Govt. Announces Sops / Incentives for the Textiles Industry

Govt. Announces Sops / Incentives for the Textiles Industry Posted: 14 Oct 2011 08:48 PM PDT Focus Product Scheme - The list of items under FPS has been expanded to include 130 additional items. These items are mainly in the sectors of Chemical/ Pharmaceuticals, Textiles, handicrafts, Engineering and electronics sector. Textile items like... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Difference between Tax Invoice and Retail Invoice Posted: 14 Oct 2011 07:27 PM PDT Q.1. How many types of invoices would be required to be issued under VAT? A.1. There are two types of invoices that can be issued: Tax invoice Retail invoice Q.2. What is a tax invoice and who will issue it? A.2. Under VAT, tax invoice is a very... [[ This is a content summary only. Visit www.taxguru.in for full article ]] General power of attorney have no legal sanctity and immovable property can be sold or transferred only through registered deeds- SC Posted: 14 Oct 2011 07:02 PM PDT The Supreme Court today ruled in the case of Suraj Lamp & Industries Pvt Ltd Vs State Of Haryana that sale transactions carried in the name of general power of attorney will have no legal sanctity and immovable property can be sold or... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Assessee is entitled to depreciation on Wind Electric Generators from the date on which it was installed and commissioned Posted: 14 Oct 2011 08:41 AM PDT Hindustan Platinum Pvt Ltd Vs ACIT (ITAT Mumbai) - Statement given u/s 131 cannot be the only basis for disallowing the claim of depreciation when it is shown with documentary evidence that the admission made in the statement recorded was under a... [[ This is a content summary only. Visit www.taxguru.in for full article ]] If AO has not applied his mind while passing the order and did not call for the required details for completing the assessment, initiation of proceedings u/s 263 in such circumstances is valid Posted: 14 Oct 2011 08:15 AM PDT Hemant Mangaldas Bhanushali Vs ITO (ITAT Mumbai) - the main ground on which the CIT exercised jurisdiction under section 263 of the Act, was the failure on the part of the Assessing Officer to make enquiries with regard to the applicability of the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] No addition can be made for the difference in the receipts as per TDS certificate and as per the books of account when the difference is on account of service tax Posted: 14 Oct 2011 07:49 AM PDT ACIT Vs M/s Hari Machines Ltd (ITAT Delhi) -Service tax is a recovery on behalf of the company and it has been paid to Government account. Element of service tax cannot be treated as income of the assessee. Assessee is entitled to depreciation u/s... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Marketing board is not local authority within the meaning of section 10(20) prior to the amendment in section Posted: 14 Oct 2011 07:36 AM PDT CIT Vs. H.P. Marketing Board (Himachal High Court) - Marketing board is not a local authority within the meaning of section 10(20) prior to the amendment made in section 10(20) when the word `local authority' was not defined in the Income tax Act... [[ This is a content summary only. Visit www.taxguru.in for full article ]] When the assessee successfully explains the source of share application money, the additions made u/s 68 are not sustainable Posted: 14 Oct 2011 07:22 AM PDT ACIT Vs. H.K.Impex Pvt. Ltd.(ITAT Mumbai) - The dispute is regarding addition of Rs.4.85 crores being the share application money invested by the two directors who were holding 50% share in the company. We find from the records that the assessee... [[ This is a content summary only. Visit www.taxguru.in for full article ]] The assessee shall be entitled to admissible business expenses from the day when the business was ready to commence and not from the date of actual commencement of the business, Posted: 14 Oct 2011 07:08 AM PDT GNG Stock Holdings (P) Ltd v DCIT (ITAT Delhi) - When a business is established and is ready to commence business, then it can be said of that business that it is set up. But before it is ready to commence business, it is not set up. In other... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Section 50C – If Fair market value assessed by DVO is lower than the value adopted by Stamp Duty Authorities for collecting stamp duty and the value so adopted by DVO has to be adopted by the Assessing Officer for the purpose of computation of LTCG Posted: 14 Oct 2011 06:57 AM PDT ITO vs Vs  Gita Roy (ITAT Kolkata )- Whether Ld. CIT(A) erred in directing the AO to adopt the value of the property sold as per DVO report for the purpose of computing capital gains in place of value adopted by Stamp Valuation Authority and... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Income from commission is business income, not income from other sources Posted: 14 Oct 2011 05:45 AM PDT CIT Vs FX Info Technologies Pvt Ltd  (Delhi High Court) – When assessee transfers the distribution business to another company against commission payment which is allowed as business expenditure, AO is not right in treating the same commission... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Supply of food and beverage, in sealed containers to international airlines leaving India, amounts to exports within the meaning of Sec 80HHC Posted: 14 Oct 2011 05:18 AM PDT EIH Limited v CIT (Kolkata High Court) The sale of food and beverages to the international airlines in sealed containers constitutes an export of goods out of India and the payment received from the said foreign airlines in India, in the form of... [[ This is a content summary only. Visit www.taxguru.in for full article ]] When assessee reverses a unilateral write back of dues payable to a vendor to its P & L account, the liability is to be treated as contingent liability Posted: 14 Oct 2011 05:05 AM PDT Echjay Forgings P. Ltd. Vs. ITO (ITAT Mumbai) - As observed by Hon'ble Supreme Court, in the case of Chainrup Sampatram vs CIT, 24 ITR 481, "while anticipated loss is thus taken into account, anticipated profits...is not brought into account, as no... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Different business of the assessee can not be considered separately for the purpose of calculating the deductions under Section 80 HHC of the Act Posted: 14 Oct 2011 04:46 AM PDT Duncans Industries Limited Vs CIT ( Calcutta High Court) - Under S. 80-HHC (1) the deduction is to be given in computing the total income of the assessee. In computing the total income of the assessee both profits as well as losses will have to be... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Sharing of office premises among the concerns is permissible when only one concern claims the deduction Posted: 14 Oct 2011 04:31 AM PDT ITO Vs M/s Dresdner Kleinwort Wasserstein Sec (I) Ltd. (ITAT Mumbai)- Assessee has incurred an expenditure towards the service charges of the shared premises to its group concern which has taken the same on leave and license. As per leave and... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Receipts emanating from the activities, which do not have a direct and necessary nexus with the shipping/dredging activities of the assessee-company, cannot be exempted under the tonnage tax scheme Posted: 14 Oct 2011 04:16 AM PDT Dredging Corporation Of India Ltd Vs ACIT (ITAT Visakhapatnam) -Tonnage income from the business of operating qualifying ships — Receipts emanating from the activities, which do not have a direct and necessary nexus with the shipping/dredging... [[ This is a content summary only. Visit www.taxguru.in for full article ]] When the assessee did not claim the additional depreciation in the return of income, it cannot be denied merely on such basis Posted: 14 Oct 2011 03:51 AM PDT Deepak Fertilisers & Petrochemicals Corpn. Ltd. Vs. DCIT (ITAT Mumbai) - [[ This is a content summary only. Visit www.taxguru.in for full article ]] Transfer Pricing – Initial burden is upon the assessee to prove the reasonableness of the method followed by the assessee-company Posted: 14 Oct 2011 03:16 AM PDT Cherokee India Pvt. Ltd. vs. ITO (ITAT Mumbai)-- Though, the assessee claimed that it has applied a mark-up of 6% on the costs, as per TNMM and should not have been doubted merely because the net result was a loss in the year under consideration.... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Value of TDR and the value of fully constructed industrial building can not stand on equal footing – ITAT Mumbai Posted: 14 Oct 2011 02:59 AM PDT ITO Vs Basic Chemicals & Allied Industries Pvt. Ltd (ITAT Mumbai) There is a wide variation between value of TDR and value of fully constructed industrial building and the two values are not comparable. As rightly pointed out by the Ld. CIT(A),... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Bar u/s 205 comes into force only after it is proved that TDS was deducted at source – ITAT Mumbai Posted: 14 Oct 2011 02:46 AM PDT ACIT, Mumbai Vs M/s Bajaj Auto Limited (ITAT Mumbai) - From the language of section 205 of the Act, it is clear that the bar operates as soon as it is established that the tax has been deducted at source and it is wholly irrelevant as to whether... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Expenses incurred on account of premature vacation of leased premises and on construction of temporary structures of leased premises are business expenditure Posted: 14 Oct 2011 02:31 AM PDT Asera Software (India) Pvt Ltd Vs ACIT (ITAT Bangalore) With respect to the disallowance of lease cancellation charges it is evident that this loss to the assessee was incurred due to appropriation of security deposit standing with the landlord in... [[ This is a content summary only. Visit www.taxguru.in for full article ]] When the assessee has sufficient own funds, no disallowance can be made for the interest paid on borrowed funds, for the amount given on loan as interest free Posted: 14 Oct 2011 02:05 AM PDT Ahuja Platinum Properties Pvt Ltd Vs JCIT (ITAT Mumbai) The availability of interest free funds as given in the earlier part of this order is not in dispute. The Assessing Officer has proceeded on the assumption that the assessee did not establish... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Whether when assessee provides software services, expenses incurred on development of software are revenue ? Posted: 14 Oct 2011 01:53 AM PDT ACIT Vs M/s Aftek Infosys Limited (ITAT Mumbai)- Assessee' s business is that of computer software services and products development. In order to supply software to its customers as per their requirements, the assessee has necessarily to incur... [[ This is a content summary only. Visit www.taxguru.in for full article ]] CBDT not given direction for targeting anyone for political reason Posted: 14 Oct 2011 12:05 AM PDT Chairman of the Central Board of Direct Taxes (CBDT) M C Joshi on Friday said on the sidelines of an Assocham function that it has not given direction for targeting anyone for political reasons and action against a member of team Anna would have... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Selling and publicity expenses can be disallowed merely on the basis of statement of an auditor – ITAT Hyderabad Posted: 13 Oct 2011 09:56 PM PDT Hyderabad Distilleries And Wineries Pvt Ltd Vs DCIT (ITAT Hyderabad ) - Whether selling and publicity expenses can be disallowed merely on the basis of statement of an auditor – Whether when the similar expenses were allowed by the AO to similar... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Composite consideration for share transfer and non-compete cannot be split up to tax non compete separately – ITAT Mumbai Posted: 13 Oct 2011 09:48 PM PDT CIT v. Savita N. Mandhana (ITAT Mumbai) - There is no dispute that the assessee has already included entire consideration for sale of shares, including what could be attributed to non compete obligations, as capital gains. In this view of the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 – Rabobank International (Coöperatieve Centrale Raiffeisen – Boerenleenbank B.A.) Posted: 13 Oct 2011 09:29 PM PDT DBOD. No.Ret. BC. 40 /12.06.131 /2011-12 We advise that the name of Rabobank International (Coöperatieve Centrale Raiffeisen – Boerenleenbank B.A.)" has been included in the Second Schedule to the Reserve Bank of India Act, 1934 by Notification... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Processing and Settlement of Export related receipts facilitated by Online Payment Gateways – Enhancement of the value of transaction Posted: 13 Oct 2011 09:27 PM PDT Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the A.P.(DIR Series) Circular No. 17 dated November 16, 2010, in terms of which AD Category – I banks have been permitted to offer the facility of repatriation of... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Exim Bank's Line of Credit of USD 27.50 million to the Government of the Republic of Senegal – A.P. (DIR Series) Circular No. 34 Posted: 13 Oct 2011 09:26 PM PDT A.P. (DIR Series) Circular No. 34 Export-Import Bank of India (Exim Bank) has concluded an Agreement dated April 21, 2011 with the Government of the Republic of Senegal, making available to the latter, a Line of Credit (LOC) of USD 27.50 million... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Separate non-compete receipt in addition to share transfer taxable as business income – ITAT Mumbai Posted: 13 Oct 2011 09:25 PM PDT Ramesh D. Tainwala (ITAT Mumbai) –   For proviso(i) to Sec.28(va)(a) to apply there must be transfer of the right to carry on any business. The Assessee in the present case was not carrying on any business on his own but was the promoter and... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Export of goods imported under reward schemes and DEPB – Re-credit of duty Posted: 13 Oct 2011 09:23 PM PDT Circular No. 45/2011-Cus., it is clarified that in respect of reward schemes specified under Chapter 3 of FTP and DEPB scheme, re-export of imported goods, which are found to be defective /unfit and/ or for re-export on account of any other reason,... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Amends Notification No. 36/2001-Customs(N.T) dated the 3rd August 2001 vide Notification No. 73/2011 – Customs (N. T.) Posted: 13 Oct 2011 09:21 PM PDT Notification No. 73/2011 - Customs (N. T.), In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Notification No. 97 /2011 – Customs – Amends Notification No. 21/2002-Customs, dated the 1st March, 2002 Posted: 13 Oct 2011 09:20 PM PDT Notification No. 97 /2011 - Customs In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement – SEBI Circular No. CIR/MRD/DP/11 /2011 Posted: 13 Oct 2011 09:19 PM PDT CIRCULAR CIR/MRD/DP/11 /2011, Dated-  October 14, 2011 Sub: Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement 1.It is observed... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Corporate guarantee provided to associated enterprises is not an international transaction Posted: 13 Oct 2011 09:10 PM PDT Four Soft Limited vs. DCIT (ITAT Hyderabad) The Tribunal held that corporate guarantee given by Indian company to its subsidiary outside India would not fall within the definition of 'international transaction'. In the absence of any charging... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Financial Inclusion and Banks – Issues and Perspectives Posted: 13 Oct 2011 08:38 PM PDT The importance of an inclusive financial system is widely recognized in the policy circles not only in India but has become a policy priority in many countries. Several countries across the globe now look at financial inclusion as the means of a... [[ This is a content summary only. Visit www.taxguru.in for full article ]]