CORPORATE AND PROFESSIONAL UPDATE DATED 28 JANUARY INCOME TAX ACT SECTION 9 INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA Treaty Shopping : SLP granted against High Court’s ruling that where shares of Indian company were listed, income arising from any future transfer of those shares would itself be exempt by virtue of section 10(38) …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 27, 2016 INCOME TAX ACT SECTION 2(47) CAPITAL GAINS – TRANSFER Immovable property : Where agreement to sale was entered in 2001 and part consideration was received and later sale deed was executed in April 2003, transfer of property could be said to have taken place in 2001 –[2016] 65 142 …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 25, 2016 ST: VALUATION OF FLATS GIVEN BY BUILDER TO LANDOWNER AND POT THEREOF CBEC Circular No. 151/2/2012-ST dated 10.2.2012 on following issues: Valuation of construction service; and Point of taxation thereof. According to the CBEC Education Guide on Taxation of Services, 2012: Value of construction service provided to such …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 23, 2016 INCOME TAX ACT SECTION 2(22) DEEMED DIVIDEND Loans or advances to shareholders : Where assessee was a shareholder in a company holding 41 per cent of shares and during year he and his son and daughter had overdrawn certain amount from said company and Assessing Officer treating said amount …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 20, 2016 HOW TO GET RECOGNIZED AS A START-UP? Eligible businesses for a startup: A business which aims to develop and commercialize: A new product or service or process; or A significantly improved existing product or service or process that will create or add value for customers or workflow. However, …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 18, 2016 DIRECT TAX: Making of fresh claim during assessment proceedings allowed [Goetze (India) Ltd. Vs. CIT (2006) 284 ITR 323 (SC)]. Proposal to not to retain Income Tax Refund for Completion of Scrutiny Proceeding. HC allows depreciation on ROC fee after capitalizing it in cost of plant [2016] 125 …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 17, 2016 INCOME TAX ACT SECTION 119 CENTRAL BOARD OF DIRECT TAXES – INSTRUCTIONS TO SUBORDINATE AUTHORITIES Others : Where assessee, an AOP, applied for grant of PAN on 19-1-2005 and department erroneously issued PAN in favour of partnership firm and thereafter assessee in year 2014 applied to Commissioner pointing …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 16, 2016 INCOME TAX ACT SECTION 2(15) CHARITABLE PURPOSE Object of general public utility : SLP granted against order of High Court wherein it was held that since dominant objective of ICAI was to regulate profession of Chartered Accountancy in India, it was a charitable institution and conduction of coaching classes …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 14, 2016 INCOME TAX ACT SECTION 37(1) BUSINESS EXPENDITURE Allowability OF Interest : SLP granted against High Court’s ruling that interest which was paid after slump sale was effected and where factory was in operation could not be capitalized and therefore, such expenses were revenue in nature – [2016] 65 67 (SC) Share …
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, …