Income earned by trust from business activities eligible for exemption if primary objects were charitable

Income earned by trust from business activities eligible for exemption if primary objects were charitable Posted: 12 Jan 2013 08:00 PM PST Even though the Tribunal had not given any finding as regards the primary purpose, yet a reading of the order of the Assessing Officer shows that he had considered the clauses in the trust deed to arrive at the finding that the primary objects of the trust are charitable in nature and that the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Reassessment initiated to disallow loss on hedging of metals losses is untenable if losses were allowed originally Posted: 12 Jan 2013 07:59 PM PST The petitioner has been claiming that he is dealing in hedging besides in the wholesale business of gold and silver ornaments. To insure against price fluctuations, he has been hedging in such metals in MCX. The claim of the assessee, therefore, had to be examined in terms of clause (a) to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Decision on debatable point of law or fact cannot be corrected by rectification u/s. 254(2) Posted: 12 Jan 2013 07:19 PM PST A bare look at section 254(2) of the Act, which deals with rectification, makes it amply clear that a 'mistake apparent from the record' is rectifiable. In order to attract the application of section 254(2), a mistake must exist and the same must be apparent from the record. The power to rectify... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] AP High Court grant interim stay against CBEC's Circular on recovery of confirmed demand during pendency of stay application Posted: 12 Jan 2013 03:24 AM PST The Central Board of Excise and Customs (CBEC) has issued its first Central Excise Circular No. 967/01/2013 - CX, dated January 01, 2013 on eve of New Year 2013, for recovery of confirmed demands during pendency of Stay applications. The Circular has rescinded seven previous circulars on the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Credit is to be allowed in respect of TDS made on higher amount of reimbursement than actually offered to tax Posted: 11 Jan 2013 10:02 PM PST Undisputedly, the assessee company earned income of Rs. 4,65,00,000/- only by way of Engineering fees. Another amount of Rs 4,65,00,000/- had been received as tooling advance. This latter amount was to be paid to the vendors of M/s. Mahindra and Mahindra Ltd. This payment was a reimbursement. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Addition not justified merely on the basis of discrepancy in TDS certificate Posted: 11 Jan 2013 09:29 PM PST The tribunal took the view that the addition made was only on the basis of the discrepancy in the TDS Certificate and not on the basis of any finding that some extra charges were received by the assessee, but had not been accounted for. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] No addition for difference in income as per profit and loss account & TDS certificate Posted: 11 Jan 2013 09:19 PM PST Admittedly, as per TDS certificate issued by Mysore Breweries Limited, the total reimbursement made to the assessee as per their newly arrangement was Rs. 3,35,85,000/-. However, in the books of assessee, it was only Rs. 2,54,97,000/-. The assessee had explained that a credit note of Rs.... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Assessee eligible for deduction U/s. 80IB(10) on SRA project developed under scheme of State Government duly notified by CBDT Posted: 11 Jan 2013 08:28 PM PST Rigours of the conditions enumerated in clauses (a) and (b) of section 80-IB, has been relaxed by the legislature to achieve certain socio-economic object and, therefore, proviso to section 80-IB should be given a liberal interpretation so as to not to defeat a genuine claim for deduction by a... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Reversal of Interest on NPA by NBFC to comply with RBI's direction cannot be questioned Posted: 11 Jan 2013 08:27 PM PST Assessee secured a licence from the RBI under section 45-I of the RBI Act, to carry on the business of non-banking finance, including micro-finance services. There exists Prudential Norms, issued by the RBI. The assessee, being a licensed NBFC, it had to follow the directives of the RBI. It was in...