Effect of Purchases Made From Suspicious Dealers on Audit Report

Effect of Purchases Made From Suspicious Dealers on Audit Report Posted: 29 Aug 2012 08:29 PM PDT Much has been discussed on recent issue about Suspicious Dealers, but rarely has someone analysed Whether Purchases made from such Suspicious Dealers should actually form part of Purchases while preparing Financials. The last updated List of 1277 Suspicious Dealers who has issued false bills... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Service Tax on Director's Services – Company to Pay Posted: 29 Aug 2012 08:28 PM PDT With Service Tax regime migrating to negative list approach w.e.f. July 1, 2012, almost all the services except those in negative list (section 66D) and exempted services (Notification No. 25 2012-ST dated 20.06.2012) have become exigible to service tax . [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Taxability of Amount received by society from its members for TDR transfer Posted: 29 Aug 2012 07:49 PM PDT The TDR premium is liable to be paid by a member of the society who desires to utilize additional FSI in the form of transferable development rights. The principle of mutuality would clearly apply to instant case. In the context of the payment of non-occupancy charges by a member of a co-operative... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    SC differs with Judgement granting Interest on excess TDS & Advance Tax Posted: 29 Aug 2012 07:07 PM PDT In our view, the judgement of this Court in the case of Modi Industries Limited v. Commissioner of Income Tax, 1995 (6) S.C.C. 396 = (2002-TIOL-446-SC-IT) correctly holds that Advance Tax or TDS loses its identity as soon as it is adjusted against the liability created by the Assessment Order and... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Status of Private Limited Company u/s 4(7) of Companies Act, 1956 Posted: 29 Aug 2012 10:37 AM PDT It is important to check the status of Private Limited Company, if the shareholder of such Private Limited is Body Corporate incorporated outside India. It is also important from the audit point of view since if the status of such Private Limited Company is established as Subsidiary of Public u/s... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Reassessment on the basis of Income Tax amendment not justified Posted: 29 Aug 2012 09:18 AM PDT On the date of issue of notice under section 148 on 31-3-2008 by the Assessing Officer for reopening of the assessment, the earlier view taken by the Assessing Officer in the assessment framed under section 143(3) on 31-3-2006 was supported by the decision of the Supreme Court in the case of HCL... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Compensation or damages for fraud taxable as income from other sources Posted: 29 Aug 2012 09:13 AM PDT Between January and April, 2009 a number of suits were filed against IC and A and B in various jurisdictions in the United States claiming damages. The suits were based on tort, misrepresentation, deceit, fraud and so on. In terms of the procedural laws of the United States, the suits were directed... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    CBDT Committee To Form Departmental View on Contentious Legal Issues Posted: 29 Aug 2012 09:05 AM PDT It has been observed that a large part of litigation in the Direct Taxes matters involves interpretation of legal provisions. Lack of desired clarity on a contentious legal issue, amongst the officers of the department, sometimes leads to inconsistent approach on the same issue giving rise to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Trust having 'medical relief' object eligble for exemption even if they incidentally carry on a commercial activity Posted: 29 Aug 2012 12:56 AM PDT After examination of the activities of the assessee samiti and after considering CBDT Circular No. 11/2008, dated 19-12-2008, it is found that the admitted facts of the case under consideration are that the assessee-trust is carrying on the activities in respect of medical relief. It is found that... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Section 50C applicable even if registration takes place subsequent to transfer Posted: 29 Aug 2012 12:54 AM PDT The Revenue's case is that the provision of sec. 50C having come on the statute book with effect from 1-4-2003, and the capital asset which is the subject-matter of transfer, being land, the same would apply, and thus stands rightly invoked by the AO. The assessee's case, and on the basis of which... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Re-opening of assessment for change of opinion not valid – SC Posted: 28 Aug 2012 11:50 PM PDT The assessee had disclosed full details in the Return of Income in the matter of its dealing in stocks and shares. According to the assessee, the loss incurred was a business loss, whereas, according to the Revenue, the loss incurred was a speculative loss. Rejection of the objections of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Validity of Winding up proceeding against the company for non-payment of rent Posted: 28 Aug 2012 11:38 PM PDT This Appeal is directed against the judgment and order dated 14th August, 2006, passed by the Calcutta High Court in A.C. No.54 of 2005 dismissing the Appeal on the ground that in the absence of any specific finding whatsoever as to the rate of rent and the period of default committed by the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Receipt of order by nephew can't be a ground to condone delay in appeal filing Posted: 28 Aug 2012 11:06 PM PDT Ld. AR submits that appellant was not registered as service tax payer and as such no authorised representative stands mentioned by him. As the impugned order was served at the residential address of the appellant, it has to be considered as proper service of the order. [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    SC remanded back the case to HC for order passed without interpreting section 14A Posted: 28 Aug 2012 10:16 PM PDT The assessee claims deduction for expenses incurred to earn amounts which are exempted from tax. The case involves the interpretation of Section 14A of the Income Tax Act, 1961 . The Kolkata High Court has said that no substantial question of law arises in this case. There is no judgment of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Section 144C – Dispute Resolution Panel – Reference to – Reconstitution of DRP at Mumbai – 1 Posted: 28 Aug 2012 06:21 PM PDT ORDER No. 8/FT&TR/2012 In partial modification of order No. 6/FT&TR/2012, and in exercise of powers conferred under section 144C of the Income-tax Act, 1961, the Board hereby constitutes the Dispute Resolution Panel (DRP) at the area of jurisdiction given under column (2) of the Table... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Dispute Resolution Panel – corrigendum to Order No. 6/FT&TR/2012, dated 10-7-2012 & Order No. 7/FT&TR/2012, dated 31-7-2012 Posted: 28 Aug 2012 06:19 PM PDT Order [f.no. 500/15/2011-ft&tr-i], dated 28-8-2012 Section 144C of the Income-tax Act, 1961 - Dispute Resolution Panel - Reference to - corrigendum to Order No. 6/FT&TR/2012, dated 10-7-2012 and Order No. 7/FT&TR/2012, dated 31-7-2012 constituting DRPs and alternate DRP at various... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    SEBI – Manner of achieving minimum public shareholding requirements in terms of SCRR, 1957 Posted: 28 Aug 2012 06:15 PM PDT with a view to facilitate listed entities to comply with the minimum public shareholding requirements within the time specified in Securities Contracts (Regulation) Rules, 1957 (SCRR, 1957), the following additional methods shall be available:- [[ This is a content summary only. Visit my website for full links, other content, and more! ]]    Non-resident guarantee for non-fund based facilities entered between two resident entities Posted: 28 Aug 2012 06:04 PM PDT Borrowing and lending of Indian Rupees between two persons resident in India does not attract the provisions of the Foreign Exchange Management Act, 1999. In case where a Rupee loan is granted against the guarantee provided by a person resident outside India, there is no transaction involving...