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Sep 18, 2012

Format of CA Certificate to Furnish in case of Failure to deduct TDS / TCS

Format of CA Certificate to Furnish in case of Failure to deduct TDS / TCS

Posted: 17 Sep 2012 08:40 PM PDT

Notification no. 37/2012 In Budget 2012 CBDT has introduced a provision w.e.f. 01.07.2012 by which a person who has defaulted in payment of TDS / TCS will not be deemed to be a person in default if he furnishes a certificate from CA to the effect that the person in respect of whom default is...

Interest on debenture taxable on spread-over basis – SC

Posted: 17 Sep 2012 08:27 PM PDT

We find from the records that the assessee has computed his interest income arising on the difference between purchase price of the debenture and redemption price after six years and calculated the income on amortization basis.

Revised Rates of Entry Tax w.e.f. 18.09.2012 in Punjab

Posted: 17 Sep 2012 08:20 PM PDT

Increase in rates of Entry Tax by 0.5% under the Punjab Tax on Entry of Goods into Local Areas Act, 2000 and amendment in Schedule C and E through Public Notice dated 18.09.2012. Punjab Government has increased the rate of entry tax by 0.5% w.e.f. 18.09.2012 vide public notice dated 18.09.2012...

Reversal of law by Supreme Court does not justify reopening

Posted: 17 Sep 2012 08:13 PM PDT

We see no error in the observation made by the Division Bench of the High Court in the impugned judgement that once limitation period of four years provided under Section 147/149(1A) of the Income Tax Act, 1961, [for short, `the Act'] expires then the question of re­opening by the Department does...

In case of gift burden is on assessee to prove financial capacity of Donor -SC

Posted: 17 Sep 2012 08:07 PM PDT

On going through the records, we find that an important query was raised by the Department as to whether these two donors had the financial capacity to make the gift(s) in favour of the assessees herein. This query has not at all been answered by the Income Tax Appellate Tribunal ['ITAT', for...

Section 234D applies even to refunds granted prior to 1.6.2003

Posted: 17 Sep 2012 08:01 PM PDT

The case of the revenue is that section 234D as introduced on 1st June, 2003 was retrospective in operation by necessary implication. However, as doubts were raised about its retrospectivity, the same was clarified by adding an explanation to section 234D by Finance Act, 2012.

Cessation of loan liability taken for capital purposes not taxable u/s. 41(1)

Posted: 17 Sep 2012 07:48 PM PDT

The issue arising in this case stand covered by the decision of this Court in the matter of Mahindra & Mahindra (supra).The decision of this court in the matter of Solid Containers (supra) is on completely different facts and inapplicable to this case. In the matter of Solid Containers (supra)...

Re-valuation of assets in books do not lead to income generation

Posted: 17 Sep 2012 07:37 PM PDT

It is an accepted position of law that the re-valuation of assets in the books of the assessee does not lead to generation of income as no transaction has been taken up with an outside party. In other words, a person cannot make profit from himself by merely making some entries in the books of...

Non Disallowance u/s. 40(a)(ia) for shortfall in TDs deduction due to difference of opinion

Posted: 17 Sep 2012 07:32 PM PDT

There is nothing in the said section to treat, inter alia, the assessee as defaulter where there is a shortfall in deduction. With regard to the shortfall, it cannot be assumed that there is a default as the deduction is not as required by or under the Act, but the facts is that this expression,...

Collection of security deposit on loaning gas cylinder cannot be treated as sale

Posted: 17 Sep 2012 07:19 PM PDT

The assessee is a company engaged in the business of supply of LPG to its customers. It supplied the LPG cylinders to its customers on lease basis and collected security deposits. The customers can return the cylinders and take back the security deposits. It was observed by the Assessing Officer...

Discharging debt / Interest due to bank by issuing share capital would not amount to payment u/s. 43B

Posted: 17 Sep 2012 07:14 PM PDT

In the present case it is seen that the liability was discharged by way of issuance of shares. When the assessee issues shares the assessee does not incur any expenditure as the assessee is not to make any payment legally towards shares issued. The shares cannot be equated with debentures, which is...

Assesee can not challenges jurisdiction of Assessing Authority after accepting the same

Posted: 17 Sep 2012 07:09 PM PDT

The petitioner is a share broker. A survey was conducted under Section 133-A of the Act on 24.4.2001 in which a large number of incriminating documents were found. The AO proceeded to make enquiries in which it was found that there were serious defects in the books of accounts. Shri Ravindra Kumar...

Section 80-IA – Texturing & twisting of polyester yarn amount to manufacture – SC

Posted: 17 Sep 2012 07:02 PM PDT

A short question which arises for determination in these civil appeals is, whether texturing and twisting of polyester yarn amount to 'manufacture' for the purpose of computation of deduction under Section 80IA of the Income Tax Act, 1961. This question has been squarely answered by this Court in...

Rule 6(3) – Do not specify mode of Service tax refund – Book Credit also valid

Posted: 17 Sep 2012 07:00 PM PDT

The adjudicating Commissioner has also taken objection to the fact that the refunds have been made by way of credit and not by issue of cheques. In this respect, we note that a large number of transactions are involved and the industry practice is to make refunds by way of book adjustment allowing...

Taxability of 'Ready Mix Concrete' & 'Concrete Mix' under Excise & Service Tax

Posted: 17 Sep 2012 05:34 PM PDT

Now a days, real estate industry is in boom phase and flat/apartment culture is picking pace due to economy, comfort, security and liquidity. Therefore, construction of apartment/flats is hot most segment and construction industry is adopting every new relevant and viable technology.

Customs – Tariff Value of Brass, Poppy Seeds, Gold & Silver

Posted: 17 Sep 2012 12:11 PM PDT

Notification No. 81/2012-CUSTOMS (N. T.), Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs...

RBI reduces CRR by 25 basis points , Other key rates unchanged

Posted: 17 Sep 2012 12:06 PM PDT

On the basis of an assessment of the current macroeconomic situation, it has been decided to: reduce the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.75 per cent to 4.50 per cent of their net demand and time liabilities (NDTL) effective the fortnight beginning September...

In a One Time Settlement of principal & interest, it cannot be assumed that assessee has paid the interest due

Posted: 17 Sep 2012 11:31 AM PDT

The assessee has not produced any evidence to indicate the apportionment of the OTS amount of Rs.91 lacs towards principal and interest. It is obvious that a part of above amount was towards interest for the OTS amount was admittedly more than Rs.72 lacs (principal amount).

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