Thursday, 16 October 2014

Vibratory compactor was earth moving machinery; entitled to concessional tax rate under Karnataka Sa

CST & VAT : Vibratory compactor manufactured by assessee was earth moving machinery entitled for concessional tax under Karnataka VAT


ITAT treated gains from share transaction as capital gains as shares were held for relatively longer

IT: Where no funds were borrowed for purchasing shares, scrips were not repeatedly and frequently sold and purchased, and there was relatively long holding period, activity of share transaction would be treated as investment activity and not as business activity


Option for redemption fine is discretionary on import of prohibited goods, rules HC

Excise & Customs : Since import of Pneumatic Tyres and Tubes for Automotive Vehicles is subject to condition of BIS certification, any import without such certification would prima facie be prohibited and therefore, option of redemption fine in respect thereof would be discretionary


No further hike in GP rate if earlier additions were made after considering the undisclosed income

IT : Where after including income surrendered during survey on account of excess stock, gross profit rate became more than that worked out by AO, no addition could be made on account of low GP rate


Mere booking of flat with builder within two years of transfer of house would provide relief under s

IT : Where assessee having sold residential property, entered into an agreement with a builder within prescribed period of two years for purchase of flat payment of which was linked to stage of construction, assessee's claim for deduction under section 54 was to be allowed


[Indian Customs Non-Tariff Notification] : Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

SC admits appeal against CESTAT's order allowing ST exemption on 70% of contract value on which VAT

Service Tax : Where Tribunal held that since assessee had paid VAT on 70% of contract value, service tax could not be collected on same value in view of principles of fiscal federalism adopted in Constitution, Supreme Court admitted appeals thereagainst


Amendment to SARFAESI Act taking away RBI’s powers to fix NPA norms for financial institutions is un

SARFAESI : RBI to be restored as regulator for banking, non-banking institutions and securitisation agencies for deciding period after which loans could be treated as NPA; 2004 amendment to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002 declared unconstitutional and contrary to object of Act


A Co. having high turnover and brand value excludible from list of comparables for TP study

IT/ILT : A comparable company should have comparable brand value, comparable turnover and comparable business activities; there should be no extraordinary events in relevant year


Tribunal could extend stay beyond 365 days if each stay was upto 180 days and its order was a reason

Excise & Customs : Tribunal may extend stay beyond 365 days but each time stay must be granted for up to 180 days and extension may be granted only by way of reasoned order and only if delay in disposal of appeal is not due to assessee


Sec. 12AA doesn’t require audit clause in trust’s deed; CIT directed to examine genuineness of trust

IT : Where Administrative Commissioner rejected assessee's application for registration under section 12AA without examining genuineness of activity of trust, matter was to be readjudicated


Construction of river reservoir for industrial use amounted to commercial or industrial construction

Service Tax : Construction of river reservoir meant for industrial use and raising heights thereof does not amount to 'Site Formation and Clearance, Excavation and Earthmoving and Demolition Services'; it is Commercial or Industrial Construction Services


No sec. 69B addition in hands of assessee when he was dealing in land as broker on behalf of investo

IT: Where assessee-broker was initially purchasing land in name of his associate and then transferring same to investor, no addition could be made on account of undisclosed investment


Assessee had to pay interest alongwith differential duty even in case of retrospective increase in p

Excise & Customs : Interest is leviable on delayed and deferred payment of duty for whatever reasons; payment of differential duty comes under section 11A(2B) and attracts levy of interest under section 11AA (erstwhile section 11AB) of Act


Tax liability of chicory roots would be covered by Notification No. 306 issued under U.P. Trade Tax

CST & VAT : Notification No. 306, dated 29-1-2001 issued under provisions of U.P. Trade Tax Act, 1948 would cover tax liability in respect to chicory roots


Director immune from disqualification if annual docs filed after 31-3-2014 but prior to launch of Se

COMPANIES ACT, 2013 : Section 92 of The Companies Act, 2013 – Annual Return – Company Law Settlement Scheme, 2014 – Clarification as to Applicability of Section 164(2)


MCA extends validity of Company Law Settlement Scheme upto November 15, 2014

COMPANIES ACT, 2013 : Section 92 of the Companies Act, 2013 – Annual Return – Company Law Settlement Scheme, 2014 – Extension of Date Under


CIT to consider only object of trust and not application of income while granting sec. 80G registrat

IT : At time of granting approval of exemption under section 80G, only object of trust is required to be examined and, therefore, assessee's application seeking approval under section 80G(5) could not be rejected on ground that it failed to incur expenditure to extent of 85 per cent of its income during relevant year


No sec. 194C TDS if transportation charges received from parties were paid by AOP to its members for

IT : Where assessee-AOP paid transportation charges received from different parties to its members whose trucks were taken on hire for rendering transportation services, assessee was not liable to TDS


Petitioners entitled to bonus shares as they had legal title over them and there was no prohibitory

CL: Where title to original shares was in favour of petitioners and there was no prohibition of any Court, petitioners were entitled to get accrued benefit in form of bonus shares