{"id":725,"date":"2015-12-19T10:35:06","date_gmt":"2015-12-19T10:35:06","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=725"},"modified":"2021-07-14T12:31:53","modified_gmt":"2021-07-14T12:31:53","slug":"corporate-professional-update-december-15-2015","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-professional-update-december-15-2015\/","title":{"rendered":"CORPORATE & PROFESSIONAL UPDATE DECEMBER 15, 2015"},"content":{"rendered":"

CORPORATE & PROFESSIONAL UPDATE DECEMBER 15, 2015<\/strong><\/span><\/h2>\n
\"www.caindelhiindia.com;<\/a>
www.caindelhiindia.com; corporate updates<\/figcaption><\/figure>\n

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

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

INCOME – ACCRUAL OF<\/strong><\/p>\n

Income :\u00a0<\/strong>Where interest income from security accrued in terms of books of account maintained by assessee, but same was offered to tax on actual receipt, and Tribunal passed detailed order in favour of assessee in earlier year, which it followed in current assessment year also, exercise undertaken by tribunal could not be termed as perverse –\u00a0[2015] 63 166 (Bombay)<\/em><\/p>\n

SECTION 14A<\/strong><\/span><\/p>\n

EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME<\/strong><\/p>\n

Interest of :\u00a0<\/strong>Where assessee invested its own funds in shares resulting in earning of dividend income exempt from tax, impugned disallowance made by Assessing Officer by invoking provisions of section 14A, read with Rule 8D was not sustainable –\u00a0[2015] 63 198 (Panaji \u2013 Trib.)<\/em><\/p>\n

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

DEPRECIATION – ALLOWANCE\/RATE OF<\/strong><\/p>\n

100 per cent depreciation :\u00a0<\/strong>Electrically operated vehicles including battery power or fuel cell powered vehicles are entitled to 100 per cent depreciation under Appendix I, Part-A, Item III(3)(xiii)(o) of Income-tax Rules, 1962 –[2015] 63 176 (Calcutta)<\/em><\/p>\n

SECTION 43A<\/strong><\/span><\/p>\n

FOREIGN CURRENCY, RATE OF EXCHANGE, CHANGE IN<\/strong><\/p>\n

Depreciation :\u00a0<\/strong>Expenditure incurred to get rid of forward contracts which assessee had entered into for purpose of protecting itself from fluctuations of foreign exchange, could not come within four corners of section 43A –[2015] 63 .com 176 (Calcutta)<\/em><\/p>\n

SECTION 44BBA<\/strong><\/span><\/p>\n

NON-RESIDENTS – BUSINESS OF OPERATION OF AIR CRAFT IN CASE OF<\/strong><\/p>\n

Applicability of :\u00a0<\/strong>When there is no taxable income, section 44BBA cannot be applied to bring to tax presumptive income constituting 5 per cent of gross receipts –\u00a0[2015] 64 93 (Delhi)<\/em><\/p>\n

SECTION 45<\/strong><\/span><\/p>\n

CAPITAL GAINS \u2013 CHARGEABLE AS<\/strong><\/p>\n

The question of bringing to tax under Section 45 (5) (b) of the Act the enhanced compensation received by the Assessee during the relevant previous year by furnishing bank guarantee will have to await the final decision in the appellate proceedings emanating from the order of the ADJ in the proceedings under Section 31 (2) LA Act. Question of assessing to tax the interest received by the assessee on enhanced compensation in the same year in which the enhanced compensation is received will also have to await the final decision in the appellate proceedings. –\u00a0[2015] 64 122 (Delhi)<\/em><\/p>\n

SECTION 80QQB<\/strong><\/span><\/p>\n

DEDUCTIONS – ROYALTY INCOMES, ETC. OF AUTHORS OF CERTAIN BOOKS OTHER THAN TEXT BOOKS<\/strong><\/p>\n

Where assessee had authored a book on income tax problems in question answer form which was titled “How to Handle Income-tax problems”, since his book was on a complex issue which really needed intellect and knowledge, said book was a literary work in terms of section 80QQB; and, hence, royalty received on same would be entitled to deduction –\u00a0[2015] 64 121 (Kolkata \u2013 Trib.)<\/em><\/p>\n

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

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE<\/strong><\/p>\n

Selling expenses incurred for making sales are distinct from AMP expenses and, hence, should not be included in base amount for computing ALP of AMP expenses –\u00a0[2015] 64 120 (Delhi – Trib.)<\/em><\/p>\n

Comparables and adjustments\/Methods \u2013 PSM :\u00a0<\/strong>When transactions involved contributions of multiple entities and are integrated and interrelated and they cannot be separately evaluated for purpose of determining ALP of any one transaction, ‘PSM’ is ‘MAM’ –\u00a0[2015] 63 304 (Delhi \u2013 Trib.)<\/em><\/p>\n

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

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

Amount received from partners :\u00a0<\/strong>Where assessee received deposits from partners and sister concerns in cash, since there was no material whatsoever to infer that those receipts were anything other than loans or deposits, impugned penalty order passed under section 271D for violating provisions of section 269SS, was to be confirmed –\u00a0[2015] 63 196 (Kerala)<\/em><\/p>\n

SECTION 271D<\/span><\/strong><\/p>\n

PENALTY – FOR FAILURE TO COMPLY WITH SECTION 269SS<\/strong><\/p>\n

Initiation of penalty proceedings :\u00a0<\/strong>Penalty proceedings under provisions of sections 271D and 271E are initiated not by Assessing Officer but only with issuance of notice by Joint Commissioner –\u00a0[2015] 63 196 (Kerala)<\/em><\/p>\n

SECTION 271E<\/strong><\/span><\/p>\n

PENALTY – FOR FAILURE TO COMPLY WITH SECTION 269T<\/strong><\/p>\n

Recording of satisfaction :\u00a0<\/strong>Where pursuant to directions issued by Commissioner (Appeals), Assessing Officer passed a fresh assessment order wherein no satisfaction was recorded for initiating penalty proceedings under section 271E, impugned penalty order passed under said section deserved to be set aside –\u00a0[2015] 64 .75 (SC)<\/em><\/p>\n

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

SECTION 457<\/strong><\/span><\/p>\n

WINDING UP – POWERS OF LIQUIDATOR<\/strong><\/p>\n

Any claim with regard to Provident Fund dues can only lie before Commissioner, Provident Fund, under relevant statute, consequently, whilst other claims for any unpaid wages etc. may well be admitted by Official Liquidator, however, any claims raised directly to Official Liquiation for payment of Provident Fund dues would be an exercise in futility since it is bound to be rejected on ground that company was never obliged to pay workmen any such amounts in first place –\u00a0[2015] 64 123 (Delhi)<\/em><\/p>\n

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

SECTION 4<\/strong><\/span><\/p>\n

PROHIBITION OF ABUSE OF DOMINANCE POSITION<\/strong><\/p>\n

Where before participating in e-auctions, it is was duty of potential bidders to satisfy themselves about quality of coal being offered from a source; bidders not having done that could not now complain that conditions of spot e-auction scheme framed by Coal India Limited were arbitrary and unfair, no contravention of section 4 was made out –\u00a0[2015] 64 74 (CCI)<\/em><\/p>\n

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

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

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

Assessee was public sector undertaking, manufacturing iron and steel products. It paid excise duty on clearance of goods and differential duty due to price escalation. Department demanded interest on late payment of differential duty. Apex Court observed that when goods were cleared, there was no certainty of price escalation. It was difficult to accept that price was understated on date of removal of goods. Hence, the larger bench should be constituted to decide the impugned issue –\u00a0[2015] 64 118 (SC)<\/em><\/p>\n

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

SECTION 25<\/strong><\/span><\/p>\n

EXEMPTIONS – CUSTOMS – BASE TRANSRECEIVER STATION (BTS)<\/strong><\/p>\n

‘Antenna and installation cable\/mini-link’ are inseparable parts of Base Transreceiver Station (BTS); hence, antenna etc. imported along with BTS would be classified as BTS and would be eligible for concessional rate of duty applicable to BTS –\u00a0[2015] 64 8 (SC)<\/em><\/p>\n

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

SECTION 2(34) OF KARNATAKA VALUE ADDED TAX ACT, 2003<\/strong><\/span><\/p>\n

TAXABLE TURNOVER – ALLOWABLE DEDUCTIONS<\/strong><\/p>\n

Where assessee claimed deduction in respect of discount given to purchasing dealer in form of credit note subsequent to issuance of tax invoice and Assessing Authority disallowed claim of deduction, assessee was entitled to give further discount even after sale had been completed, provided it was trade discount or pursuant to any contract –\u00a0[2015] 64 94 (Karnataka)<\/em><\/p>\n

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

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

CENVAT CREDIT \u2013 GENERAL<\/strong><\/p>\n

Inputs and capital goods used in Research and Development (R&D) and Quality Control Laboratory for purpose of testing of inputs and testing of samples of final products, etc., are eligible for cenvat credit –\u00a0[2015] 63 318 (Ahmedabad \u2013 CESTAT<\/em><\/p>\n

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

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

Section 80C of the Income-tax Act, 1961 \u2013 Deduction \u2013 In respect of Insurance Premium, etc. – Notified Scheme under section 80C(2)(xiv) –\u00a0NOTIFICATION NO.91\/2015 [F.NO.178\/21\/2014-ITA.I], DATED 8-12-2015<\/em><\/p>\n

Mineral (Mining by Government Company) Rules, 2015 –\u00a0NOTIFICATION NO. GSR 927(E) [F.NO.1\/13\/2015-M.VI], DATED 3-12-2015<\/em><\/p>\n

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

Outsourcing by Depositories –\u00a0CIRCULAR NO.MRD\/DP\/19\/2015, DATED 9-12-2015<\/em><\/p>\n

Review of Annual Custody\/Issuer Charges –\u00a0CIRCULAR NO.MRD\/DP\/18\/2015, DATED 9-12-2015<\/em><\/p>\n

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

Minutes of Tariff Conference held in Chandigarh on 28-10-2015 and 29-10-2015 –\u00a0LETTER F.NO.96\/85\/2015-CX.I, DATED 7-12-2015<\/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\u00a0endeavors. For query or help, contact:\u00a0info@caindelhiindia.com<\/a>\u00a0or call at\u00a0011-23343333.<\/p>\n

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CORPORATE & PROFESSIONAL UPDATE DECEMBER 15, 2015 INCOME TAX ACT SECTION 5 INCOME – ACCRUAL OF Income :\u00a0Where interest income from security accrued in terms of books of account maintained by assessee, but same was offered to tax on actual receipt, and Tribunal passed detailed order in favour of assessee in earlier year, which 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":[647,144,142,146,81],"tags":[502,501,569,572,179,180,561,214,181,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/725"}],"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=725"}],"version-history":[{"count":7,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/725\/revisions"}],"predecessor-version":[{"id":3119,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/725\/revisions\/3119"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}