CORPORATE TAX UPDATE FOR 28th OCTOBER 2015
CORPORATE TAX UPDATE FOR 28th OCTOBER 2015
Daily Updates & News:
Direct Tax
Assessee cannot be compelled to claim depreciation as Exp. 5 to Sec 32(1)(ii) is not retrospective
CIT vs. M/s Shree Triveni Foods (Himachal Pradesh High Court) , IT Appeal No.-43 of 2009 along with 44,45,46,49 and 51 of 2009, Date of Pronouncement-23rd April, 2015 Brief of the case: The Hon’ble Himachal Pradesh High Court in the case of CIT vs. M/s Shree Triveni Foods held that the claim of depreciation for assessment years under dispute was not mandatory and therefore, the assessee could not be compelled to exercise the option as an obligation. Is is further held that Claim of
Sec. 14A disallowance shall also be added back for computing book profits under sec. 115JB
Recently, the Bangalore Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Sobha Developers’ (the taxpayer) held that disallowance under Section 14A read with Rule 8D of the Income-tax Rules, 1962 (the Rules) is applicable while computing book profits under Section 115JB of the Income-tax Act, 1961 (the Act). Facts of the case During the Assessment Year 2008-09, the taxpayer earned dividend income and a share of profit from its partnership firm which was exempt
Unexplained Jewellery placed in locker shall be assessed in year of opening of locker by revenue
IT: In terms of section 69A, assessee would be treated in possession of jewellery, from date of opening of locker, i.e., when jewellery was found and seized by revenue, and would be added to his income accordingly. This is an Appeal by the Assessee directed against the Order by the Commissioner of Income Tax (Appeals)-41, Mumbai (‘CIT(A)’ for short) dated 24.01.2011, confirming the levy of penalty u/s. 271(1)(c) of the Income Tax Act, 1961 (‘the Act’ hereinafter) for Assessment Year (AY) 2007
- 194H Discount by telecom companies to distributors on recharge coupons is commission, liable for TDS: HC
Hutchison Telecom East Ltd. vs. CIT (Calcutta High Court), Income tax (Appeal) no. 347 of 2006, Date of Judgment: 12/05/2015 Brief of the Case Calcutta High Court held In the case of Hutchison Telecom East Ltd. vs. CIT that the discount allowed to the distributors in respect of starter packs and recharge coupons for its prepaid services will be covered under commission or brokerage, liable to TDS u/s 194H. The terms and conditions of the agreement between the parties leave no manner
Burden of proof on assessee to prove creditworthiness & genuineness of creditors: HC
CIT vs. Mihir Kanti Hazra (Calcutta High Court), Income tax (Appeal) no. 46 of 2015, Date of Judgment: 28/04/2015 Brief of the Case Calcutta High Court held In the case of CIT vs. Mihir Kanti Hazra that it is well settled that creditworthiness of the alleged creditors and the source of the source are relevant enquiries. In the case of CIT Vs Precision Finance Pvt. Ltd. reported in (1994) 208 ITR 465, it was decided that It is for the assessee to prove the identity of the creditors, their
Non submission of available proof by the party will be treated as proof against him: HC
Late Sushil Modi vs.CIT (Calcutta High Court), Income tax (Appeal) no. 52 of 2003, Date of Judgment: 01/04/2015 Brief of the Case Calcutta High Court held In the case of Late Sushil Modi vs.CIT that the contention of the assessee that he need not prove his case and the assessing officer is bound to find corroboration by making independent enquiry is neither based on law nor is supported by reason. The case is clearly covered by Clause – (g) of Section 114 of the Evidence Act which provides
Interest on Excess Income Tax Paid by Taxpayer i.e. on Income Tax Refund
Many times it may happen that the taxpayer has paid excess tax as against the tax required to be paid by him. In such a case he is granted refund of the excess tax paid by him. In this part you can gain knowledge about various provisions relating to claim of refund of excess tax paid by the taxpayer. Basic provisions When the tax paid by the taxpayer (could be in the form of advance tax or tax deducted/collected at source or self-assessment tax or payment of tax on regular assessment) is more
Indirect Tax
Levy of services charges on e-tickets doesn’t amount to abuse of dominance position by Railways
E-ticketing facility in Railways is an additional value added service offered by IRCTC and any customer wishing to avoid payment of service charges may not register himself with IRCTC but can book tickets through manual PRS counters without paying any service charge and, therefore, levy of service charges on e-tickets does not amount to an abuse of dominant position by Railways Facts: 1. The information in this case was filed under section 19(1)(a) of the Competition Act, 2002 („the Act‟) by
Company Law
Extend last date for filing of form MGT-7 & AOC-4 till 31.12.2015- ICSI
The Ministry of Corporate Affairs vide its notification dated August 28, 2015 amended the provisions of the Companies (Management and Administration) Rules, 2014 and brought out e-form MGT-7 for filing of Annual Return. Also MCA has vide notification dated September 4, 2015 brought Companies (Accounts) Second Amendment Rules, 2015 wherein Form AOC-4; Form AOC-4 CFS (consolidated financial statement) and AOC 4 (XBRL) made available for filing. On July 13, 2015, MCA
Even in case of large scale fraud, recovery can’t be made beyond 5 years of relevant date
Where allegations of cheating and fraud had been levelled against partners of company, regarding which FIR had been registered in Delhi, Delhi Court had summoned accused and Magistrate at Delhi had taken cognizance of matter, petitioners could not have approached a different High Court for quashing of complaint. 1. This is a petition filed under Section 446 of the Companies Act read with Section 482 Cr.P.C. seeking quashing of FIR No. RC-BD- 1/2000/e/0005 and Sections 120-B, 420, 467,
Co. can’t refuse to register share transfer if transfer deed and succession certificate are furnished
Where respondent group had furnished succession certificate as well as transfer deed executed in their favour, they were clearly entitled to have rectification made by getting shares registered in their favour. 1. The question raised in these appeals relates to the scope of power under Section 111 of the Companies Act, 1956, to direct rectification in the share register of a company. The question has to be examined in the context of correctness of the view taken in the impugned order passed by the
SEBI
Sebi exempts government from making open offer in Indian Overseas Bank case
Capital markets regulator Sebi today exempted government from making open offer to pick up an additional stake in Indian Overseas Bank through preferential allotments. The central government, which is the promoter of the bank, has proposed to acquire more than 48.56 crore shares of Indian Overseas Bank (IOB) following a proposed preferential allotment by the lender. The government presently holds 73.80 per cent stake in the bank and the proposed allotment of shares would
RBI
Banks’ loans rose 9.5% YoY in two weeks to Oct 2: RBI
Indian banks’ loans rose 9.5 percent in the two weeks to Oct. 2 from a year earlier, while deposits rose 11.3 percent, the Reserve Bank of India’s weekly statistical supplement showed on Friday. Outstanding loans rose 1.24 trillion rupees (USD 19.15 billion) to 68.30 trillion rupees in the two weeks to Oct. 2. Non-food credit rose 1.39 trillion rupees to 67.43 trillion rupees, while food credit fell 152.80 billion rupees to 874.60 billion rupees. Bank deposits rose 2.04 trillion rupees to 91.64 trillion rup
RBI back to mopping up foreign exchange through spot route
After being a net seller in the spot foreign exchange market in August, the Reserve Bank of India (RBI) turned net buyer in September once again. The trend continued in October with the central bank mopping up flows thanks to enhancement in foreign portfolio investors’ (FPIs) investment limit in Indian debt. According to a senior treasury official of a public sector bank, RBI had sold foreign exchange in early September to stem excess volatility, an effect of rout in global mar [….] Read more at:
RBI to take close look at banks’ asset quality: Raghuram Rajan
Reserve Bank of India Governor Raghuram Rajan said on Thursday the central bank would take a close look at the asset quality of lenders, while calling on them to recognise all bad loans and put assets back to work after talking with company promoters. The comments are the latest by Rajan pushing lenders to deal with their pile of non-performing assets as the government pushes for increased corporate investments. Rajan said the central bank was also working with the government to find
Etailers like Snapdeal seek RBI approval to offer loans to SMEs
Some of the top etailers operating in India have sought the Reserve Bank of India’s permission to lend to small and medium enterprises listed on their platforms. Asenior RBI official said some suggestions were made at a town hall organised by the central bank in Delhi for ecommerce companies and small and medium enterprises (SMEs). “There were some suggestions made in this regard, and we have forwarded them to the head office. They are being looked at,” he said, requesting anonym
Rs 2,000 crore fund to push financial inclusion: RBI
RBI today announced merger of two funds to create a new Financial Inclusion Fund with a corpus of Rs 2,000 crore to support ‘developmental and promotional activities’ for expanding reach of banking services. After completion of initial five years, RBI said it has now been decided to merge both the Financial Inclusion Fund and Financial Inclusion Technology Fund into a single Fund — Financial Inclusion Fund (FIF). “The overall corpus of the new FIF will be Rs 2,000 crore. Contribution
Miscellaneous Laws
Supreme Court permits ‘voluntary’ use of Aadhar cards in welfare schemes
Lifting its earlier restriction, the Supreme today permitted voluntary use of Aadhaar cards in welfare schemes that also included MGNREGA, all pension schemes and the provident fund besides ambitious flagship programmes like ‘Pradhan Mantri Jan Dhan Yojna’ of the NDA government. The social welfare schemes, aimed at reaching to the door steps of the “poorest of the poor”, were in addition to LPG and PDS schemes in which the apex court had allowed the voluntary use of Aadhaar
FAQs on Non Banking Financial Company – Micro Finance Institutions
What is an NBFC-MFI? Ans. An NBFC-MFI is defined as a non-deposit taking NBFC (other than a company licensed under Section 25 of the Indian Companies Act, 1956) with Minimum Net Owned Funds of Rs.5 crore (for NBFC-MFIs registered in the North Eastern Region of the country, it will be Rs. 2 crore) and having not less than 85% of its net assets as “qualifying assets”. Q2. What are the documents required for registration as NBFC-MFI? Ans. The checklist with respect to application for
http://onlinelawsolutions.blogspot.in/2015/10/faqs-on-non-banking-financial-company.html
Labour Ministry goes all-out to get House nod for EPF amendments
Keen to push through amendments to the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, in the upcoming winter session of Parliament, the Labour Ministry held power-packed consultations with a group of ministers this week to firm up its position. The legislation, among others, seeks to offer workers in the formal sector a chance to choose between the EPF scheme and the New Pension Scheme. The meeting was attended by Home Minister Rajnath Singh, Finance Mi [….] Read more at:
Economy & News
Drivers’ facilities called highway villages may become mandatory in new highway contracts
India is proposing to introduce a new stiff clause in highway contracts that will make it mandatory for developers to provide for facilities for drivers, called highway villages, on the lines of international norms. “The concept of highway villages is quite popular internationally…. The government is keen on developing quality infrastructure that is in tune with current times and will also create employment opportunities for local people,” a road transport ministry official told ET. Detailed project reports
Trade Unions slam government proposal to set up factory workers’ panel
In what could affect the government’s plan to set up an independent mechanism to deal with the terms and conditions covering factory workers, trade unions have slammed the proposal saying that giving sweeping powers to the board will be detrimental to the employees. As part of the amendments to the Factories Act, 1948, the labour ministry had proposed constituting an Occupational Safety and Health Board of India, comprising a chairman and two members appointed by the gove
Trade Ministers to meet next week ahead of India-Africa Summit
Trade ministers from several African nations will converge here for the India Africa Trade Ministers’ Meeting (IATMM) on October 23 in the run-up to the India-Africa Summit to discuss ways to bolster trade ties with India and fast-track regional agreements. Representatives from 54 African nations, including heads of state of some 40 countries, and the powerful African Union are expected to participate in the four-day summit beginning October 26. “Prior to the forum summit, the
‘King of nuts’ from California to conquer India?
Kashmiri and Californian walnuts can co-exist in the booming Indian market with American growers of the healthy dry fruit eyeing it in a big way after exports to the traditionally-strong Chinese market dropped amid a slowdown in the world’s second-largest economy. “We are excited about the Indian market and feel it holds great potential for our industry,” Chief Executive Officer of California Walnut Commission (CWC), Dennis A Balint, said. “What is most encouraging is that I
Pension regulator seeks government support to widen subscriber base
After achieving a new milestone in AUM and subscriber base early this month, the Pension Fund Regulatory and Development Authority (PFRDA) is looking for some fiscal support from the government for its ongoing move to expand subscriber base further. The asset under management (AUM) of its national pension system (NPS) has crossed Rs 1-trillion-mark in the first week of October at around Rs 1,10,000 crore, while the NPS subscriber base also crossed 1 crore-mark in the
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