{"id":1873,"date":"2016-03-08T10:58:19","date_gmt":"2016-03-08T10:58:19","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1873"},"modified":"2021-07-07T12:56:04","modified_gmt":"2021-07-07T12:56:04","slug":"corporate-and-professional-update-dated-march-4-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-dated-march-4-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 4, 2016"},"content":{"rendered":"

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 4, 2016<\/strong><\/span><\/h2>\n
\"www.caindelhiindia.com;<\/a>
www.caindelhiindia.com; CORPORATE UPDATES<\/figcaption><\/figure>\n

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

SECTION 36(1)(iii)<\/strong><\/span><\/p>\n

INTEREST ON BORROWED CAPITAL<\/strong><\/span><\/p>\n

Expansion of business :<\/strong>\u00a0<\/span>Where assessee paid interest on borrowed capital which was used for acquisition of windmill for extension of existing business of generation of electricity through windmill, interest could not be allowed till capital asset acquired by assessee was put to use –\u00a0[2016]\u00a0<\/em><\/p>\n

SECTION 36(1)(v)<\/strong><\/span><\/p>\n

GRATUITY FUND, CONTRIBUTIONS TOWARDS AN APPROVED<\/strong><\/span><\/p>\n

Approval of Commissioner :<\/span>\u00a0<\/strong>Where assessee paid amount towards Employees Group Gratuity Fund to LIC and application made by assessee was still pending before Commissioner for approval and assessee had no control over Fund created by LIC for benefit of its employees, disallowance under section 36(1)(v) was not be made –\u00a0[2016]\u00a0<\/em><\/p>\n

SECTION 40(a)(ia)<\/strong><\/span><\/p>\n

BUSINESS DISALLOWANCE – INTEREST, ETC., PAID TO A RESIDENT WITHOUT DEDUCTION OF TAX AT SOURCE<\/strong><\/span><\/p>\n

Form 15H :<\/span>\u00a0<\/strong>Where assessee credited interest in recipient account without deducting TDS at time of payment, in view of filing of Form 15H by recipient there was no requirement for deduction of tax and, accordingly, disallowance under section 40(a)(ia) was not justified –\u00a0[2016]<\/em><\/p>\n

SECTION 54F<\/strong><\/span><\/p>\n

CAPITAL GAINS – EXEMPTION OF, IN CASE OF INVESTMENT IN RESIDENTIAL HOUSE<\/strong><\/span><\/p>\n

Utilization of capital gains :\u00a0<\/strong><\/span>Where assessee purchased a vacant site but couldn’t complete construction of house within prescribed period of three years to avail exemption from capital gain, whole of capital gain was liable to be taxed in previous year in which period of three years expired from date of sale of original asset –[2016]\u00a0<\/em><\/p>\n

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

TRANSFER PRICING – COMPUTATION OF ARM\u2019S LENGTH PRICE<\/strong><\/span><\/p>\n

Comparables and adjustments\/Adjustments-Others :<\/span>\u00a0<\/strong>Where TPO made addition to assessee’s ALP in respect of purchase of equipment from AE, since cost certificates provided by AE certified that said equipment was sold on cost to cost basis, impugned addition was to be set aside –\u00a0[2016]<\/em><\/p>\n

SECTION 194LA<\/strong><\/span><\/p>\n

DEDUCTION OF TAX AT SOURCE – COMPENSATION FOR ACQUISITION OF PROPERTY<\/strong><\/span><\/p>\n

Conditions precedent :\u00a0<\/strong><\/span>Where payment for purchase of immovable property was made before introduction of section 194LA mandating TDS on such payment, sale certificate presented for registration after introduction of section 194LA was required to be registered without proof of TDS –\u00a0[2016]\u00a0<\/em><\/p>\n

SECTION 222<\/strong><\/span><\/p>\n

COLLECTION OF TAX AT SOURCE – CERTIFICATE PROCEEDINGS<\/strong><\/span><\/p>\n

Application to set aside sale :<\/span>\u00a0<\/strong>Where in tax recovery proceeding, subsequent to auction, respondent debtors deposited a major portion of amount specified in proclamation of sale within prescribed period for setting aside sale instead of depositing entire amount as specified in rule 60 of Second Schedule to IT Act, 1961, within prescribed period but deposited thereafter, sale could not be set aside –\u00a0[2016]\u00a0<\/em><\/p>\n

SECTION 244A<\/strong><\/span><\/p>\n

REFUNDS – INTEREST ON<\/strong><\/span><\/p>\n

Rectification<\/strong>\u00a0<\/span>of mistakes :<\/span>\u00a0<\/strong>Interest allowed to assessee under section 244A(1)(b) on refund of excess payment on self\u00a0assessment of tax could not be withdrawn under section 154 as Explanation to section 244A(1)(b) does not bar payment of interest upon refund of excess payment on self assessment –\u00a0[2016]\u00a0<\/em><\/p>\n

REVISION – OF ORDERS PREJUDICIAL TO INTEREST OF REVENUE<\/strong><\/span><\/p>\n

Consideration of issues, effect of :\u00a0<\/strong><\/span>Where Assessing Officer examined an issue, Commissioner could not assume jurisdiction on same issue by stating that Assessing Officer had conducted inadequate enquiry or there was a lack of enquiry –\u00a0[2016]<\/em><\/p>\n

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

SECTION 7<\/strong><\/span><\/p>\n

INCORPORATION OF COMPANY<\/strong><\/span><\/p>\n

Section 35 debars raising of any objection relating to incorporation of company after issuance of certificate of incorporation by ROC –\u00a0[2016]<\/em><\/p>\n

NEGOTIABLE INSTRUMENTS ACT, 1881<\/strong><\/span><\/p>\n

SECTION 138<\/strong><\/span><\/p>\n

DISHONOUR OF CHEQUE FOR INSUFFICIENCY ETC., OF FUNDS IN ACCOUNT<\/strong><\/span><\/p>\n

For maintaining prosecution against a partner under section 141, arraigning of partnership firm as an accused is imperative –\u00a0[2016]\u00a0<\/em><\/p>\n

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

SECTION 65(105)(zzzza)<\/strong><\/span><\/p>\n

TAXABLE SERVICES – WORKS CONTRACT SERVICES<\/strong><\/span><\/p>\n

Where assessee has paid service tax on full contract price of a works contract and availed credit of inputs and services and there is no revenue loss to department, department cannot seek to deny credit relying upon valuation rule 2A –\u00a0[2016]\u00a0<\/em><\/p>\n

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

SECTION 5A<\/span><\/strong><\/p>\n

EXEMPTIONS – CENTRAL EXCISE – CAPTIVE CONSUMPTION<\/strong><\/span><\/p>\n

Site given to contractor within factory constitutes a ‘separate factory’; hence, oxygen manufactured by assessee and used by such contractor for processing of scrap cannot be regarded as ‘oxygen used in assessee’s factory’ and cannot be exempted under Notification No. 67\/95-CE –\u00a0[2016]<\/em><\/p>\n

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

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

If there was sufficient cause for assessee’s non-appearance, then, assessee may file an application for recall of ex parte order passed by Tribunal on merits –\u00a02016<\/em><\/p>\n

CENVAT CREDIT RULES<\/strong><\/span><\/p>\n

RULE 3<\/strong><\/span><\/p>\n

Where, for period prior to 1-4-2011, Tribunal directed credit reversal on ‘full sales value’ of trading activity observing that formula introduced from 1-4-2011 was intended to encourage trading vis-\u00e0-vis manufacturing, High Court set aside said observations and directed Tribunal to decide matter afresh –\u00a0[2016]<\/em><\/p>\n

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

DIRECT TAX LAWS<\/strong><\/span><\/p>\n

Income-tax (Third Amendment) Rules, 2016 \u2013 Substitution of Rule 45 and Form No.35 –\u00a0NOTIFICATION NO. SO 637(E) [NO.11\/2016 (F.NO.149\/150\/2015-TPL)], DATED 1-3-2016<\/em><\/p>\n

Clarification about changes made in tax treatment for Recognised Provident Fund & NPS –\u00a0PRESS NOTE, DATED 1-3-2016<\/em><\/p>\n

Section 45, read with section 28(i), of the Income-tax Act, 1961 \u2013 Capital Gains, chargeable as \u2013 Issue of taxability of surplus on sale of shares and securities \u2013 Capital Gains or Business Income \u2013 Instructions in order to reduce litigation –\u00a0CIRCULAR NO.6\/2016 [F.NO.225\/12\/2016-ITA-II], DATED 29-2-2016<\/em><\/p>\n

Section 194C, read with section 194J, of the Income-tax Act, 1961 \u2013 Deduction of tax at source – Contractors\/ Sub-contractors, payments to – Tax Deduction at Source (TDS) on payments by broadcasters or television channels to production houses for production of content or programme for telecasting –\u00a0CIRCULAR NO.4\/2016 [F.NO.275\/07\/2016-IT(B)], DATED 29-2-2016<\/em><\/p>\n

Section 220 of the Income-tax Act, 1961 \u2013 Collection and Recovery of tax – When tax payable and when assessee deemed in default – Amendment of Instruction No.1914, Dated 21-3-1996 to provide for guidelines for stay of demand at first appeal stage –\u00a0OFFICE MEMORANDUM [F.NO.404\/72\/93-ITCC], DATED 29-2-2014<\/em><\/p>\n

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

Master Circular \u2013 Basel III capital regulations \u2013 Revision –\u00a0CIRCULAR DBR.NO.BP.BC.83\/21.06.201\/2015-16, DATED 1-3-2016<\/em><\/p>\n

Accepted and implemented recommendations of TARC (Relating to both CBDT and CBEC) –\u00a0PRESS RELEASE, DATED 1-3-2016<\/em><\/p>\n

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

Central Excise Act, 1944 – Certificate evidencing payment of Central Excise Duty \u2013 Benefit of Circular No.620\/11\/2002-CX, Dated 20-2-2002 Extended to entire Industry as a matter of trade facilitation –\u00a0CIRCULAR NO.1017\/5\/2016-CX, DATED 29-2-2016<\/em><\/p>\n

Withdrawal from prosecution in Central Excise Cases older than 15 Years involving duty less THAN Rupees Five Lakhs –\u00a0CIRCULAR NO.1018\/6\/2016-CX, DATED 29-2-2016<\/em><\/p>\n

Change in Rate of Interest on Goods Warehoused For Export, When Cleared to DTA –\u00a0CIRCULAR NO.1019\/7\/2016-CX, DATED 29-2-2016<\/em><\/p>\n

Registration of two or more Premises as one registration in Central Excise –\u00a0CIRCULAR NO.1016\/4\/2016-CX, DATED 29-2-2016<\/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\u00a0or call at \u00a0011-233-43-333<\/p>\n

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CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 4, 2016 INCOME TAX ACT SECTION 36(1)(iii) INTEREST ON BORROWED CAPITAL Expansion of business :\u00a0Where assessee paid interest on borrowed capital which was used for acquisition of windmill for extension of existing business of generation of electricity through windmill, interest could not be allowed till capital asset acquired by …<\/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":[555,566,502,501,569,511,384,220,545,561,549,541,562,560,550,386,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1873"}],"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=1873"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1873\/revisions"}],"predecessor-version":[{"id":2983,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1873\/revisions\/2983"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}