{"id":1777,"date":"2016-02-22T10:32:19","date_gmt":"2016-02-22T10:32:19","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1777"},"modified":"2021-07-10T08:57:56","modified_gmt":"2021-07-10T08:57:56","slug":"corporate-and-professional-update-february-17-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-17-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 17, 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-69e9243d95270\" 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-69e9243d95270\"  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-17-2016\/#CORPORATE_PROFESSIONAL_UPDATE_FEBRUARY_17_2016\" title=\"CORPORATE &amp; PROFESSIONAL UPDATE FEBRUARY 17, 2016\">CORPORATE &amp; PROFESSIONAL UPDATE FEBRUARY 17, 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-17-2016\/#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-17-2016\/#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-17-2016\/#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-17-2016\/#CENTRAL_EXCISE_RULES\" title=\"CENTRAL EXCISE RULES\">CENTRAL EXCISE RULES<\/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-17-2016\/#STATUTES\" title=\"STATUTES\">STATUTES<\/a><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_PROFESSIONAL_UPDATE_FEBRUARY_17_2016\"><\/span><span style=\"color: #000080;\">CORPORATE &amp; PROFESSIONAL UPDATE FEBRUARY 17, 2016<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_3027\" aria-describedby=\"caption-attachment-3027\" style=\"width: 538px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/W.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3027\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/W.jpg\" alt=\"www.caindelhiindia.com; Business setup in india\" width=\"538\" height=\"269\" \/><\/a><figcaption id=\"caption-attachment-3027\" class=\"wp-caption-text\">www.caindelhiindia.com; a Business setup in india<\/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 9<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>INCOME &#8211; DEEMED TO ACCRUE OR ARISE IN INDIA<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Capital gain :<\/span>\u00a0<\/strong>Where assessee, a Netherlands based company, tendered part of shares in an Indian company under scheme of buy back on direction of High Court, said arrangement did not fall under definition of &#8216;reorganization&#8217; under article 13(5) of India &amp; Netherlands DTAA particularly when object of arrangement was not financial restructuring &#8211;\u00a0<em>[2016] 66<\/em><em>\u00a0<\/em><em>\u00a0<\/em><em>164 (Mumbai \u2013 Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 10A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>FREE TRADE ZONE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Computation of deduction :<\/span>\u00a0<\/strong>For purpose of computing deduction under section 10A expenses incurred in foreign currency for providing software development services outside India could not be excluded from export turnover; and foreign exchange fluctuation loss had to be reduced from total turnover &#8211;\u00a0<em>[2016] 66<\/em><em>\u00a0<\/em><em>165 (Karnataka)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 35D<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>PRELIMINARY EXPENSES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Prior period expenses :\u00a0<\/strong><\/span>Where assessee claimed deduction on account of prior period expenses settled during year but Assessing Officer had disallowed said claim for want of supporting evidence, since Tribunal had restored issue to Assessing Officer to allow prior period expenditures subject to verification and satisfaction of genuineness of claim, no fault can be found with said order &#8211;\u00a0<em>[2016] 66<\/em><em>\u00a0<\/em><em>\u00a0<\/em><em>166 (Bombay)<\/em><\/p>\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;\"><span style=\"color: #800000;\"><strong>Directors, expenses for :\u00a0<\/strong><\/span>Where expenditure was incurred by assessee on lease of aircraft which satisfied conditions of section 37(1), it could not be disallowed merely because it was claimed in revised return &#8211;\u00a0<em>[2016] 66<\/em><em>\u00a0<\/em><em>166 (Bombay)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 41(1)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>REMISSION OR CESSATION OF TRADING LIABILITY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Lease expenses :\u00a0<\/strong><\/span>Where assessee had made a provision for expenses likely to be incurred on re-delivery of aircrafts taken on lease, but lease was extended for further period along with liability, said provision could not be said to have ceased for purpose of invocation of section 41(1)<\/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>Comparable and adjustments\/Comparables-Illustration:<\/strong><\/span>Companies having huge presence of brand value and intangible R&amp;D activities etc. cannot be chosen for comparability analysis with a captive service provider company &#8211;\u00a0<em>[2016] 66<\/em><em>\u00a0<\/em><em>\u00a0<\/em><em>163 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Comparables and adjustments\/Comparables \u2013Illustrations :<\/span>\u00a0<\/strong>Where assessee company was rendering engineering drawing and design support services, neither a company providing comprehensive services nor a company engaged in providing engineering consultancy, could be comparable; Government company was also to be excluded from list of comparables &#8211;\u00a0<em>[2016] 66\u00a0<\/em><em>160 (Delhi &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 120<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>INCOME TAX AUTHORITIES &#8211; JURISDICTION OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Annual confidential report :<\/span>\u00a0<\/strong>Where competent authority while confirming ratings in Annual Confidential Reports (ACRs) of respondent Commissioner (Appeals) had not adverted to elaborate representation made by respondent, his order was liable to be quashed and matter be remanded for fresh consideration &#8211;\u00a0<em>[2016] 66<\/em><em>\u00a0<\/em><em>158 (Punjab &amp; Haryana)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 245R<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>ADVANCE RULING \u2013 PROCEDURE ON RECEIPT OF APPLICATION FOR<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Exemption to PSUs from bar on maintainability of advance ruling application is not unconstitutional &#8211;\u00a0<em>[2016] 66<\/em><em>\u00a0<\/em><em>217 (Delhi)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 253<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>APPELLATE TRIBUNAL &#8211; APPEAL TO<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Tax effect :<\/span>\u00a0<\/strong>In view of CBDT Circular No. 21\/2015 revising monetary limit for filing revenue&#8217;s appeals all appeals of revenue before Tribunal having tax effect below Rs. 10 lakhs would be dismissed without going into merits of case &#8211;\u00a0<em>[2016] 66<\/em><em>\u00a01<\/em><em>69 (Kolkata &#8211; Trib.)<\/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 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;\">Where Official Liquidator appointed applicant as security agency for protecting assets and properties of company-in-liquidation but failed to pay security charges, Official Liquidator was to be directed to pay same to applicant &#8211;<em>[2016] 66<\/em><em>\u00a0<\/em><em>162 (Gujarat)<\/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 18<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>COMMISSION &#8211; DUTIES OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where CCI relying upon report of DG concluded that appellant associations had indulged in anti-competitive acts by following practice of NOC necessarily required to be taken from them for appointment of a new\/additional stockist and it had neither considered nor assigned any reason for not considering appellants&#8217; challenge to findings recorded by D.G, matter required re-adjudication &#8211;\u00a0<em>[2016] 66<\/em><em>\u00a0<\/em><em>171 (CAT &#8211; New Delhi)<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENTRAL_EXCISE_RULES\"><\/span><span style=\"color: #0000ff;\"><strong>CENTRAL EXCISE RULES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 7<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>ASSESSMENT &#8211; PROVISIONAL ASSESSMENT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee sought for provisional assessment for year 2009, rejection of request on ground that assessee had not provided records for finalizing provisional assessment for earlier period 1996 to 2008 was unjustified &#8211;<em>[2016] 66\u00a0<\/em><em>\u00a0174 (Mumbai &#8211; CESTAT<\/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>DIRECT TAX LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Small Savings Schemes<\/strong> <\/span>\u2013 Interest Rates on said Schemes to be Recalibrated W.E.F.\u00a01-4-2016\u00a0&#8211;\u00a0<a href=\"http:\/\/decoding.infosysworld.com\/authentication\/link.php?M=10909229&amp;N=5343&amp;L=12998&amp;F=H\"><em>PRESS RELEASE, DATED 16-2-2016<\/em><\/a><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Section 282 of the Income-tax Act, 1961<\/strong><\/span> &#8211; Service of notice generally &#8211; Procedure, Formats and Standards for ensuring secured transmission of electronic communication &#8211;\u00a0<a href=\"http:\/\/decoding.infosysworld.com\/authentication\/link.php?M=10909229&amp;N=5343&amp;L=12996&amp;F=H\"><em>NOTIFICATION NO.2\/2016 [DGIT(S)\/DIT(S) -3 \/AST\/PAPERLESS ASSESSMENT &#8211; OCEEDINGS\/96\/2015-16], DATED 3-2-2016<\/em><\/a><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>CORPORATE LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">IRDAI (Registration of Corporate Agents) Regulations, 2015 \u2013 Clarifications Thereon &#8211;\u00a0<a href=\"http:\/\/decoding.infosysworld.com\/authentication\/link.php?M=10909229&amp;N=5343&amp;L=13007&amp;F=H\"><em>CIRCULAR NO.IRDA\/CAGTS\/CIR\/LCE\/029\/02\/2016, DATED 10-2-2016<\/em><\/a><\/p>\n<p style=\"text-align: justify;\">Notice inviting comments on the draft companies (Indian Accounting Standards) Amendment Rules 2016 &#8211;<a href=\"http:\/\/decoding.infosysworld.com\/authentication\/link.php?M=10909229&amp;N=5343&amp;L=12992&amp;F=H\"><em>PRESS RELEASE, DATED 16-2-2016<\/em><\/a><\/p>\n<p style=\"text-align: justify;\">Notice inviting comments on the draft companies (Accounting Standards) Amendment Rules 2016 &#8211;\u00a0<a href=\"http:\/\/decoding.infosysworld.com\/authentication\/link.php?M=10909229&amp;N=5343&amp;L=13008&amp;F=H\"><em>PRESS RELEASE, DATED 16-2-2016<\/em><\/a><\/p>\n<p style=\"text-align: justify;\">Implementation of section 51A of Unlawful Activities Prevention Act (UAPA), 1967 &#8211; Updates to ISIL (DA&#8217;ESH) &amp; Al-Qaida sanctions list &#8211;\u00a0<a href=\"http:\/\/decoding.infosysworld.com\/authentication\/link.php?M=10909229&amp;N=5343&amp;L=12995&amp;F=H\"><em>CIRCULAR DBR.AML.NO.10293\/14.06.001\/2015-16, DATED 15-2-2016<\/em><\/a><\/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 \u00a0 endeavors. For query or help, contact: \u00a0info@caindelhiindia.com\u00a0or call at \u00a0011-233-43-333<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE &amp; PROFESSIONAL UPDATE FEBRUARY 17, 2016 INCOME TAX ACT SECTION 9 INCOME &#8211; DEEMED TO ACCRUE OR ARISE IN INDIA Capital gain :\u00a0Where assessee, a Netherlands based company, tendered part of shares in an Indian company under scheme of buy back on direction of High Court, said arrangement did not fall under definition of &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":[647,144,142,146],"tags":[566,502,501,572,179,180,214,181,194,541,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1777"}],"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=1777"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1777\/revisions"}],"predecessor-version":[{"id":3028,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1777\/revisions\/3028"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}