Daily Archives: August 19, 2015

Section 44BB Payments to Non Resident by ONGC

By | August 19, 2015

 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

By | August 19, 2015

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 »

Cancellation of Registration certificate in the case of Bogus purchases

By | August 19, 2015

  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 »

section 138 dishonour of cheque

By | August 19, 2015

Q Whether Cheque issued against supply of material can be stopped for payment  without proving that goods supplied were  of inferior quality ? Negotiable Instruments Act : Where accused failed to prove that goods supplied by complainant were of inferior quality, accused was guilty of commission of offence under section 138 on dishonour of cheque issued… Read More »

Compounding fee is penalty hence Disallowed

By | August 19, 2015

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 »

No penalty section 271(1)(c) if Complete disclosure of facts

By | August 19, 2015

Question : Can the penalty be levied in  section 271(1)(c) if the Assessee has disclosed all the facts ? Where there was complete disclosure of facts by assessee that an amount of Rs. 1.11 crore, which was received on account of a project not being fructified, was credited to partner’s capital account and assessee’s claim was… Read More »

Private Companies can pay Managerial Remuneration without any ceiling

By | August 19, 2015

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 »