Exemption from furnishing return of income for A.Y. 2012-13 to salaried taxpayer

Exemption from furnishing return of income for A.Y. 2012-13 to salaried taxpayer Posted: 25 May 2012 08:46 PM PDT In the case of a salaried taxpayer, entire tax liability is discharged by the employer through deduction of tax at source. Complete details of such taxpayers are also reported by the employer through Tax Deduction at Source (TDS) statements. Therefore, in cases where there is no other source of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Ordinary profits' referred to in Section 80IA is different from the 'ALP' Posted: 25 May 2012 08:39 PM PDT The Tribunal placed reliance on the Chennai Tribunal ruling in the case of Tweezerman (India) Private Limited v. Addl. CIT, [2010] 4 ITR (Trib.) 130 (Chennai) which ruled that provisions of Section 80-IA(10) of the Act do not give an arbitrary power to the AO to determine the profits of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Section 54F benefit remains intact even if Assessee transfer New house acquired to claim S. 54F to acquire another house Posted: 25 May 2012 08:38 PM PDT Assessee has invested in purchase of new residential house at Rs. 70,80,620/- within the period of two years in which the transfer took place and therefore, the assessee was eligible for deduction u/s 54F(1) of the Act in respect of the said investment out of this deemed long term capital gains. In... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Mere Sale & Lease Back cannot lead to conclusion that transaction is sham Posted: 25 May 2012 08:38 PM PDT It cannot be said that all tax planning is illegal/ illegitimate/impermissible. Applying the rationale of this decision to the case on hand, in the absence of any material to pronounce on the genuineness of the transaction herein, the mere fact that what had been purchased had been leased out to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Even in a case where no expenditure is incurred, AO has to apply Rule 8D Posted: 25 May 2012 08:20 PM PDT The taxpayer contended that the AO may invoke provisions of the Section 14A of the Act only after conducting necessary enquiries into the factual aspects. However, the Chennai Tribunal held that even in a case where the taxpayer claims that no expenditure was incurred in relation with the exempt... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] S. 14A In case net interest is income, no part of interest paid can be disallowed for earning tax free dividend Posted: 25 May 2012 08:13 PM PDT The taxpayer adjusted the interest expenditure against the interest income earned. After such adjustment no interest expenditure remained to be disallowed. The taxpayer offered expenditure other than interest of Rs. 111,521 for disallowance under Section 14A of the Act on the estimated basis. The... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Interest free loan is subject to arm's length test irrespective of commercial expediency Posted: 25 May 2012 07:53 PM PDT The Tribunal dismissed the taxpayer's proposition that only real income should be taxed and noted that these arguments could not be accepted in the context of Chapter X - Special Provisions relating to Avoidance of Tax, of the Act. In this regard, reliance was placed on the decision of Perot System... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] ALP cannot be applied to determine 'ordinary profits' for computing S.10A deduction Posted: 25 May 2012 07:40 PM PDT The provisions of Transfer Pricing regulations contained in Section 92 belong to a separate code enacted for computing income from international transactions having regard to Arm's Length Price (ALP) so as to confirm that there is no tax avoidance by the taxpayer. Operation of Transfer Pricing... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Payments for purchase of Software not Royalty – ITAT Mumbai Posted: 25 May 2012 07:25 PM PDT AAR in the case of Dassault (supra) was a case of sale of shrink wrap software and the AAR has held that reproduction and adaptation envisaged by section 14(a)(i) and (vi) can contextually mean only reproduction and adaptation for the purpose of commercial exploitation. The ruling of the AAR in the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] S. 80-IB(10) deduction available to taxpayer who is not merely a land owner but carries on activities along with promoter for developing & building approved housing project Posted: 25 May 2012 06:51 PM PDT CIT v. Shravanee Constructions (Karnataka High Court) Section 80-IB(10) of the Act is applicable not for merely building housing project but for developing and building housing project. In terms of the agreement, the taxpayer not only undertook the development activities on the land in question,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Severance benefits (including Leave Encashment) received outside India from former employer for services rendered outside India not taxable in the hands of an individual who is a Not Ordinary Resident Posted: 25 May 2012 06:39 PM PDT Receipt of the impugned amount was on account of part services rendered by the assessee to his previous foreign employer outside India. Under section 5 of the I.T. Act, the total income of any previous year of a person who is a resident includes all incomes from whatever source derived, which is... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Insertion of New Rule 10AB – Determination of arm's length price Posted: 25 May 2012 02:12 AM PDT Notification No. 18/2012 10AB. For the purposes of clause (f) of sub-section (1) of section 92C, the other method for determination of the arms' length price in relation to an international transaction shall be any method which takes into account the price which has been charged or paid, or would... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Charitable trust is not invalid merely because settlor or Poor Relative of settlor is one of the beneficiary Posted: 25 May 2012 12:02 AM PDT A charitable trust is not invalid merely because that settlor is one of the beneficiaries as long as he is not the sole beneficiary. If settlor is the sole beneficiary, then the trust would be invalid on account of non-divesting of party. Where dominant object of the trust was to help the poor... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] India and Netherlands sign Protocol Amending DTAC Posted: 24 May 2012 10:23 PM PDT The Convention between the Kingdom of Netherlands and the Republic of India for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital was signed on 30th July, 1988 (DTAC). Both India and Netherlands have concluded a Protocol to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Requirements for requesting information under the India-Switzerland tax treaty relaxed Posted: 24 May 2012 10:04 PM PDT India has entered into a tax treaty with Switzerland; Article 26 of the tax treaty which deals with exchange of information between the two countries was reworded by agreement between the two countries and simultaneously a new paragraph 10 was inserted in the Protocol to clarify the understanding... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] S.68 If assessee fails to prove identity & credit worthiness of creditor than AO can treat the loan as income Posted: 24 May 2012 10:00 PM PDT The dispute is regarding addition of Rs.14,60,052/- made by AO on account of unsecured loans from Shri Balwantbhai Grewal. There is no dispute that the said amount had been shown as loan in books of account of the assessee. Assessee could not produce any evidence to prove the identity and... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Agent not liable for tax on income earned on behalf of principal but only for charges received for his service Posted: 24 May 2012 09:39 PM PDT Assessee is an agent of Government of Maharashtra and also considering the fact that Hon'ble High Court granted stay to the assessee for the recovery of the demand when the appeal was pending before ld CIT(A), we hold that the assessee has a prima facie case for grant of stay for recovery of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] I-T department working on strategy to prevent corruption Posted: 24 May 2012 09:23 PM PDT The Income Tax Department is working on a comprehensive strategy to deal with corruption within the organisation. The work relating to identification of potential areas of corruption related to the organisational activities and development of an action plan for its mitigation has commenced, the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] SEBI Amendment to the Consent Circular dated 20th April 2007 Posted: 24 May 2012 09:06 PM PDT SEBI had issued Circular No.EFD/ED/Cir.-01/2007 dated 20th April 2007, providing the framework for passing of consent orders and for considering requests for composition of offences. On the basis of the experience gained and with the purpose of providing more clarity on its scope and applicability,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Amends Notification No. 68/2011-Customs (N.T.), dated 22nd September, 2011 Posted: 24 May 2012 09:02 PM PDT Notification No. - 46/ 2012 - Customs (N.T.) entral Government, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.68/2011-Customs(N.T.), dated the 22nd September, 2011 published vide number G.S.R. 712 (E)... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Rate of exchange of conversion of each of foreign currency wef 25th May, 2012 Posted: 24 May 2012 09:00 PM PDT Notification No. 45/2012 - Customs (N.T.) In exercise of the powers conferred by Section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs hereby makes the following further amendments in the Notification of the Government of India, Ministry of Finance (Department... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Regarding inclusion of Sea Port KARAIKAL (Union territory of Puducherry) in the list of ports permitted for exports and imports under Export Promotion Posted: 24 May 2012 08:57 PM PDT Notification No. 37/2012-CUSTOMS Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in each of the notifications of the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]