TaxGuru.in - Daily Tax and Corporate Law Update

Document on which PAN required to be quoted

admin — Mon, 13 Feb 2012 16:20:24 +0000

PAN should be quoted on all - Income-tax / TDS / TCS Returns, Correspondence with tax department, Tax challans, Correspondence, bills, vouchers and other documents which are send by deductee of tax to deductor, Documents pertaining to...

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Share loss to be first set-off to determine what Gross Total Income consists of under explanation to section 73

admin — Mon, 13 Feb 2012 13:57:38 +0000

CIT vs. Darshan Securities Pvt. Ltd (Bombay High Court)- During the assessment year, the assessee returned an Income of Rs.2,25,04,588 from service charges. The assessee had a loss of Rs.02,23,32,127 in share trading. The assessee had a dividend...

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Budget 2012 – Home Loan interest Exemption limit may be raised to Rs 3 lakh

admin — Mon, 13 Feb 2012 13:16:12 +0000

Government is contemplating to enhance income tax exemption for up to Rs 3 lakh paid as interest on housing loans in a year, from the existing limit of Rs 1.5 lakh. The Budget is scheduled to be tabled on March 16.

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Reopening Notice u/s 147 issued within Limitation Period but served after Limitation Period is valid

admin — Mon, 13 Feb 2012 13:05:09 +0000

Section 149 of the 1961 Act, which provides the period limitation, categorically provides that no notice under Section 148 shall be issued after the period prescribed has lapsed. Once a notice is issued within the period of limitation, jurisdiction...

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No Capital Gain on transfer of FSI credit by way of TDR if cost could not be ascertained

admin — Mon, 13 Feb 2012 10:55:19 +0000

ACIT vs. Ishverlal Manmohandas Kanakia (ITAT Mumbai) - The issue raised by the Assessee is that while computing capital gain cost of improvement should also be capable of being determined. The dispute in the case decided by Tribunal in the case of...

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Regarding time bound Customs clearance of Cargo from Ports/Land Customs Stations/Air Cargo Complexes, CFSs/ICDs

admin — Mon, 13 Feb 2012 04:01:43 +0000

Kind attention is invited to Board’s instructions issued from F.No. 450/82/95-Cus.IV,dated 7th July, 1997, Member (Customs)’s D.O. letter F.No. 450/82/99-Cus.IV, dated 2nd June, 2001 and Circular No.42/2001 dated 31st July, 2001 for time bound...

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Nil E-TDS Return, Nil Challan, When to file nil return

admin — Mon, 13 Feb 2012 04:01:41 +0000

What is a Nil Return? What is the position for an assessee who has not made any payment at all in a quarter? What to do If for a quarter TDS return / statement are not filed and then the assessee receives a letter / notice from NSDL/ Income Tax...

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ICAI empanelment of exam observers for May-June 2012 Exams

admin — Mon, 13 Feb 2012 04:00:27 +0000

The Institute intends to draw a Panel from amongst its Members for acting as Observer at the examination centres in various cities during the Chartered Accountants Examinations to be held from 2nd – 17th May, 2012 and the Common Proficiency Test...

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Inauguration of New Office Buildings in Durgapur and Kolkata by Finance Minister

admin — Mon, 13 Feb 2012 04:00:21 +0000

Inauguration of New Office Buildings ‘Aayakar Bhawan Annexe’, Durgapur and ‘Aayakar Bhawan Poorva’ Kolkata by Shri Pranab Mukherjee, Honorable Finance Minister, Govt. of India on 13.01.2012 and 14.01.2012. Shri Pranab Mukherjee, Honorable Finance...

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RBI raises Bank Rate as a Technical Adjustment

admin — Mon, 13 Feb 2012 03:55:52 +0000

The Reserve Bank of India has decided to change the Bank Rate with immediate effect by realigning it with the Marginal Standing Facility (MSF) rate, which in turn is linked to the policy repo rate under the Liquidity Adjustment Facility (LAF)....

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Jaydeep Shah elected as CA Institute President and Subodh Kumar Agrawal as Vice-President

admin — Mon, 13 Feb 2012 02:33:16 +0000

Mr Jaydeep Narendra Shah was elected as CA Institute President at a meeting of the central council of the institute in the capital today in place of Mr G. Ramaswamy, who demitted office today. CA Jaydeep Narendra Shah was Vice-President of the...

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Central Excise – Manner of payment of duty and Account Current

admin — Sun, 12 Feb 2012 15:36:41 +0000

Rule 8 of the said Rules provides that duty relating to removals during a month can be discharged within five days of the following month. In case of a manufacturer availing an exemption based on value of clearances during a financial year, the duty...

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Classification and Valuation under Central Excise Act and Rules

admin — Sun, 12 Feb 2012 15:18:32 +0000

Powers of the C.B.E.C. to issue orders of classification of goods, Value under the Central Excise Act, 1944, Transaction Value, Salient features of the new valuation rules, aluation of goods manufactured on lob-work basis, Clarification issued on...

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Assessment , Provisional assessment, Scrutiny of Assessment Under Central Excise Act and Rules

admin — Sun, 12 Feb 2012 14:16:35 +0000

The expressions 'assessment' and 'assessee' have been defined in the Central Excise Rules, 2002 (hereinafter referred to as the said Rules). 'Assessment' includes self-assessment of duty made by the assessee and provisional assessment under rule 7...

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Overseas subsidiary with single shareholder is a separate legal entity for tax purposes

admin — Sun, 12 Feb 2012 12:22:37 +0000

AIA Engineering Ltd v. Add CIT (ITAT Ahmedabad) - It was held that investment made by AIA Engineering Limited (AIA India or the assessee) in Vega Industries (Middle East) FZE (Vega UAE) shall not be treated as investment in a proprietary concern...

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No penalty for inadvertent reporting of income if assessee establish bonafide and innocence

admin — Sun, 12 Feb 2012 12:21:02 +0000

Thomas Garbarek Vs. DCIT (ITAT Pune) - ITAT held that penalty under section 271(1)(c) of the Act should not be leviable where the assessees have been able to establish their bonafide and innocence. A mere omission or negligence would not constitute...

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Procedure for Central Excise Registration and grant of Registration Certificate

admin — Sun, 12 Feb 2012 12:18:10 +0000

Legal Provisions, Persons Requiring Registration, Exemption from Registration, Important changes in the Registration procedure, changes in Format of Application for Registration, Components of 15 digit based Registration Number, Procedure for...

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Registration under Section 10(23C)(iv) cannot be denied on the ground of variation in administration expenses

admin — Sun, 12 Feb 2012 11:26:35 +0000

The Synodical Board of Health Services Vs DGIT (Delhi HC) - It was held that the principle of res judicata does not apply and for each period the question of grant of exemption has to be examined separately. The competent authority in the said case...

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Sharing of net revenues consistently in controlled and uncontrolled transactions held as a valid comparable uncontrolled price – ITAT Mumbai

admin — Sun, 12 Feb 2012 07:21:53 +0000

ACIT Vs. Agility Logistics Pvt. Ltd.(ITAT Mumbai) - ITAT held that the sharing of net revenues (i.e., amounts billed to customers less third party costs) in a 5o:5o ratio between the origin and destination companies in a consistent manner in...

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Time barred assessment is void ab-initio,no need to deposit 25% u/s 62(5) under PVAT Act, 2005

admin — Sun, 12 Feb 2012 07:01:05 +0000

Punjab VAT Tribunal is a very important case namely Baba Ji Rice Mills, vs. State of Punjab (2012) 41 PHT 197 (PVT) has held that once the case is hit by point of limitation,payment of 25% of the additional demand not essentially to be adjudicated....

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US based company engaged in the business of money transfer does not have a Permanent Establishment in India under the India-USA tax treaty

admin — Sun, 12 Feb 2012 06:37:44 +0000

DDIT v. Western Union Financial Services Inc (ITAT Delhi)- ITAT held that the taxpayer’s agents in India were independent agents under Article 5(5) of the India-USA tax treaty (tax treaty). Accordingly, there was no Dependent Agent Permanent...

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Interest on borrowings made for acquiring shares in Malaysian company alongwith controlling interest is allowable

admin — Sun, 12 Feb 2012 06:04:18 +0000

Ultramarine & Pigments Ltd. v/s ACIT (ITAT Mumbai) - The undisputed fact is that there are no fresh loans or investments during the year. The Hon'ble Jurisdictional High Court in K. Raheja Corporation Pvt. Ltd. (supra) laid down that when the...

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I-T department obtains instances of unreported transactions of over Rs 2,000 crore

admin — Sun, 12 Feb 2012 03:33:05 +0000

In a major crackdown, the Income Tax department has under its scanner more than 22 crore instances of High Value transactions in the country and abroad which include unreported credit card operations and deals in real estate. The department has...

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Service tax on Construction Services- CBEC Clarification

admin — Sun, 12 Feb 2012 03:00:08 +0000

Circular No. 151/2/2012-ST Many issues have been referred by the field formations, in the recent past, seeking clarification regarding the levy and collection of service tax on construction services [clauses (zzq),(zzzh) of section 65(105) of the...

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DVO opinion could not be regarded as information for the purpose of reopening an assessment U/s. 147

admin — Sat, 11 Feb 2012 11:54:10 +0000

ACIT vs Dhariya Construction Co. (Supreme Court) - The opinion of the DVO per se is not an information for the purposes of reopening assessment under section 147 of the Income-tax Act, 1961. The Assessing Officer has to apply his mind to the...

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Additional depreciation allowable qua industrial undertaking and not qua the whole business of the assessee.

admin — Sat, 11 Feb 2012 11:08:13 +0000

NRB Bearings Ltd Vs DCIT (ITAT Mumbai) -The Tax Payer was conducting manufacturing activities at four different locations across India. It had installed additional machinery to increase capacity at one of the locations i.e. the Aurangabad unit. The...

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HUF with only Female Members and HUF without Females

admin — Sat, 11 Feb 2012 09:30:55 +0000

A Hindu widow being the sole surviving member, cannot constitute a HUF. Gangamma Vs. Agl. ITO (1991) 188 ITR 1 (Ker.) After the Amendment in the Hindu Succession Act, in 2005, a Hindu Widow and her unmarried daughter can constitute a HUF, even when...

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Constitution of Regional Advisory Committee of Central Excise Mumbai Zone-I for Calendar Years 2012 & 2013

admin — Sat, 11 Feb 2012 04:34:41 +0000

OFFICE OF THE CHIEF COMMISSIONER OF CENTRAL EXCISE:MUMBAI ZONE – I CENTRAL EXCISE BUILDING, 115, M.K. ROAD, CHURCHGATE, MUMBAI-400 020. Email:dcccunit@rediffmail.com Fax No.022-22014170...

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Once tax has not been deducted and even if such tax has been paid by the deductee, Disallowance u/s.40[a][ia] can be made

admin — Sat, 11 Feb 2012 04:10:34 +0000

First of all, we will consider the second part of the submission i.e. since the person to whom the payment was made has already offered the same for taxation, hence provisions of sec.40(a)(ia) cannot be invoked. This is not correct. Because the...

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Power Delegation Under Section 64 of MVAT Act 2002 – DC (A and R)/VAT/PWR(INV)/2006/3/Adm-6 Dated 04/02/2012

admin — Sat, 11 Feb 2012 04:03:23 +0000

In exercise of the powers conferred by sub-section (6) of section 10 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005) and in supersession of the order No. DC (A & R)/ VAT/PWR(INV)/2006/3/Adm-6 dated 9th August 2011, the...

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Damage for unauthorized trademark use can be claimed only on submission of proof of damage

admin — Sat, 11 Feb 2012 04:02:57 +0000

In the 1st week of October, 2009, the petitioner came to know that the respondents have infringed its trademark by using the word ‘Arnimax’ on its products coupled with the trade dress and thereby has infringed the registered trademark and passed...

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Circumustances when Rs. 1,50,000 maximum interest deduction not available on Self Occupied property

admin — Sat, 11 Feb 2012 03:54:04 +0000

Rs. 1,50,000 maximum deduction will not be available in the following situations: i. if capital is borrowed before April 1, 1999 for purchase, construction, reconstruction, repairs or renewals of a house property; ii. if capital is borrowed on or...

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Income Tax department slaps Rs 1,137 cr additional tax notices on DLF

admin — Sat, 11 Feb 2012 03:51:42 +0000

DLF today said the Income Tax (I-T) department has slapped additional tax notices of Rs 1,137.23 crore on the company and its subsidiaries for the 2009-10 assessment year. The company said it has challenged these orders before the appellate...

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Clarification regarding Filing of conflicting ROC returns by contesting parties

admin — Sat, 11 Feb 2012 03:50:54 +0000

General Circular No. 1/2012 I am directed to invite a reference to Ministry’s circular No. 19 and 20 of 2011 issued on 02.05.2011 laying down certain procedure to regulate cases wherein filing of conflicting returns with regard to appointment of...

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Amount received towards issue of share cannot be considerd as revenue receipt

admin — Sat, 11 Feb 2012 02:51:41 +0000

DCIT Vs. Hooghly Dock & Port Engineers Ltd. (ITAT Kolkata) - The assessee is under the Ministry of Shipping, Govt. of India. Assessee’s business is in ship building, ship repairing and general engineering. The ld. A.O. made an addition of Rs. 2...

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Owning of Pan,filing of return, Payment through banking channel not a conclusive proof that, the gift is genuine

admin — Sat, 11 Feb 2012 02:44:07 +0000

Shri Pradeep Kumr O Bhala Vs. ITO (ITAT Mumbai) - The submission is considered and the decisions are perused. There is no denying fact that, the gift has come through banking channel, the donor has filed return showing taxable income, however, the...

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Amount which was never routed through or debited the profit & loss account could not be considered for the purpose of determination of book profits

admin — Sat, 11 Feb 2012 02:37:02 +0000

ITO Vs. United Estate P. Ltd. (SC) - The Hon'ble Supreme Court clearly observed in the case of National Hydroelectric Power Corporation Ltd. vs. CIT [supra] that for making an addition under clause (b) of Explanation 1 to sec.115JB two conditions...

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Autofill Online Direct Tax Payment Challans Through Excel Utility

admin — Fri, 10 Feb 2012 22:25:01 +0000

I was recently going through the website of Fast Facts Computer Systems Limited and noticed a very good utility developed by them. The utility is named by them as e-Payment Auto Filler . This utility is really useful. The utility is excel based....

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November 2011 Examination CA PCC, IPCC Toppers, Pass Percentage

admin — Fri, 10 Feb 2012 09:10:30 +0000

The results of the Chartered Accountants IPCC / PCC Examination held in November 2011 was declared recently. The details of percentage of candidates passed in the above said examinations and list of top three toppers are given below;

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For Calculating 90% of Commission, Brokerage etc under Expl (baa) to section 80HHC netting of income from expenditure is allowed

admin — Fri, 10 Feb 2012 06:50:55 +0000

ACG Associated Capsules Pvt. Ltd vs. CIT (Supreme Court) - Memorandum explaining the clauses of the Finance Bill, 1991 contained in the circular dated 19.12.1991 of the Central Board of Direct Taxes to come to the conclusion that the Parliament...

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For Promotion and Choice Posting achievement of revenue collection target to have highest weightage – CBDT

admin — Fri, 10 Feb 2012 06:28:14 +0000

Among the parameters of performance in your area, achievement of revenue collection target will obviously be given the highest weightage while writing your APAR by reporting officers and reviewing officers and will also be a major factor while...

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Section 143(3) assessment order without AO’s signature is Void – ITAT Mumbai

admin — Fri, 10 Feb 2012 05:59:19 +0000

Vijay Corporation Vs. ITO (ITAT Mumbai) - Provisions of Sec. 143(3) of the Act contemplates that the AO shall pass an order of assessment in writing. The requirement of signature of the AO is therefore a legal requirement. The omission to sign the...

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Carrying of Original ID Proof to be Compulsory During Train Journey in all Air Conditioned Classes

admin — Fri, 10 Feb 2012 04:05:08 +0000

In a move to prevent misuse of Reserved Train Tickets and reduce cases of travelling on transferred tickets, Ministry of Railways has decided that with effect from 15th February 2012, anyone of the passengers/the passenger booked on the ticket...

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Revised / New procedure for activation of TAN account

admin — Fri, 10 Feb 2012 03:55:20 +0000

Steps to Register TAN- Register your TAN online at TIN website. For registration of TAN, click here. Submit the application online. On successful registration of TAN, a 12 digit alpha numeric registration number will be generated.

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Montek not in favour of referring legislative Bills to ‘expert groups’

admin — Fri, 10 Feb 2012 03:52:11 +0000

Terming as landmark the process adopted for finalising the Direct Taxes Code (DTC), Plan Panel Deputy Chairman Montek Singh Ahluwalia said he is not in favour of referring legislative Bills to 'expert groups'.

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Bangalore Metro to float tax-free bonds to raise Rs 2,000 crore

admin — Fri, 10 Feb 2012 03:49:16 +0000

The Bangalore Metro Corporation (BMRC) will issue a tax free Metro Bond to raise Rs 2,000 crore for the first phase of the project. The bond, pending with the Union Finance Ministry at present for clearance, is expected to hit the market in a few...

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Sebi enhances minimum investment amount in Portfolio Management Scheme to Rs 25 lakh

admin — Fri, 10 Feb 2012 03:40:43 +0000

With a view to keeping retail investors away from the portfolio management schemes (PMS), Sebi on Friday raised the minimum investment amount of clients for such schemes to Rs 25 lakh from the earlier Rs 5 lakh. PMS offers investors a range of...

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CASB releases Exposure Draft of CAS – 2 (Revised 2012)- Invites Comment

admin — Fri, 10 Feb 2012 03:35:36 +0000

Cost Accounting Standards Board, the standard-setting body of the Institute, has approved the release of Exposure Draft of Revised Cost Accounting Standard - 2 on Capacity Determination (CAS - 2). The proposed standard may be modified in light of...

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Income Tax Exemption Limit to be raised to Rs 3 lakh – Parliamentary Committee

admin — Fri, 10 Feb 2012 03:27:00 +0000

A key Parliamentary Committee will adopt tomorrow the crucial report on Direct Taxes Code (DTC) Bill and recommend raising the income tax exemption limit to Rs 3 lakh from Rs 1.8 lakh at present. the Standing Committee on Finance, headed by former...

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