SEBI releases guidelines on overseas investment and clarifications for AIFs/VCFs

SEBI : Guidelines on overseas Investments and other Issues/Clarifications for AIFs/VCFs

SEBI erred in selecting self-regulator for MF distributors without hearing to unsuccessful applicant

SEBI : Regulation 3 of SEBI (SRO) Regulations, permits any group or association of intermediaries holding license under section 25(1) of Companies 1956 Act to submit application for being recognized as an SRO for distributors of mutual fund products

Service-tax isn’t includible in computing presumptive income under Sec. 44BB: Delhi High Court

IT : The service-tax is not an amount paid or payable, or received or deemed to be received by the assessee for the services rendered by it. The assessee is only collecting the service-tax for passing it on to the government. Thus, for the purpose of computing the presumptive income of the assessee under Section 44BB, the service-tax collected by the assessee on the amount paid for rendering services is not to be included in the gross receipt in terms of Section 44BB(2) read with Section 44BB(1)

Provision made for foreseeable losses by following AS-7 is allowable

IT : Where assessee is executing an infrastructure development fixed price contract, foreseeable losses of future years can be recognized following rationale of AS-7 issued by ICAI and such a provision is an allowable deduction

Govt. allows 100% FDI in White Label ATM Operations

FDI/FEMA/ILT : FDI Policy circular of 2015 effective from 12-5-2015 – FDI up to 100 per cent in white lable ATM operations under automatic route – Insertion of paragraph 6.2.18.8.3

Payment made to purchase negative rights of films on perpetual basis doesn't attract TDS under sec.

IT: Where assessee, a trader in films, purchased world negative rights from producers on perpetual and permanent basis, there was no liability to deduct tax at source under section 194J on payment made by assessee to producers and, accordingly, business disallowance was not justified

RBI issues regulation for regularization of foreign asset declared under Black Money Act

FEMA/ILT/INDIAN ACTS & RULES : FEM (Regularization of Assets Held Abroad by a Person Resident in India) Regulations, 2015

Assessee must be allowed to cross-examine witness on whose statement demand is based

Central Excise : When statements of witnesses are made basis of demand, not allowing assessee to cross-examine witnesses is a serious flaw which makes order nullity, as it amounts to violation of principles of natural justice

Sale of waste arising during production of Yarn can't be said to be clandestine removal of Yarn

Excise & Customs : Where partially wound bobbins of 1 Kg. or less yarn were treated as 'non-marketable' waste both by assessee and revenue and same was sold as 'waste', not 'yarn', same was not marketable and therefore, not liable to duty

No service-tax on entrance fee collected by club which doesn't confer any access to services

Service Tax : Where collection of entrance fee by club from its members : (a) did not confer members any access to services, facilities or advantages; and (b) was to meet expenses necessary for sustenance and survival of club and maintenance of its assets, then, entrance fee, not being a consideration, was not chargeable to service tax

After 1-4-1989 writing off of debts is sufficient to claim deduction without establishing that it be

IT: Where amount of bad debt or part thereof was written off as irrecoverable, it could be claimed as deduction without establishing that it became a bad debt in previous yea

A decree holder has right to file winding-up petition despite having option of enforcing decree agai

CL : Decree holder does not cease to be a creditor and has right to file winding up petition, despite having option of enforcing decree by filing an execution petition

AO couldn't deny sec. 80P relief to assessee without examining whether it was credit co-operative ba

IT: Where Assessing Officer did not examine that assessee was a credit co-operative bank or a credit co-operative society to decide section 80P exemption, matter was to be restored back to Assessing Officer for re-examination in light of decision of CIT v. Jafari Momin Vikas Co-op. Credit Society Ltd. [2014] 49 taxmann.com 571/227 Taxman 59 (Mag.)/362 ITR 331 (Guj.)

ITAT excludes companies with huge turnover in software development segment for TP study

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services, since some comparables selected by TPO were inappropriate on account of their huge turnover in software development segment, impugned addition was to be set aside

No credit on Telecom towers; Bombay High Court follows its judgment in Bharti Airtel's case

Cenvat Credit : Telecom service providers are not entitled to credit of duty paid on towers (in CKD/SKD form), parts of towers, shelters/pre-fabricated buildings purchased by them used for erection of telecom tower

Unjust enrichment doesn't apply to refund order which was passed prior to introduction of such conce

Excise & Customs : Amendment of section 11B in 1991 introducing concept of unjust enrichment would not apply, if refund had already been ordered finally in 1989 and mere payment thereof was pending at time of amendment

ITAT deletes disallowance considering its tax neutral effect due to availability of sec. 10B relief

IT-I : Where assessee submitted various documents in support of its claim of exemption under section 10B, had shown sufficient cause which prevented assessee from poducing those documents before Assessing Officer and same were admitted under rule 46A(1), assessee was eligible for exemption under section 10B

Govt. receives above 3,000 crores under Compliance window of Black Money

IT/ILT : Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 – Declarations Received and Amount Declared Under Compliance Window under the Black Money Act

Removal of goods to dummy unit amounts to suppression; extended period invocable

Excise & Customs : Where findings of fact show 'removal of goods in name of dummy unit' and 'unestablished purchases', it would amount to suppression of facts and fraud by assessee and, therefore, extended period was invocable