{"id":541,"date":"2015-11-21T14:59:00","date_gmt":"2015-11-21T14:59:00","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=541"},"modified":"2021-07-14T11:48:16","modified_gmt":"2021-07-14T11:48:16","slug":"541","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/541\/","title":{"rendered":"INCOME TAX ACT UPDATE ON NOV 17, 2015"},"content":{"rendered":"

INCOME TAX ACT UPDATE ON NOV 17, 2015<\/strong><\/span><\/p>\n

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

SECTION 9<\/strong><\/span><\/p>\n

INCOME \u2013 DEEMED TO ACCRUE OR ARISE IN INDIA<\/span><\/p>\n

Liaison Office of foreign MNC established in India for sourcing goods for exports to its overseas customers as per their requirements will not be treated as PE under the DTAA merely because it engages in activities necessary for purchase such as identifying a competent manufacturer, negotiating a competitive price, helping in choosing material to be used, ensuring compliance with quality of the material and getting material tested to ensure quality. Nor will the LO lose tax exemption under Explanation 1(b) to section 9(1)(i) which is available to non-residents purchasing goods in India for the purposes of export –\u00a0[2015]\u00a0 240 (Karnataka)<\/a><\/p>\n

SECTION 32<\/strong><\/span><\/p>\n

DEPRECIATION \u2013 UNABSORBED DEPRECIATION<\/span><\/p>\n

Where once amount realized by assessee by sale of building, plant and machinery was treated as income arising out of profits and gains from business by virtue of sub-section (2) of section 41 notwithstanding fact that assessee was not carrying on any business during relevant assessment year, provision contained in sub-section (2) of section 32 would become applicable and, consequently, set-off had to be given for unabsorbed depreciation allowances of previous year brought forward in terms of said provision –\u00a0[2015]\u00a0 239 (Karnataka)<\/a><\/p>\n

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

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

Reassessment :\u00a0No reassessment due to TDS default on royalty payment if its details were available at assessment stage –\u00a0[2015]\u00a0 16 (Calcutta)<\/a><\/p>\n

SECTION 69A<\/strong><\/span><\/p>\n

UNEXPLAINED MONEYS<\/span><\/p>\n

Jewellery :\u00a0In terms of section 69A, assessee would be treated in possession of jewellery, from date of opening of locker, i.e., when jewellery was found and seized by revenue, and would be added to his income accordingly –[2015]\u00a0 51 (Bombay)<\/a><\/p>\n

SECTION 80-IB<\/strong><\/span><\/p>\n

DEDUCTIONS – PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTRUCTURE DEVELOPMENT UNDERTAKINGS<\/span><\/p>\n

Housing Project :\u00a0Where certain amount was received for booking flat in house project developed by assessee and assessee did not have any other business activity during year under consideration, Assessing Officer was not justified in holding that said amount was income from other sources and deduction was to be allowed under section 80-IB(10) on said sum –\u00a0[2015]\u00a0 132 (Ahmedabad – Trib.)<\/a><\/p>\n

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

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

Comparables and adjustment\/Adjustment-Reimbursement :\u00a0Where assessee was not incurring any expenditure in respect of services claimed to be received from AE, assessee’s claim that it was outsourcing services was acceptable and no transfer pricing adjustment was called for –\u00a0[2015]\u00a0 57 (Jaipur – Trib.)<\/a><\/p>\n

SECTION 158BD<\/strong><\/span><\/p>\n

BLOCK ASSESSMENT IN SEARCH CASES – UNDISCLOSED INCOME OF ANY OTHER PERSON<\/span><\/p>\n

Period of limitation :\u00a0Where assessee, was issued with notice under section 158BD in respect of assessment of other persons, in a year after completion of assessment, notice could not be held to be a valid notice as same was to be issued immediately.<\/p>\n

SECTION 164<\/strong><\/span><\/p>\n

TRUST\/TRUSTEES – CHARGE OF TAX WHERE SHARES OF BENEFICIARIES UNKNOWN<\/span><\/p>\n

Others :\u00a0Where assessee-trust claimed that pursuant to provisions of sections 61 to 63 income earned by it had been included in returns of income of beneficiaries of trust and offered to tax directly by them and, therefore, effective income taxable in its hands was to be considered as nil, Assessing Officer was wrong in concluding that assessee and beneficiaries constituted an association of persons and assessing assessee as an association of persons –\u00a0[2015]\u00a0 86 (Bangalore – Trib.)<\/a><\/p>\n

SECTION 195<\/strong><\/span><\/p>\n

DEDUCTION OF TAX AT SOURCE – PAYMENT TO NON-RESIDENT<\/span><\/p>\n

Advertisement charges :\u00a0Advertisement payment made to resident company is covered under section 194C and not section 195C –\u00a0[2015]\u00a0 57 (Jaipur – Trib.)<\/a><\/p>\n

SECTION 269SS<\/strong><\/span><\/p>\n

DEPOSITS – MODE OF TAKING\/ACCEPTING<\/span><\/p>\n

Illustrations :\u00a0Where assessee accepted and repaid loan exceeding Rs. 20,000 in cash from\/to money lender repeatedly, even when transaction took place in a major city and offered no explanation regarding urgency or compulsion, levy of penalty was in consonance with law –\u00a0[2015]\u00a0 72 (Madras)<\/a><\/p>\n

SECTION 271(1)(c)<\/strong><\/span><\/p>\n

PENALTY – FOR CONCEALMENT OF INCOME<\/p>\n

Disallowance of claim, effect of :\u00a0Where assessee furnished all information relating to increase in share capital in regular proceedings, levy of concealment penalty was unjustified –\u00a0[2015]\u00a0 122 (Delhi – Trib.)<\/a><\/p>\n

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

SECTION 111<\/strong><\/span><\/p>\n

TRANSFER OF SHARES – POWER TO REFUSE REGISTRATION AND APPEAL AGAINST REFUSAL<\/span><\/p>\n

Where respondent group had furnished succession certificate as well as transfer deed executed in their favour, they were clearly entitled to have rectification made by getting shares registered in their favour –\u00a0[2015]\u00a0 241 (SC)<\/a><\/p>\n

SECTION 446<\/strong><\/span><\/p>\n

WINDING UP – SUITS STAYED ON WINDING UP ORDER<\/span><\/p>\n

Where allegations of cheating and fraud had been levelled against partners of company, regarding which FIR had been registered in Delhi, Delhi Court had summoned accused and Magistrate at Delhi had taken cognizance of matter, petitioners could not have approached a different High Court for quashing of complaint –\u00a0[2015]\u00a0 127 (Punjab & Haryana)<\/a><\/p>\n

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

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

PROHIBITION OF AGREEMENTS – ANTI-COMPETITIVE AGREEMENTS<\/span><\/p>\n

Where appellant alleged that respondent No. 1 along with two other bidders had indulged in cartelization and was guilty of bid rigging, however, he did not produce any document to prima facie prove that all three entities were owned by one person or same family, Commission rightly observed that no case for ordering an investigation into allegations contained in complaint was made out –\u00a0[2015]\u00a0 54 (CAT – New Delhi)<\/a><\/p>\n

SECTION 53B<\/strong><\/span><\/p>\n

APPELLATE TRIBUNAL – APPEAL TO<\/span><\/p>\n

Where no reasonable explanation had been given by appellant for condoning delay in filing appeal, there was absolutely no justification for exercise of power by Tribunal under proviso to section 53B(2) –\u00a0[2015]\u00a0 54 (CAT – New Delhi)<\/a><\/p>\n

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

SECTION 86<\/strong><\/span><\/p>\n

APPEALS – BY DEPARTMENT ON REVIEW OF ORDERS – APPELLATE TRIBUNAL<\/span><\/p>\n

Tribunal cannot examine validity of review order, beyond factum as to whether or not a decision has been taken by a Committee of Commissioners\/Chief Commissioners to institute appeal; if decision has been taken, Tribunal cannot examine why and how was said decision taken, as such a review is an administrative act –\u00a0[2015]\u00a0 118 (Delhi)<\/a><\/p>\n

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

SECTION 2(f)<\/strong><\/span><\/p>\n

MANUFACTURE – GENERAL MEANING<\/span><\/p>\n

Mere cutting of lengthy conveyor belt into smaller sizes would not amount to manufacture; more so, as revenue failed to show that as a result of said cutting, it was transformed into a new product which was a marketable product –\u00a0[2015]\u00a0 119 (SC)<\/a><\/p>\n

SECTION 11A<\/strong><\/span><\/p>\n

RECOVERY – OF DUTY OR TAX NOT LEVIED\/PAID OR SHORT-LEVIED\/PAID OR ERRONEOUSLY REFUNDED<\/span><\/p>\n

Scope of Show-cause notice :\u00a0Merely because fraudulent availment of exemption\/bond is of great magnitude and is admitted does not mean that recovery can be made at any time; recovery can be made within 5 years from relevant date and there is no provision to consider ‘date of knowledge of department’ as relevant date –[2015]\u00a0 121 (Bombay)<\/a><\/p>\n

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

SECTION 28<\/strong><\/span><\/p>\n

RECOVERY – OF DUTY OR TAX NOT LEVIED\/PAID OR SHORT-LEVIED\/PAID OR ERRONEOUSLY REFUNDED<\/span><\/p>\n

Scope of Show-cause Notice :\u00a0Mere passing reference to a section in show-cause notice, without any supporting omissions or commissions by assessee supporting invocation of said section, cannot validate demand under said section –\u00a0[2015]\u00a0 47 (Madras)<\/a><\/p>\n

CST & VAT<\/span><\/strong><\/span><\/p>\n

SECTION 17 OF THE WEST BENGAL SALES TAX ACT, 1994<\/strong><\/span><\/p>\n

CLASSIFICATION OF GOODS<\/span><\/p>\n

Hexidine and Hexigel :\u00a0Products ‘Hexidine’ and ‘Hexigel’ were drugs and medicines falling under Entry No. 24(iv) of Part A of Schedule IV of West Bengal Sales Tax Act, 1994 –\u00a0[2015]\u00a0 45 (WBTT)<\/a><\/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\u00a0endeavors. For query or help, contact:info@caindelhiindia.com<\/a>\u00a0or call at\u00a0011-23343333<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

INCOME TAX ACT UPDATE ON NOV 17, 2015 INCOME TAX ACT SECTION 9 INCOME \u2013 DEEMED TO ACCRUE OR ARISE IN INDIA Liaison Office of foreign MNC established in India for sourcing goods for exports to its overseas customers as per their requirements will not be treated as PE under the DTAA merely because it …<\/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":[647,144,142,146,844],"tags":[567,568,569,571,570,572,179,180,214,181,194],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/541"}],"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=541"}],"version-history":[{"count":11,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/541\/revisions"}],"predecessor-version":[{"id":1223,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/541\/revisions\/1223"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}