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Dec 15, 2012

Allowability of depreciation on leased out LPG cyclinders, Air Jet Spindle Assembly & Positar Disc

Allowability of depreciation on leased out LPG cyclinders, Air Jet Spindle Assembly & Positar Disc

Posted: 15 Dec 2012 07:57 PM PST

Held that, In the case of LPG cylinders, the transaction was only a financing transaction and was not a lease as there is no material to show that the assessee became the owner of the cylinders and leased them to Janta; in the case of airjet spindles and positar disc, the very existence of the...


TDS not applicable on service rendered by Tenants' Association to members even if the same is for remuneration

Posted: 15 Dec 2012 03:56 AM PST

On the facts of the present case, we have noted that there is no finding by any of the authorities below that services are rendered to non-members. There is a reference to the services rendered to the outsiders in the orders of the authorities below, but it is in the context of analysis of judicial...


If non deduction of TDS on Salary is pursuant to HC order Assessee not liable for consequences u/s. 201

Posted: 15 Dec 2012 03:50 AM PST

Section 192 deals with the deduction of tax at source. It is computed on the estimated income of the assessee under the head 'salary' and the liability is at the time of payment of salary, if there is a perquisite, there is responsibility to deduct tax of the employer under section 192(1), 192(1A)...


No requirement in Income-tax Act that only self cultivated land will be treated as agricultural land

Posted: 15 Dec 2012 02:22 AM PST

Observation of the Assessing Officer that since the land was not cultivated by the assessee himself and was carried on by the brother, therefore, it cannot be treated as agricultural land. We are not absolutely convinced by this argument/observation because there is no requirement in any Act more...

Mere Non-compliance with ICAI guidelines would not invite TP adjustment

Posted: 15 Dec 2012 01:34 AM PST

Where neither the TPO nor the DRP have found any fault with audited segmental accounts, the Departmental Representative cannot Canvass rejection of the same before the ITAT on the ground that the same one not prepared or audited as per ICAI guidelines.


'Service' – What it Means under the service Tax Provisions

Posted: 15 Dec 2012 01:05 AM PST

SERVICE ? 'Service' has been defined in clause (44) of the new section 65B and means – any activity for consideration carried out by a person for another and includes a declared service does not include – any activity that constitutes only a transfer in title of (i) goods or (ii) immovable property...


SEZ profit not to be included in computation of Book Profit

Posted: 15 Dec 2012 01:01 AM PST

Unit in SEZ will be covered by sub-section (6) to section 115JB irrespective of the fact that those units were claming deduction under section 10A. The benefit given to SEZ unit from the applicability of provisions of section 115JB has been withdrawn by the Finance Act, 2011 by inserting a proviso...


Ceiling u/s. 44C applies to Expenses not directly attributable to Indian Branch

Posted: 14 Dec 2012 08:37 PM PST

We are not convinced with the submission made by the learned AR in this regard for the reason that as per the mandate of Article 7, the deduction is to be allowed in conformity with the provisions of the Income-tax Act, 1961. Once section 44C is there, there can be no escape unless it is proved...


Whether commission paid to directors were allowable expenditure u/s. 36(1)(ii)?

Posted: 14 Dec 2012 07:29 PM PST

It was noticed that while commission was paid as a form of remuneration for actual services rendered, dividend is a return of investment and is paid to all its shareholders equally. It was thus held that if the commission is paid for actual services rendered, section 36(1)(ii) will not apply. This...

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