises and for same period was not justified
- SECTION 260A
HIGH COURT – APPEALS TO
Court fee : As section 52A of Kerala Court fees, Act specified court fee in appeal before High Court at 1% of income assessed by Assessing Officer, but in many cases such assessed income might not at all survive, State Government had to make required amendment; High Court opined that instant matter was to be stayed till information about steps taken by State Government was provided
2. COMPANIES ACT
- SECTIONS 433
WINDING UP – CIRCUMSTANCES IN WHICH A COMPANY MAY BE WOUND UP
Where respondent-company had admitted its liability to pay amount due to petitioner against supply of books and they had no defence for amount admitted and claim was not disputed contemporaneously but was disputed only when demand for payment came to be raised through statutory notice, winding up petition against respondent was to be admitted.
3. SERVICE TAX
- SECTION 65(31)
TAXABLE SERVICES – CONSULTING ENGINEER’S SERVICES
Environmental studies being: (a) Environmental Biotechnology, (b) Environmental Impact Assessment, (c) Environmental Monitoring, (d) Environmental Policy Analysis and (e) Hazardous Waste Management, being in nature of scientific consultancy, are outside scope of consulting engineer.
4. CENTRAL EXCISE ACT
- SECTION 5A
EXEMPTIONS – CENTRAL EXCISE – SSI/THRESHOLD EXEMPTION
Where, after several representations, Government amended SSI-extending exemption to ‘parts of Chapter 93’ only from 1-10-2001, said amendment could not be regarded as retrospective.
- SECTION 35C
APPEALS – RECTIFICATION OF MISTAKES/REVIEW – APPELLATE TRIBUNAL
An error, which has to be established by a long drawn process of reasoning on points where there may conceivably be two opinions does not amount to ‘error apparent on face of record’ and is not a rectifiable mistake
5. CENTRAL EXCISE TARIFF ACT
- SECTION 2
CLASSIFICATION – THREE WHEELED TRACTOR
In view of Chapter Note 2 to Chapter 87 of Tariff, vehicle comprising ‘Auto Track/Hauling Unit and Semi-trailer’ is classifiable as ‘tractor’ under Heading 8701, not as ‘Light Motor Vehicle’ under Heading 8704
6. CENTRAL EXCISE RULES
- RULE 18
EXPORT – REBATE OF DUTY
Word ‘or’ in rule 18 of the Central Excise Rules, 2002, to be interpreted as ‘and’ and therefore, the exporters are entitled to both rebates under rule 18 (viz. input-stage rebate as well as output stage rebate on finished goods) and not one kind of rebate
7. STATUTES
- DIRECT TAX LAWS
Report of Kelkar Committee on revisiting and revitalizing PPP Model of infrastructure development submitted to Finance Minister
- CORPORATE LAWS
Frequently Asked Questions on SEBI (Share Based Employee Benefits) Regulations, 2014 Guidelines on “Indian owned and controlled” for insurance intermediaries –CIRCULAR NO.IRDA/INT/CIR/ORD/208/11/2015, dated 20-11-2015 . Implementation of Section 51A of Unlawful Activities Prevention Act (UAPA), 1967 – Updates to Al-Qaida and Taliban Sanctions List – CIRCULAR DBR.AML.NO.6854/14.06.001/2015-16.
- INDIRECT TAX LAWS (ST./EX./CUS. & (CST & VAT)
Delhi Value Added Tax Act, 2004 – Amendment in Third & Fourth Schedule – NOTIFICATION NO.F.3(22)/FIN(REV-I)/2015-2016/DSVI/913, dated 16-11-2015.
Chairman, CBEC holds a meeting to strengthen institution of Indirect Tax Ombudsmen (ITOM) – PRESS RELEASE, dated 20-11-2015.
Delhi Value Added Tax (Amendment) Rules, 2015 – Amendment in rule 35 – NOTIFICATION NO.F.3(23)/FIN(REV-I)/2015-2016/DSVI/914, dated 16-11-2015.
Delhi Value Added Tax (Amendment) Rules, 2015 – Amendment in rule 7 and DVAT form 16 – NOTIFICATION NO.F.3(21)/FIN(REV-I)/2015-2016/DSVI/907, dated 12-11-2015.
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