Daily Archives: October 23, 2015

Section 271(1)(c) Case Laws

By | October 23, 2015

Section 271(1)(c): Whether penalty for concealment justified in case of bonafide/inadvertent/human error ? Held-No Price Waterhouse Coopers Pvt. Ltd vs. CIT (Supreme Court Civil Appeal no. 6924 of 2012) “Para 18. The fact that the Tax Audit Report was filed along with the return and that it unequivocally stated that the provision for payment was not allowable under Section… Read More »

Section 147 Case Laws

By | October 23, 2015

Section 147 – Whether Reopening can be done pursuant to judgment of Supreme Court ? Held-No Dy.Commissioner of Income Tax &Ors. Vs. M/s. Simplex Concrete Piles (India) Limited (Supreme Court)( Civil Appeal no. 2329 of 2006) “The subsequent reversal of the legal position by the judgment of the Supreme Court does not authorise the Department to re-open… Read More »

Section 40a(ia) Case laws

By | October 23, 2015

Section 40a(ia): Applicability in case of capitalization of expenses ? Held- Not applicable Income Tax Officer vs. M/s Hariom Organizers Pvt. Ltd (ITAT Ahmedabad Bench ITA no. 1496/Ahd/2009) Where an expenditure has been capitalized and tds is not deducted thereon u/s40a(ia) the same is not disallowable. Section 40a(ia)- Whether Depreciation is to be disallowed on expenses capitalized on… Read More »

Loss due to confiscation of Stock due to over invoicing

By | October 23, 2015

Loss due to confiscation of Stock by Custom authorities for over-invoicing whether allowable ? Held-No Section 37 of the Income Tax Act Commissioner of Income Tax –I Ludhiana vs. Ambassador Industrial Corporation (Punjab & Haryana High Court)(ITA no. 199 of 2007) Where the goods were confiscated due to over invoicing to claim excess DEPB/Export benefits and for such… Read More »

Expenditure on corporate membership of Club is Revenue exp

By | October 23, 2015

Section 37- Expenditure on corporate membership of Club- Whether capital or revenue ? Held- Revenue CIT vs. Groz Beckert Asia Ltd. (Punjab & Haryana High Court – Full bench)(ITA No. 366 of 2008) Expenditure on corporate membership of club is revenue expenditure The assessee obtained corporate membership of the Golf Club on payment of Rs.6 lakhs. The AO disallowed… Read More »

Section 2(22)(e) Deemed dividend Case Laws

By | October 23, 2015

Section 2(22)(e)-Whether deemed dividend is attracted in case of common shareholders ? Held – No CIT vs Gopal Clothing Company Pvt Ltd.(Delhi High Court)(ITA 333/2006 ) Merely because the shareholders are common between the borrowing and lending company, the amount received are not taxable as dividend if the receiver company didn’t have the requisite shareholding. Following its… Read More »

Investments in Market Infrastructure Companies by State/Central Cooperative Banks

By | October 23, 2015

RBI/2015-16/209 DCBR.CO.RCBD.BC.No. 5/19.51.026/2015-16 October 21, 2015 The Chief Executive Officer All State/Central Cooperative Banks Madam/Dear Sir, Investments in Market Infrastructure Companies by State/Central Cooperative Banks Please refer to our circulars RPCD CO RF BC 65/07.02.03/2003-04 dated February 23, 2004 and RPCD CO RF BC 26/07.02.03/2005-06 dated August 04, 2005 in terms of which guidelines were… Read More »

RBI Master Direction on Gold Monetisation Scheme 2015

By | October 23, 2015

RBI/2015-16/211 Master Direction No.DBR.IBD.No.45/23.67.003/2015-16 October 22, 2015 Gold Monetisation Scheme, 2015 In exercise of the powers conferred on the Reserve Bank of India (RBI) under Section 35 A of the Banking Regulation Act, 1949 and in pursuance of the Central Government notification issued vide Office Memorandum F.No.20/6/2015-FT dated September 15, 2015 regarding “ Gold Monetisation… Read More »

RBI issued Gold Monetisation Scheme norms

By | October 23, 2015

The Reserve Bank of India today issued a Direction to all Scheduled Commercial Banks (excluding Regional Rural Banks) on implementation of the Gold Monetisation Scheme, 2015 notified by the Central Government. The Scheme The GMS will replace the existing Gold Deposit Scheme, 1999. However, the deposits outstanding under the Gold Deposit Scheme will be allowed… Read More »

Assessment of dead person cannot continue against legal representatives in the absence of machinery provisions

By | October 23, 2015

Applicable Sections ;– Section 11A, read with sections 4, 11 and 33A of the Central Excise Act, 1944, sections 73 and 87 of the Finance Act, 1994 and sections 28 and 142 of the Customs Act, 1962 Issue : On death of sole proprietor, department issued notice alleging clandestine removal to sole proprietor’s wife/daughters .… Read More »

No Service Tax on Bank Deposit opened under Pradhan Mantri Jan Dhan Yojana

By | October 23, 2015

Government exempts the services provided by a business facilitator or a business correspondent to a banking company with respect to Basic Savings Bank Deposit Accounts covered by Pradhan Mantri Jan Dhan Yojana (PMJDY) from Service Tax. In order to promote financial inclusion, the Government has exempted services provided by a business facilitator or a business… Read More »

Manufacturer of tractor not comparable with harvester combine

By | October 23, 2015

A manufacturer of tractor cannot be considered as comparable with manufacturer of harvester combine, simply because both machines fall in overall category of ‘Agricultural equipments’ IN THE ITAT DELHI BENCH ‘I’ Deputy Commissioner of Income-tax, Circle- 3 (1), New Delhi v. Claas India (P.) Ltd. R.S. SYAL, ACCOUNTANT MEMBER AND A.T. VARKEY, JUDICIAL MEMBER IT… Read More »