{"id":1701,"date":"2016-02-15T10:57:41","date_gmt":"2016-02-15T10:57:41","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1701"},"modified":"2021-07-07T12:57:53","modified_gmt":"2021-07-07T12:57:53","slug":"corporate-and-professional-update-february-92016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-92016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 9,2016"},"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-69d00b3bb809d\" 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-69d00b3bb809d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3'><li class='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-92016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_92016\" title=\"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 9,2016\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 9,2016<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-92016\/#Direct_Tax\" title=\"Direct Tax\">Direct Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-92016\/#Indirect_Tax\" title=\"Indirect Tax\">Indirect Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-92016\/#Company_Law\" title=\"Company Law\">Company Law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-92016\/#Other_Update\" title=\"Other Update\">Other Update<\/a><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_92016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 9,2016<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_3047\" aria-describedby=\"caption-attachment-3047\" style=\"width: 535px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/P.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3047\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/P.jpg\" alt=\"www.caindelhiindia.com; CORPORATE UPDATES\" width=\"535\" height=\"321\" \/><\/a><figcaption id=\"caption-attachment-3047\" class=\"wp-caption-text\">www.caindelhiindia.com; CORPORATE UPDATES<\/figcaption><\/figure>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Direct_Tax\"><\/span><span style=\"color: #ff6600;\"><strong>Direct Tax<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>IT:<\/strong><\/span><strong>\u00a0<\/strong>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) &#8211; If the income is exempt corresponding interest paid to partner will be disallowed u\/s-14A \u2013\u00a0ACIT-19(3), Mumbai Vs. Pahilajrai Jaikishin &amp; Vice Versa (ITAT Mumbai)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>IT<\/strong>:<\/span> Expenditure on Antivirus software and switches &#8211; no acquisition of any capital asset &#8211; 100% expenditure allowed as revenue expense as these required periodical updation\u00a0&#8211;<strong>\u00a0<\/strong>DCIT, Cir-3 (1), Mumbai Vs. Export Credit Guarantee Corporation of India Ltd.\u00a0(ITAT Mumbai)<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">CBDT<\/span>\u00a0<\/strong>issued guidelines relating to Paperless Assessment Proceedings &#8211; Notification No.2\/2016, dt.03 FEB 2016.<\/p>\n<p style=\"text-align: justify;\">Now system generated letters can be sent to non-filers of returns using address given in last return\/AIR<\/p>\n<p style=\"text-align: justify;\">Rental income from a fully furnished house is taxable as income from other sources if composite rent is inseparable [2016] 66 99 (Delhi &#8211; Trib.)\u00a0ACIT v. Ajay Kalia<\/p>\n<p style=\"text-align: justify;\">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-\u00a0(RAVIKIRAN CERAMICS PVT LTD Versus PR. COMMISSIONER OF INCOME TAX (CENTRAL)\u00a0&#8211; 2016 (2) TMI 352 &#8211; GUJARAT HIGH COURT)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>Disallowance u\/s 14A :<\/strong>\u00a0<\/span>no separate books of account are maintained for taxable income and exempt income &#8211; some expenditure on account of administrative expenses has to be disallowed on reasonable estimate basis-\u00a0(M\/s. Coated Fabrics Pvt. Ltd. Versus ACIT, Circle-1 (1), Pune &#8211; 2016 (2) TMI 373 &#8211; ITAT PUNE)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>IT:<\/strong><\/span><strong>\u00a0<\/strong>When the AO and the CIT found that there was unexplained expenditure and source of such income was not satisfactorily explained, Section 69C of the Act would certainly be applicable \u2013\u00a0Ravikiran Ceramics Pvt. Ltd. Vs. CIT (Gujarat High Court)<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">IT:<\/span>\u00a0<\/strong>It cannot be said that the payments made for hiring vehicles would fall in the category of payment towards a sub-contract and as such the assessee is not liable to deduct tax at source as per provisions of section 194C(2) and consequently the provisions of section 40(a)(ia) will not apply on such payments\u00a0&#8211;\u00a0M\/s Mayur Roadways Vs. ITO, Ward-2 (3) , Baroda\u00a0(ITAT Ahmedabad)<\/p>\n<p style=\"text-align: justify;\">Valuation of shares at cost, lack of frequency in transactions and use of own funds are signs of investment in shares[2016] 66\u00a0taxmann.com\u00a082 (Mumbai &#8211; Trib.)\u00a0ACIT v. Nemichand P. Jain HUF<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>IT:<\/strong><\/span><strong>\u00a0<\/strong>The term non-resident means a person who is not a resident as per section 2(30) and for the purposes of sections 92, 93 and 168 includes a person who is not ordinarily a resident within the meaning of 6 (6) \u2013\u00a0CIT, Sesa Goa Ltd Vs. V.S. Dempo &amp; Co. Pvt. Ltd (Bombay High Court)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>IT\u00a0Addition of Cess on Green Leaf:<\/strong><\/span> part of income is agriculture income &#8211; Expenditure on cess should be allowed as a deduction before computing the composite income under Rule 8 and the apportionment is to be made after the income is so computed\u00a0&#8211;<strong>\u00a0<\/strong>CIT Vs. M\/s Apeejay Tea Co. Ltd\u00a0(Supreme Court)<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Indirect_Tax\"><\/span><span style=\"color: #ff6600;\"><strong>Indirect Tax<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Commissioner of DVAT has directed that the returns in Form GE-II for the fi<b>r<\/b>st three Quarters of the current financial year are required to be filed by 29<sup>th<\/sup>\u00a0February, 2016\u00a0Vide Notification No. F3(619)\/Policy\/VAT\/2016\/1437-47 dated 11.02.2016.<\/p>\n<p style=\"text-align: justify;\">Commissioner of DVAT directed that all firms\/companies engaged in the business of courier activities and having their offices functioning within the National Capital Territory of Delhi, to furnish an online return quarterly return of details of transactions of delivering goods having value more than Rs 10,000 at the doorsteps of their clients either individually or at the business places or offices in the format \u201cForm CR-II\u201d subject to some conditions Vide Notification<\/p>\n<p style=\"text-align: justify;\">No.\u00a0F3(628)\/Policy\/VAT\/2016\/1424-36 dated 11.02.2016<\/p>\n<p style=\"text-align: justify;\">Re-packing and labelling activities amounts to manufacture under EXIM policy\u00a0<span style=\"line-height: 1.5;\">[2016] 66 \u00a0100 (Mumbai &#8211; CESTAT)\u00a0Keva Fragrances (P.) Ltd. v. Commissioner of Central Excise<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>VAT &amp; ST:<\/strong><\/span><strong>\u00a0<\/strong>Whether the petitioner could avail the benefit of the judgment which was rendered much after the assessment order was passed and whether such reassessment orders can be passed on their prayer for rectification of the earlier assessment &#8211; Held Yes &#8211;\u00a0Sri. Anjaneya Agro Tech Vs. DCCT (Audit), Davanagere and Others\u00a0(Karnataka High Court)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>ST:<\/strong><\/span>\u00a0Appellant is eligible to avail the CENVAT credit of excise duty paid on Furniture and Fittings for providing taxable output services being General insurance services &#8211;\u00a0ICICI Lombard Gen Ins Co. Ltd. Vs. CST, Mumbai-I (CESTAT Mumbai)<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Company_Law\"><\/span><span style=\"color: #ff6600;\"><strong>Company Law<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Bombay High Court pronounces six months imprisonment to director of SuperMax for contempt of Court[2016] 66\u00a0taxmann.com\u00a0156 (Bombay)\u00a0Rajinder Kumar Malhotra v. Paresh Biharilal Vyas<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>Proposed CARO, 2016 brings additional reporting requirements<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">MCA proposed new CARO, 2016 On 9th February. The newly proposed draft of CARO, 2016 contains 15 clauses, out of which some clauses have been carry forwarded from present CARO, 2015. The draft, if approved, shall be applicable for FY 15-16 onwards.<\/p>\n<p style=\"text-align: justify;\">In comparison to CARO (2015), CARO (2016) proposes few additional reporting requirements and eliminates some of the reporting requirements.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>MCA<\/strong>:<\/span> Version of Form 8 LLP is likely to be modified w.e.f. 13 FEB 2016.<\/p>\n<p style=\"text-align: justify;\">MCA issues draft format for financial statements in line with Ind AS<\/p>\n<p style=\"text-align: justify;\">MCA proposes new CARO, 2016 with wide coverage<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>MCA<\/strong><\/span>\u00a0invites<strong>\u00a0<\/strong>comments on the draft\u00a0Companies (Auditor\u2019s Report) order, 2016.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>MCA<\/strong><\/span>\u00a0invites comments on the revised\u00a0Schedule-III to the Companies Act, 2013\u00a0for a company whose financial statements are drawn up in compliance of companies (Indian Accounting Standards) Rules 2015 and as amended from time to time.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>MCA<\/strong><strong>\u00a0<\/strong><\/span>has notified\u00a0New\u00a0version\u00a0of\u00a0eForm\u00a04\u00a0LLP\u00a0w.e.f 10 JAN 2016.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Other_Update\"><\/span><span style=\"color: #ff6600;\"><strong>Other Update<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>ICAI on Certification by CAs:<\/strong><\/span> To bring uniformity in the manner of signing of certificates CAs issue, the ICAI has decided the Members to include the following details along with their \u201cSignatures\u201d &#8211; 1. Name of the CA firm; 2. Firm Registration Number (FRN); 3. Name of the member; 4. Designation (Partner\/Proprietor); and 5. Membership Number<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">RBI (FEMA)<\/span>\u00a0<\/strong>has made amendments to the existing regulations relating the\u00a0Acquisition and Transfer of Immovable Property outside India\u00a0and notified\u00a0the Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015\u00a0effective from Jan 21, 2016.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>RBI:\u00a0<\/strong><\/span>RBI&#8217;s Working Group issued\u00a0recommendations on Interest Rate Options<strong>\u00a0<\/strong>on 8 FEB 2016.\u00a0In the Report, eleven member Committee headed by PG Apte, has recommended rolling one, two, three, six and twelve month contracts, kicking off with three serial monthly contracts in the first phase. The Working Group has recommended simple call and put options, with minimum lot sizes of Rs.2 Lac to start Interest Rate Options (IROs) in India.<\/p>\n<p style=\"text-align: justify;\">Govt. releases list of Commissioners of Income Tax Appeals nominated as Special Directors for FEMA cases<\/p>\n<p style=\"text-align: justify;\">Transactions of two assessment years emanating from same agreement should be given similar treatment<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DGFT<\/strong><\/span>\u00a0has made<strong>\u00a0<\/strong>amendments to the Foreign Trade Policy-2015-2020\u00a0and inserted the new provisions relating to SCOMET export permission for &#8216;Stock &amp; Sale&#8217; purposes and for export of spare parts.<\/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 endeavors. For query or help, contact:<a href=\"mailto:info@caindelhiindia.com\">info@caindelhi india.com<\/a>\u00a0or call at \u00a0011-233-43-333<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 9,2016 Direct Tax IT:\u00a0Interest paid to partners on capital contribution is not a statutory allowance u\/s 40(b) but is an expenditure u\/s 36(1)(iii) &#8211; If the income is exempt corresponding interest paid to partner will be disallowed u\/s-14A \u2013\u00a0ACIT-19(3), Mumbai Vs. Pahilajrai Jaikishin &amp; Vice Versa (ITAT Mumbai) IT: Expenditure &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":[566,502,501,569,572,179,180,561,214,181,194,541,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1701"}],"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=1701"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1701\/revisions"}],"predecessor-version":[{"id":3048,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1701\/revisions\/3048"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}