In block assessment AO can interfere with completed assessment only on basis of incriminating materi

IT: Completed assessments can be interfered with by Assessing Officer while making assessment under section 153A only on basis of some incriminating material unearthed during course of search which was not produced or not already disclosed or made known in course of original assessment

Committee of State FMs urges for extensive use of e-banking for GST payment; Seeks assistance from e

ST : Report of the Joint Committee on Business Processes for Gst on Gst Payment Process

Companies having related party transactions above 15% of turnover couldn't be chosen as comparables

IT/ILT : In case of assessee, rendering software development services to its AE, companies having functional difference, huge turnover and related party transactions in excess of 15 percent of revenue, could not be accepted as comparables while determining ALP

ITAT rightly rejected books and reduced net profit rate on basis of rate prevailing in preceding yea

IT : Where Tribunal affirmed rejection of account books of assessee, but reduced net profit rate to 6 per cent, since in preceding as well as following year a net profit rate of 6.75 per cent and 5 per cent respectively was applied by Assessing Officer, there was no error in discretion exercised by Tribunal in applying net profit rate of 6 per cent

Penalty of 3 lakh rightly imposed on sub-broker for allowing un-authorized access of terminal to its

SEBI : Where appellant, a sub-broker, registered with SEBI had knowingly allowed ultimate clients to operate terminals which were meant for sub-broker himself or for his authorized employees, this being in violation of SEBI circular dated 22-11-2001 as well as norms prescribed by Stock Brokers and Sub-Brokers Regulations, 1992, imposition of penalty was justified

Society formed only for benefit of Christians Community isn't entitled to sec. 12A registration

IT : Fact that assessee society was formed only for benefit of Christians community definitely could form a ground for denial of its registration

ITAT directs TPO to compare AMP functions before making TP adjustment; follows Sony Ericsson's case

IT/ILT : It is mandatory to make a comparison of the AMP functions performed by the assessee and comparables and then make an adjustment, if any, due to differences between the two, so that the AMP functions performed by the assessee and comparable are brought to a similar platform going by the ratio laid down by the Delhi High Court in case of Sony Ericsson Mobile Communications India (P.) Ltd.

High Court couldn't exercise jurisdiction u/s 10F over proceedings pending before CLB: SC

Section 10F of Companies Act, statutorily demarcates contours of jurisdictional exercise by an appellate forum depending on nature of order impugned i.e. interlocutory or final and both cannot be equated, lest pending proceeding before lower forum, if order impugned is purely of interlocutory nature, and does not decide any issue on a consideration of rival assertions on merits, stands aborted and is rendered superfluous for all intents and purposes

Regrouping of figures in audited balance sheet not permissible after its submission to I-T dept.

IT : It is inconceivable that after an audited balance sheet of a company for a financial year is signed by its Directors and statutory Auditors, and submitted to the statutory authorities, including Registrar of Companies (RoC) and income tax authorities, figures in such balance sheet for closing stock of shares can simply be altered subsequently by adopting device of 'regrouping' by assessee, even by a Board resolution

Govt. authorise Assistant Directors of 'Directorate of Enforcement' to act as 'Authorised Officer' u

FEMA/ILT : Section 37A Of The Foreign Exchange Management Act, 1999 - Special Provisions Relating To Assets Held Outside India In Contravention Of Section 4 – Authorization Of Officers Of Directorate Of Enforcement To Act As Authorised Officer

No seizure of assets in India if value of foreign asset acquired in breach of FEMA is below 1 crore

FEMA/ILT : Section 37A Of The Foreign Exchange Management Act, 1999 - Special Provisions Relating To Assets Held Outside India In Contravention Of Section 4 – Notified Mandatory Threshold Of Aggregate Value Of Foreign Exchange, Foreign Security Or Any Immovable Property, Situated Outside India

Period of holding of shares received on conversion of debentures includes holding period of debentur

IT : As per section 47(x) conversion of convertible debenture into shares would not constitute transfer for purpose of computation of income under head 'Capital gain'

Surrender of bogus gift as undisclosed income after detection of same by revenue would invite penalt

IT: Where assessee surrendered certain amount as undisclosed income in respect of bogus gift after detection of same by revenue authorities, penalty order passed under section 271(1)(c) in respect of said addition was to be confirmed

Purchases made after payment of excise duty and availment of credit can't be held as job work; no se

IT: Where assessee had purchased goods from manufacturers and paid sales tax, excise duty etc., transaction is on principal to principal basis and does not fall within purview of section 194C

Subscription fee of golf club paid by co. for director and his family wasn't allowable exp.

IT : Where Assessing Officer without examining nature of software treated expenditure incurred thereon as capital expenditure, matter was to be decided afresh

Extended period can't be invoked if credit was taken under bona fide belief based on favourable judg

Excise & Customs : In view of favourable Circular and judgments, assessee could have had bona fide belief that credit was of sales commission paid to commission agents is available; therefore, extended period of limitation could not be invoked

No penalty when revenue failed to prove that assessee had sufficient cash or bank balance to meet ta

IT : Where revenue failed to prove that assessee had sufficient cash or bank balance to meet tax demand and funds were diverted for non-business purpoes, penalty under section 221(1) was to be deleted

No sec. 14A disallowance when assessee hadn't shown any exempt income

IT: Where assessee furnished all details about encashment of foreign exchange and lower authorities had not doubted foreign tours undertaken by employees of assessee, disallowance on account of foreign travel expenses was not justified

Winding-up petition dismissed as co. discharged its liability by paying salaries to personnel of ser

CL: Winding-up petition dismissed as company discharged its liability by paying salaries to personnel of service provider

Credit of AED(GSI) on inputs can be used to pay AED(GSI) on intermediate products

Cenvat Credit : Accumulated credit of AED(GSI) on inputs pertaining to period before 1-4-2000 can be used to pay AED(GSI) on intermediate products and credit of AED(GSI) paid on intermediate products on or after 1-4-2000, can be used to pay BED/SED on final products

India-Israel DTAA to include LOB clause and an updated Article for effective exchange of info

IT/ILT : Protocol Amending Convention and Protocol between India and Israel for Avoidance of Double Taxation and for Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital

Delhi High Court allows input tax credit on DEPB scrips

CST & VAT : Delhi VAT : Assessee purchased scrips of Duty Entitlement Passbook Scheme from registered dealers after paying VAT and used it to pay import duty on goods. Since the DEPB scrip has contributed to the price of imported commodity therefore it constituted use of DEPB scrips for purposes of sale of the imported commodity; thus assessee was entitled to input tax credit on purchase of such DEPB scrips

CIT couldn't cancel registration of trust by considering first proviso to sec. 2(15)

IT : Where Commissioner had cancelled registration granted to assessee under section 12AA holding that activities of assessee were not charitable in nature within meaning of proviso to section 2(15), Commissioner was not justified in his action

AO has no discretion to waive off sec. 234B and sec. 234C interest

IT: In case of credit societies section 80P(2)(a)(i) deduction is available interest income earned on fixed deposits