Admission of mistake by 'CA' in computing book profits saves assessee from rigours of concealment pe

IT : Where assessee's Chartered Accountant committed a mistake while computing book profits under section 115JB which he admitted by filing a personal affidavit, no case was made out for levy of penalty

TP adjustment upheld as sum paid to AE for procuring ad-space was higher as compared to non-AE

IT/ILT: Where assessee made adjustment to assessee's ALP in respect of payment made to AE for purchasing ad space in relation to advertisement sales for satellite televisions broadcasted by AE in India, since there was nothing on record showing that assessee had to pay more in non-prime time slot to off-set deficit of target revenue transferred to AE in prime time slots, impugned adjustment was to be confirmed.

Issue of availability of exemption on intermediate goods isn't appealable before High Court

Excise & Customs : Issue 'whether intermediate goods molasses used captively for manufacture of spirit are eligible for exemption' does not lie before High Court; it is appealable only before Supreme Court

Interest paid to related concern as per resolution passed by committee of assessee-society wasn't un

IT : Payment of interest at rate of 18 per cent to creditors on basis of resolutions passed by executive committee of assessee-society was found reasonable

Tool-open jaw spanner taxable at 4%

CST & VAT : Maharashtra VAT - Tool-open jaw spanner would fall under Entry No. 6(ix) of Schedule B of Bombay Sales Tax Act/item No. (ix) of clause (iv) of section 14 of Central Sales Tax Act and liable to be taxed at rate of 4 per cent

HC deletes disallowance as statement recorded in survey was retracted and revenue didn't have any ot

IT : Where statement recorded under section 132(4) had been retracted and revenue did not press into service any other supporting material, assessee was entitled for deduction towards commission and brokerage

HC directs Govt. to order investigation into Co's affairs as it didn't furnish info to CA appointed

CL: Where respondent-company had not furnished information in respect of its affairs, to Chartered Accountants appointed by Court which it was reasonably expected to furnish, Central Government was to be directed to order investigation into affairs of respondent-company

Deptt. couldn't demand more penalties from assessee when it had wrongly paid ST and penalty on exemp

Service Tax : Where assessee does not challenge right to collect service tax and pays service tax with interest and penalty, though not payable, on exempted service, he cannot be saddled with additional penalty not charged/paid earlier

Discount offered by air travel agent to lure customers couldn't be held as commission; not liable fo

IT: Where air travel agent, while issuing tickets to customers, offered discount to increase volume of business, same could not be treated as commission to customers liable to TDS under section 194H

Wto Members Ask India To Remove Export Sops To Textiles

WTO member countries including the US, Turkey and Japan, have asked India to phase out export subsidies on textiles and the apparel sectors, Parliament was informed today.



As per the WTO data for 2006 and 2007, India has crossed the threshold limit (exports reaching 3.25 per cent threshold of the world trade) consecutively for two years in these sectors, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.



"In the WTO subsidies committee meetings, the WTO member countries, in particular the US supported by European Union, Turkey, Japan and others have urged phasing out of export subsidies by India for the textiles and the apparel sectors," she said.



Sitharaman added the government has not taken any decision on the phasing out of subsidies as the new Foreign Trade Policy is "still under consideration".



Replying to a separate question on buffalo meat exports, she said that the exports have increased to 13.71 per cent in quantity terms during April-October 2014.



In value terms, it has increased by 14.35 per cent during the period.



"The increase in the exports of buffalo meat during April to October 2013-14 was on account of increase of business in Vietnam, Egypt, Malaysia, Thailand and Saudi Arabia," the minister added.



She said that Indian bovine meat are not allowed into the Chinese market on ground of prevalence of 'food and mouth diseases' in India.



"On persistent efforts from India, China and India entered into an MoU for export of buffalo meat directly to China in May 2013," she added.

Source;- outlookindia.com

Gold Import Curbs May Have Led To Rise In Smuggling Activity

Import restrictions on gold may have led to increase in smuggling of the precious metal in recent years, Parliament was informed today."From the increase in number and value of gold seizure cases, it appears that the spurt in gold smuggling activity in recent years may be partly due to curbs imposed on gold imports," Minister of State for Finance Jayant Sinha said in a written reply to Lok Sabha.



Gold worth Rs 931.55 crore has been seized by customs authorities and Directorate of Revenue Intelligence during the April-January 2015 period of this fiscal.



In 2013-14, 2012-13 and 2011-12, the authorities had seized gold worth Rs 686.99 crore, Rs 104.62 crore and Rs 43.87 crore, respectively.



Number of cases of gold seizure by authorities has increased to 3,412 during April-January period of the current fiscal as against 2,450 in the full 2013-14 fiscal.



In 2012-13 and 2011-12, the number of such cases registered were 900 and 503, respectively.India's gold imports reached an all-time high level of USD 56.5 billion and USD 53.8 billion during 2011-12 and 2012-13.



The government has increased import duty on gold to 10 per cent to discourage imports and contain widening current account deficit.



In a separate reply, Sinha said during April-December period, India has exported gold worth Rs 9,434.5 crore while imports stood at Rs 1.56 lakh crore.



During the period, India has imported as much as 3,86,313 kg gold from Switzerland, followed by the US (59,692 kg), South Africa (32,570 kg) and Australia (30,644 kg).



Replying to another question on gold, the Minister said that as per the DRI, one case of misuse amounting to duty evasion of Rs 72.36 lakh has been booked by them.Further, he informed Lok Sabha that in Gold Monetisation Scheme, the owner will earn income on deposited gold.

Source:- economictimes.indiatimes.com

Rent-a-cab and outdoor catering services used for business purposes are eligible for credit

Cenvat Credit : Rent-a-cab services, outdoor catering services for factory canteen and repair/maintenance of vehicles used for business purposes is eligible for credit as 'input services'; however, no credit is available upto extent of amount recovered from employees

Instruments for physically handicapped patients would be eligible for exemption even if they aren't

Excise & Customs : Where exemption is available to 'Instruments and implants for severely physically handicapped patients', same would be available to would be available to 'instruments' and 'implants' separately and therefore, 'instruments' meant for said purpose would be eligible for exemption even if they are not 'implanted'

Penalty couldn't be imposed if assessment order didn't make evident about initiation of penalty proc

IT : Where intention or satisfaction to initiate penalty proceedings under section 271(1)(c) was not evident from order of assessment, penalty proceedings could not be initiated

FAQs released on maintenance of Cost Accounting Records and Cost audit

COMPANIES ACT, 2013/AAA : Section 148 Of The Companies Act, 2013 - Central Government To Specify Audit Of Items Of Cost In Respect Of Certain Companies - FAQ-1 On Maintenance Of Cost Accounting Records And Cost Audit

Sale of honeycomb partition frames used for partition of rail coaches are liable to VAT at 5%

CST & VAT: Karnataka VAT - Where assessee manufactured honeycomb partition frames as per specifications provided by railways, who used same for partition of rail coaches, frames were parts of rail coaches falling under Entry No. 76 of Third Schedule and were liable to be taxed at rate of 5 per cent

AO can't make reassessment on basis of objections raised by audit party without recording his satisf

IT : Assessing Officer could not reopen assessment regarding allowance of repairs on spare parts as revenue expenditure by simply following objections raised by audit party without recording his independent satisfaction

No need to create charge on issue of debentures by Govt. Co. if it is backed by guarantee given by G

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Share Capital and Debentures) Amendment Rules, 2015 – Amendment in Rules 5, 6, 12, 13, 18 & 19 and Substitution of Rule 3, Form SH-13 and Form SH-14

MCA encourages ease of doing business; relaxes norms relating to board's approval

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Meetings of Board and Its Powers) Amendment Rules, 2015 – Amendment in Rules 8 and 10

MCA amends norms for e-voting facility at general meetings; distinguishes between e-voting and remot

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Management and Administration) Amendment Rules, 2015 – Substitution of Rule 20

FEMA: Tribunal rejected condonation plea of applicant as he failed to give cogent reasons for filing

FEMA : Where appellant failed to give any acceptable and cogent reasons for delay in filing appeal against adjudication order, application for condonation of delay as well as appeal were to be dismissed

Sum paid for acquiring right to use technical know-how was revenue exp. as IP rights remained with f

IT : Where assessee, engaged in manufacturing and selling of motorcycles, made payment of royalty to a foreign company for merely acquiring right to use technical know how whereas ownership and intellectual property rights in know how remained with foreign company, payment in question was to be allowed as business expenditure

Income declared before SetCom can't be revised; payment of tax on revised income would abate proceed

IT : It is not permissible for assessee to revise application made by it under section 245C(1); tax paid as per revised disclosure would be non compliance of section 245D(2D) leading to abatement of application before Settlement Commission

Penalty couldn't imposed if assessment order didn't make evident about initiation of penalty proceed

IT : Where intention or satisfaction to initiate penalty proceedings under section 271(1)(c) was not evident from order of assessment, penalty proceedings could not be initiated

ITAT grants stay on tax demand arising out of TP adjustment as assessee had prima case in its favour

IT/ILT : Where for computing of AMP expenses, Assessing Officer had included free samples to distributors, additional discount to distributors and buyers, assessee had good prima facie case for grant of stay on demand arising out of T.P. adjustment