Tuesday, 27 October 2015

No denial sec. 80G relief just because certain vouchers of trust were incomplete

IT : Merely because some of vouchers were not found complete, it could not be concluded that activities of assessee-trust were not genuine, particularly when it was apparent from records that objects of assessee-trust were clearly charitable in nature and there was no discrimination on account of religion, caste, language, etc.

CCI to decide its jurisdictional issue over DDA before passing order on merits: High Court

Competition Act: Where CCI had not argued that there was any impediment to legal issues raised by appellant DDA, to jurisdiction of CCI being decided in first instance, CCI was to decide questions of jurisdiction of CCI over DDA first

Set-off of losses allowed despite change in shareholding if control over Co. remains unchanged

IT : During the relevant Assessment year holding company of assessee reduced its shareholding from the 51% to 6% by transferring its shares to another subsidiary company. The revenue refused to allow carry forward and set-off of business losses

High Court allows TDS credit even if it belonged to AE but wrongly shown in 26AS of assessee

IT : Where due to an inadvertent mistake of vendor, TDS related to assessee's sister concern was credited to assessee's TDS account, assessee could claim credit of such TDS, provided its sister concern had not availed benefit of such TDS certificates

Principal manufacturer can take credit of duty paid by job-worker

Cenvat Credit : Where job-worker foregoes exemption under Notification No. 214/86-CE and pays duty on semi-processed goods returned to principal manufacturer, duty so paid by job-worker is eligible for credit in hands of principal manufacturer

Reassessment couldn't be initiated simply on basis of audit objection

IT : Where Assessing Officer completed assessment in case of assessee under section 143(3), he could not initiate reassessment proceedings merely on basis of objection raised by audit party that assessee had debited certain amount which was not allowable under section 36(1)(viia)

Co. for which sufficient information not available in public domain can't be chosen as comparable

IT : A captive unit of a comparable company which assume only a limited risk cannot be compared with a giant company in area of development of software who assumes all types of risks leading to higher profits

Interest disallowed as sum advanced by builder for acquisition of property wasn't utilized by AE for

IT : Where assessee-builder advanced borrowed amount to its sister concern for purpose of acquiring a portion of property in project proposed to be developed by its sister concern and said amount was not utilised for said project but it was used for some other project, assessee was not entitled for deduction of interest paid on borrowed amount

No penalty if assessee has bona fide belief that service tax isn't leviable

ST: Where assessee was under bonafide belief that its activities were non-taxable, same was a reasonable cause for non-payment of service tax in time, and hence, no penalty could be imposed in such case

IRDA issues guidelines on solicitation and marketing of insurance policies by 'point of sales person

INSURANCE : Guidelines On Point Of Sales Person

Delhi High Court Amendment Act, 2015 enacted wef Oct 26, 2015

CORPORATE LAWS/INDIAN ACTS & RULES : Section 1 Of The Delhi High Court (Amendment) Act, 2015 – Act – Enforcement Of – Notified Date On Which Provisions Of Said Act Shall Come Into Force

No concealment penalty when assessee had shown non-compete fee as a capital receipt due to bona-fide

IT: Where assessee was under bonafide belief that receipt from non-compete agreement was capital receipt and had credited same to capital account and Capital account was furnished along with return of income, penalty for furnishing inaccurate particulars was not justified

No Cenvat credit was allowed on amount attributable to service charges collected from employees

CENVAT: Demand pertaining to period beyond one year from date of issue of show-cause notice was not maintainable being time-barred; appellant was entitled for credit of Service tax paid to outdoor catering service provider however, no cenvat credit should be allowed on amount attributable to service charges which was collected from its employees

Sale of property of company at low price without notice to shareholder amounts to oppression

CL : Where petitioner had filed petition under sections 397 & 398 against respondent for selling property of company to a third party, i.e., Magnum, at a very low price without giving notice to petitioner, petitioner was entitled to implead third party, i.e., Magnum as party to proceedings and Magnum was directed not to alienate subject property or create third party rights pending disposal of company petition

Excess money refunded on cancellation of booking of flats couldn't be held as interest for purpose o

IT: On cancellation of booking of apartment if excess refund is made to old purchaser after taking advance from new purchaser, such excess payment could not be qualified to be interest as defined under section 2(28A); payer builder would have no TDS obligation

Manufacture can claim Cenvat credit even on basis of invoice showing him as consignee

CENVAT : Cenvat credit can be availed by manufacturer on strength of invoices issued by supplier for clearance of inputs or capital goods, showing manufacturer's name as consignee and name of dealers as buyer

No accrual of income if its payment was deferred prior to closing of previous year

IT: Where trade mark and marketing assistance fee payable by a company to assessee was deferred by assessee prior to closing of accounting year, fee did not accrue in relevant year