Friday, 27 September 2013

Interest payable by a Government Undertaking on loan taken from Government is out of ambit of sec. 4

IT : Spare parts of machineries used for generation of electricity merit depreciation


Tough approach for Investors Grievances; SEBI asks for quick resolution, monetary relief for pendenc

SEBI : Investor Grievance Redressal Mechanism


Sec. 158BD and not sec. 158BC applied if warrant wasn't in name of assessee and search was consequen

IT: When there was no search warrant in name of assessee and search of his business place was a consequential one, assessee could be called a person other than person with respect to whom search was concluded under section 158BD


Transportation of dead body and other related services provided by undertakers aren't liable to ST

ST/ECJ : Transportation of dead body and other services provided by undertakers pertaining to body, use of a funeral home, organisation of funerals and burial or cremation are not liable to service tax


No concealment penalty for adjustments made to ALP determined by assessee in good faith and with due

IT/ILT : If an assessee proves to satisfaction of taxing authority that price charged or paid has been computed as per section 92C, in good faith and with due diligence, then addition made under section 92C(4) would not attract penalty


Wife proves to be a lucky mascot; husband gets HRA exemption on rent paid to wife

IT: Interest relating to pre-construction period of house property is not part of cost of acquisition but allowable under section 24(b)


SC: Fixation of benchmark to short list and recruit best candidate as DG is permissible, not an anti

Competition Act: Fixation of Benchmark to short list candidates for purpose of selection/appointment of best candidate as Director General is permissible under law


SEBI's initiatives to relieve investors from arbitration cost; reduces charges for claims up to 10 l

SEBI : Arbitration Mechanism in Stock Exchanges


Investment by insurers in non-convertible debentures considered as investment in infra-sector, IRDA

INSURANCE : Investments in IDF - Mutual Fund


Investment by insurers in certain infra-debt funds considered as investment in infra-sector, IRDA cl

INSURANCE : Investments in IDF - NBFC


Payment to Singaporean Co. for executive training isn’t FTS as it falls in exclusive clause of FTS u

IT/ILT : Payment received by Singaporean company from applicant towards cost of teaching in education programmes conducted by applicant in India, is not in nature of fees for technical services and is not taxable in India


CLB constitutes benches to exercise powers of Tribunal under the Companies Act, 2013

CL : Section 10E of The Companies Act, 1956, Read with Regulation 4 of The Company Law Board Regulations, 1991 – Constitution of Board of Company Law Administration - Constitution of New Specified Benches of Company Law Board in Supersession of All Earlier Orders


CLB Regulations amended; Appeals filed under certain provisions of 2013 Act to be dealt with by amen

CL : Company Law Board Regulations, 1991 - Amendment in Regulations 2, 4, 14, 15, 18 & Form No.1 & Annexure III


New Form to seek advance ruling on whether proposed arrangement is an ‘Impermissible Avoidance Arran

IT/ILT : Income-Tax (Eighteenth Amendment) Rules, 2013 – Amendment in Rule 44(E) and Insertion of Form No.34EA


Matter remanded as TP method applied by assessee wasn't justified and it agreed to apply CUP method

IT/ILT: Where method applied by assessee to determine royalty was found to be not just and proper and CUP method was agreed to be appropriate by both parties, matter needed fresh adjudication


No service tax can be demanded until machinery provisions are workable, says HC

ST : A recipient of clearing and forwarding services was made liable to file return by section 71A and section 73 was amended by Finance (No. 2) Act, 2004 to enable demand of service tax from persons falling under section 71A; therefore, such persons could not be asked to pay service tax prior to such amendment w.e.f. 10-9-2004 and show-cause notice issued prior to that date was invalid


Silence of assessee on issue of profit earned from sale of imported goods justified additions on est

IT: Merely because assessee was found to be owner of said proprietary concern and investment made in purchase of goods had been found to be unexplained, it could not be said that a separate addition for investment made in proprietary concern was called for without bringing enough material on record to justify addition on account of purchase consideration


Non-profit entities arranging child care services are exigible to service tax

ST/ECJ : Intermediary services provided by non-profit entities involving provision of childcare between host parents and parents owning child, on payment of specified sum per child per hour, are liable to service tax


Profit from sale of shares deemed as 'Capital gains' as foremost intention of assessee was to make i

IT : Profit earned from transaction of shares will be taxed as capital gains when dominant intention of assessee was to make investment


Refund arising from self assessment tax is also eligible for interest, says HC

IT : Refund arising on account of self assessment tax is eligible for interest


Ex-auditor couldn't complaint against new auditor if client founds no discrepancy in audit report of

CA Act: Where company whose audit report was stated to have been prepared by respondent contrary to prescribed norms had not made any complaint against respondent, complainant who was replaced as auditor of company by respondent had no locus standi to make a complaint in that respect


Title to property vests in allottee from date of allotment; capital gains to be computed accordingly

IT : Where allotter failed to deliver property originally allotted and subsequently registered alternate property in lieu of original property, allottee's right to property became vested from date of original allotment and capital gain on transfer of property would be ascertained accordingly


No input service credit is available beyond factory gate if foods are liable to specific rate of dut

ST : Definition of 'place of removal' in section 4(3)(c) of Central Excise Act, 1944 is applicable only when goods are liable to duty based on value determined under section 4; and is inapplicable for Cenvat Credit Rules, 2004 when duty is payable: (a) at a specific rate or (b) on value determined under section 3(2) or 4A


Loss incurred from cancellation of a contract for purchase of a machinery would be a 'capital loss'

IT : Where assessee advanced a sum for purchase of machineries and further he himself rescinded said contracts, loss incurred due to forfeiture of advances by suppliers was on capital account