{"id":1905,"date":"2016-03-15T07:34:48","date_gmt":"2016-03-15T07:34:48","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1905"},"modified":"2021-06-04T19:17:26","modified_gmt":"2021-06-04T19:17:26","slug":"corporate-and-professional-update-dated-march-10-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-dated-march-10-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 10, 2016"},"content":{"rendered":"<h3 style=\"text-align: justify;\"><a style=\"font-size: 16px;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/07\/11.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-2843\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/07\/11.png\" alt=\"www.caindelhiindia.com; Corporate updates\" width=\"827\" height=\"576\" \/><\/a><\/h3>\n<p>www.caindelhiindia.com; Corporate updates<\/p>\n<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-69d0c6280c523\" 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-69d0c6280c523\"  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-dated-march-10-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_DATED_MARCH_10_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 10, 2016\">CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 10, 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-dated-march-10-2016\/#DIRECT_TAX\" title=\"DIRECT TAX\">DIRECT TAX<\/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-dated-march-10-2016\/#INDIRECT_TAX\" title=\"INDIRECT TAX\">INDIRECT TAX<\/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-dated-march-10-2016\/#KEY_DATES\" title=\"KEY DATES\">KEY DATES<\/a><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_DATED_MARCH_10_2016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 10, 2016<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"DIRECT_TAX\"><\/span><span style=\"color: #ff6600;\"><strong>DIRECT TAX<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #00ccff;\"><strong>Recovery of demand<\/strong><\/span> &#8211; attachment of account whereas the appeal was pending &#8211; AO refused to grant stay &#8211; non deduction of TDS &#8211; attachment vacated &#8211; CIT(A) of hear the appeal as early as possible &#8211; HC<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Computation of MAT credit<\/strong><\/span> &#8211; Assessee has relied on the ITR\u20136 format to arrive at the total liability as well as the MAT credit calculations and paid tax accordingly. In our view, the assessee had followed the procedure properly and the Assessing Officer had made the calculations applying his own interpretation or relied on the programme, we are not sure whether it is programme hitch or the interpretation of Assessing Officer was not in line with the calculations proposed in ITR-6. Therefore, we delete the addition made.<\/li>\n<li>The monetary limit of \u00a010 lakhs for filing appeals before the ITAT would apply equally to cross objections under section 253(4) of the Act. Cross objections below this monetary limit, already filed, should be pursued for dismissal as withdrawn\/not pressed.<\/li>\n<li>U\/s 245 of Income Tax Act 1961 revised timeline for verification of arrear of demand &#8211; In case no response is received from the AO within thirty days. CPC would issue the refund without any adjustment. The responsibility of, non-adjustment of refund against outstanding arrears, if any, would lie with the Assessing Officer.<\/li>\n<li>The grant of tenancy rights by the assessee trust and the premium of \u00a051.00 lakhs received in lieu thereof from the tenants is a capital asset in the hands of the assessee and is therefore liable for capital gains and is not advance rent exigible to tax under the head income from house property.<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Disallowance of interest on borrowed capital u\/s 24(b)<\/strong><\/span> &#8211; whether property should be let out for claiming deduction of interest? &#8211; the assessee\u2019s claim has no tenability as neither property is self-occupied nor its reasonable rental ALV is offered for tax and at the same time a claim of deduction of interest is made.<\/li>\n<li>Set off of business loss against interest income taxable under the head income from other sources &#8211; as the assessee has not carried out any business activity during the year under appeal, then there remains no possibility of set off of business loss against interest income taxable under the head income from other sources.<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Capital gain<\/strong> <\/span>&#8211; conversion of the partnership firm into company &#8211; the conditions laid down under section 47(xiii) of the Act have been fulfilled in this case. Therefore, no capital gain is chargeable under the provisions of section 45(4) of the Act<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Disallowance u\/s 14A<\/strong><\/span> &#8211; if at all any indirect expenses is to be attributable, then same has to be estimated having regard to the accounts and nature of expenditure incurred by the assessee. The blanket application of Rule 8D(iii) that is 0.5% of the average investment may not be acquired to do so because it is not commensurate with the nature of activity of investment carried out and the expenses debited by the assessee which is mostly for its business activities<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Income Tax:<\/strong><\/span>\u00a0Addition u\/s 68 &#8211; merely because the bank statement an ITR of the lender were not submitted, in spite of submitting balance sheet and profit and loss account of the company, confirmation stating its PAN and also transactions are through account payee cheques and in absence of any inquiry, we are of the view that no addition can be made in the hands of the assessee<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Income Tax:\u00a0<\/strong><\/span>Penalty u\/s 271C &#8211; non deduction of tds u\/s 194LA &#8211; there was no mala fide intention on the part of the assessee for non-deduction of TDS since it had recovered the TDS from the concerned as soon as the violation of law was brought into assessee\u2019s notice<\/li>\n<li><span style=\"color: #00ccff;\"><strong><a href=\"https:\/\/carajput.com\/income-tax-services.php\">Income Tax<\/a>:\u00a0<\/strong><\/span>Agricultural lands in terms of Sec 2(14) &#8211; Though the circumstance that the land is classified as Agricultural in the revenue records and the Village Panchayats President, Navallur, has certified that the land is away from municipality, other circumstances proves otherwise &#8211; Held as not an agriculture land<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Income Tax:<\/strong><\/span>\u00a0The assessee had a dividend income (income from other sources). Thus the assessee fell within the purview of the exception carved out in the explanation to Section 73 and that consequently the assessee would not be deemed to be carrying on a speculation business for the purpose of Sec. 73(1).<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Income Tax:<\/strong><\/span> Addition made on inflation of purchases of raw material u\/s. 69 &#8211; CIT(A) has wrongly relied on the input output consumption ratio &#8211; addition deleted.<\/li>\n<li><a href=\"https:\/\/carajput.com\/income-tax-services.php\"><span style=\"color: #00ccff;\"><strong>Income Tax:<\/strong><\/span><\/a>\u00a0Income-tax (5th Amendment) Rules, 2016) &#8211; Rules in respect of fund manager regime under section 9A of the Income-tax Act, 1961 &#8211; Notification<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INDIRECT_TAX\"><\/span><span style=\"color: #ff6600;\"><strong>INDIRECT TAX<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li><strong><span style=\"color: #00ccff;\"><a href=\"https:\/\/carajput.com\/services-tax-registration.php\">Service Tax<\/a>:<\/span><\/strong>\u00a0Validity of Tribunal&#8217;s order waiving the penalty &#8211; the question of applicability of section 80 w.e.f. 14-5-2015 has not been examined by the Tribunal at all. There is rather no reference to Section 80 of the Finance Act, 1994. As the Tribunal&#8217;s order is cryptic and the reasons are wholly unsatisfactory, needs to be quashed and set aside &#8211; HC<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Central Excise:<\/strong><\/span>\u00a0Differential duty demand &#8211; demand arose on account of the fact that the appellant cleared the goods from its depot at a price higher than the price at which the duty was paid at the time of clearance from the factory &#8211; demand confirmed<\/li>\n<li><span style=\"color: #00ccff;\"><strong><a href=\"https:\/\/carajput.com\/services-excise-registration.php\">Central Excise<\/a>:<\/strong><\/span>\u00a0SSI Exemption &#8211; The notification as amended was very clear and unambiguous. In the era of self assessment, it is the responsibility of the assessee to correctly determine the duty as per law. It is seen that the appellant failed to do so in this case<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Central Excise:<\/strong><\/span>\u00a0Denial of Cenvat credit on capital goods &#8211; stock taking was done by way of eye estimation &#8211; the allegation of shortage of raw materials, does not stand. &#8211; demand set aside<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Central Excise:<\/strong><\/span>\u00a0Refund claim &#8211; duty liability subsequent to clearance of their products &#8211; unjust enrichment &#8211; when duty is paid after clearance of goods, on insistence of anti-evasion branch, burden of duty is not passed on to the customers &#8211; refund allowed<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Central Excise:<\/strong><\/span>\u00a0Differential duty &#8211; as the appellant was clearing the goods on payment of duty and subsequently on their own revised the price and discharged the differential duty there seems to be no violation of any provisions &#8211; Demand on interest confirmed &#8211; But, no penalty be levied<\/li>\n<li><span style=\"color: #00ccff;\"><strong><a href=\"https:\/\/carajput.com\/services-excise-registration.php\">Central Excise<\/a>:<\/strong><\/span>\u00a0MRP based valuation &#8211; removal of goods without packing &#8211; It is not the packaging that determines the applicability of mandate of affixing the &#8216;retail sale price&#8217; but the product itself. Consequences of non-conforming packaging are not escapement from the mandate but the enforcement of penal detriment &#8211; appellant is eligible for the abatement<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Central Excise:\u00a0<\/strong><\/span>The duty can be demanded from a manufacturer of the goods as it is a factum record that the impugned goods have been fabricated on job work basis by the contractors, therefore, as per the Central Excise provision, the appellant cannot be the manufacturer of the said goods.<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Customs:\u00a0<\/strong><\/span>Rejection of refund claim &#8211; Period of limitation &#8211; Once the appellant has been given acknowledgement unless until this held to be fake or forged, the said acknowledgement has to be accepted as proof of filing the refund claim.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #00ccff;\"><strong>Service Tax<\/strong><\/span>:The demand of service tax along with interest is confirmed under the category of \u201cTransport of Export Cargo\u201d as there was no exemption of service tax on the said service from 16.06.2005 to 23.06.2005<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Central Excise<\/strong><\/span>:Cenvat Credit denied of service tax paid on club membership of Association &#8211; the expenses incurred on the membership of the business club is an \u201cinput service\u201d and appellant can legally take Cenvat Credit of the expenses incurred on the membership of the club<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Central Excise<\/strong><\/span>:Jute mattings manufactured &#8211; whether are floor coverings or not ? &#8211; Notification No. 29\/95-CE dt 16\/3\/1995 benefit claimed &#8211; as per this meaning the mattings can also be used &amp; understood as floor coverings. The argument taken by the Revenue that floor coverings of jute should be exclusively used for floor covering is not supported by as such specific mention in the exemption notification<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Central Excise<\/strong><\/span>:Rejection of refund claim &#8211; export of goods &#8211; in appellants case the ARE 2 for export has to be filed within 24 hours of clearance and as such, there is no scope for prior verification of the goods by the officers. The cleared goods have been exported and all the relevant customs clearance documents have been filed. &#8211; Refund allowed<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Central Excise<\/strong><\/span>:Rejection of refund claim &#8211; export of goods &#8211; in appellants case the ARE 2 for export has to be filed within 24 hours of clearance and as such, there is no scope for prior verification of the goods by the officers. The cleared goods have been exported and all the relevant customs clearance documents have been filed. &#8211; Refund allowed<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"KEY_DATES\"><\/span><span style=\"color: #ff6600;\"><strong>KEY DATES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li>Return for non SSI assessee for February:\u00a010\/03\/2016<\/li>\n<li>Return for EOUs for February:\u00a010\/03\/2016<\/li>\n<li>Return by units paying duty &gt; 1 Crore (CENVAT+PLA) for Feb:\u00a010\/03\/2016<\/li>\n<\/ul>\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<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>www.caindelhiindia.com; Corporate updates CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 10, 2016 DIRECT TAX Recovery of demand &#8211; attachment of account whereas the appeal was pending &#8211; AO refused to grant stay &#8211; non deduction of TDS &#8211; attachment vacated &#8211; CIT(A) of hear the appeal as early as possible &#8211; HC Computation of MAT credit &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":[173,146],"tags":[561,549,562,560,729],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1905"}],"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=1905"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1905\/revisions"}],"predecessor-version":[{"id":3504,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1905\/revisions\/3504"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}