{"id":550,"date":"2015-11-21T15:03:02","date_gmt":"2015-11-21T15:03:02","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=550"},"modified":"2021-07-14T12:11:51","modified_gmt":"2021-07-14T12:11:51","slug":"550","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/550\/","title":{"rendered":"TAX UPDATES ON 20TH NOVEMBER 2015"},"content":{"rendered":"

* TAX\u00a0UPDATES ON 20TH NOVEMBER 2015<\/span><\/strong><\/span><\/p>\n

INCOME\u00a0TAX\u00a0ACT<\/strong><\/span><\/p>\n

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

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

Interest :\u00a0Where assessee issued FCCB to foreign investors and remitted interest to them, since said money was utilized for overseas business of assessee, no income could be said to have accrued or arisen in India in hands of non-resident investors and, therefore, no TDS was deductible –\u00a0[2015] 63(Ahmedabad – Trib.)<\/p>\n

Section 143 of the Income-tax\u00a0Act, 1961 \u2013 Assessment \u2013 General \u2013 Constitution of Local Committees to deal with taxpayers grievances from High-Pitched Scrutiny Assessment<\/p>\n

SECTION 28(i)<\/strong><\/span><\/p>\n

BUSINESS INCOME – CHARGEABLE AS<\/strong><\/span><\/p>\n

Business income v. Other sources :\u00a0Interest income of finance co. not taxable as other sources of income if it was held as business income in earlier yrs –\u00a0[2015] 63 (Mumbai – Trib.)<\/p>\n

SECTION 37(1)<\/strong><\/span><\/p>\n

BUSINESS EXPENDITURE – ALLOWABILITY OF<\/strong><\/span><\/p>\n

Buy back of shares :\u00a0Where in terms of directions issued by CLB, assessee-company paid certain amount over and above face value of shares to departing group of shareholders, amount so paid was to be allowed as revenue expenditure –\u00a0[2015].1(Bombay)<\/span><\/p>\n

SECTION 115JA<\/strong><\/span><\/p>\n

MINIMUM ALTERNATE\u00a0TAX<\/strong><\/span><\/p>\n

Reassessment :\u00a0Retro amendment in section 115JA can’t be deemed as reasons to believe that income has escaped assessment –\u00a0[2015] (Bombay)<\/p>\n

SECTION 145<\/strong><\/span><\/p>\n

METHOD OF ACCOUNTING – REJECTION OF ACCOUNTS<\/strong><\/span><\/p>\n

Other :\u00a0Where Commissioner (Appeals) without considering contention of assessee that rejection of account books was not proper decided issue in ad hoc manner, matter required to be sent back to Commissioner (Appeals) to decide as to whether rejection of account book was proper or not and then to decide issue afresh -[2015]\u00a08 (Lucknow – Trib.)<\/p>\n

SECTION 268A<\/strong><\/span><\/p>\n

FILING OF APPEAL OR APPLICATION FOR REFERENCE BY INCOME-TAX\u00a0AUTHORITY<\/strong><\/span><\/p>\n

Instruction No. 3 of 2011 :\u00a0Instruction No. 3 of 2011, dated 9-2-2011 providing monetary limit should not be applied by High Court ipso facto, particularly when matter had a cascading effect –\u00a0[2015] (SC)<\/p>\n

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

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

Disallowance of claim, effect of :\u00a0Imposition of penalty upon assessee under section 271(1)(c) on basis of ad hoc and estimated disallowance\/addition, without bringing any clinching material suggesting concealment of income or furnishing of inaccurate particulars of income, was not justified –\u00a0[2015] (Lucknow – Trib.)<\/p>\n

SERVICE\u00a0TAX<\/strong><\/span><\/p>\n

SECTION 65(27)<\/strong><\/span><\/p>\n

TAXABLE SERVICES – COMMERCIAL TRAINING OR COACHING SERVICES<\/strong><\/span><\/p>\n

Courses in : (i) Mass Communication, (ii) International Business Management, (iii) Telecom Management, (iv) Information Technology, (v) Management Studies, (vi) Geo-informatics and (vii) Operational Management are ‘vocational courses’ and exempt from service\u00a0tax\u00a0–\u00a0[2015]. (Mumbai – CESTAT)<\/p>\n

SECTION 65(91a)<\/strong><\/span><\/p>\n

RESIDENTIAL COMPLEX SERVICES<\/strong><\/span><\/p>\n

Where assessee-real estate company appointed sub-contractors for construction of residential complex for principal company which intended same for personal use of staff, and sub-contractors fulfilled all service\u00a0taxcompliances, assessee-contractor could not be liable to services\u00a0tax\u00a0–\u00a0[2015] (Bangalore – CESTAT)<\/p>\n

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

SECTION 12 OF THE TAMIL NADU VALUE ADDED\u00a0TAX\u00a0ACT, 2006<\/strong><\/span><\/p>\n

TAX\u00a0INCIDENCE AND LEVY – PURCHASE\u00a0TAX\u00a0– LEVY OF<\/strong><\/span><\/p>\n

Where assessee set up a unit in SEZ area in Tamil Nadu for trading and warehousing services for mobile phones, etc. and during year it purchased goods from another company located in same SEZ area and supplied them to its branches in other States by way of stock transfer, levy of purchase\u00a0tax\u00a0on inter-State stock transfer effected by assessee was justified –\u00a0[2015]. (Madras)<\/p>\n

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

RULE 6<\/strong><\/span><\/p>\n

CENVAT CREDIT – EXEMPTED AND DUTIABLE GOODS OR EXEMPTED AND TAXABLE SERVICES, OBLIGATION OF ASSESSEE<\/strong><\/span><\/p>\n

Semi-finished goods removed under job-work without payment of duty do not amount to “exempted final product” under Rule 6 of Cenvat Rules; hence, credit of capital goods exclusively used in such job-work cannot be denied. –\u00a0[2015]. 366 (Madras)<\/p>\n","protected":false},"excerpt":{"rendered":"

* TAX\u00a0UPDATES ON 20TH NOVEMBER 2015 INCOME\u00a0TAX\u00a0ACT SECTION 9 INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA Interest :\u00a0Where assessee issued FCCB to foreign investors and remitted interest to them, since said money was utilized for overseas business of assessee, no income could be said to have accrued or arisen in India in hands …<\/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":[98,647,95,142,146,91],"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\/550"}],"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=550"}],"version-history":[{"count":12,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/550\/revisions"}],"predecessor-version":[{"id":1294,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/550\/revisions\/1294"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}