Dear Friends, I recently launched a website www.taxguru.in all new updates will be given to you now on this website only those who are existing subscriber to www.kanoisandeep.blogspot.com are requested to visit www.taxguru.in to suscribe to www.taxguru.in.

Jul 20, 2012

S. 54 Exemption available on capital gain from sale of multiple house invested in a new house

S. 54 Exemption available on capital gain from sale of multiple house invested in a new house

Posted: 19 Jul 2012 08:26 PM PDT

Whether the exemption u/s 54 will be available, in case, capital gain arising from sale of more than one residential house, is invested in one residential house. The ld. counsel appearing for the assessee argued that there was no restriction under section 54 that capital gain arising from two...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


No HRA Exemption on Rent reimbursed to employer for rent-free accommodation

Posted: 19 Jul 2012 08:25 PM PDT

The assessee is getting twin benefit from the employer, one of which is not taxed on the basis of reimbursement of rent by the assessee to the employer. The first benefit is of rent free accommodation provided by the employer to the assessee employee for which the employer is incurring rental...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Admission of a new partner in consideration of payment not amounts to providing service to him

Posted: 19 Jul 2012 08:24 PM PDT

A partnership which admits a partner in consideration of payment of a contribution in cash does not effect towards that person a supply of services for consideration within the meaning of Article 2(1) of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Difference b/w Market & Allotment Price in respect of ESOP given to employees is deductible revenue expenditure

Posted: 19 Jul 2012 08:22 PM PDT

The issue raised vide present grounds of appeal is in relation to the equity shares to be issued to the employees as sweat equity. The assessee vide special resolution passed at the extraordinary general meeting held on 31.3.2006 had allotted 394692 number of equity shares @ Rs. 106.26 amounting to...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


No Penalty u/s.271(1)(c) If in Assessment Order AO not recorded finding that there was concealment

Posted: 19 Jul 2012 08:21 PM PDT

The assessee had also challenged that in the assessment order the AO has not recorded finding that there was concealment of income. He has placed reliance on the decision of Hon'ble Delhi High Court in the case of Madhu Shree Gupta while examining the constitutional validity of sub-sec.1B of...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


No deemed dividend if shareholding of a common shareholder is less than 20%

Posted: 19 Jul 2012 07:25 PM PDT

The Assessing Officer had considered that a common shareholder 'P' has substantial shareholding of more than 10 per cent. While analyzing substantial interest, the Assessing Officer has only considered Explanation 3 with reference to a person having beneficial interest entitled to not less than 20...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Unless proved Share Broker cannot be held Guilty of Circular Trading

Posted: 19 Jul 2012 07:24 PM PDT

It has been specifically pleaded by the appellant that during the investigation period, i.e. in the year 2002, there was no software available for carrying out long or real time surveillance and it was not possible to carry out surveillance of thousands of transactions of all clients on a daily...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Outward transportation of manufactured goods up to place of removal is input service

Posted: 19 Jul 2012 07:23 PM PDT

The appellant has placed on record the authorization letter dated 15.3.2005 addressed by PBPL to Assistant /Deputy Commissioner, Central Excise, Varanasi authorising the appellant to manufacture biscuit on their behalf. Further perusal of the terms and conditions mutually agreed upon between PBPL...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


No penalty proceeding if Assessee pays service tax before issue of SCN

Posted: 19 Jul 2012 07:20 PM PDT

Provisions of the section 73(1A) of the Finance Act, 1994 will apply in full force in this case, as there is payment of entire amount of service tax liability and interest thereof before the issuance of show cause notice (SCN). In my view, it is a fit case wherein the proceedings initiated against...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Service tax Penalty for late payment cannot exceed tax amount

Posted: 19 Jul 2012 07:16 PM PDT

The ld. A.R. submits that penalties have been imposed because they did not pay in time the tax due. We find that there is no case for imposing penalty for an amount more than net tax liability. So the penalty under Section 78 is reduced to Rs. 18,889/-. Further, penalty under Section 76 is waived...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


No Penalty for non payment of service tax under bona fide belief of non-taxability

Posted: 19 Jul 2012 06:01 PM PDT

Issue involved in this case is regarding the bona fide belief of the assessee during the relevant period. During the relevant period, the activity of receiving commission from the bankers for providing the help of identifying the purchasers of the vehicles and completing all the formalities was in...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Restriction to use 20% of credit in case of non-maintenance of separate Cenvat a/cs for taxable & exempted services is only in respect of inputs service credit

Posted: 19 Jul 2012 05:55 PM PDT

Learned Advocate submits that lower authorities have also taken into account the Service Tax availed on the capital goods whereas the restriction of 20% utilisation is only in respect of the input service credit. He draws my attention to two precedent decision of the Tribunal in the same appellants...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


CENVAT credit available on Freight Paid for transportation of goods from factory to place of removal

Posted: 19 Jul 2012 05:45 PM PDT

Short question which has to be considered in this case is whether the respondent is entitled to claim CENVAT credit of service tax paid by themselves on GTA service which was used for transportation of their final product from factory to the port for export. The respondent recovered FOB value from...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Assessee eligible for refund of duty paid on inputs used in manufacture of exported goods

Posted: 19 Jul 2012 05:26 PM PDT

It is not in dispute that the assessees used the inputs and have exported the impugned goods and the refund is only in respect of input credit attributable to the inputs utilized in the exported goods. It is not necessary to prove one-to-one correlation of inputs with that of exported goods. The...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Cestat has no power to modify to stay order passed by HC

Posted: 19 Jul 2012 05:19 PM PDT

Appellants have filed a writ petition against the stay order dated 13.10.2011 passed by the Tribunal and Hon'ble Madras High Court had dismissed the writ petition. As the order passed by the Tribunal is merged with the order passed by the Hon'ble High Court, hence the Tribunal has no power to...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Cestat granted stay despite non-production of payment challans

Posted: 19 Jul 2012 05:14 PM PDT

Since a substantial amount has already been paid and regarding the balance amount also the appellant claims to have paid but does not have the evidence in view of the destruction of documents in flood, I consider that the appellant has made out a strong prima facie case for waiver of pre-deposit...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


No concealment penalty for exemption claimed by Assessee based on certificate issued by department

Posted: 19 Jul 2012 05:10 PM PDT

RL is a tax resident of Mauritius and in support of this, tax residency certificate has been furnished. This fact has also been accepted by the learned DR in the written submission. It is also undisputed fact that, based on this tax residency certificate, the RL has applied for exemption...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


AAR – Substance over form overlooked, Treaty shopping upheld, reliance placed on azadi bachao andolon case

Posted: 19 Jul 2012 04:44 PM PDT

The argument that unless the capital gain is actually taxed in Mauritius the DTAC would not apply in the context of section 90(1) and section 90(2) of the Act, though attractive, cannot be entertained in view of the decision in Union of India vs. Azadi Bachao Andolan. Even though capital gain is...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Effect of improper presentation of 'SARFAESI APPEAL'?

Posted: 19 Jul 2012 04:29 PM PDT

It is alleged that the Banks or the officials of the Bank often misuse the provision of 'The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002)". It is also alleged that the Bank officials help some clients/borrowers using all...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Bad-Debts Cannot be relevant factor to determine ALP of royalty transaction between licensor & licensee

Posted: 19 Jul 2012 04:13 PM PDT

Whether on facts and circumstances of the case and in law, the ITAT was justified in deleting the disallowance made of royalty paid by the respondent to CAMI USA for distribution of software products in India without appreciating that the royalty had been paid on the amount of bad debts even where...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


It is no longer open to demand duty at 10% or 5% of price as the case may be of exempted products

Posted: 19 Jul 2012 03:46 PM PDT

After the amendment of Rule 6 of CENVAT credit Rules, 2004 by Finance Act, 2010, in view of the provisions section 73 of Finance Act, 2010, when an assessee gave a calculation of credit attributable to the inputs used in the manufacture of exempted products, the only option available to Revenue was...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


If refrence to BIFR was rejected in previous years on merits then fresh references in subsequent years should not be mechanically entertained

Posted: 19 Jul 2012 08:45 AM PDT

Present case appears to be one where prima facie the provisions of Section 22 of the SICA are taken undue advantage of. Therefore, at least in those cases where the reference was rejected in previous years on merits by the BIFR, guidelines can be issued to ensure that fresh references in subsequent...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Mere pendency of writ petition should not disentitle petitioner from benefits flowing out of order under challenge

Posted: 19 Jul 2012 08:02 AM PDT

The facts, as disclosed from the record, in a nut-shell are that the original applicant was initially recruited as Supporting Staff Grade-I on 25.7.1979 by the 1st respondent and subsequently promoted as Supporting Staff Grade-II on 4.10.1996. In the meanwhile, he acquired matriculation...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Tea & snacks provided by canteen service provider (outdoor caterer) along with meals are prima facie eligible for abatement

Posted: 18 Jul 2012 11:24 PM PDT

After considering the Notification No. 1/06-ST,  it is observed that there is provision in the Notification to the effect that value of services exempted by other Notification should not be taken into account for calculating the aggregate value under Notification No. 4/07-ST. The argument that they...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Investment by Qualified Foreign Investors (QFI) in Indian Corporate Debt

Posted: 18 Jul 2012 07:59 PM PDT

CIRCULAR no. IMD/FII&C/17/2012, dated 18-7-2012 Vide SEBI circulars IMD/DF/14/2011 and IMD/FII&C/3/2012 dated August 09, 2011 and January 13, 2012 respectively, Qualified Foreign Investors (QFIs) were allowed to invest in schemes of Indian mutual funds and Indian equity shares subject to...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Comprehensive guidelines on Offer For Sale (OFS) of Shares by Promoters through the Stock Exchange Mechanism

Posted: 18 Jul 2012 07:46 PM PDT

CIRCULAR no. MRD/DP/18/2012, dated 18-7-2012 Several representations/suggestions have been received from the market participants on few provisions of the above circulars. After due examination and deliberation with the market participants it has been decided to replace the procedures and...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Pending EODC cases where vehicles imported under EPCG Scheme were not registered as Commercial/Tourist Vehicle-Reference Policy Circular dated 07.05.2008

Posted: 18 Jul 2012 07:32 PM PDT

Policy Circular No. 2 (RE-2012)/2009-14 Attention is invited to Policy Circular 7 dated 07.05.2008 wherein it was, inter alia, stipulated that "In all past cases where Export Obligation Discharge Certificate (EODC) has not been obtained by 30-06-2008 and where vehicles were not registered as...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


In absence of proof that Assessee was a mutual fund distributor or agent thereof, Service tax payable on commission

Posted: 18 Jul 2012 07:06 PM PDT

Assessee procured mutual fund subscription for SKP Securities Ltd. and Eastern Financial Ltd. The applicants are not mutual fund distributors nor they are agents thereof. The applicants could not produce any evidence in this regard. Therefore, the case law in the case of P.N. Vijay Financial...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Despite family settlement, transfer of share must be in accordance with law

Posted: 18 Jul 2012 06:51 PM PDT

The case of the petitioner is that the respondents have removed their name without sufficient cause and without due compliance of the provisions of law and entered the name of respondent No. 3. From the pleadings it is unequivocal that there is a family settlement and the transfers have taken place...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

No comments:

Post a Comment

UPDATES FROM TAXGURU