Monthly Archives: September 2015

section 115JB Govt grant for modernization of machinery is liable to MAT

By | September 28, 2015

Whether while computing book profit under section 115JB, Central Government grant received by assessee for modernisation of machinery and compensation received from State Government for loss to its compound wall, could  be deducted from net profit computed as per Parts II and III of Schedule VI of Companies Act, 1956 ? The Assessing Officer has… Read More »

section 40(a)(ia) Payer not liable for TDS default due to retrospective amendments

By | September 28, 2015

Whether disallowance under section 40(a)(ia) should be made on the basis of subsequent amendment brought into the Act with retrospective effect.? Summary of Case on section 40(a)(ia) :- Where Assessing Officer on basis of amendments introduced in section 9(1)(vi) with retrospective effect held that assessee was liable to deduct tax at source from licence fee… Read More »

CBEC :Circulars contrary to Supreme Court judgment need not be followed

By | September 28, 2015

Q Whether Circulars contrary to Supreme Court judgment need to be followed? As per the following clarification Circulars contrary to Supreme Court judgment need not be followed CLARIFICATION REGARDING BINDING NATURE OF CIRCULAR AND INSTRUCTIONS CIRCULAR NO. 1006/13/2015-CX, DATED 21-9-2015 A large number of judgments have been delivered by the Hon’ble Supreme Court on various… Read More »

Gains from sale of shares out of investment portfolio are capital gain and not business profits

By | September 26, 2015

Whether Gains arising out of investments portfolio are business income or Capital Gain ? Where assessee company had maintained accounts with applicable accounting standards and revenue was unable to find fault with assessee’s claim, capital gains arising out of investments portfolio was to be taxable under head ‘Capital gain‘ and not as business income HIGH… Read More »

section 44BB service tax were to be excluded from gross receipts

By | September 26, 2015

Whether receipts  on account of service tax were to be included in the gross receipts for the purpose of determining income under section 44BB of the Income-tax Act, 1961 ? Service tax was to be excluded from gross receipts while determining income under section 44BB IN THE ITAT DELHI BENCH ‘G’ Sundowner Offshore International (Bermuda) Ltd. v.… Read More »

Proportionate interest is disallowable under Section 14A

By | September 26, 2015

Whether Proportionate interest is disallowable under Section 14A even if bank’s current deposits exceed tax-free investment ? Interest liable to be disallowed u/s 14A on proportionate basis even if assessee-bank’s current deposits exceed its investments yielding tax-free returns. Assessee-bank cannot escape disallowance of interest u/s 14A by taking the plea that its interest-free funds (own… Read More »

ICAI proposes to divide Ind AS 115 into two separate standards

By | September 26, 2015

ICAI proposes to divide Ind AS 115 into two separate standards     The Institute of Chartered Accountants of India (ICAI) proposes to divide Ind AS 115, “Revenue from Contracts with Customers” into two separate accounting standards, first is Ind AS 11, “Construction Contracts” and second is Ind AS 18, “Revenue”. National Advisory Committee on… Read More »