{"id":1676,"date":"2016-02-15T06:18:04","date_gmt":"2016-02-15T06:18:04","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1676"},"modified":"2021-07-14T12:31:31","modified_gmt":"2021-07-14T12:31:31","slug":"corporate-and-professional-update-february-3-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-3-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 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-69d079de8eae6\" 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-69d079de8eae6\"  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-february-3-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_3_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 2016\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 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-february-3-2016\/#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-february-3-2016\/#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-february-3-2016\/#COMPETITION_ACT\" title=\"COMPETITION ACT\">COMPETITION ACT<\/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-february-3-2016\/#SARFAESI_ACT\" title=\"SARFAESI ACT\">SARFAESI 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-february-3-2016\/#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-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-3-2016\/#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_FEBRUARY_3_2016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 2016<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_3057\" aria-describedby=\"caption-attachment-3057\" style=\"width: 552px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/J.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3057\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/J.png\" alt=\"www.caindelhiindia.com; CORPORATE UPDATES\" width=\"552\" height=\"364\" \/><\/a><figcaption id=\"caption-attachment-3057\" class=\"wp-caption-text\">www.caindelhiindia.com; CORPORATE UPDATES<\/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 37(1)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>BUSINESS EXPENDITURE &#8211; ALLOWABILITY OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Deferred revenue expenditure :<\/span>\u00a0<\/strong>Where decision to abandon project was taken in relevant year, balance deferred revenue expenditure relating to said project would be deemed to arise in relevant year and would be allowed as such &#8211;\u00a0<em>[2016] 65 311 (Calcutta)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 68<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CASH CREDIT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Share capital :<\/span>\u00a0<\/strong>Where it was alleged that on-money received in cash by real estate companies from flat purchasers was routed back in those companies in form of share capital\/ unsecured loans, etc. using assessee as a conduit, unless identity and creditworthiness of concerned fund owner were confirmed, addition made in hands of assessee could not be deleted &#8211;\u00a0<em>[2016] 65 \u00a0310 (Delhi)<\/em><\/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;\"><strong><span style=\"color: #800000;\">Comparables and adjustments\/Comparables \u2013 Illustrations<\/span> :\u00a0<\/strong>In case of assessee rendering software development services and market support services to its AE, a company primarily engaged in event management, could not be accepted as valid comparable while determining ALP &#8211;\u00a0<em>[2016] 65 \u00a0297 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 254<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>APPELLATE TRIBUNAL &#8211; POWERS OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Power to recall :<\/span>\u00a0<\/strong>Where assessee was prevented by sufficient cause from appearing before Tribunal, Tribunal was justified in recalling its ex parte order and rehearing appeal already disposed of on merit &#8211;\u00a0<em>[2016] 65 \u00a0311 (Calcutta)<\/em><\/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;\"><strong>SECTION 166 OF COMPANIES ACT, 2013<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"line-height: 1.5; color: #00ccff;\"><strong>DIRECTOR &#8211; PROHIBITION OF ASSIGNMENT OF OFFICE BY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"line-height: 1.5;\">SECTION 433<\/span>Director&#8217;s grievance against company.\/co-director does not justify violation of his\/her fiduciary duties under section 166 of the Companies Act,2013 by carrying on a business competing with that of the company. If he\/she had any grievances, he\/ she can avail the remedy but there is hardly any justification to start parallel\/similar to the business of the company. In the present case, the defendant No.1 being a director in running the business in which she was participating in all activities still chose to start her independent business in competing the business of her own company. The act of the defendant No.1 was prima facie not bonafide as it was done for monetary purposes &#8211;\u00a0<em>[2016] 66 \u00a018 (Delhi)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>WINDING UP &#8211; CIRCUMSTANCES IN WHICH A COMPANY MAY BE WOUND UP<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Mere filing of application for recovery of debt before Tribunal under provisions of Recovery of Debts due to Banks and Financial Institutions Act, 1993 would not entail a bar in law to laying a winding up petition under provisions of Companies Act where conditions provided therefor are proved to have been satisfied &#8211;\u00a0<em>[2016] 65 312 (Rajasthan)<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"COMPETITION_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>COMPETITION ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 36<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>POWER OF COMMISSION TO REGULATE ITS OWN PROCEDURE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where penalty was imposed upon appellant-cement manufacturer on basis of findings of another order in related matters, when said order had been set aside, order imposing penalty in instant case was also to be set aside &#8211;\u00a0<em>[2016] 65 307 (CAT)<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SARFAESI_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>SARFAESI ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 15<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>MANNER AND EFFECT OF TAKE OVER OF MANAGEMENT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">SARFAESI Act, 2002 prevails over the Sick Industrial Companies (Special Provisions) Act, 1985 to the extent of inconsistency therewith. Section 15(1) proviso 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. 3 covers all references pending before the BIFR, no matter whether such reference is at the inquiry stage, scheme stage, or winding up stage. This being so, it is clear that in any case the present reference under Section 15(1) of the Appellant No. 1 company has abated inasmuch as more than 3\/4th of the secured creditors involved have taken steps under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 &#8211;\u00a0<em>[2016] 66 \u00a017 (SC)<\/em><\/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 4<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>VALUATION UNDER CENTRAL EXCISE &#8211; TRANSACTION VALUE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">In case of clandestine removal of excisable goods, amount received by assessee must be regarded as cum-duty and excise duty liability must be worked out accordingly &#8211;\u00a0<em>[2016] 65 \u00a0299 (Mumbai &#8211; CESTAT)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 5A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>EXEMPTIONS &#8211; CENTRAL EXCISE &#8211; SSI\/THRESHOLD EXEMPTION<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">If department wants to deny SSI-exemption on ground that brand name used by assessee is of another person, department must prove case and assessee cannot be asked to prove that brand name does not belong to any other person &#8211;\u00a0<em>[2016] 65 298 (Mumbai &#8211; CESTAT)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 11A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>RECOVERY &#8211; OF DUTY OR TAX NOT LEVIED\/PAID OR SHORT-LEVIED\/PAID OR ERRONEOUSLY REFUNDED &#8211; ADJUDICATION OF DEMAND<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where different laboratories give different chemical report over composition of product manufactured by assessee and Department seeks to reply upon report of Chief Chemist in its favour, assessee is justified in seeking response to queries and also cross-examination of Chief Chemist; hence, non-grant of opportunity to cross-examine would violate principles of natural justice &#8211;\u00a0<em>[2016] 65 \u00a0313 (Gujarat)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 35<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>APPEALS &#8211; APPEALS TO COMMISSIONER (APPEALS)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where Assistant Commissioner rejected refund claim of assessee and Commissioner (Appeals) allowed claim and thereafter department reviewed said order and found to be correct and as a result Assistant Commissioner vide his order granted refund and subsequently department again reviewed said order and filed appeal before Commissioner (Appeals) on an altogether different ground, appeal was rightly rejected by Commissioner (Appeals) &#8211;\u00a0<em>[2016] 65 314 (Bangalore &#8211; CESTAT)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 35G<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>APPEALS &#8211; APPEALS TO HIGH COURT (JURISDICTIONAL COURT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee&#8217;s unit was situated at Silvassa within Union Territory of Dadra, Nagar and Haveli, even if Adjudicating Authority, Vapi [Gujarat] had issued show cause notice and part of investigation had taken place at Vapi, writ petition against assessment order could be brought before Bombay High Court &#8211;\u00a0<em>[2016] 65 \u00a0315 (Gujarat)<\/em><\/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>CORPORATE LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Report of Companies Law Committee &#8211;\u00a0<a href=\"http:\/\/decoding.infosysworld.com\/authentication\/link.php?M=10909229&amp;N=5234&amp;L=12659&amp;F=H\"><em>PRESS RELEASE<\/em><\/a><\/p>\n<p style=\"text-align: justify;\">FDI \u2013 Reporting under FDI Scheme, mandatory filing of Form ARF, FDGPR and FCTRS on E-Biz Platform and Discontinuation of Physical Filing From\u00a08-2-2016\u00a0&#8211;\u00a0<em>A.P. (DIR SERIES 2015-16) CIRCULAR NO.40, DATED 1-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>INDIRECT TAX LAWS (ST\/CE. &amp; CUS.\/CST &amp; VAT)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Andhra Pradesh Pradesh Value Added Tax (Amendment) Act, 2016 \u2013 Amendment In Sections 2, 4, 13, 21, 22, 31, 32, 34, 38, 39, 45 &amp; 47 And Insertion Of Section 4A &#8211;<em>[ACT NO.4 OF 2016], DATED 12-1-2016<\/em><\/p>\n<p style=\"text-align: justify;\">Bihar Value Added Tax Ordinance, 2016 \u2013 Amendment in Sections 3A, 14 &amp; 70 &#8211;<em>NOTIFICATION NO.LG-01-01\/2016\/04LEG., DATED 28-1-2016\u00a0<\/em><\/p>\n<p style=\"text-align: justify;\">Submission of Form DP-1 online by all Dealers \u2013 Extension of date thereof &#8211;<em>NOITIFICATION NO.F.3(352)POLICY\/VAT\/2013\/1395-1405<\/em><\/p>\n<p style=\"text-align: justify;\">Inclusion of show cause notice&#8217;s issued in relation to levy of CVD on Vessels imported for breaking in call-book &#8211;\u00a0<em>CIRCULAR NO.1014\/2\/2016-CX<\/em><\/p>\n<p style=\"text-align: justify;\">The 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>or call at\u00a0011-233-43-333<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 2016 INCOME TAX ACT SECTION 37(1) BUSINESS EXPENDITURE &#8211; ALLOWABILITY OF Deferred revenue expenditure :\u00a0Where decision to abandon project was taken in relevant year, balance deferred revenue expenditure relating to said project would be deemed to arise in relevant year and would be allowed as such &#8211;\u00a0[2016] 65 311 &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":[647,142,146],"tags":[566,502,501,572,179,180,561,214,181,194,541,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1676"}],"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=1676"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1676\/revisions"}],"predecessor-version":[{"id":3058,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1676\/revisions\/3058"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}