CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 13,2016 DIRECT TAX: Disallowance u/s 14A – no separate books of account are maintained for taxable income and exempt income – some expenditure on account of administrative expenses has to be disallowed on reasonable estimate basis- (M/s. Coated Fabrics Pvt. Ltd. Versus ACIT, Circle-1 (1), Pune – 2016 (2) TMI 373 …
WIDE COVERAGE ON COMPANIES (AUDITOR’S REPORT) ORDER (CARO), 2016. MCA PROPOSES NEW CARO, 2016 WITH WIDE COVERAGE On 9th February 2016, Ministry of Corporate Affairs (MCA) has issued draft Companies (Auditor’s Report) Order (CARO), 2016. As per Section 143 of the Companies Act, 2013, every auditor’s report under this section shall contain matters specified under …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 12,2016 DIRECT TAX: When the Assessing Officer and the Commissioner concurrently found that there was unexplained expenditure and source of such income was not satisfactorily explained section 69C of the Act would certainly be applicable. – HC – Income Tax RAVIKIRAN CERAMICS PVT LTD Versus PR. COMMISSIONER OF INCOME TAX (CENTRAL) …
Consolidated FDI Policy by Department of Industrial Policy & Promotion (DIPP) on Agriculture Agriculture & Animal Husbandry Sector/Activity % of Equity/ FDI Cap Entry Route a) Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions;b) Development and Production of seeds and planting material; c) Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, under controlled conditions; …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 10,2016 INCOME TAX ACT SECTION 14A EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME Rule 8D : Where in respect of tax free interest income earned on RBI bonds by assessee, Assessing Officer made disallowance under section 14A by invoking provisions of rule 8D(2) without recording his satisfaction …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 9,2016 Direct Tax IT: Interest paid to partners on capital contribution is not a statutory allowance u/s 40(b) but is an expenditure u/s 36(1)(iii) – If the income is exempt corresponding interest paid to partner will be disallowed u/s-14A – ACIT-19(3), Mumbai Vs. Pahilajrai Jaikishin & Vice Versa (ITAT Mumbai) IT: Expenditure …
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 …
CORPORATE AND PROFESSIONAL UPDATE FEBRUAY 7,2016 Direct Tax IT-HUF: Society is in Transition and so the Law – Woman can be Karta of a family (Delhi High Court). IT:TDS u/s 194J – Non deduction of TDS on payment towards Internet Band Width charges – Although the amendment was given retrospective effect legal maxim lex non …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 5,2016 Direct Tax Treatment of property lease income that is any income earned by the assessee by the operation of mall has to be taxed under the head of Profits and Gains of business OS Profession. [ Chennai Properties & Investments Ltd. Vs CIT 2015 (8) TMI 481 –SC] Penalty …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 4,2016 Direct Tax CBDT Officials directed to use new Performa to request info exchange from foreign tax authorities. Non-resident will not to be liable to deduct tax at source from payments made to persons resident in India, if the source of the aforesaid payments is located outside the Indian Territory. …