{"id":675,"date":"2015-12-09T11:51:44","date_gmt":"2015-12-09T11:51:44","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=675"},"modified":"2021-07-14T12:01:35","modified_gmt":"2021-07-14T12:01:35","slug":"corporate-and-professional-update-december-9-2015","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-december-9-2015\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATES ON DECEMBER 9, 2015"},"content":{"rendered":"

CORPORATE AND PROFESSIONAL UPDATE ON DECEMBER 9, 2015<\/strong><\/span><\/h2>\n
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1. INCO<\/span>ME TAX ACT<\/span><\/span><\/span><\/strong><\/span><\/p>\n

    \n
  • SECTION 9<\/span><\/strong><\/span><\/em><\/li>\n<\/ul>\n

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

    Interest:\u00a0<\/strong>Interest on refund of tax is not covered by definition of ‘interest’ mentioned under article 12(4) of India-Italy DTAA, and, therefore, Assessing Officer is justified in imposing TDS at higher rate while granting such interest to assessee.<\/p>\n

      \n
    • SECTION<\/span> 14A<\/span><\/strong><\/span><\/li>\n<\/ul>\n

      EXPENDITURE INCURRED IN RELATION TO INCOME NOT TO BE INCLUDED IN TOTAL INCOME<\/strong><\/span><\/p>\n

      Interest :\u00a0<\/strong>SLP granted against High Court’s order wherein it was held that since their was no tangible material that could have enabled Assessing Officer to record his satisfaction in terms of section 14A, disallowance made by it by holding that interest bearing funds had been used to earn tax free dividend etc., was unjustified.<\/p>\n

        \n
      • SECTION 37(1<\/span>)<\/span><\/strong><\/span><\/li>\n<\/ul>\n

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

        Reassessment :\u00a0<\/strong>Where Assessing Officer reopened assessment on ground that assessee was allowed deduction for provisions towards an unascertained liability which was not allowable, in absence of any information that assessee had unjustifiably suppressed relevant information, reopening was unjustified.<\/p>\n

          \n
        • SECTI<\/span>ON 54F<\/span><\/strong><\/span><\/li>\n<\/ul>\n

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

          Purchase of property :\u00a0<\/strong>Where assessee had purchased new asset within two years from date of transfer of original asset section 54F(4) requiring assessee to deposit amount within prescribed time would not be attracted and assessee would be entitled to benefit under section 54F.<\/p>\n

            \n
          • SECTION 69A<\/span><\/strong><\/span><\/li>\n<\/ul>\n

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

            Cognizance of impounded documents :\u00a0<\/strong>Where High Court had already disapproved account and assessment order of hospital, same could not have been taken cognizance by Tribunal when matter was remanded to Tribunal for deciding issue of unexplained money paid to assessee-doctor by said hospital.<\/p>\n

              \n
            • SECTION<\/span><\/strong> 92C<\/span><\/strong><\/span><\/li>\n<\/ul>\n

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

              Comparables and adjustments\/Adjustments – Sales Commission :\u00a0<\/strong>While determining ALP of international transaction T.P.O. should not question necessity to pay sales commission for getting export orders particularly when assessee had produced agreement according to which commission was paid to its AE and there was increase in export sales during year.<\/p>\n

              Comparables and adjustments\/Comparables \u2013 Illustrations :\u00a0<\/strong>A company owning significant intangibles cannot be compared to a low risk captive service provider who does not own any such intangible.<\/p>\n

                \n
              • S<\/span>ECTION<\/span> 14<\/span>3<\/span><\/strong><\/span><\/li>\n<\/ul>\n

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

                Prima facie adjustment :\u00a0<\/strong>Where petitioner-wife of deceased filed return as legal heir and paid tax on amount of compensation, received by deceased under land acquisition scheme merely because son who was authorised to receive said amount of compensation paid tax again on said amount under VDIS, no refund could be claimed by petitioner.<\/p>\n

                  \n
                • SECTION 245D<\/span><\/strong><\/span><\/li>\n<\/ul>\n

                  SETTLEMENT COMMISSION – PROCEDURE ON APPLICATION UNDER SECTION 245C<\/strong><\/span><\/p>\n

                  Commissioner’s report :\u00a0<\/strong>Where before Settlement Commission, assessee declared undisclosed income and sought adjustment of additional tax against refund due from revenue, merely because Commissioner recorded wrongly that no refund was due to assessee, settlement proceeding could not be discontinued.<\/p>\n

                  2.<\/span> RTI ACT<\/span><\/span><\/strong><\/p>\n

                    \n
                  • SECTION 8<\/span><\/strong><\/span><\/li>\n<\/ul>\n

                    EXEMPTION FROM DISCLOSURE OF INFORMATION<\/strong><\/span><\/p>\n

                    Where petitioner filed application under RTI Act demanding copies of Income-tax returns of five private parties, information demanded was personal information and was clearly exempted information under section 8(1)(j) and in disclosing same, there was no element of public interest to be sub-served.<\/p>\n

                    3. SERVI<\/span>CE TAX<\/span><\/span><\/span><\/strong><\/span><\/p>\n

                      \n
                    • SECTION 65(31)<\/span><\/strong><\/span><\/li>\n<\/ul>\n

                      TAXABLE SERVICES – CONSULTING ENGINEER’S SERVICES<\/strong><\/span><\/p>\n

                      Environmental studies being: (a) Environmental Biotechnology, (b) Environmental Impact Assessment, (c) Environmental Monitoring, (d) Environmental Policy Analysis and (e) Hazardous Waste Management, being in nature of scientific consultancy, are outside scope of consulting engineer.<\/p>\n

                        \n
                      • SECTION 67<\/span><\/strong><\/span><\/li>\n<\/ul>\n

                        VALUATION OF TAXABLE SERVICES<\/strong><\/span><\/p>\n

                        Where ‘handling charges’ incurred in connection with procurement of goods were included in value of goods sold and sales tax\/VAT liability was discharged, service tax would not be levied<\/p>\n

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

                          \n
                        • SECTION 11A<\/span><\/strong><\/span><\/li>\n<\/ul>\n

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

                          Clandestine manufacture and sale of Gutkha could not be quantified on basis of purchase and consumption of tobacco without ascertaining moisture content in raw tobacco and there being no evidence to show excess consumption of other raw material to be used in manufacture of Gutkha.<\/p>\n

                            \n
                          • SECTION 11AA<\/span><\/strong><\/span><\/li>\n<\/ul>\n

                            INTEREST – ON DELAYED PAYMENT OF DUTY\/TAX<\/strong><\/span><\/p>\n

                            Interest under section 11AA is payable even in cases where duty is paid belatedly, though voluntarily prior to issuance of notice<\/p>\n

                            5. CUSTO<\/span>MS ACT<\/span><\/span><\/span><\/strong><\/p>\n

                              \n
                            • SECTION 129E<\/span><\/strong><\/span><\/li>\n<\/ul>\n

                              APPEALS – DEPOSIT OF CERTAIN PERCENTAGE OF DUTY\/TAX DEMANDED OR PENALTY IMPOSED BEFORE FILING APPEAL<\/strong><\/span><\/p>\n

                              As per second proviso to customs section 129E (excise section 35F), mandatory 7.5 per cent 10 per cent pre-deposit would not apply to appeals\/applications pending on 6-8-2014; therefore, in other words, mandatory 7.5 per cent 10 per cent pre-deposit would apply to appeals filed on or after 6-8-2014.<\/p>\n

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

                                \n
                              • SECTION 3 OF CENTRAL SALES TAX ACT, 1956<\/span><\/strong><\/li>\n<\/ul>\n

                                INTER-STATE SALE<\/strong><\/span><\/p>\n

                                Where assessee carrying on business in Tamil Nadu placed an order with a federation situated in Maharashtra for supply of specific number of goods and thereupon federation confirmed order of assessee and moved goods from Maharashtra to a godown in Tamil Nadu, which was in joint custody of assessee and federation, and thereafter federation delivered goods to assessee after receipt of payment, sale of goods in question was an inter-State sale<\/p>\n

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

                                  \n
                                • DIRECT<\/span> TAX LAWS<\/span><\/strong><\/span><\/li>\n<\/ul>\n

                                  Section 90 of the Income-tax Act, 1961<\/strong> <\/em>\u2013 Double Taxation Agreement<\/strong><\/span>\u00a0<\/strong>\u2013 Agreement for avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries \u2013 Thailand –\u00a0NOTIFICATION NO.88\/2015 [F.NO.503\/5\/2005-FTD-II], DATED 1-12-2015\u00a0<\/em><\/span><\/p>\n

                                  Section 197A of the Income-tax Act, 1961 \u2013 Deduction of Tax at Source \u2013 Non-Deduction in certain cases<\/strong><\/span> – Simplification of procedure for Form No.15G & 15H – NOTIFICATION NO.4\/2015 [F.NO:DGIT(S)\/CPC(TDS)\/DCIT\/15H\/2015-16\/14425-556, DATED 1-12-2015 <\/em><\/p>\n

                                  Section 200 of the Income-tax Act, 1961 \u2013 Deduction of tax at source<\/strong><\/span> \u2013 Duty of person deducting tax Stringent Authentication Mechanism through Corporate head quarter server for filing of correction statements & download of TDS certificate, consolidated files etc. by Banks\/Corporates –\u00a0NOTIFICATION NO.3\/2015 [F.NO:DGIT(S)\/CPC(TDS)\/CORP\u00a0AUTHENTICATION MECH\/2015-16\/14557-14690], DATED 1-12-2015.<\/em><\/p>\n

                                    \n
                                  • CORPORATE LAWS<\/span><\/strong><\/span><\/li>\n<\/ul>\n

                                    1.<\/strong> Discussion paper on exit offer to dissenting Shareholders –\u00a0PRESS RELEASE, dated \u00a01-12- \u00a0 \u00a0 2015.<\/em><\/p>\n

                                    2.<\/strong> Discussion paper on review of framework for Public Issuance of Convertible Securities \u00a0 \u00a0 \u00a0 \u00a0 \u00a0–\u00a0PRESS RELEASE, \u00a0dated 1-12-2015.<\/em><\/p>\n

                                    3.<\/strong> Introduction of System-Driven Disclosures In Securities Market –\u00a0CIRCULAR \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0NO.CFD\/DCR\/17\/2015, dated<\/em> 1-12-2015.<\/p>\n

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

                                      1. Odisha Value Added Tax (Amendment) Act, 2015<\/strong> \u2013 Amendment in Sections 9, 10, 11, 16, 20, 25, 27, 31, 32, 33, 39, 41, 42, 43, 50, 54, 57, 58, 59, 65 & 77;<\/p>\n

                                      2.<\/strong> Omission of Section 30 and Insertion of Section 42A <\/strong>–\u00a0<\/strong>NOTIFICATION NO.9848-I-LEGIS 5\/2015-L, dated<\/em>\u00a024-9-2015; and\u00a0<\/i><\/p>\n

                                      3.<\/strong> Section 1 of the Odisha Value Added Tax (Amendment) Act, 2015 \u2013 Act \u2013 Enforcement of \u2013 Notified Date on which said Act shall come into force – NOTIFICATION NO.28080-FIN-CT1-TAX-0017-2013, dated\u00a019-10-2015<\/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

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

                                      CORPORATE AND PROFESSIONAL UPDATE ON DECEMBER 9, 2015 1. INCOME TAX ACT SECTION 9 INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA Interest:\u00a0Interest on refund of tax is not covered by definition of ‘interest’ mentioned under article 12(4) of India-Italy DTAA, and, therefore, Assessing Officer is justified in imposing TDS at higher rate while …<\/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],"tags":[502,501,569,179,180,561,214,181,194,541,562,560,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/675"}],"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=675"}],"version-history":[{"count":9,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/675\/revisions"}],"predecessor-version":[{"id":3139,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/675\/revisions\/3139"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}