UPDATES FROM TAX GURU 27.07.2009

UPDATES FROM TAX GURU  Service of notice on the wife of the assessee in his absence is in accordance with the law Even Best Judgment assessment cannot be made without giving opportunity of being heard has to be given to assessee Validity of levy of penalty for not furnishing the return of income within the prescribed time Expenditure incurred by a foreign company in India during period of lull in its business in India not allowable Tribunal is not competent to recall its previous order and re-write the same again and reverse the earlier decision taken on merit Stamp Duty and Fees Payable for Registration of Companies Limited by Shares Important Definitions & Stamp Duty Rates on Various Instruments as Per Bombay Stamp Act, 1958 Central Vigilance Commission disposes of 485 cases, recovers over Rs 13 crore RBI penalised PSU & Private banks for violating its guidelines Operational of the IDR Rules with immediate Effect and Applicability of FEMA Regulations New direct tax code expected to release for public discussion 20th August 2009 Limited liability partnerships (LLPs) clarification required on capital gain & stamp duty on on coversion Central Bureau of Investigation (CBI) registered case against a Commissioner of Income Tax Income Tax department can not tax research work Service of notice on the wife of the assessee in his absence is in accordance with the law SUMMARY OF CASE LAW The service of notice on the wife of the assessee in his absence is entirely in accordance with the law as laid down in Order V Rule 15 of the CPC and section 282(1) of the Act. CASE LAW DETAILS Decided by: ITAT, AMRITSAR... Even Best Judgment assessment cannot be made without giving opportunity of being heard has to be given to assessee SUMMARY OF CASE LAW An assessment made in violation of the provisions of section 144 is liable to be set aside. CASE LAW DETAILS Decided by: ITAT, AMRITSAR BENCH, AMRITSAR, In The case of: Harjinder Singh v. ITO, Appeal No.: ITA Nos. 46 &... Validity of levy of penalty for not furnishing the return of income within the prescribed time SUMMARY OF CASE LAW Where the assessee had not been able to show, much less, prove, any reasonable cause(s) for not furnishing the return of income within the prescribed time i.e., by the end of the relevant assessment year, the levy of penalty for... Expenditure incurred by a foreign company in India during period of lull in its business in India not allowable SUMMARY OF CASE LAW Merely for the reason that the non-resident assessee sent some letters and made some offer from Dubai to ONGC does not amount to doing business in India; though `lull in business' does not mean that the assessee has ceased... Tribunal is not competent to recall its previous order and re-write the same again and reverse the earlier decision taken on merit SUMMARY OF CASE LAW The issues considered and decided on merit after due application of mind by the Tribunal do not constitute obvious, glaring, patent and self-evidence mistake of facts or law within the meaning of the provisions of section 254(2);... Stamp Duty and Fees Payable for Registration of Companies Limited by Shares STAMP DUTY AND FEES PAYABLE STAMP DUTY AND FEES PAYABLE FOR REGISTRATION OF COMPANIES LIMITED BY SHARES Nominal Capital Filing fee to be deposited with Stamp Duty payable in Maharashtra Memorandum Articles &... Important Definitions & Stamp Duty Rates on Various Instruments as Per Bombay Stamp Act, 1958 The Bombay Stamp Act applies to the entire State of Maharashtra. All the instruments specified in the Schedule to the Act are covered under this Act. 1. IMPORTANT DEFINITIONS 1.1 "Conveyance" has been defined to include: a conveyance... Central Vigilance Commission disposes of 485 cases, recovers over Rs 13 crore Posted: 26 Jul 2009 02:39 AM PDT New Delhi (PTI): The Central Vigilance Commission has disposed of 485 cases and effected recoveries to the tune of Rs 13.55 crore in the last one month alone. The Commission has launched prosecution against 10 officers including six from Central... RBI penalised PSU & Private banks for violating its guidelines The Reserve bank of India (RBI) has penalised a number of banks—both government-run and private—in the last three years for violating its guidelines. The alleged violations include "non-adherence of know-your-customer (KYC) norms, failure of... Operational of the IDR Rules with immediate Effect and Applicability of FEMA Regulations As you aware the Ministry of Corporate Affairs has notified Companies (Issue of Indian Depository Receipts) Rules, 2004 and subsequently there were amendments on the subject matter and SEBI vide its Circular No. SEBI / CFD / DIL / DIP / 20 /2006 / 3... New direct tax code expected to release for public discussion 20th August 2009 The Lok Sabha was informed, on Friday that the new direct tax code will be released for public discussion by August 20. The new code will be released along with a discussion paper, the Minister of State for Finance, Mr S. S. Palanimanickam, said in... Limited liability partnerships (LLPs) clarification required on capital gain & stamp duty on on coversion T Limited liability partnerships (LLPs) have been the flavour of corporate jurists all over the world in the past 15 years. The concept looked attractive. India passed the Limited Liability Partnership Act in 2008, providing the legal framework for... Central Bureau of Investigation (CBI) registered case against a Commissioner of Income Tax The Central Bureau of Investigation has registered a case against a Commissioner of Income Tax for accumulating huge assets worth crores of rupees in his name as well as in the name of his family members, which are disproportionate to his known... Income Tax department can not tax research work The Bombay High Court, in a recent order, came down heavily on the Income-Tax Department, which unilaterally injected an application for exemption for scientific and industrial research, without seeking guidance of experts on the matter. Tax... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 26.07.2009

UPDATES FROM TAX GURU PAN card mandatory for all policies where annual premium is more than Rs 1 lakh The Insurance Regulatory and Development Authority has made PAN card mandatory for all policies where annual premium is more than Rs 1 lakh. It has issued a circular to all life insurance companies in this regard, said a life insurance council... Chartered accountant found murdered at the Delhi University's North Campus A chartered accountant working for Himanshu Sabharwal, son of Ujjain Professor H.S. Sabharwal who died after a fracas between students on the campus three years ago, was found stabbed to death under mysterious circumstances at the Delhi ... Government decided to make it compulsory to quote Unique Transaction Number (UTN) in the Income-tax return forms Press Information Bureau , Government of India The Government has decided to make it compulsory to quote Unique Transaction Number (UTN) in the Income-tax return forms to be filed by all the assessees to whom such number has been allocated by the... Government proposes to set up a Centralised Processing Centre (CPC) at Bengaluru The Government proposes to set up a Centralised Processing Centre (CPC) during 2009-10 only at Bengaluru, for processing of all Income-tax returns received in the State of Karnataka and for processing of all e-returns received in the country. It... Effective tax rate for IT Companies will go up once exemption for STPI comes to end IT firms such as TCS, Infosys and Wipro expect their effective tax rates to go up in the coming years as more of their delivery units come out of Software Technology Parks of India. This would further impact the net profit of these companies,... Portal to help Indian companies make transition to International Financial Reporting Standards (IFRS) launched The Nasdaq-listed Corporate Executive Board (CEB), a business advisory platform, has come up with an online resource — IFRSPortal.in — to help Indian companies make a smooth transition to International Financial Reporting Standards (IFRS) at lower... Auditor ask extension to complete Special Audit of Reliance Communication A special audit of Anil Ambani group firm Reliance Communications will be delayed, as the auditor Parakh & Co has sought an extension for three months from mid-July.The government has, however, asked the auditor for progress report before... To buy online through credit/debit card you need to enter password from 1st August 09 In order to make online transactions Safe & Secure, Reserve Bank of India (RBI) has passed a new mandate with effect from 1st August 2009, wherein online credit card based transactions will include a new verification process. From the 1st of... RBI Circular on Cash Withdrawal at Point-of-Sale RBI/2009-10/ 105 , DPSS.CO.PD.No. 147/02.14.003/ 2009-10, dated :  Jul 22, 2009 Cash Withdrawal at Point-of-Sale (POS) Presently cash withdrawal facility using plastic cards is available only at Automatic Teller Machines (ATMs). As on May 31, 2009,... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 25.07.2009

UPDATES FROM TAX GURU AAR on taxability of payments made by applicant to a British company for rendering telecom services in India SUMMARY OF CASE LAW The payments made by the applicant to the British company are in the nature of business profits; in the absence of there being any permanent establishment of the British company in India, this income is not at all taxable here;... Settlement Commission has jurisdiction over the case which involves search assessments where block assessments are to be completed under section 158BC CASE LAW DETAILS Decided by: INCOME TAX SETTLEMENT COMMISSION ADDITIONAL BENCH, MUMBAI, In The case of: Varinder K. Arora, In re, Appeal No.: Settlement Application No. MH/MUC-22/008/ 2008-09/IT ,Decided on: May 27, 2009 RELEVENT PARAGRAPH 19. The... MAT credit should be allowed before calculating Interest U/s. 234B and 234C of the Income Tax Act, 1961 SUMMARY OF CASE LAW Explanation as substituted by Finance Act, 2006 in sections 234B and 234C does not say that tax credit should not be allowed as a set off while computing assessed tax prior to the date of such substituted Explanation coming into... Section 271(1)(c) can be invoked only if there is a "concealment of particulars of income" SUMMARY OF CASE LAW Section 271(1)(c) can be invoked for imposing a penalty on an assessee, only if there is a "concealment of particulars of income" or alternatively if an assessee furnishes "incorrect particulars of income. ... Profit on transfer of Indira Vikas Patras before maturity is capital gain and tax is chargeable SUMMARY OF CASE LAW The Indira Vikas Patras are capital asset as per provisions of section 2(14) of Income-tax Act, 1961; the tax leviable on transferable/ tradable assets prior to the maturity is under the head capital gain tax in the case of the... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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