{"id":1657,"date":"2016-02-08T11:25:00","date_gmt":"2016-02-08T11:25:00","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1657"},"modified":"2021-07-07T12:00:18","modified_gmt":"2021-07-07T12:00:18","slug":"corporate-and-professional-update-january-26-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-january-26-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE JANUARY 27, 2016"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d0f55f6cc0c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d0f55f6cc0c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-january-26-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_27_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE JANUARY 27, 2016\">CORPORATE AND PROFESSIONAL UPDATE JANUARY 27, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-january-26-2016\/#INCOME_TAX_ACT\" title=\"INCOME TAX ACT\">INCOME TAX ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-january-26-2016\/#COMPANIES_ACT\" title=\"COMPANIES ACT\">COMPANIES ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-january-26-2016\/#SERVICE_TAX\" title=\"SERVICE TAX\">SERVICE TAX<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-january-26-2016\/#CENTRAL_EXCISE_ACT\" title=\"CENTRAL EXCISE ACT\">CENTRAL EXCISE ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-january-26-2016\/#CENVAT_CREDIT_RULES\" title=\"CENVAT CREDIT RULES\">CENVAT CREDIT RULES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-january-26-2016\/#STATUTES\" title=\"STATUTES\">STATUTES<\/a><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_27_2016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE JANUARY 27, 2016<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_3069\" aria-describedby=\"caption-attachment-3069\" style=\"width: 600px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/V.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3069\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/V.jpg\" alt=\"www.caindelhiindia.com; BUSINESS\" width=\"600\" height=\"218\" \/><\/a><figcaption id=\"caption-attachment-3069\" class=\"wp-caption-text\">www.caindelhiindia.com; BUSINESS<\/figcaption><\/figure>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INCOME_TAX_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>INCOME TAX ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 2(47)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CAPITAL GAINS \u2013 TRANSFER<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Immovable property :<\/span>\u00a0<\/strong>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 &#8211;<em>[2016] 65 142 (Allahabad)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 4<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>INCOME &#8211; CHARGEABLE AS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Compensation :<\/strong><\/span>\u00a0Compensation paid to assessee, a journalist, by a foreign publisher upon termination of contract for performance of authorship\/professional services for a continuous period of 23 years, was to be regarded as capital receipt not liable to tax &#8211;\u00a0[2016] 65 153 (Delhi)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION- 12AA<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CHARITABLE OR RELIGIOUS TRUST &#8211; REGISTRATION PROCEDURE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Cancellation of :\u00a0<\/strong><\/span>Commissioner is empowered to cancel registration granted to a society under section 12A from assessment year 2011-12 onwards, he cannot assume such power for earlier assessment years -[2016]65 239 (Chandigarh -Trip.)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 55<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CAPITAL GAINS &#8211; COST OF ACQUISITION<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Trademark :<\/strong><\/span>\u00a0Where assessee, during assessment year 1996-97, in terms of a settlement agreement entered into between it and an international company &#8216;S&#8217;, had transferred its trademark to &#8216;S&#8217; for certain consideration, transfer of trademark was liable to tax under section 55(2)(a) only from 1-4-2002 and not in assessment year in question-[2016] 65 253(Karnataka)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 92C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>TRANSFER PRICING &#8211; COMPUTATION OF ARM&#8217;S LENGTH PRICE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Comparables and adjustments\/Adjustments &#8211; Administrative expenses :<\/strong><\/span>\u00a0Where in support of genuineness of payments of administrative\/corporate charges made to AE, assessee brought on record some additional evidence in course of appellate proceedings, matter was to be remanded back for disposal afresh in light of evidence so produced &#8211;\u00a0[2016] 65 264 (Delhi &#8211; Trib.)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Comparables and adjustments\/Comparables \u2013 General :<\/strong><\/span>\u00a0In case of assessee rendering BPO services to its AE, companies having functional difference, failing to satisfy employee cost filter and company in whose case extraordinary event of amalgamation took place, could not be accepted as valid comparables while determining ALP. -[2016] 65 258 (Bangalore)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 201<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DEDUCTION OF TAX AT SOURCE &#8211; CONSEQUENCE OF FAILURE TO DEDUCT OR PAY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Assessee-in-default :\u00a0<\/strong><\/span>Where recipient, to whom assessee-bank paid interest without deducting tax at source, had shown such interest income in its return of income but had not paid tax thereon claiming same to be exempt, assessee could not be treated as assessee-in-default &#8211;\u00a0[2016] 65 219 (Panaji &#8211; Trib.)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 245C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>SETTLEMENT COMMISSION &#8211; APPLICATION FOR SETTLEMENT OF CASES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Validity of :<\/strong><\/span>\u00a0Where assessee had not paid self assessment tax in return of income under sections 153A and 143(2), application for settlement was not valid &#8211;\u00a0[2016] 65 263 (Madhya Pradesh)<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"COMPANIES_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>COMPANIES ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\">\u00a0<strong>SECTION 456<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>WINDING UP &#8211; CUSTODY OF COMPANY\u2019S PROPERTY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Powers under Companies Act cannot be wielded by Company Judge to interfere with proceedings by a secured creditor who has opted to stay outside winding up process to realize its secured interests as per provisions of SARFAESI Act &#8211;\u00a0[2015] 64 394 (SC)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 167 OF COMPANIES ACT, 2013<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DIRECTOR &#8211; VACATION OF OFFICE BY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Section 167(3) cannot be interpreted as entitling each and every promoter of a company, upon contingencies mentioned therein having occurred, to appoint a Director; appointment has to be made by following procedure elsewhere provided in statute for appointment of a Director &#8211;\u00a0[2016] 65\u00a0 252 (Delhi)<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SERVICE_TAX\"><\/span><span style=\"color: #0000ff;\"><strong>SERVICE TAX<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 65(12)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>TAXABLE SERVICES &#8211; BANKING AND OTHER FINANCIAL SERVICES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Processing fee paid to foreign banks for arranging External Commercial Borrowings, is liable to service tax under reverse charge under Banking and other Financial Services &#8211;\u00a0[2016] 65 203 (Chennai &#8211; CESTAT)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 65B(44)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>SERVICE &#8211; EXCLUSION OF SERVICES PROVIDED BY AN EMPLOYEE TO EMPLOYER<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Perquisite extended by employer by way of car provided for personal and official use to employees, against payment equal to cost incurred by employer, does not amount to service under section 65B(44)(b), as it is in course of employment and therefore, excluded from scope of service &#8211;\u00a0[2016] 65 259 (AAR &#8211; New Delhi)<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENTRAL_EXCISE_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>CENTRAL EXCISE ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 3A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CHARGE\/LEVY &#8211; EXCISE DUTY BASED ON PRODUCTION CAPACITY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">In case of production capacity based duty, intimation of temporary stoppage of production may be sent via Fax and abatement for non-production cannot be denied on ground that Fax report is not clear &#8211;\u00a0[2016] 65 262 (New Delhi &#8211; CESTAT)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 4A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>VALUATION UNDER CENTRAL EXCISE &#8211; RETAIL SALE PRICE\/MRP BASED<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">In case of promo packs where excess quantity is supplied in same pack, duty is payable based on MRP declared and department cannot seek to re-determine MRP pro rata based on quantity when assessee has not recovered anything beyond price charged &#8211;\u00a0[2016] 65 261 (Kolkata &#8211; CESTAT<em>)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 11<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>LEVY AND COLLECTION OF DUTY &#8211; RECOVERY OF SUMS DUE TO GOVERNMENT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Excise dues couldn&#8217;t be recovered from buyer if he hadn&#8217;t purchased a property from tax defaulter &#8211;\u00a0[2016] 65 256 (Mumbai &#8211; CESTAT)<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENVAT_CREDIT_RULES\"><\/span><span style=\"color: #0000ff;\"><strong>CENVAT CREDIT RULES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 2(l)\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT &#8211; INPUT SERVICE &#8211; GARDENING SERVICE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">When assessee-manufacturer of cement was required to plant trees to prevent pollution in its factory area and paid service tax for such maintenance, it was entitled to input service credit &#8211;\u00a0[2016] 65 257 (Chennai &#8211; CESTAT)<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"STATUTES\"><\/span><span style=\"color: #0000ff;\"><strong>STATUTES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>DIRECT TAX LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Section 90 of the Income-tax Act, 1961 &#8211; Double Taxation Agreement &#8211; Resolution of more than 100 Cases of Transfer Pricing disputes with USA under Mutual Agreement Procedure (MAP) &#8211;\u00a0PRESS RELEASE, DATED 28-1-2016<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>CORPORATE LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">FEM (Foreign Currency Accounts by A Person Resident in India) Regulations, 2015 &#8211;\u00a0NOTIFICATION [NO.FEMA 10(R)\/2015-RB]\/GSR 96(E), DATED 21-1-2016<\/p>\n<p style=\"text-align: justify;\">FEM (Acquisition and Transfer of Immovable Property Outside India) Regulations, 2015 &#8211;\u00a0NOTIFICATION [NO.FEMA 7(R)\/2015-RB]\/GSR 95(E), DATED 21-1-2016<\/p>\n<p style=\"text-align: justify;\">\u00a0The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact : \u00a0<a href=\"mailto:info@caindelhiindia.com\">info@caindelhiindia.com<\/a>\u00a0or call\u00a0 at\u00a0011-233 43 333<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE JANUARY 27, 2016 INCOME TAX ACT SECTION 2(47) CAPITAL GAINS \u2013 TRANSFER Immovable property :\u00a0Where 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 &#8211;[2016] 65 142 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[142,146],"tags":[502,501,569,572,179,180,561,214,181,194,541,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1657"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=1657"}],"version-history":[{"count":6,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1657\/revisions"}],"predecessor-version":[{"id":3070,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1657\/revisions\/3070"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}