CBDT notifies new tax audit Form with additional reporting requirements

IT/ILT/INDIAN ACTS & RULES : Income-Tax (Seventh Amendment) Rules, 2014 - Substitution of Form Nos. 3CA, 3CB and 3CD

No penalty for filing Tax Audit Report in Form 3CB due to completion of Statutory Audit after due da

IT : Where assessee furnished form 3CB alongwith return of income, there was sufficient compliance of provisions of section 44AB and merely because audit report was not furnished in form 3CA could not be a ground to impose penalty under section 271B

Classification of property by City Planning Commission couldn’t be altered by Tribunal for UK VAT pu

Service Tax : Tribunal does not have authority to deal with assessee's grievance with city planning authority/commission; hence, where planning permission opined that assessee's property was not a dwelling, same could not be regarded as dwelling for taxation purposes as well

Exp. incurred by Transport Corporations on repair of buses was revenue exp. under sec. 37(1), rules

IT : Where assessee, engaged in providing transport facilities to public, incurred certain routine expenditure to keep buses fit and roadworthy without obtaining any enduring benefit, its claim for deduction of said expenditure was to be allowed

No denial of Cenvat credit merely on basis of shortage of input found during internal stock taking b

Cenvat Credit : Shortage found in internal stock-taking conducted by assessee themselves for purposes of reconciliation of their entire stock cannot be made basis for denial of credit, without showing that input were not received or were cleared clandestinely

Compat stayed CCIs order levying penalty on small scale industry as it was facing financial crisis

Competition Law : Where appellant small scale industries were facing financial calamity because of order of CCI imposing penalty for entering into anti-competitive agreements, order of CCI was to be stayed in so far as it pertained to penalty aspect

Co. indicted for money laundering activities couldn’t be selected as a comparable for TP study, says

IT/ILT : Where TPO did not include advances while computing adjustment towards working capital, since trade practice of advances and subsequent adjustment of these advances against invoices raised, in case of assessee being captive service provider, had a bearing on profit margin, matter needed reconsideration

Department can’t initiate recovery proceedings during pendency of stay application before commission

Excise & Customs : Where stay application is still pending before Commissioner (Appeals), recovery proceedings against assessee is to be kept stayed during such pendency

Tribunal had to stay penalty proceeding during pendency of appeal

IT : Tribunal under section 254 has power to grant stay of penalty proceedings as incidental or ancillary to its appellate jurisdiction, provided Tribunal is satisfied that entire purpose of appeal would be frustrated or rendered nugatory by allowing such proceedings to continue during pendency of appeal

No sec. 4A valuation as tobacco sold in packs with weights upto 10 gms was exempt from affixation of

Excise & Customs : Where 'spit tobacco' is sold in packs showing weight up to 10 gms, then, as per rule 34 of Standards of Weights and Measures (Packaged Commodities) Rules, 1977, product is exempt from affixation of MRP and, therefore, section 4A of Central Excise Act, 1944 does not apply for valuation thereof

No addition for unexplained investment on basis of unsigned MOU recovered during survey for purchase

IT : No addition could be made on account of unexplained investment if MOU for purchase of land as well as receipt given by seller found during survey were unsigned documents and transaction had not materialized

Department to provide chance of hearing to assessee before rejecting its request seeking clarificati

CST & VAT : Where assessee made an application under section 48A of Tamil Nadu Value Added Tax Act, 2006 seeking clarification on a product and Competent Authority rejected application without affording opportunity to assessee, before rejecting application, assessee should be given opportunity of personal hearing

Sums payable on purchase of raw materials couldn’t be included in undisclosed income during block as

IT : In block assessment, amount payable for purchase should not be included in undisclosed income

Department can’t hold ST demand in abeyance until service provider recovers ST dues from service rec

Service Tax : Merely because there are dues from service recipient, service tax liability of assessee (service provider) cannot be kept in abeyance till service recipient pays to assessee

Madhya Pradesh Govt. amends VAT Rules; revises return forms for dealers opting for composition schem

CST & VAT/INDIAN ACT & RULES : Madhya Pradesh Value Added Tax Amendment Rules, 2014 – Amendment in Rules 8, 9, 21, 22, 23, 23A, 53A, 84A, Form 4B, Form 9, Form 10B and Substitution of Form 5 & 10

Govt. notifies 'Rashtriya Seva Samithi' under Sec. 35AC and specifies maximum deduction available to

IT : Section 35AC, Read with Explanation (b) Thereto, of The Income-Tax Act, 1961 - Eligible Projects or Schemes, Expenditure on - Notified Eligible Projects or Schemes – Rashtriya Seva Samithi, Andhra Pradesh

Beneficiaries of discretionary trust won’t be liable to tax if income of trust is taxed at maximum m

IT : Where income from trust had already been assessed in hands of trustees at maximum marginal rate, beneficial share could not be assessed in hands of beneficiary again

Company Court can’t order sale of assets of sick Co. on recommendations of BIFR

SICA : Power of High Court to order or cause to effect sale of assets of sick industrial company pending its winding up decision, on receipt of recommendation of BIFR, could not be sustained in law

Manufactures should pay duty on consignment basis through PLA on its failure to pay duty on due date

Excise & Customs : In case of default of payment of duty on due date, manufacturer has to clear goods by making payment of duty on consignment basis through PLA