Monthly Archives: October 2015

Compulsory acquisition under Section194LA does not include land acquired under agreement

Whether acquisition of land under an agreement by Karnataka Industrial Area Development Board (a state Government Undertaking) with landowners under the Karnataka Industrial Areas Development Act, 1966 (‘KIA Act’) would be deemed as compulsory acquisition within the meaning of Section 194LA?” Held Section 194LA applies only when there is a compulsory acquisition under law. Under… Read More »

No Search proceddings under Section 153C due to seizure of CA Hard disk containing Income tax return data of Client

HIGH COURT OF DELHI Commissioner of Income-tax.-7 v. RRJ Securities Ltd. DR. S.MURALIDHAR AND VIBHU BAKHRU, JJ. IT APPEAL NOS. 164,175,176 & 177 OF 2015 OCTOBER  30, 2015 N.P. Sahni Senior Standing Counsel and Nitin Gulati Junior Standing Counsel for the Appellant. Kapil Goyal and V.M. Chaurasia for the Respondent. JUDGMENT Vibhu Bakhru, J –… Read More »

Stock market Glossary

Account closure (depositor account) The closure of beneficiary and pool accounts by the investor and the clearing member or at the discretion of the participant, if the client has defaulted in its obligations towards the participant. Accounts Payable A current liability showing the amounts due to others within a period of one year when such… Read More »

FAQ’s on delisting of Equity Shares

FREQUENTLY ASKED QUESTIONS ON SEBI (DELISITING OF EQUITY SHARES) REGULATIONS, 2009 These FAQs offer only a simplistic explanation/clarification of terms/concepts related to the SEBI (Delisting of Equity Shares) Regulations, 2009 [“Delisting Regulations, 2009”]. Any such explanation/clarification that is provided herein should not be regarded as an interpretation of law nor be treated as a binding… Read More »

FAQ on Issue of Capital and Disclosure Requirements

 FREQUENTLY ASKED QUESTIONs SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2013 dated August 26, 2013 Q.1.What is the applicability of SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2013 notified on August 26, 2013? Ans.1.The said amendments are applicable for the preferential issuances where notice for the general meeting for… Read More »

AO could not issue reassessment Notice if he did not have jurisdiction over assessee

Assessment year 2010-11 Facts of the case: One of income-tax officers was designated to collect AIR information and to make necessary enqury .Designated officer having received information from AIR, issued notice under section 148 to assessee . He also made an attempt to frame assessment over assessee .When assessee raised objection about his jurisdiction over… Read More »

Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013

Auditing and Assurance Standards Board Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013 The Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has today issued the Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013. For the benefit of… Read More »

Packaged,readymade, off the shelf software are liable only to VAT

 High Court of Karnataka Finance Department of Karnataka Department vs IBM India Private Limited, STRP No. 215/2011  18th September 2015, Following aspects in respect of sale and development of customized software has been held with regard to their taxability: 1.The packaged, readymade, off the shelf software are pure goods liable only to VAT. 2. The… Read More »

Framework for Revitalising Distressed Assets in the Economy

Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalising Distressed Assets in the Economy – Review of the Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP) RBI/2015-16/214 DNBR.CC.PD.No. 070/03.10.01/2015-16 October 29, 2015 To All Non-Banking Financial Companies (NBFCs) Madam/ Sir, Early Recognition of Financial… Read More »

Short Selling allowed by RBI between CSGL account holder (custodian) and its gilt account holder (GAH)

RBI/2015-16/217 FMRD.DIRD.5/14.03.007/2015-16 October 29, 2015 All market participants Dear Sir/Madam Secondary Market Transactions in Government Securities – Short Selling This has reference to circular IDMD.No.03/11.01.01(B)/2005-06 dated February 28, 2006, as updated vide circulars IDMD.No/11.01.01(B)/2006-07 dated January 31, 2007, IDMD.DOD.No.3165 /11.01.01(B)/ 2007-08 dated January 1, 2008, IDMD.PCD.14/14.03.07/2011-12 dated December 28, 2011, IDMD.PCD.21 /14.03.07/2011-12 dated June 21,… Read More »

Change in name on account of marriage or otherwise

Amendment to Prevention of Money Laundering (Maintenance of Records) Rules, 2005 – Submitting ‘Officially Valid Documents’ – Change in name on account of marriage or otherwise RBI/2015-16/213 DBR. AML.BC. No. 46/14.01.001/2015-16 October 29, 2015 The Chairpersons/ CEOs of all Scheduled Commercial Banks/ Regional Rural Banks/ Local Area Banks/ All India Financial Institutions/ all NBFCs/ All… Read More »

FAQ on Options on USD INR Spot Rate

What are Currency Options? Currency Options are contracts that grant the buyer of the option the right, but not the obligation, to buy or sell underlying currency at a specified exchange rate during a specified period of time. For this right, the buyer pays premium to the seller of the option. What is the need… Read More »

FAQ on Equity and Currency Derivatives

 Q1 What are Derivatives? The term “Derivative” indicates that it has no independent value, i.e. its value is entirely “derived” from the value of the underlying asset. The underlying asset can be securities, commodities, bullion, currency, live stock or anything else. In other words, Derivative means a forward, future, option or any other hybrid contract… Read More »

Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA NOTIFICATION Hyderabad, the 19th October, 2015 Insurance Regulatory Development Authority of India (Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) Regulations, 2015 F.No.IRDAI/Reg/17/107/2015.—In exercise of the powers conferred by Section 3 read with 114A of the Insurance Act, 1938, and sections 14 read with… Read More »

Acquisition of Surrender and Paid Up Values under Life Insurance Policies

INSURANCE REGULATORY AND DEVELOPMENT  AUTHORITY OF INDIA NOTIFICATION Hyderabad, the 16th September, 2015 Insurance Regulatory and Development Authority of India (Acquisition of Surrender and Paid Up Values) Regulations, 2015 F. No. IRDAI/Reg/15/105/2015.—In exercise of the powers conferred under Section 114 (A) of the Insurance Act, 1938 read with Section 26 of Insurance Regulatory and Development… Read More »

Target Plus Scheme to reduce benefit to exporter retrospectively Ulta virus : supreme Court

Notification No. 48/2005 dated February 20, 2006 and Notification No. 8/2006 dated June 12, 2006 amending ‘Target Plus Scheme’ under EXIM Policy/Foreign Trade Policy 2004-2009 to restrict/reduce benefit to exporter retrospectively from 1-4-2005 were ultra vires, as already accrued benefit cannot be taken away by retrospective amendment; therefore, the said notifications were read down to… Read More »

Flipkart not Dealer under Kerala VAT Act : HC

Flipkart  is merely facilitating sales, purchase and delivery of goods, it can’t be considered as dealer of goods under Kerala VAT Act HIGH COURT OF KERALA Flipkart Internet (P.) Ltd. v. State of Kerala A.K. JAYASANKARAN NAMBIAR, J. W.P. (C) NOS. 5348 AND 6916 OF 2015 OCTOBER  20, 2015 Joseph Vellappally, V. Abraham Markos, Binu… Read More »



Home Department to take action against erring investigating Officers for prosecuting innocent person: Supreme Court

Supreme Court of India  State of Gujarat v. Kishanbhai Etc.  [Criminal Appeal No. 1485 of 2008], 7th January, 2014 The Court held that “every acquittal should ordinarily lead to the inference,that an innocent person was wrongfully prosecuted” and it is “therefore, essential that every State should put in place a procedural mechanism, which would ensure… Read More »

How to read Offer Document ?

Guide to understand an Offer Document This sub section attempts to inform the structure of presentation of the content in an offer document. The basic objective is to help the reader to navigate through the content of an offer document. (a) Cover Page Under this head full contact details of the Issuer Company, lead managers… Read More »

Understanding Book Building

Understanding Book Building (SEBI FAQ) (a) What is book Building? Book building is a process of price discovery. The issuer discloses a price band or floor price before opening of the issue of the securities offered. On the basis of the demands received at various price levels within the price band specified by the issuer,… Read More »

Applicability of provisions of Section 45 of Insurance Act in various scenarios

To all the Life Insurers Ref:IRDA/Life/GDL/MISC/186/10/2015      Date:28-10-2015 Applicability of provisions of Section 45 of Insurance Act 1938 in various scenarios After amendment to Section 45 of Insurance Act 1938 , we have been receiving queries from the Life Insurers with regard to the application of new provisions in various scenarios that can arise… Read More »

Point of Sales Person for Soliciting and marketing insurance policies : IRDA Guidlines

GUIDELINES ON POINT OF SALES PERSON CIRCULAR NO. IRDA/INT/GDL/ORD/183/10/2015, DATED 26-10-2015 The Authority has observed that there are number of persons who are involved in undertaking simple and routine activities pertaining to solicitation and marketing of insurance policies. For e.g. bulk of products in motor insurance, travel insurance, personal accident insurance, etc. require very little… Read More »

e Sahyog pilot project of the Income-tax Department

Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes PRESS RELEASE New Delhi, 27th October, 2015 Subject:Finance Minister launches the“ e Sahyog ” pilot project of the Income-tax Department. The Income-tax Department is committed to the ‘Digital India’ initiative of the Government of India.The Finance Minister today launched an “ e… Read More »

Extension of last date of filing of AOC 4, AOC 4 XBRL and MGT 7

General Circular N o.14/2075 F.01/34/2073-CL.V No. Government of India Ministry of Corporate Affairs **** 5th Floor, A wing, Shastri Bhawan Dr. Rajendra Prasad Road, New Delhi Dated: 28th October, 2015 To All Regional Directors, All Registrar of Companies, All stakeholders Subiect: Relaxation of,additional fees and extension of last date of liling of AOC 4,  … Read More »

GOV.IN domain registration guidelines

F. No.L-13/14/2014-IGD Department of Electronics and Information Technology Internet Governance Division 6, CGO Complex, Electronics Niketan, New Delhi – 110003. Dated: 06-04-2015 Subject: Guidelines for allocation of registration under GOV.IN domain. Ref: Office Order vide No. 7(3)/04-CC&BT dated zo” November, 2004 Background: Department of Electronics and Information Technology (hereby referred to as the “Department”) on zo”… Read More »

Cenvat Credit not allowed if on amount of Service charges recovered from employees

No cenvat credit should be allowed on amount attributable to service charges which was collected from its employees CESTAT, MUMBAI BENCH Castrol India Ltd. v. Commissioner of Central Excise, Raigad RAMESH NAIR, JUDICIAL MEMBER ORDER NO. A/1529/2015/SMB APPEAL NO. E/86150/2013-MUM. JUNE  15, 2015 Haren M. Gandhi, Manager Indirect Taxes for the Appellant. Ashutosh Nath, Asstt.… Read More »

Apprentice is a trainee and not an employee : Supreme court

Supreme Court of India CIVIL APPELLATE JURISDICTION New India Assurance Company Limited v Abhilash Jewellery CIVIL APPEAL NO(s). 7972 OF 2002 [III (2009) CPJ 2 (SC)] Date of Decision: 22.01.2009 Issue :- The complainant/respondent, who had taken a jeweller’s block policy, lodged a claim with the opposite party insurer for loss of gold ornaments. The… Read More »

How Share certificate is to be signed

 Companies (Share Capital and Debentures) Second Amendment Rules, 2015. – Provision specifying the manner in which share certificate are required to be signed modified vide Notification F. No. 1/31/2013-CL-V-Part – Dated: May 29, 2015 –Kindly provide the new procedure under this section . Yes, Rule 5(3) of the Companies (Share Capital & Debentures) Rules, 2015… Read More »

5 Guidance Notes Withdrawn by ICAI

The Institute of Chartered Accountants of India has decided to withdraw 5 Guidance Notes on different accounting aspects. The list of the Guidance notes which have been withdraws are as follows:-   1. Guidance Note on Accounting for Depreciation in Companies   2. Guidance Note on Treatment of Reserve Created on Revaluation of Fixed Assets… Read More »

Additional amount Paid to Purchaser on cancellation of Flat is not interest under section 2(28A) hence No TDS

On cancellation of booking of apartment if excess refund is made to old purchaser after taking advance from new purchaser, such excess payment could not be qualified to be interest as defined under section 2(28A); The amount refunded to the purchasers represents the consideration the purchasers paid towards the undivided shares in the property agreed… Read More »