{"id":1846,"date":"2016-02-29T10:36:30","date_gmt":"2016-02-29T10:36:30","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1846"},"modified":"2021-07-10T08:57:50","modified_gmt":"2021-07-10T08:57:50","slug":"corporate-and-professional-update-february-25-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-25-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 26, 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-69e86e2d4c292\" 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-69e86e2d4c292\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-25-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_26_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 26, 2016\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 26, 2016<\/a><ul class='ez-toc-list-level-3'><li class='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-25-2016\/#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-25-2016\/#COMPANIES_ACT\" title=\"COMPANIES ACT\">COMPANIES ACT<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_26_2016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 26, 2016<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_2966\" aria-describedby=\"caption-attachment-2966\" style=\"width: 526px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/16.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-2966\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/16.png\" alt=\"www.caindelhiindia.com; CORPORATE UPDATES\" width=\"526\" height=\"247\" \/><\/a><figcaption id=\"caption-attachment-2966\" 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><a href=\"https:\/\/caindelhiindia.com\/service\/income-tax-return-filing\"><span style=\"color: #0000ff;\"><strong>INCOME TAX ACT<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #ff6600;\">SECTION 12A<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CHARITABLE OR RELIGIOUS TRUST &#8211; REGISTRATION OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Cancellation of :\u00a0<\/strong><\/span>Where assessee-educational trust undertook only one activity of running of school out of 21 objects for charitable purposes and it was charging reasonable fees from students and it also gave a concession to poor and deserving students, registration of trust under section 12AA was to be granted &#8211; <em>[2016]<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 40(a)(i)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>BUSINESS DISALLOWANCE \u2013 INTEREST, ETC., PAYABLE OUTSIDE INDIA<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Commission payments to the nonresident agents are not taxable in India, as the agents are remaining outside, services are rendered abroad and payments are also made abroad. The services rendered by the non-resident agent could at best be called as a service for completion of the export commitment and would not fall within the definition of &#8220;fees for technical services&#8221; and, therefore, section 9 was not applicable and, consequently, section 195 did not come into play. Therefore, the disallowance made by the Assessing Officer u\/s 40(a)(i) towards export commission paid by the assessee to the non-resident was rightly deleted by the Tribunal. In GE India Technology&#8217;s case, it was held by SC that the tax deducted at source obligations under Section 195 (1) of the Act arises, only if the payment is chargeable to tax in the hands of the non-resident recipient. When the transaction does not attract the provisions of Section 9 of the Act, then there is no question of applying Explanation 4 to Section 9 of the Act. Consequently, the ratio of SC decision in G.E. India Technology&#8217;s case would apply notwithstanding insertion of Explanation 4 to Section 9 (1) (i) of the Act with corresponding introduction of Explanation 2 to Section 195 (1) of the Act, both by the Finance Act, 2012, with retrospective effect from 01.04.1962 &#8211;\u00a0<em>[2016] 66 taxmann 321 (Madras)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 74<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>LOSSES UNDER HEAD CAPITAL GAINS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Setting off deemed short term capital gain :<\/span>\u00a0<\/strong>Where deemed short term capital gain arose on account of sale of depreciable assets that was held for a period to which long term capital gain would apply, assessee would be entitled to claim setting off said gain against brought forward long term capital losses and unabsorbed depreciation &#8211;\u00a0<em>[2016] 66 taxmann 330 (Bombay)<\/em><\/p>\n<p style=\"text-align: justify;\"><strong>SECTION 92C<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">TRANSFER PRICING &#8211; COMPUTATION OF ARM&#8217;S LENGTH PRICE<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Comparables and adjustments\/TNMM v. CUP :<\/span>\u00a0<\/strong>Where on assessee becoming agent of parent shipping company, erstwhile agent was appointed as sub-agent of assessee, price agreement between assessee and its sub-agent could not be used as internal CUP for determining ALP &#8211;\u00a0<em>[2016](Mumbai &#8211; Trib.)<\/em><\/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, providing investment advisory and support services to its AE, companies engaged in handling of IPOs and carrying on activity of managing directly or indirectly investments mutual funds, venture capital fund, could not be accepted as valid comparables while determining ALP &#8211;\u00a0<em>[2016] (Delhi &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 132A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>SEARCH &amp; SEIZURE &#8211; REQUISITION OF BOOKS OF ACCOUNT, ETC.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Reassessment :<\/span>\u00a0<\/strong>Accounts which were duly verified during regular assessment of assessee could not be reappreciated merely because further a search was conducted in premises of assessee as same would amount to reopening of concluded assessment &#8211;\u00a0<em>[2016] 66 taxmann 264 (Karnataka)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 194C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DEDUCTION OF TAX AT SOURCE &#8211; CONTRACTORS\/SUB-CONTRACTORS, PAYMENTS TO<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Transportation charges :\u00a0<\/strong><\/span>Where assessee-company, engaged in business of cargo handling, made payments for transportation of goods to transporter which also supplied containers, since use of containers was only incidental to transporting of cargo, assessee was justified in deducting tax at source under sec. 194C from payments in question &#8211;\u00a0<em>[2016] (Rajkot &#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 445<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>WINDING UP &#8211; COPY OF WINDING UP ORDER TO BE FILED WITH REGISTRAR<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Contract of Company (in liquidation) with its employees comes to an end on passing of winding up order &#8211;<em>[2016] (Bombay)<\/em><!--more--><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 529A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>WINDING UP &#8211; OVERRIDING PREFERENTIAL PAYMENTS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Bonus is not included in category of wages under sections 529 and 529A and cannot be accorded priority &#8211;<em>[2016] (Bombay)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>CENTRAL EXCISE ACT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\">SECTION 35C<\/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;\">Remand order of Tribunal may be &#8216;conditional&#8217; i.e., Tribunal may impose suitable conditions including making of certain deposit as a condition of remanding matter back to adjudicating authority, only if same is necessary due to reasons attributed to assessee &#8211;\u00a0<em>[2016] 66 taxmann 268 (Gujarat)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>CUSTOMS ACT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 27<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>REFUND \u2013 GENERAL<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Refund of customs duty paid by SEZ units is governed by section 27 of Customs Act; hence, said refund claim units would lie before Customs Authorities and not before SEZ authorities under the SEZ Act\/rules &#8211;\u00a0<em>[2016] (Gujarat)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 130E<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>APPEALS &#8211; MAINTAINABILITY OF &#8211; SUPREME COURT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where High Court has dismissed review petition against its own judgment, then, proper course is to challenge &#8216;main order&#8217;. If &#8216;main order&#8217; of High Court is not challenged, appeal\/special leave petition against &#8216;order of High Court dismissing review petition&#8217; is not maintainable before Supreme Court &#8211;\u00a0<em>[2016] (SC)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>CENVAT CREDIT RULES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 4<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT- CONDITIONS FOR ALLOWING OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where cascades were used to transport CNG at boosting station wherein it was re-compressed to be filled into the vehicles, cenvat credit was not admissible on cascades since these were used to mere transport already manufactured and marketable commodity &#8211;\u00a0<em>[2016](Mumbai &#8211; CESTAT)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>STATUTES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DIRECT TAX LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Section 139A of the Income-tax Act, 1961 &#8211; Permanent Account Number &#8211; Jurisdiction of PANs of trusts submitting ITR-7 for assessment years 2014-15 and 2015-16 as on 28-1-2016 &#8211;\u00a0<em>LETTER F.NO.DGIT(S)\/DIT(S)-3\/AST\/CIT EXEMPTION JURIS\/98\/2015-16, DATED 22-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>CORPORATE LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Chartered Accountants Procedures of Meetings of Quality Review Board, and Terms and Conditions of Service and Allowances of the Chairperson and Members of the Board (Amendment) Rules, 2016 &#8211; Amendment in rule 9 &#8211;\u00a0<em>NOTIFICATION NO. GSR 148(E) [F.NO.1\/30\/2015\/PI], DATED 8-2-2016<\/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 26, 2016 INCOME TAX ACT SECTION 12A CHARITABLE OR RELIGIOUS TRUST &#8211; REGISTRATION OF Cancellation of :\u00a0Where assessee-educational trust undertook only one activity of running of school out of 21 objects for charitable purposes and it was charging reasonable fees from students and it also gave a concession to poor &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],"tags":[502,501,569,572,179,180,561,214,181,194,537,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1846"}],"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=1846"}],"version-history":[{"count":7,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1846\/revisions"}],"predecessor-version":[{"id":3003,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1846\/revisions\/3003"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}