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Dec 31, 2012

Katrina Kaif (Assessee) not liable to pay service tax if already paid by agent

Katrina Kaif (Assessee) not liable to pay service tax if already paid by agent

Posted: 31 Dec 2012 07:33 PM PST

In this case, the appellant Katrina Kaif has provided the service for promotion of product by agreeing as model herself for advertisement films, TV commercials, still photographing, footage, press advertisement, outdoor, packaging and sales material etc. The revenue is of the view that as the...

ST demand cannot be adjusted arbitrarily against Excise duty refund during pendency of appeal

Posted: 31 Dec 2012 07:19 PM PST

It is noted that the appropriation of the amounts, to the extent of Rs.18,32,782/-, towards the alleged service tax dues said to be payable by the petitioner, from the amount of Rs.47,00,094/- said to be due to the petitioner as export duty rebate, cannot be sustained in the eye of law. The...

In case of FOR sale, transport up to buyer's premises is input service

Posted: 31 Dec 2012 07:14 PM PST

Admittedly, the Chartered Accountant's certificate to the effect that sale is on FOR basis and all expenses incurred up to the buyers premises form part of the cost of final product. Commissioner (Appeals) has also held in favour of the appellant, when he observed that the purchase orders are on...

Capital Gain Exemption & Capital Gain Account Scheme

Posted: 31 Dec 2012 05:33 PM PST

Section 54(2) mentions that if the amount invested in the new asset is less than the capital gain amount then the remaining amount should be deposited in the capital gain scheme account. Now the points of disputes are; 1. To claim exemption, is it necessary to deposit the remaining amount in...

Network access charges are not software expenditure & are revenue in nature

Posted: 31 Dec 2012 12:51 PM PST

The assessee has made the payment for availing e-mail infrastructure, which is owned by the parent company. It is using this e-mail infrastructure facilities for communication between its employees and outside business partners. Such facilities of secured internet facilities facilitates the...

R&D expenditure which is approved by DSIR only would be eligible for weighted deduction

Posted: 31 Dec 2012 12:41 PM PST

As per the provisions of sec 35(2AB) of Act as applicable to the relevant Assessment year, the expenditure incurred by the assessee in any approved in-house research facility, to the extent of approved by the prescribed authority, is entitled to weighted deduction of 150% of such approved...

Revisionary power u/s. 263 cannot be excersied for inadequate Enquiry on a particular matter

Posted: 31 Dec 2012 11:51 AM PST

In the present case, the records reveal that the assessee was specifically queried regarding the nature and character of the one-time regulatory fee paid by it as well as the bank and stamp duty charges. A detailed explanation in the form of statements and other documents required of by the...

S. 263 CIT can revise AO's order of taxing receipt as ordinary income instead of taxing it u/s. 44BB

Posted: 31 Dec 2012 11:36 AM PST

A look at the assessment order, in respect whereof power under section 263 of the Act was exercised, would amply make it clear that the Assessing Authority did not at all make any endeavour to ascertain, whether Rs. 96 and odd crores were received by the assessee for and in respect of services...

CPC registration date extended upto 02.04.2012 for appearing in June, 2013 CPT

Posted: 31 Dec 2012 11:28 AM PST

Extension of Common Proficiency Course (CPC) registration date upto 2nd April, 2013 for appearing in the June, 2013 Common Proficiency Test (CPT)

5 year Jail Term to then ACIT Rajiv Kumar in Bribery Case

Posted: 31 Dec 2012 11:23 AM PST

The Special Judge for CBI Cases, Mumbai has convicted Shri Rajiv Kumar, then Assistant Commissioner of Income Tax, Mumbai and sentenced him to undergo five years Rigorous Imprisonment with fine of Rs.30,000/- in a bribery case.

Regarding procedure, safeguards, conditions and limitations for grant of refund of CENVAT credit under Rule 5 of CENVAT Credit Rules, 2004

Posted: 31 Dec 2012 11:09 AM PST

Notification No. 27 /2012-CE (N.T.) Safeguards, conditions and limitations.- Refund of CENVAT Credit under rule 5 of the said rules, shall be subjected to the following safeguards, conditions and limitations, namely:-

Amendments in the Reward/Incentive Schemes of Chapter 3 of Foreign Trade Policy 2009-14

Posted: 31 Dec 2012 10:54 AM PST

PUBLIC NOTICE No.42 (RE2012)/2009-14 Amendments in the Reward/Incentive Schemes of Chapter 3 of Foreign Trade Policy 2009-14 - Appendix 37A, Appendix 37C and Appendix 37D of Handbook of Procedure (Vol. I).

Income from supervisory services rendered in connection with commissioning of a power project is business income in terms of article 7 of Indo-German DTAA rws 44D & 115A

Posted: 31 Dec 2012 10:46 AM PST

There was neither any other contrary view nor the assessee brought on record any material controverting the findings of the Assessing Officer in this regard. Accordingly, the finding of the Assessing Officer that amount received by the assessee had to be taxed as business profits in terms of the...

Eligibility Criteria for Incremental Exports Incentivisation Scheme

Posted: 31 Dec 2012 10:43 AM PST

Incremental Exports Incentivisation Scheme -Objective (a) The objective of the Scheme is to incentivize incremental exports. Entitlement (b) An IEC holder would be entitled for a duty credit scrip @ 2% on the incremental growth (achieved by the IEC holder) during the period 01.01.2013 to...

Redefinition of Business Affairs through Limited Liability Partnership Route

Redefinition of Business Affairs through Limited Liability Partnership Route

Posted: 30 Dec 2012 07:47 PM PST

Limited Liability Partnership (LLP) is a corporate business vehicle, identifiable by entity's name containing 'Limited Liability Partnership' or 'LLP' as suffix, a new business structure in Indian Corporate, that enables professional expertise and entrepreneurial initiative to combine, organize and...

No Penalty for showing share trading income under the Capital Gains instead of Business

Posted: 30 Dec 2012 02:57 AM PST

In view of this circumstance, that the assessing officer chose to treat the income under some other head cannot characterize the particulars or reported in the return as an inaccurate particulars or as suppression of facts.

Partners Remuneration cannot be disallowed as excessive if within the limit prescribed under the Partnership deed and

Posted: 30 Dec 2012 02:49 AM PST

Whether the provisions of section 40A can be applied, in case the section 40(b) had already been applied - Whether when the partnership deed is complete with regard to all the details regarding remuneration and salary etc, disallowance can be made on the basis that it was excessive - Whether...

Ship broker is not a commission agent and not liable to Service Tax

Posted: 30 Dec 2012 02:29 AM PST

A ship broker, as the name itself suggests, is essentially a broker. Ship brokers are specialist intermediaries for negotiations between ship owner and charterers who use the ship to transport some cargo or between the buyers and sellers of the ship.

No Service tax chargeable if services are not at all rendered in India

Posted: 30 Dec 2012 02:20 AM PST

Respondents are not liable to pay any service tax under reverse charge mechanism on the services availed by them from their parent company as they have not paid any remuneration for the training charges. If at all any charges were paid for training outside India is not chargeable to service tax as...

Service tax Penalty to be waived off when there exists no mala-fide intentions of assessee for non-payment of ST

Posted: 30 Dec 2012 02:15 AM PST

It is not disputed by the adjudicating authority that the appellants were in correspondence with the Ministry of Finance seeking exemption on the maintenance and repair services of aircrafts pertaining to Ministry of Defence. Such correspondence resulted in denial of said request for exemption by...

Internet services fall in stipulated services for sec. 80-IA deduction

Posted: 30 Dec 2012 02:06 AM PST

The assessee holds a VSAT license to establish, maintain and operate closed users group, an Internet license to establish, maintain and operate internet services and a license/permission from the Ministry of Information and Broadcasting for providing uplinking services.

Deemed dividend provision not applicable on loan received from company engaged mainly in lending business

Posted: 30 Dec 2012 01:36 AM PST

As provided in the said clause, any advance or loan made by a company to a shareholder or concern in which the shareholder has a substantial interest would not be regarded as a deemed dividend u/s 2(22)(e) if lending of money is a substantial part of the business of the lending company and the loan...

Whether casual contract workers can be considered as regular workers u/s. 80-IB(2)

Posted: 30 Dec 2012 01:26 AM PST

The authorities below have held that the assessee had not fulfilled the conditions relating to the minimum engagement of workers and use of new plant and machinery in setting up of industrial undertaking as required in section 80-IB(2).

Share premium cannot be stated to be commercial profits to apply deemed dividend provisions

Posted: 30 Dec 2012 01:19 AM PST

Hon'ble Supreme Court in case of P.K. Badiani v. CIT [1976] 105 ITR 642 observed that accumulated profits would mean profit in the commercial sense and not assessable taxable profits. In that case development rebate reserve created by the company by charging profit and loss account was held to be...

Subsidy towards power generation plant is to be reduced from actual cost of plant for allowing depreciation u/s. 32

Posted: 30 Dec 2012 12:55 AM PST

According to Explanation 10 and proviso to sub-section (1) of section 43, the subsidy amount shall be deducted in the actual cost of the asset of the assessee. Thus, the contention of the assessee that the subsidy received towards the power generation plant would not be reduced from the actual cost...

Addition for benami property justified if property document found in possession of Assessee & not respond to summons

Posted: 30 Dec 2012 12:48 AM PST

The Tribunal overlooked the fact that though the property dealer filed an affidavit before the Assessing Officer, but owner of the property did not respond to the summons issued by the Assessing Officer. There is no plausible explanation from the assessee why the documents relating to the property...

TPO cannot be asked to establish motive behind transfer of profit before ALP determination

Posted: 30 Dec 2012 12:00 AM PST

It is not necessary for the TPO to demonstrate tax avoidance and diversion of tax/ income before invoking the provisions of section 92C and 92CA . To determine the arm's length nature of any international transactions. Consequently, it is wrong in attaching importance to the fact that the assessee...

To claim business loss, assessee not required to establish for each successive A.Y. that it has commenced its business

Posted: 29 Dec 2012 11:44 PM PST

This Court is of the opinion that reasoning given by the AO in his order for the assessment year 1998-99 is clear and conclusive. It accepted the assessee's contentions with regard to having commenced business with effect from 01.01.1997. It was only on the basis of such a fundamental premise...

Failure to disclose expenditure on foreign travel is a valid a ground for reopening the assessment

Posted: 29 Dec 2012 10:38 PM PST

Assessing Officer in the present case, it is difficult to say that the Assessing Officer erroneously assumed jurisdiction to reopen the petitioner's assessment. The source of the complaint or the tax evasion petition is not relevant; it is the substance of the contents of the tax evasion petition...

Grant of registration u/s. 12AA is a condition precedent for claiming exemption u/s. 11

Posted: 29 Dec 2012 10:31 PM PST

Since grant of registration is a condition precedent for grant of exemption under section 11 and in this case, there is no registration granted under section 12AA in favour of the assessee, no relief or exemption can be granted to the assessee under section 11.

S. 271A penalty justified for non maintains book of account U/s. 44AF

Posted: 29 Dec 2012 10:27 PM PST

According to section 271A, if the assessee fails to keep and maintain any such books of account and other documents as required by section 44AA and the Rules in any previous year, penalty is leviable. Section 44AA(2)(i) and (ii) provides that every person carrying on business shall keep and...

For transfer of Cenvat Credit rule 10 not stipulates shifting of factory to an altogether new site

Posted: 29 Dec 2012 09:46 PM PST

imply On reading of Rule 10(1) of Cenvat Credit Rules, 2004, it is clear that a manufacturer of final product shall be entitled to transfer of the unutilized cenvat credit to the transferred factory provided he shifts his factory at another site and also fulfills the requirement of Rule 10(3) of...

issue of Credit on inputs used in generating electricity for exempted goods to be decided by larger bench of SC

Posted: 29 Dec 2012 09:40 PM PST

In Gujarat State Fertilizers & Chemicals Ltd. (supra) a view has been taken that modvat credit can be taken on LSHS used in the manufacture of fertilizer exempt from duty. Although this decision was rendered in the context of availing modvat credit under the Central Excise Rules, 1944 as they...

HC held seed certification work of a State Agency a business activity and denied registration

Posted: 29 Dec 2012 09:26 PM PST

HC held that CIT had rightly rejected the application of the petitioner for approval under Section 10 (23C) (iv) of the Act on the ground that the petitioner has not rendered its services directly to the farmers but is rendering its services directly to its clients/agents who are engaged in...

ICAI President's Message – January 2013

Posted: 29 Dec 2012 09:15 PM PST

Suggestions on Draft Rule 11UA of Income-tax Rules, 1962 Accepted: I am happy to inform you that our suggestions have found favour with the Government, which we had submitted in response to the CBDT's request on the draft Rule 11UA for determination of fair market value for the purpose of Section...

Documents Required for service Tax Audit

Posted: 29 Dec 2012 09:15 PM PST

Require Document for Audit 1. Annexure I Questionnaire. 2. Annexure II List of addtional documents. 3. Annexure III FDSS. 4. Annexure IV Reconciliation. 5. Annexure V Cenvat Account Rule 9

Shipping Business -Insurance claim will qualify for deduction U/s. 33AC only if it represents business profits of assessee

Posted: 29 Dec 2012 08:56 PM PST

The Assessing Authority in the impugned year has not accepted the claim that the income from insurance claim is his income from business. Such a finding of fact though acquires finality, yet it does not meet out the direction given in clear terms by the earlier Tribunal to find out as to whether...

Direct credit of Refund/ Rebate to the Exporters' credit by way of Electronic payment under RTGS/ NEFT facility

Posted: 29 Dec 2012 08:55 PM PST

It has been brought to our notice that the present practice of issuing account payee cheques to the refund claimants is cumbersome and it also entails lot of paperwork, including return of cheques due to incomplete address and other clerical errors, leading to considerable delay in realisation of...

Two agreements with same bank details is reason good enough to to make AO believe that there has been under-assessment of income

Posted: 29 Dec 2012 08:52 PM PST

Once there are reasons for the AO to believe, whether such reasons originate out of the record already scrutinized or otherwise, he shall be within his competence to initiate the re-assessment proceedings. The formation of belief by the AO must always be tentative and not a firm or final conclusion...

MVAT Notification for TDS for Societies registered under Societies Registration Act, 1860

Posted: 29 Dec 2012 08:47 PM PST

No. JC (HQ)1/ VAT/2005/97.—In exercise of the powers conferred by sub-clause (i) of clause (b) of Sub section (1) of section 31 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Commissioner of Sales Tax, Maharashtra State, Mumbai, hereby, amend the Notification No. JC (HQ)1/...

Direct recruitee's entitlement to promotion is based on year of examination and not appointment – SC

Posted: 29 Dec 2012 08:46 PM PST

Having interpreted the effect of the OMs dated 7.2.1986 and 3.7.1986, we are satisfied, that not only the requisition but also the advertisement for direct recruitment was issued by the SSC in the recruitment year in which direct recruit vacancies had arisen.

Prior to 17th March 2012 No liability to pay interest if credit wrongly taken reversed before utilization

Posted: 29 Dec 2012 08:30 PM PST

The levy of interest is on the actual amount, which is withheld and the extent of delay in paying the tax from the due date. The interest cannot be claimed from the date of wrong availment of CENVAT credit and that the interest would be payable from the date CENVAT credit is taken or utilized...

MVAT Notification for Amendment in Form 231,232,233,234,235

Posted: 29 Dec 2012 07:22 PM PST

NO. VAT/AMD-1012/1B/Adm-8.—In exercise of the powers conferred by sub-rule (1) and (2) of Rule 17A of the Maharashtra Value Added Tax Rules, 2005, the Commissioner of Sales Tax, Maharashtra State, Mumbai hereby, amends the forms appended to the Maharashtra Value Added Tax Rules, 2005 as follows,...

For income tax Purpose Working of actuarial surplus in accordance with rule 2 of First Schedule to insurance Act is valid

Posted: 28 Dec 2012 12:02 AM PST

Looking at the issue in any way what is noticed is that the computation made by assessee is in accordance with rule 2 of the Insurance Act, 1938 according to which only Assessing Officer can base his computation. This also corresponds to the way incomes were assessed in earlier years, i.e., the...

income tax Notification No. 55/2012 Dated 28/12/2012 on Notified Infrastructure undertaking U/s. 80IA

Posted: 27 Dec 2012 07:23 PM PST

NOTIFICATION NO. 55/2012 Whereas the Central Government in exercise of the powers conferred by clause (iii) of sub-section (4) of section 80-IA of the Income-tax Act, 1961(43 of 1961)(hereinafter referred to as the said Act), has framed and notified a scheme for industrial park, by the...

Dec 29, 2012

Sales In Course of Import and High Seas Sales under CST Act, 1956

Sales In Course of Import and High Seas Sales under CST Act, 1956

Posted: 29 Dec 2012 03:18 AM PST

We are uploading below the Free e-book written by Mr. Rajesh Dhawan on concept of Sales in Course of Import and High Seas Sale. Book Contains the following topics :- Introduction Sales in Course of Import: Sales in Course of Import-What it is & How it works Case Studies High Seas Sales:- High...

FAQ / Performa of gift deed, List of Relatives from whom Gift can be received without any tax liability

Posted: 29 Dec 2012 02:45 AM PST

In Continuance of my article on Taxability of gits from relatives and others , I have prepared FAQ on Gift, ,list of relatives from whom an individual can receive the gifts without any income tax liability and also giving below Performa of gift deed.

Dec 28, 2012

Share Trading is business activity if High volume, frequency, regularity & systematic

Share Trading is business activity if High volume, frequency, regularity & systematic

Posted: 28 Dec 2012 07:30 PM PST

Assessees have made several transactions of purchase of shares during the relevant year under consideration, and if there high volume, frequency and regularity of the activity carried on by the assessees in a systematic manner, it would partake the character of business activities carried on by the...

AO cannot rectify order passed by appellate authorities

Posted: 28 Dec 2012 07:19 PM PST

In this case, the AO had not only stated that the Tribunal did not have the benefit of the decision of the Supreme Court as it was rendered earlier, but has taken liberty of criticizing the Tribunal stating that the Tribunal granted depreciation 'even though the ITAT was aware that such custom duty...

S. 32 Deduction for depreciation allowable irrespective of treatment in books.

Posted: 28 Dec 2012 07:14 PM PST

While making assessment of any returns any deduction is sought for it is the duty of the revenue official to examine not only the account but also substantive right of claiming deduction under the Act on the facts and circumstances of this case. It is not a case that the said assets and properties...

HUDCO – Tax Free Bonds – Tax Benefits

Posted: 28 Dec 2012 05:54 PM PST

Salient features of the bond issue (Tranche I) a. Issue Opens on – January 09, 2013 b. Issue Closes on – January 22, 2013 c. The Bonds are issued in the form of tax-free, secured, redeemable, non-convertible bonds and the interest on the Bonds will not form part of the total income as per...

Responsibility of Professionals Signing MCA Annual Return

Posted: 28 Dec 2012 05:18 PM PST

W.e.f from Financial Year 2011-12, Professional (CA, CMA, CS) signing MCA Annual Return have to certify whether Cost Accounting Record Rules -2011 (CARR) or Cost Audit Orders (CAO) are applicable on company or not and mention Product or Service Category Code (ITC/ NPCS 4 Digit Code). They have to...

CBI arrest Income Tax officer asking for Bribe to facilitate Refund

Posted: 28 Dec 2012 11:27 AM PST

The Central Bureau of Investigation has arrested an Income Tax Inspector and an Archivist -in-Charge of National Archives of India in separate cases of bribery. A case was registered against an Inspector of Income Tax (Circle-III), Gaya for demanding a bribe of Rs.15,000/-from the Complainant.

Income Tax Calculator for Govt Employees for FY 2011-2012 / 2012-13

Posted: 28 Dec 2012 10:36 AM PST

Download Automatic Income Tax Calculator for Central & State Government Employees for the Financial Year 2011-2012 / 2012-13 and Assessment year 2012-2013/ 2013-2014.

'Freight beneficiary' in a shipping business to be assessed under normal Income tax provisions and not u/s. 172

Posted: 27 Dec 2012 08:56 PM PST

Looking to the magnitude of the voyages undertaken by the freight beneficiary and the fact that the respondent-company has been, as observed by the ld. CIT(A), regularly filing its return of income at Mumbai and being assessed to tax at Mumbai, the finding of the CIT(A) that the freight beneficiary...

Definition of 'Infrastructure Loan' of NBFCs – Harmonisation

Posted: 27 Dec 2012 06:21 PM PST

Definition of Infrastructure Lending' in terms of which the definition of 'infrastructure lending for the purpose of financing of infrastructure by the banks and Financial Institutions' has been harmonized with that of the Master List of Infrastructure sub-sectors' notified by the Government of...

DGFT – Procedure for Incremental Exports Incentivisation Scheme

Posted: 27 Dec 2012 06:19 PM PST

An application for grant of benefit under this scheme shall be filed in ANF 3F (this ANF 3F will be notified subsequently) to RA concerned. For the purpose of the scheme, export performance shall not be allowed to be transferred from any other IEC holder. Since the benefit is admissible on...