{"id":1729,"date":"2016-02-15T13:19:11","date_gmt":"2016-02-15T13:19:11","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1729"},"modified":"2021-07-07T12:57:20","modified_gmt":"2021-07-07T12:57:20","slug":"corporate-and-professional-update-february-15-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-15-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 15, 2016"},"content":{"rendered":"

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 15, 2016<\/span><\/h3>\n
\"www.caindelhiindia.com;<\/a>
www.caindelhiindia.com; COMPANY LAW<\/figcaption><\/figure>\n

INCOME TAX ACT<\/strong><\/span><\/p>\n

SECTION 35<\/strong><\/span><\/p>\n

SCIENTIFIC RESEARCH EXPENDITURE<\/strong><\/span><\/p>\n

Sub-section (2AB) :<\/span>\u00a0<\/strong>Where deduction under section 35(2AB) would be allowed to assessee, if its research and development facility was recognised by DSIR and approval in prescribed Form No. 3CM was obtained –\u00a0[2016] 66 \u00a094 (Hyderabad – Trib.)<\/em><\/p>\n

SECTION 44<\/strong><\/span><\/p>\n

INSURANCE BUSINESS<\/strong><\/span><\/p>\n

Loss from pension fund :<\/span>\u00a0<\/strong>Pension fund would continue to be governed by provisions of section 44 irrespective of fact it is exempted or not; therefore, even after insertion of section 10(23AAB), while determining actuarial valuation surplus from insurance business under section 44, loss incurred from pension fund has to be excluded –\u00a0[2016] 66 59 (Mumbai – Trib.)<\/em><\/p>\n

SECTION 50B<\/strong><\/span><\/p>\n

CAPITAL GAINS – SLUMP SALE, COST OF ACQUISITION IN CASE OF<\/strong><\/span><\/p>\n

Written down value:<\/strong> <\/span>In computing net worth under section 50B where slump sale of undertaking includes entire block of assets, actual cost of asset should be reduced by depreciation actually allowed or allowable under Act even if not claimed by assessee –\u00a0[2016] 66 96 (Delhi)<\/em><\/p>\n

SECTION 92B<\/strong><\/span><\/p>\n

TP-MEANING OF INTERNATIONAL TRANSACTION<\/strong><\/span><\/p>\n

Lending of money :\u00a0<\/strong><\/span>Transaction of advancing money by assessee to its AE located abroad for acquisition of satellite rights of Hollywood films did not fall within purview of expression ‘international transaction’ in terms of section 92B –\u00a0[2016] 66 \u00a097 (Mumbai – Trib.)<\/em><\/p>\n

SECTION 92C<\/strong><\/span><\/p>\n

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE<\/strong><\/span><\/p>\n

Comparables and adjustments\/Adjustments :\u00a0<\/strong><\/span>AMP expenses: Where in respect of marketing and administrative services rendered by AEs, assessee adopted a revenue sharing model whereby assessee kept 75 per cent of revenue and paid 25 per cent of revenue to AEs, since said model was duly supported by relevant documents, impugned addition made to assessee’s ALP by adopting revenue sharing model of 15 per cent was to be set aside –\u00a0[2016] 66 106 (Calcutta)<\/em><\/p>\n

SECTION 153C<\/strong><\/span><\/p>\n

SEARCH & SEIZURE – ASSESSMENT OF INCOME OF ANY OTHER PERSON<\/strong><\/span><\/p>\n

Condition precedent :<\/span>\u00a0<\/strong>Recording of satisfaction by Assessing Officer having jurisdiction over person searched to effect that money, bullion or jewellery etc, found from person searched belong to ‘other person’ is an essential and prerequisite condition for bestowing jurisdiction to Assessing Officer of ‘other person’ under section 153C –\u00a0[2016] 66 107 (Delhi – Trib.)<\/em><\/p>\n

SECTION 201<\/strong><\/span><\/p>\n

DEDUCTION OF TAX AT SOURCE – CONSEQUENCE OF FAILURE TO DEDUCT OR PAY<\/strong><\/span><\/p>\n

Increased limitation period of 7 years u\/s 201(3) as amended by Finance (No.2) Act,2014 w.e.f.1.10.2014 shall not apply retrospectively to orders which had become time-barred under the old time-limit (2 years\/6 years) set by the unamended section 201(3). Hence, no order under section 201(i) of the Act deeming deductor to be assessee in default can be passed if limitation had already expired as on 1-10-2014 –\u00a0[2016] 66 \u00a0157 (Gujarat)<\/em><\/p>\n

COMPANIES ACT<\/strong><\/span><\/p>\n

SECTION 196 OF THE COMPANIES ACT, 2013<\/strong><\/span><\/p>\n

APPOINTMENT OF MANAGING DIRECTOR, WHOLE-TIME DIRECTOR OR MANAGER<\/strong><\/span><\/p>\n

Special resolution u\/s 196(3)(a) required to continue as MD any person aged 70 years even if his appointment was made before the coming into force of the Companies Act, 2013 i.e. before 01.04.2014 when he was below 70 years of age. MCA Circular dated 1-3\/04\/1989 issued under the 1956 Act in the context of Schedule XIII has no relevance under the 2013 Act –\u00a0[2016] 66 \u00a0167 (Bombay)<\/em><\/p>\n

SECTION 397<\/strong><\/span><\/p>\n

OPPRESSION AND MISMANAGEMENT<\/strong><\/span><\/p>\n

Where petitioner No.1 and respondent No. 2 being managing director and joint managing director in respondent No. 1 company, which was a closely held family company, jointly purchased a land along with respondent company and others for joint development of same but later respondent No. 2, by extremely misusing his position in company diverted said project to his company and arrogated himself ugly functions of signing papers of vital importance on behalf of both companies, respondent No. 1 company and its shareholders had to be rescued from this mismanagement and oppression –\u00a0[2016] 66 122 (CLB – New Delhi)<\/em><\/p>\n

SERVICE TAX<\/strong><\/span><\/p>\n

SECTION 65(30a)<\/strong><\/span><\/p>\n

TAXABLE SERVICES – CONSTRUCTION OF COMPLEX SERVICES<\/strong><\/span><\/p>\n

Not taking registration under VAT, i.e., mere evasion of VAT would not mean that contract is not a works contract; works contract would remain as a works contract even if no VAT is being paid –\u00a0[2016] 66 \u00a0102 (New Delhi – CESTAT)<\/em><\/p>\n

SECTION 66D (K)<\/strong><\/span><\/p>\n

NEGATIVE LIST OF SERVICES – TRANSMISSION OR DISTRIBUTION OF ELECTRICITY<\/strong><\/span><\/p>\n

Supervision charges collected by electricity generation\/supply companies from consumers under outright contribution scheme in relation to power supply and also for erection, commission and installation of meters, etc. are exempt from service tax –\u00a0[2016] 66 \u00a0117 (Mumbai – CESTAT)<\/em><\/p>\n

SECTION 78<\/strong><\/span><\/p>\n

PENALTY – FOR EVASION OF DUTY\/TAX<\/strong><\/span><\/p>\n

Question whether there was intention to evade is a question of fact; hence, when Tribunal found that service tax was collected from service recipients but not paid to Government owing to intention to evade, evasion penalty was leviable –\u00a0[2016] 66 \u00a0115 (Gujarat)<\/em><\/p>\n

CENTRAL EXCISE ACT<\/strong><\/span><\/p>\n

SECTION 11AA<\/strong><\/span><\/p>\n

INTEREST – ON DELAYED PAYMENT OF DUTY\/TAX<\/strong><\/span><\/p>\n

When net duty demand (after adjusting credit) was reduced to Nil, then, since there was no outstanding duty payable, question of payment of interest and penalty would not arise –\u00a0[2016] 66 \u00a0116 (Madras)<\/em><\/p>\n

SECTION 35B<\/strong><\/span><\/p>\n

APPEALS – MAINTAINABILITY OF – APPELLATE TRIBUNAL<\/strong><\/span><\/p>\n

Where dispute raised in assessee’s appeal before Tribunal is with reference to valuation of goods, then, even though duty involved is below Rs. 2 lakhs, Tribunal has no discretion to refuse to admit assessee’s appeal –[2016] 66 111 (Madras)<\/em><\/p>\n

STATUTES<\/strong><\/span><\/p>\n

CORPORATE LAWS<\/strong><\/span><\/p>\n

Compilation of Returns \u2013 Reporting Under FETERS –\u00a0A.P. (DIR SERIES 2015-16) CIRCULAR NO.50, DATED11-2-2016<\/em><\/p>\n

Legal Guardianship Certificates issued under Mental Health Act, 1987 –\u00a0CIRCULAR DBR.NO.LEG.BC.78\/09.07.005\/2015-16, DATED\u00a011-2-2016<\/em><\/p>\n

Basel III framework on Liquidity Standards \u2013 Liquidity Coverage Ratio (LCR, Liquidity Risk Monitoring Tools and LCR Disclosure Standards –\u00a0CIRCULAR DBR.BP.BC.NO.77\/21.04.098\/2015-16, DATED\u00a011-2-2016<\/em><\/p>\n

Withdrawal of all old series of banknotes issued prior to 2005 –\u00a0CIRCULAR DCM (PLG)NO.G-9\/28956\/10.27.00\/2015-16, DATED\u00a011-2-2016<\/em><\/p>\n

Regulatory Relaxations for Start-Ups \u2013 Clarifications relating to issue of shares –\u00a0A.P. (DIR SERIES 2015-16) CIRCULAR NO.52, DATED\u00a011-2-2016<\/em><\/p>\n

Implementation of Indian Accounting Standards (Ind-As) –\u00a0CIRCULAR DBR.BP.BC.NO.76\/21.07.001\/2015-16, DATED\u00a011-2-2016<\/em><\/p>\n

Regulatory relaxations for start-Ups \u2013 Clarifications relating to acceptance payments –\u00a0A.P. (DIR SERIES 2015-16) CIRCULAR NO.51, DATED\u00a011-2-2016<\/em><\/p>\n

INDIRECT TAX LAWS (ST\/EX.& CUS\/CST & VAT)<\/strong><\/span><\/p>\n

Delhi VAT \u2013 Furnishing of online quarterly return of details of transactions by all firms\/companies engaged in business of courier activities and having their offices functioning within NCT of Delhi –\u00a0NOTIFICATION NO.F.3(628)\/POLICY\/VAT\/2016\/1424-36, DATED\u00a011-2-2016<\/em><\/p>\n

Delhi VAT \u2013 Filing of returns in Form-GE-II \u2013 Amendment in Notification No.F.3(619)\/Policy\/VAT\/2016\/1291-1304, Dated 12-1-201-NOTIFICATION NO.F.3(619)\/POLICY\/VAT\/2016\/1437-47, DATED\u00a011-2-2016<\/em><\/p>\n

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 \u00a0 endeavors. For query or help, contact: \u00a0info@caindelhiindia.com<\/a>\u00a0or call at \u00a0011-233-43-333<\/p>\n","protected":false},"excerpt":{"rendered":"

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 15, 2016 INCOME TAX ACT SECTION 35 SCIENTIFIC RESEARCH EXPENDITURE Sub-section (2AB) :\u00a0Where deduction under section 35(2AB) would be allowed to assessee, if its research and development facility was recognised by DSIR and approval in prescribed Form No. 3CM was obtained –\u00a0[2016] 66 \u00a094 (Hyderabad – Trib.) SECTION 44 INSURANCE …<\/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":[555,566,502,501,569,179,180,561,214,181,194,541,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1729"}],"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=1729"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1729\/revisions"}],"predecessor-version":[{"id":3032,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1729\/revisions\/3032"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}