{"id":1794,"date":"2016-02-22T11:45:00","date_gmt":"2016-02-22T11:45:00","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1794"},"modified":"2021-07-07T12:56:58","modified_gmt":"2021-07-07T12:56:58","slug":"corporate-and-professional-update-february-19-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-19-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 19, 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-69e8f0d6bfdfa\" 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-69e8f0d6bfdfa\"  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-19-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_19_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 19, 2016\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 19, 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-19-2016\/#INCOME_TAX_ACT\" title=\"INCOME\u00a0TAX\u00a0ACT\">INCOME\u00a0TAX\u00a0ACT<\/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-19-2016\/#NEGOTIABLE_INSTRUMENTS_ACT_1881\" title=\"NEGOTIABLE INSTRUMENTS ACT, 1881\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \">NEGOTIABLE INSTRUMENTS ACT, 1881\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/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-19-2016\/#SERVICE_TAX\" title=\"SERVICE\u00a0TAX\">SERVICE\u00a0TAX<\/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-19-2016\/#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-february-19-2016\/#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_19_2016\"><\/span><span style=\"color: #000080;\"><strong>CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 19, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_3022\" aria-describedby=\"caption-attachment-3022\" style=\"width: 533px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/Q.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3022\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/Q.png\" alt=\"www.caindelhiindia.com; CORPORATE UPDATES\" width=\"533\" height=\"224\" \/><\/a><figcaption id=\"caption-attachment-3022\" 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\u00a0TAX\u00a0ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 4\u00a0<\/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;\"><strong><span style=\"color: #800000;\">Interest :<\/span>\u00a0<\/strong>Where assessee engaged in generating electric power, kept margin money in form of fixed deposits for procurement of various capital goods for setting up of power project, interest earned on said deposits would be in nature of capital receipt not liable to\u00a0tax\u00a0&#8211;\u00a0<em>[2016] 66 \u00a0178 (Delhi)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 9\u00a0<\/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;\">Interest :<\/span>\u00a0<\/strong>TDS is not required to be deducted on payment by foreign bank&#8217;s Indian branch to its overseas head office and, therefore, disallowance of such payment under section 40(a)(i) is not valid &#8211;\u00a0<em>[2016] 66 173 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 50<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CAPITAL GAINS &#8211; COMPUTATION IN CASE OF DEPRECIABLE ASSETS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Cost of shares allotted pursuant to corporatization of BSE would be calculated as per Section 50 and not as per Section 55(2(ab) if depreciation was claimed on BSE membership. Further, indexation benefit on sale of such share would be available from the date of corporatization of BSE and not from the date of acquisition of original membership of BSE &#8211;\u00a0<em>[2016] 66 258 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 54F<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CAPITAL GAINS &#8211; EXEMPTION OF, IN CASE OF INVESTMENT IN RESIDENTIAL HOUSE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Conditions precedent :\u00a0<\/strong><\/span>For availing exemption under section 54F, amount invested in new asset need not be entirely sourced from capital gain &#8211;\u00a0<em>[2016] 66 191 (Punjab &amp; Haryana)<\/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\u2019S 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 to its AE, company which was developing its own software products and company which had undergone business restructuring process during relevant year, could not be accepted as comparables while determining ALP &#8211;\u00a0<em>[2016] 66 192 (Delhi &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Comparables and adjustments\/Comparables \u2013 Illustrations :\u00a0<\/strong><\/span>In case of assessee providing IT Enabled Services (ITES) to its AE, a company in whose case extraordinary event of amalgamation took place, a company which had huge brand value and a company engaged in business of BPO service and providing high-end technology services such as software testing and validation, could not be accepted as comparables for determining ALP &#8211;\u00a0<em>[2016] 66 192 (Delhi &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Comparables and adjustments\/Comparables \u2013 Illustration :\u00a0<\/strong><\/span>A merchant banker and investment banker and portfolio manager cannot be compared to a company rendering non-binding advisory support services &#8211;\u00a0<em>[2016] 66 193 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 271C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>PENALTY &#8211; FOR FAILURE TO DEDUCT\u00a0TAX\u00a0AT SOURCE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Illustrations :<\/span>\u00a0<\/strong>Where Assessing Officer levied penalty upon assessee under section 271C and Appellate Authorities deleted levy of penalty, as facts and law having properly and correctly been assessed and approached by Commissioner (Appeals) and Tribunal, no substantial question of law arose in matter &#8211;\u00a0<em>[2016] 66 175 (SC)<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"NEGOTIABLE_INSTRUMENTS_ACT_1881\"><\/span><strong><span style=\"color: #0000ff;\">NEGOTIABLE INSTRUMENTS ACT, 1881\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 138<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DISHONOUR OF CHEQUE FOR INSUFFICIENCY ETC., OF FUNDS IN ACCOUNT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where cheques issued by respondent in connection with discharge of outstanding liability of &#8216;N&#8217; had been dishonoured for insufficiency of funds in account, respondent was to be convicted for offence punishable under section 138 &#8211;\u00a0<em>[2016] 66 186 (SC)<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SERVICE_TAX\"><\/span><span style=\"color: #0000ff;\"><strong>SERVICE\u00a0TAX<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 86<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>APPEALS &#8211; ORDERS OF &#8211; APPELLATE TRIBUNAL<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where written submissions filed by assessee were not considered by Tribunal in passing final order, Tribunal order was liable to be set aside &#8211;\u00a0<em>[2016] 66 197 (Madras)<\/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 2(f)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>MANUFACTURE &#8211; DEEMED MANUFACTURE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Removal of moisture content is also a process that renders product marketable to consumer; hence, same together with repacking, quality control and relabelling would amount to deemed manufacture under Note 10 to Chapter 29 &#8211;\u00a0<em>[2016] 66 195 (Mumbai &#8211; CESTAT)<\/em><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #ff6600;\">SECTION 5A<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">EXEMPTIONS &#8211; CENTRAL EXCISE &#8211; SSI \/ THRESHOLD EXEMPTION<\/span>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify;\">&#8216;Exports to Nepal&#8217; would be treated at par with other exports from 1-3-2012 and would not form part of turnover limit of Rs. 400 lakhs or Rs. 150 lakhs for SSI-exemption purposes accordingly, words &#8216;and Nepal&#8217; in Explanation (G) to SSI Notification No. 8\/2003-CE to treat exports to Nepal as clearance for home consumption, were struck down &#8211;\u00a0<em>[2016] 66 \u00a0259 (Gujarat)<\/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\u00a0TAX\u00a0NOT LEVIED\/PAID OR SHORT-LEVIED\/PAID OR ERRONEOUSLY REFUNDED &#8211; INVOCATION OF EXTENDED PERIOD OF LIMITATION<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where, at one point of time, Tribunal had opined in assessee&#8217;sfavour on merits and subsequently said judgment was reversed by High Court to hold in favour of revenue, then, issue was debatable and extended period of limitation cannot be invoked to raise demand alleging evasion &#8211;\u00a0<em>[2016] 66 196 (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>DIRECT\u00a0TAX\u00a0LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Section 285BA of the Income-tax\u00a0Act, 1961 &#8211; Furnish statement of financial transaction or reportable account &#8211; Obligation to \u2013 Clarification for Implementation of FATCA and CRS &#8211;\u00a0<em>LETTER [F.NO.504\/090\/2007-FTD-I], DATED 19-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>CORPORATE LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Startup India \u2013 Identified Enterprises &#8211;\u00a0<em>NOTIFICATION NO. GSR 180(E) [ F.NO.5(91)\/2015-BE.I], DATED 17-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\">Guidelines on product filing procedures for general insurance products &#8211;\u00a0<em>CIRCULAR NO.IRDAI\/NL\/GDL\/F&amp;U\/030\/02\/2016, DATED 18-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\">Review of NBFC \u2013 Factors (Reserve Bank) Directions, 2012 &#8211;\u00a0<em>CIRCULAR DNBR (PD) CC.NO.074\/03.10.01\/2015-16, DATED 18-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\">Section 4 of the Securities &amp; Exchange Board of India Act, 1992, read with Rule 3 of the SEBI (Terms &amp; Conditions of Service of Chairman and Members) Rules, 1992 \u2013 Board \u2013 Management of &#8211; Re-Appointment of Shri U.K. Sinha as Chairman, SEBI W.E.F. 18-2-2016 To\u00a01-3-2017\u00a0&#8211;\u00a0<em>NOTIFICATION NO.SO 524(E) [F.NO.2\/10\/2015-RE], DATED 18-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\">Undertaking of Point of Presence (Pop) Services under Pension Fund Regulatory and Development Authority for National Pension System (NPS) &#8211;\u00a0<em>CIRCULAR DNBR (PD) CC.NO.073\/03.10.001\/2015-16, DATED 18-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\">Frauds \u2013 Future approach towards monitoring of frauds in NBFCs &#8211;\u00a0<em>CIRCULAR DNBR (PD) CC.NO.075\/03.10.001\/2015-16, DATED 18-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\">SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2016 \u2013 Insertion of Regulations 69A, 69B, 69C, 69D, 69E, 69F and 69G &#8211;\u00a0<em>NOTIFICATION NO.SEBI\/LAD-NRO\/GN\/2015-16\/036, DATED 17-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\">SEBI (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2016 \u2013 Amendment in Regulation 3 &#8211;\u00a0<em>NOTIFICATION NO.SEBI\/LAD-NRO\/GN\/2015-16\/035, DATED 17-2-2016<\/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 \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 AND PROFESSIONAL UPDATE FEBRUARY 19, 2016 INCOME\u00a0TAX\u00a0ACT SECTION 4\u00a0 INCOME &#8211; CHARGEABLE AS Interest :\u00a0Where assessee engaged in generating electric power, kept margin money in form of fixed deposits for procurement of various capital goods for setting up of power project, interest earned on said deposits would be in nature of capital receipt not &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":[566,501,569,179,180,561,214,181,194,541,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1794"}],"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=1794"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1794\/revisions"}],"predecessor-version":[{"id":3024,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1794\/revisions\/3024"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}