Unaccounted income admitted during search must be co-related with docs found during search, says Raj

IT : Statements made during search, must be co-related with records, which are found, and if there is any ambiguity, explanation given by assessee should be taken into consideration, before making assessment

TPO can't compare profit to total cost ratio with profit to operating ratio of comparables

IT/ILT : TPO cannot calculate ALP of an international transaction by taking profit rate at total costs (both operating and non-operating) with profit rate of comparables on operating costs alone

Chennai ITAT still follows ratio of Merilyn Shipping; restricted disallowance to exp. payable at yea

IT: Chennai ITAT still follows ratio of Merilyn Shipping; restricted disallowance to exp. payable at year end

Block assessment under sec. 158BD set-aside as AO failed to record satisfaction in respect of other

IT : Material and evidence on basis of which Assessing Officer of searched person had reached to conclusion that undisclosed income belonged to any other person was not brought on record, pre-requisite of 'satisfaction' for initiation of block assessment proceeding in case of such other person was non-existent or absent

No coverage of liability towards pension scheme under sec. 43B where it didn't envisage regular cont

IT: Where assessee had charged a certain amount to profit and loss account, being liability towards pension scheme, and it submitted before Tribunal that pension scheme did not make any regular contribution to any fund or trust and, therefore, liability would not fall under provisions of section 43B, matter was sent back to Assessing Officer for proper verification and examination of claim of assessee

No penalty when borrowed funds were diverted to affiliate under bona fide belief that interest was d

IT: Where Assessing Officer levied penalty holding that assessee claimed deductions in respect of borrowed funds which were diverted to sister concern and not for business and assessee bona fide pleaded that its deduction was covered by a particular provision of law, penalty could not be levied

Exp. on replacement of damage part of windmill is revenue exp.

IT : Where assessee had replaced only damaged parts of windmill without there being substantial change in original performance and generation capacity of windmill, expenditure would be allowable

Govt. mandates electronic filing of applications for appeals and revisions under Chhattisgarh VAT

VAT/INDIAN ACTS & RULES : Chhatisgarh Value Added Tax Rules, 2006 – Amendment In Rules 57 And 63

Now Govt. can condone delay in filing Goa VAT returns beyond 60 days

VAT/INDIAN ACTS & RULES : Goa Value Added Tax (Tenth Amendment) Rules, 2015 – Amendment In Rules 23 And 25

No penalty due to difference of opinion on addition of remission of liability if all facts were duly

IT : Where assessee merely failed to consider section 41(1) in respect of benefit accruing to it vide Government Resolution to reduce liability towards purchase cost of electricity from State Electricity Board but assessee had placed all facts on record, penalty levied under section 271(1)(c) was unjustified

Govt. notifies Credit Guarantee Fund Scheme for education loans

CL/INDIAN ACTS & RULES : Credit Guarantee Fund Scheme For Education Loans (CGFSEL)

CBEC lays down procedure for clearing of specified goods from EOU to DTA without payment of duty

EXCISE : Export Of Manufactured Final Product Under Bond Without Payment Of Excise Duty Under Rule 19 Of The Central Excise Rules, 2002

RBI asks banks to keep vigil on operations of foreign currency a/c of Airline Cos; reiterates norms

FEMA/ILT : Opening Of Foreign Currency Accounts In India By Ship-Manning/Crew-Management Agencies

Principle of alter ego can't be applied in reverse direction to make directors liable for an offence

Prevention of Corruption Act : Principle of alter ego can only be applied to make company liable for an act committed by a person or group of persons who control affairs of company as they represent alter ego of company; however it cannot be applied in reverse direction to make directors of company liable for an offence committed by company

RBI asks banks to keep vigil on operations foreign currency accounts of Airline Cos; reiterates norm

FEMA/ILT : Opening Of Foreign Currency Accounts In India By Ship-Manning/Crew-Management Agencies

No transfer if facilities are leased out for less than 12 years without any right of sub-letting

IT : No "transfer" of capital asset takes place in the ordinary sense of the word 'transfer' or even within the extended meaning given to the term 'transfer in section 2(47)(vi) when the plant and machinery along with land and building is leased out for a limited period of 10 years giving limited right to the lessee to hold and possess the facilities leased to it with further restriction on sub-letting it or transferring any right or interest therein to anyone without the permission of the lesso

RBI allows AD Category-1 banks to process import related payments

FEMA/ILT : Processing And Settlement Of Import And Export Related Payments Facilitated By Online Payment Gateway Service Providers

Now banks can provide partial credit enhancement to corporate bonds

BANKING : Partial Credit Enhancement to Corporate Bonds

No rebate if assessee failed to prove that exported goods were those which were cleared on payment o

Excise & Customs : Where assessee could not prove duty-paid character of exported goods viz. exported goods were same as cleared earlier on payment of duty, export rebate cannot be allowed; said infraction cannot be regarded as minor procedural lapse

Even royalty payment for 10 years was revenue exp. as it didn't make assessee owner of technical kno

IT : Where for a period of 10 years assessee paid royalty to a foreign company for acquiring technical know-how in respect of construction management services, since in terms of agreement, assessee did not become owner of said technical know how, amount in question was to be allowed as revenue expenditure

ITAT allows sec. 10(23C) relief to educational institution

IT : Where assessee trust was running an educational institution and objects of assessee were charitable in nature, receipts would be exempt under section 10(23C)

No FEMA proceeding shall lie against persons declaring black money under Compliance Window

FEMA/ILT/IT : Regularisation of Assets Held Abroad by Person Resident in India Under Fema, 1999

Now banks get power to change ownership of errant entities before loans turns into an NPA

BANKING : Framework for Revitalising Distressed Assets in the Economy – Review of Guidelines on Joint Lenders' Forum (JLF) and Corrective Action Plan (CAP)

Co. wherein extraordinary event of merger takes place can't be selected in list of comparables

IT/ILT : In case of assessee, engaged in import of medical devices from AE, a company in whose case an extraordinary event of merger took place which affected its financial results, could not be accepted as a valid comparable while determining ALP