Monthly Archives: August 2015

Refund claim of service recipient can not be withheld

Refund claim of service recipient can not be withheld due to non furnishing of NOC from service provider Q  Can the Refund claim of service recipient be withheld due to non-furnishing of NOC from service provider ? Facts of the Case :  Appellant, a buyer of flat, made security deposit with builder on 10-12-2007 towards contingent… Read More »

Ease of Doing Business in India by CBEC

Ease of Doing Business in India by CBEC (Central Board of  Excise and Custom) Ease of Doing Business In line with the objectives to facilitate trade and improve ease of doing business, the following measures have been taken by CBEC during last one year: SERVICE TAX • Reduction in number of levies: Education Cess and… Read More »

No interest payable on delayed refund of fine or penalty

Q : Assessee paid duty, fine and penalty under protest . On assessee becoming entitled to refund thereof, Tribunal directed Commissioner to pay interest at 12 per cent on “amount of refund .Whether interest on delayed refunds is payable on duty  only or on fine and penalty also ? Interest on delayed refunds would be payable to… Read More »

damages deducted will form part of taxable value

Q Whether damages deducted by service recipients from amount payable to service providers will form part of taxable value ? Deductions made by service recipient from amount payable to service providers towards damages payable by service providers for damages caused to properties of service recipients, will form part of value of taxable value As per… Read More »

Tower rent taxable as income from House Property

Tower rent taxable as income from House Property Q :Whether  licence fee received for giving space for mounting tower and antenna on the terrace/ roof is taxable under the head Income from house property or business income ? Section 22 of the Income-tax Act, 1961 The fact remains that the use of the terrace floor has been… Read More »

No Search in the name of Bank account

Search in the name of Bank account Q : Does the search warrant issued in the name of account No.5905 of M/s. Budhiya Marketing Pvt. Ltd is valid ? The provision of section 153(1)(a) talks of issue of notice to a person in which the search has been initiated and requires the same person to… Read More »

Section 194C payments to newspaper publishers

Q :  Whether there should be contractual relationship for applying section 194C ? Or A : When payments to newpapers publisher are made  as an agent of customer whether provisions of Section 194C for deduction of TDS will apply ? Facts of the case Briefly stated, the assessee is carrying on the business of marriage… Read More »

SEBI Guidance note on Insider Trading

Guidance Note on SEBI (Prohibition of Insider Trading) Regulations, 2015 [August 24th, 2015] SEBI (Prohibition of Insider Trading) Regulations, 2015 (“the Regulations”) were notified vide notification dated 15th January, 2015. The regulations came into effect from May 15th, 2015. Subsequently SEBI received certain queries from the market participants seeking guidance on the interpretation of some… Read More »

Delay of one day in filing Income tax return

Delay of one day in filing Income tax return Q; Whether delay in filing return of one day should be condoned by CBDT u/s 119(2) ? Section 139, read with sections 119 and 239, of the Income-tax Act, 1961 Subject  Condonation of delay in filing return Return of income Assessment year 2006-07  Petitioner assessee filed… Read More »

Premium received by society on transfer of plot Not Taxable

Premium received by society on transfer of plot Q :Whether premium collected by Society collected on transfer of plots is a capital Receipt and hence not taxable ? Section 4 of the Income-tax Act, 1961  Subject: Whether Income on Transfer of plots is Capital reciept or revenue reciept Assessment year 1986-87 Facts of the case : Assessee co-operative… Read More »

Custom Duty Free Allowance to Rs.45000

Notification No.76/2015 CBEC has made Custom Duty Free Allowance to Rs.45000 for passengers of Indian origin and foreigners of over 10 year of age residing in India.  Duty free limit of Indian Currency that can be brought in India has been increased from Rs.10000 to 25000 in FORM 1. [To be published in the Gazette… Read More »

No recovery during pendency of adjudication

No recovery during pendency of adjudication Q ; Whether recovery can be made if the adjudication proceedings are pending ? Service Tax : During pendency of adjudication proceedings, only provisional attachment under section 73C (service tax) can be made; recovery under section 87 would apply only after adjudication order is passed under section 73 Section 87,… Read More »

Payment banks Questions and Answers

How payment banks will affect our life ? On August 19, 2015 the RBI had granted in principle approval to 11 entities for establishment of payment banks, which include established ones like Reliance Industries, Aditya Birla, Tech Mahindra, Airtel and Vodafone. The ‘in-principle’ approval shall be valid for a period of 18 months during which… Read More »

Packaging of fertilizer not liable to service tax

Packaging of fertilizer not liable to service tax Q : Whether Packaging of fertilizer is liable to service-tax ? Since fertiliser cannot be marketed without packaging, packaging of fertiliser as per Fertiliser (Control) Order, 1985 would be an integral part of manufacture and, therefore, it would not be taxable under Packaging Activity Services CESTAT, MUMBAI BENCH New… Read More »

COMPANIES INDIAN ACCOUNTING STANDARDS RULES 2015

COMPANIES INDIAN ACCOUNTING STANDARDS RULES 2015 COMPANIES (INDIAN ACCOUNTING STANDARDS) RULES, 2015 NOTIFICATION [F.NO.01/01/2009/CL-V(PART)], DATED 16-2-2015 In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with the… Read More »

Ind AS 2 (Indian Accounting Standard )

COMPANIES (INDIAN ACCOUNTING STANDARDS) RULES, 2015 NOTIFICATION [F.NO.01/01/2009/CL-V(PART)], DATED 16-2-2015 They shall come into force on the 1st day of April, 2015 Indian Accounting Standard (Ind AS 2) Inventories (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles.)… Read More »

Oral partition of property not justified

Q; Can the Assessee claim that there was oral partition of Property and hence capital gains should be apportioned among the members ? Assessee filed his return of income declaring certain capital gains apportioned amongst himself and his three sons stating that there was an oral partition  Assessing Officer completed assessment accepting income declared by… Read More »

When Income declared after search was not undisclosed

Income declared after search was not undisclosed if covered by advance tax and TDS Q;  Assessee declared certain income in belated return  after date of search. Whether such income can be treated as undisclosed ? Section 158B(b), read with section 139, of the Income-tax Act, 1961 Subject :Income declared in belated return in Block assessment in search… Read More »

scientific Research expenditure can not be deferred

scientific Research expenditure can not be deferred Q  Whether  scientific Research expenditure can be deferred and claimed as deferred revenue expenditure over the succeeding years? There is no provision under section 35 which provides for allowance of deferred research expenses u/s 35 expenditure Facts of the Case Section 35 of the Income-tax Act, 1961 Issue… Read More »

Tax on income of NRI in India

Tax on income of NRI in India Q:When will the Non Resident Indian be required to file the income Tax return in India? In the Following cases an NRIs income would be considered as ‘earned’ in India and included in the tax return in India. * You have accounts or deposits in India. Any returns in… Read More »

Gift of Property to Spouse and Section 54F

Gift of Property to Spouse and Section 54F Q Whether gift of house to husband prior to date of transfer of original capital asset (other than any residential house) cannot be disregarded for purpose of reckoning assessee’s eligibility for deduction under section 54F even if assessee along with her husband continue to reside in same… Read More »

CENVAT credit on Capital Goods when depreciation on duty element reversed in revised ITR

CENVAT credit on Capital Goods when depreciation on duty element reversed in revised ITR Q: Whether CENVAT credit on Capital Goods will be allowed if depreciation claimed on duty element has been reversed in the revised  income tax return ? Where depreciation was originally claimed on duty paid on capital goods  but, later revised return… Read More »

Delay in filing appeal against auction

Q: When will  Delay in filing appeal against auction be condoned? SARFAESI : Where respondent-bank had neither published an auction notice in newspaper in respect of auction of property of which petitioner was joint owner nor had bank served a personal notice on petitioner in respect of same, there was no occasion for petitioner to… Read More »

Interest on loan from Debtor disallowed

Q : When will Interest on loan from Debtor disallowed? Where assessee-company received loan of certain sum from its holding company, ‘F’ and claimed interest on said loan, since ‘F’ was a debtor of assessee-company of more than double amount of loan, allowance of deduction was amount to diversion of income of assessee-company; interest paid… Read More »