Daily Archives: August 19, 2015

Section 44BB Payments to Non Resident by ONGC

 Q : Whether the amounts paid by the ONGC to the non-resident assessees/foreign companies for providing various services in connection with prospecting, extraction or production of mineral oil is chargeable to tax as “fees for technical services” under Section 44D read with Explanation 2 to Section 9(1)(vii) of the Income Tax Act or will such payments… Read More »

Assessee couldn’t demand notice for increasing penalty when

Assessee couldn’t demand notice for increasing penalty when when he didn’t appear in proceedings Q Assessee did not appear before tribunal despite notice of revenue appeal . Can he claim that Tribunal should have issued another notice prior to enhancement of penalty ? Where assessee did not appear before Tribunal despite notice of revenue’s appeal, assessee cannot… Read More »

No personal penalty on directors

personal penalty on directors Q : Whether penalty can be imposed on directors, when issue involved is one of interpretation of law and there is no loss to the revenue ? Personal penalty under rule 26(1) of Central Excise Rules, 2002 cannot be imposed on directors, when issue involved is one of interpretation of law and entire situation… Read More »

Service of Order to kitchen boy

Q : Whether daily wage earner can be an authorised agent of assessee ? Whether the service of order to the daily wage earner is valid ? Daily wager Kitchen boy cannot be said to be an authorised agent of assessee; hence, service of adjudication order on him is not a valid service as per… Read More »

High Court power to review its own judgment

High Court power to review its own judgment Q: Whether  High Court has inherent power to review its own judgment ? OR Q  Whether  only those provisions of the Civil Procedure Code could be looked into for the purposes of Section 260A as were relevant to the disposal of appeals, and since the review provision contained… Read More »

Cancellation of Registration certificate in the case of Bogus purchases

  Q: Can the Registration certificate be cancelled in the case of Bogus purchases ? Gujarat VAT – Where Assessing Authority cancelled registration certificates of assessee on ground that alleged purchases made by it from two dealers were bogus and not genuine and even assessee had indulged into billing activities only, registration certificates had been… Read More »

Compounding fee is penalty hence Disallowed

Q; Whether Compounding fee is penalty and therefore not allowed as business expenditure ? Compounding fee paid by assessee, a land developer to Municipal Corporation on account of deviations from original sanctioned plan was in nature of penalty and therefore would not be allowable as deduction in view of provisions of Explanation to section 37(1) IN… Read More »

Ttransfer under Section 2(47)(v)

There can be no “transfer” u/s 2(47)(v) of the Act read with sec 53A of the Transfer Of Property Act,1882 under an unregistered agreement in view of sub-section (1A) of section 17 of the Registration Act,1908 .Also, there is no transfer under the said provisions if possession is delivered to developer in his capacity as… Read More »

Private Companies can pay Managerial Remuneration without any ceiling

Q: whether Private Companies can pay Managerial Remuneration without any ceiling as Section 197 of the Companies Act 2013 is silent regarding the same. Answer: Yes, any amount can be paid to the MD/WTD without central government approval pursuant to the exemption notification and/or subject to compliance with the conditions prescribed therein pursuant to the… Read More »