If Assessment order Silent, Interest U/s. 234B cannot be charged in demand notice

If Assessment order Silent, Interest U/s. 234B cannot be charged in demand notice Posted: 30 Oct 2012 08:38 PM PDT No doubt, payment of interest under Sections 234A, 234B and 234C is mandatory but it is for the Assessing Authority while passing the original assessment order or while passing the reassessment or rectification order to direct payment of interest. Income from solitary sale of shares is not business income Posted: 30 Oct 2012 08:32 PM PDT To implement the objects of the company two of the shareholders gifted 25000 shares of M/s. Infosys Technologies Limited. The said shares were shown as investment. Merely because the company has earned profits by selling some of the shares, that doesn't mean that the company is engaged in shares... Bottling of LPG into cylinders for use in kitchen amounts to 'manufacture' Posted: 30 Oct 2012 07:17 PM PDT Bottling plant wherein the LPG is filled in the cylinders for domestic and non-domestic kitchen use involves various specialized process and therefore, it is an activity of manufacture/production. Accordingly, the assessee's claim for deduction has to be allowed. Non-compete fees to form part of price offered to public shareholders if payment to promoters not justified Posted: 30 Oct 2012 07:12 PM PDT It was argued by the appellants that the covenants in the non-compete agreement provide for both non-compete obligations as well as an obligation to maintain confidentiality. According to them, it is necessary and advisable to do so as a non-compete obligation without a corresponding obligation to... Compulsory online filing of Annual Return in Form VAT 20 in Punjab Posted: 30 Oct 2012 07:04 PM PDT No Manual Annual Return in Form VAT 20 after 31st October 2012 for Assessment Year 2011-12 under Punjab Value Added Tax Act, 2005 Consultancy Service used for modernisation of Plant eligible for Cenvat credit Posted: 30 Oct 2012 06:51 PM PDT Installing projects of high technical equipment is nothing but Modernisation of a factory and as per Cenvat credit Rules, 2004, services used in relation to modernisation are eligible for Cenvat credit. Section 56 not Applicable to Gift in Kind Received prior to 1st Oct., 2009 Posted: 30 Oct 2012 06:30 PM PDT There is also force in the submissions of the counsel for the assessee that prior to introduction of S. 56(2)(vii) by the Finance Act, 2009, w.e.f. 1st Oct., 2009, gifts in kind were outside the purview of s. 56(2)(v) or (vi). To Claim deduction u/s. 35DDA, VRS need not be in compliance of condition of rule 2BA of Income-tax Rules, 1962 Posted: 30 Oct 2012 05:39 PM PDT Rule 2BA is in the form of guidelines for the purpose of section 10(10C), which relates to taxation of income/amount received by an employee under VRS scheme. The said rule does not deal with the expenditure incurred by the employer when the assessee makes payment under the VRS scheme formulated by... 2nd Quarter Review of Monetary Policy 2012-13 – RBI Cuts CRR by 25 basis points Posted: 30 Oct 2012 07:34 AM PDT A short while ago, we put out the Second Quarter Review. Based on an assessment of the current macroeconomic situation, we have decided to: Cut the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.5 per cent to 4.25 per cent of their net demand and time liabilities (NDTL)... Taxability of Income from Real Estate Posted: 30 Oct 2012 07:22 AM PDT Real Estate is an ever green investment option in India and it has always given good returns. It can be a residential or commercial property. Real Estate gives recurring income in form of rent and appreciation in value in case of re-sale. As it gives good return, so taxability of income earned... CBDT assures HC that there would be no laxity in assistance rendered to court in future Posted: 30 Oct 2012 06:22 AM PDT It is stated by them that insofar as the revamping the system and giving better assistance to the court is concerned, all necessary action as they would take has been taken. We would thus naturally expect that now there would no lack of proper assistance to the court. Non Explanation of Fund Received from partner sufficient ground for Reassessment Posted: 29 Oct 2012 10:38 PM PDT Ultimately the assessing officer was of the opinion that a firm, which had the capacity to lend an amount of Rs. 71,50,000/- that too, to one of its partners or others is reasonably presumed to have the taxable income and if the assessee had never disclosed its expenditure or otherwise earlier and... CA given life term for creating mid-air hijack scare Posted: 29 Oct 2012 10:02 PM PDT A chartered accountant was today sentenced to life imprisonment by a court here for triggering a mid-air hijack scare in February 2009 by claiming aboard a Goa-Delhi Indigo airlines flight that he had infected needles and a gun. RBI permits Urban Cooperative Banks to undertake ready forward contracts in corporate debt securities Posted: 29 Oct 2012 09:00 PM PDT As announced in the Second Quarter Review of the Monetary Policy Statement 2012-13 (para 77) and in exercise of powers conferred on Reserve Bank under the Repo in Corporate Debt Securities (Reserve Bank) Directions 2010, it has now been decided to permit scheduled Urban Cooperative Banks to... Notification No. 45/2012 approving 'National Institute of Ocean Technology, Chennai' u/s. 35(1)(ii) of Income-Tax Act, 1961 Posted: 29 Oct 2012 08:58 PM PDT NOTIFICATION NO. 45/2012 It is hereby notified for general information that the organization National Institute of Ocean Technology, Chennai has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 [said Act], read with...

Penalty for Late Filing of Service tax Return

Service used, rendered & enjoyed in India – Taxable in India Posted: 29 Oct 2012 06:25 PM PDT In the instant case, the service rendered is promotion/marketing of the goods of the client in India by rendering various services such as demonstration, installation, after sales warranty and advertising services for which the appellant received a consideration. These activities are rendered in... Secretary of Society is Public Servant & can be booked for Corruption – HC Posted: 29 Oct 2012 06:12 PM PDT The petitioner who was serving as the Secretary of the Avinashi Co-operative Housing Society Limited, Avinashi was charged with offences punishable under section 7 and 13(2) r/w. 13( 1)(d) of the Prevention of Corruption Act, 1988. Penalty for Late Filing of Service tax Return Posted: 29 Oct 2012 05:54 PM PDT File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000 - Under the existing scheme of law, Rule 7 of the Service tax Rules, 1994 read with its sub-rules deals with the provisions relating to the service tax return. As per Rule 7C; where the return prescribed under rule 7... Income tax E-Filing Website likely to be closed for few days Posted: 29 Oct 2012 05:24 PM PDT The e-Filing Portal is migrating to a revamped new portal in next few days and the existing website services are likely to be closed for few days. Amendments to Capital Gains Accounts Scheme, 2012 Posted: 29 Oct 2012 04:54 PM PDT NOTIFICATION NO 44/2012 In exercise of the powers conferred by sub-section (2) of section 54, sub-section (2) of section 54B sub-section (2) of section 54D sub-section (4) of section 54F sub-section (2) of section 54G and sub-section (2) of section 54GB of the Income-tax Act, 1961 (43 of 1961), the... Issue of notice to general power of attorney holder of assessee is valid Posted: 29 Oct 2012 04:45 PM PDT In the instant case, the GPA holder of the assessee received the notice which is evident from the acknowledgement furnished before us. The assessee was having transactions in India and when the notice was serviced through the process server of the department, the notice is deemed to have been... Clearance of containers and imported goods – regarding Posted: 29 Oct 2012 04:16 PM PDT Instances have come to notice of the Board that clearance of some containers were allowed without filing of Bill of Entry and payment of Customs duty by using forged signatures of Customs officials on manual Out of Charge orders (gate passes) leading to substantial loss of revenue to the Government... FM Statement on Kelkar Committee Report, Fiscal Roadmap & Consolidation Posted: 29 Oct 2012 06:30 AM PDT The Kelkar Committee has cautioned us that a business-as-usual scenario for the current year may lead to the fiscal deficit rising to 6.1 per cent of GDP. This would have grave consequences for the economy is, therefore, totally unacceptable. The Committee has recommended a number of reform... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Mounting Pendency of Appeals before CsIT(A) & tardy disposal by CsIT(A) – Performance appraisal of CsIT(A) Posted: 29 Oct 2012 06:23 AM PDT Mounting pendency of appeals before CIT(A) and huge amounts disputed therein has been a matter of serious concern for the Department. The C&AG, Standing Committee on Finance, PAC have been adversely commenting upon this issue and calling upon the department to take up the issue on priority to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Cenvat Credit cannot be denied if invoice number was handwritten or rubber stamped Posted: 29 Oct 2012 05:09 AM PDT Whether the Cenvat credit can be denied on the ground that the invoice number was handwritten or rubber stamped but not printed on invoice? The appellants are in appeal against the impugned orders wherein input credit taken by them on duty paid invoice was denied only on the basis that the invoice... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Penalty justified if deduction claimed is not permissible & there was no debatable or contentious issue Posted: 28 Oct 2012 11:36 PM PDT The assessee had wrongly taken the benefit of Section 80IA on the gross total income by reducing the loss of Unit-II from Unit-I and thereby declaring the return at Nil and carried forward the loss of Rs. 23,94,827/-, which was not permissible. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Period taken to approach Settlement Commission & its rejection is to be excluded for block assessment Posted: 28 Oct 2012 11:26 PM PDT Given the fact that the Settlement Commission order was made on 11.6.2002 and as on the date of insertion to Explanation 1(iv) with effect from 1.6.2002 the applications were pending before the Settlement Commission, we have no hesitation in rejecting the assessees' contention that the Explanation... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Filing of SLP against the vacation of stay of recovery proceedings granted by the Karnataka High Court in the case of Kingfisher Airlines Posted: 28 Oct 2012 06:24 AM PDT A Joint meeting of CBEC and CBDT was held on 10th Oct., 2012, under the Convenorship of Chairperson, CBDT regarding appropriate steps to be taken for recovery of taxes due from M/s. Kingfisher Airlines Ltd. (KFA). It was informed that the Karnataka High Court vide order dated 26-9-2012 have... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]