PROFESSIONAL UPDATE FOR THE MONTH
PROFESSIONAL UPDATE FOR THE MONTH:
- IT : Where assessee is executing an infrastructure development fixed price contract, foreseeable losses of future years can be recognized following rationale of AS-7 issued by ICAI and such a provision is an allowable deduction [2015] (Pune – Trib.) ACIT v. AshokaBuildcon Ltd.
- Service Tax : Where collection of entrance fee by club from its members :did not confer members any access to services, facilities or advantages; and was to meet expenses necessary for sustenance and survival of club and maintenance of its assets, then, entrance fee, not being a consideration, was not chargeable to service tax [2015] (Mumbai – CESTAT) Cricket Club of India Ltd. v.Commissioner of Service tax.
- Date of filing of DP-1 extended from 30-9-15 to 21-10-15.
- IT: Where assessee, a trader in films, purchased world negative rights from producers on perpetual and permanent basis, there was no liability to deduct tax at source under section 194J on payment made by assessee to producers and, accordingly, business disallowance was not justified [2015](Hyderabad – Trib.) DCIT v. V. Rama Krishna
- Govt. receives above 3,000 crores under Compliance window of Black Money.
- Filing of DVAT Form 9 for the year 2014-15 date has been extended upto 31-10-2015.
- Govt. allows 100% FDI in White Label ATM Operations.
- IT : Where assessee’s personal books of account as well as books of account of his proprietary concern were interlinked and connected with business activity of assessee,interest paid from personal books of account on funds borrowed for business purpose was allowable under section 36(1)(iii)[2015] (Nagpur- Trib.) BrijgopalMadhusudanBhattad v. ITO
- IT: Where assessee was not given an opportunity to cross-examine representatives of two companies whose statement was relied upon by revenue in disallowing amount paid by assessee to said companies to carry out promotional and advertisement activities, same was breach of principles of natural justice and accordingly issue was to be restored for fresh disposal [2015] (Bombay) R.W. Promotions (P.) Ltd. v. ACIT
- IT : Where assessee’s personal books of account as well as books of account of his proprietary concern were interlinked and connected with business activity of assessee, interest paid from personal books of account on funds borrowed for business purpose was allowable under section 36(1)(iii)[2015](Nagpur-Trib.) BrijgopalMadhusudanBhattad v. ITO
- Haryana Govt amends composition scheme for developers.
- Govt. grant received for modernization of machinery is liable to MAT [2015](Chennai-Trib.)DCITv.Western India Cashew Company (P.)Ltd.
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