Monday, 7 December 2015

No disallowance of late payment interest just because assessee kept cash balance in hand

IT: Merely because there was some cash balance in hands of assessee, Assessing Officer could not disallow interest on belated payment of purchases made by assessee

IRDA asks insurers to take immediate steps to expedite settlement of claims in flood affected States

INSURANCE : Guidelines on Insurance Claims for Losses Due to Flood in State of Tamil Nadu, Puducherry and Neighbouring Districts of Andhra Pradesh

IRDA outlines roadmap on Applicability of Ind-AS in insurance sector; exempts certain Standards

INSURANCE/AAA : Discussion Paper on Convergence to Ind-as in Insurance Sector

Payment made by hospital to doctors would not attract sec. 192 in absence of employer-employee relat

IT : Where assessee, running a hospital, availed services of some doctors, since there did not exist employer-employee relationship between parties, assessee was justified in deducting tax at source under section 194J while making payments of professional fee to doctors

No service-tax credit on sub-broker services if brokerage was paid at unrealistic rates

Cenvat Credit: Where assessee-broker had passed-on brokerage to sub-brokers at rates higher than rate earned by itself and even goods involved were not tallied, sub-broker's services could not be regarded as 'input services'.

If direction under sec. 150 to reopen assessment itself was set aside, reassessment notice deserved

IT : Where on direction of Commissioner (Appeals), reassessment notice beyond four years period was issued to assessee, but said direction was set aside by Tribunal as well as High Court, reassessment notice deserved to be quashed

CCI couldn't inquire into unfair trade practice on complaint made by person who wasn't a customer or

Competition Act: Complaint made by a person who is not a consumer or a trade association cannot be made basis for making an inquiry under section 36-B

Delhi HC quashed reassessment on 'Oriental Insurance' as reason to believe of AO was found erroneous

IT : Where in case of assessee carrying on general insurance business, assessment order was passed accepting assessee's claim that in view of omission of clause (b) of rule 5 of First Schedule of Income-tax Act w.e.f. 1-4-1989, profit from sale of investment was exempt from tax, Assessing Officer subsequently could not reopen assessment merely on basis of change of opinion that aforesaid income was liable to tax

Only income which is in violation of Sec. 13 would be subject to maximum marginal rate; SLP dismisse

IT : SLP dismissed against High Court's ruling that in case of a trust registered under section 12AA, only such part of income which is violative of section 13(1)(d) can be brought to tax at maximum marginal rate and entirety of income cannot be denied exemption under section 11

Cutting and conversion of trees into billets isn't liable to service-tax if it amounts to manufactur

Service Tax : Cutting of trees and converting 'cutwood' into 'billets' for use in 'pulp plant' amounts to 'processing of goods' and if said activity does not amount to manufacture under Central Excise laws, it would be liable to service tax under Business Auxiliary Services

SLP granted to decide whether trust eligible for exemption if it earned rentals by letting out educa

IT : SLP granted against High Court's ruling that where assessee-trust generated income by giving hall and premises of its educational institution on rentals and said income was used for educational institution itself, such income could not be brought to tax

No interest on AED(GSI) due to retro-amendment denying credit if credit was paid or reversed in time

Cenvat Credit : Even in case of retrospective amendment barring use of credit of AED(GSI) accrued prior to 1-4-2000 for payment of BED, interest on credit used in contravention of said bar would be payable from date of wrong utilization, not from date of such retrospective amendment

Delhi ITAT rejects bright line test to determine ALP of AMP exp; directs TPO to follow ratio of Sony

IT/ILT: Where details of advertising, marketing and promotion functions performed by assessee were not available on record and functions of comparables had also not been analyzed by TPO and he applied bright line test for determining value of International transaction, matter be reconsidered afresh

Delhi ITAT rejects bright line test to determine ALP of AMP exp; directs TPO to follow ration of Son

IT/ILT: Where details of advertising, marketing and promotion functions performed by assessee were not available on record and functions of comparables had also not been analyzed by TPO and he applied bright line test for determining value of International transaction, matter be reconsidered afresh

Execution of welding and gas cutting work can't be regarded as manpower supply services

Service Tax : Work of welding, and gas cutting on various locations of service recipient cannot be regarded as 'manpower supply service', as it involves execution of work, not merely supply of manpower

No denial of refund claim just because supporting docs are filed late

Service Tax : In case of refund claim filed under rule 5 of the CENVAT Credit Rules, 2004, read with Notification 17/2009-ST, 'date of filing of refund claim' would be 'date on which refund claim in filed with department in proper form' and not 'date on which documents called for by Department, are furnished'

Chennai ITAT denies to disallow outstanding exp. for TDS default; follows ratio of Merilyn Shipping'

IT : Only an amount outstanding at end of close of assessment year can be disallowed under section 40(a)(ia)

Magistrate's rightly ordered to take possession of secured assets when tenancy agreement not placed

SARFAESI Act: Order passed by Chief Metropolitan Magistrate under section 14, appointing Court Commissioner to take possession of secured assets could not be faulted as in absence of any registered agreement of tenancy being placed on record, Chief Metropolitan Magistrate had no knowledge of any valid and lawful tenancy in favour of petitioners with respect to said assets and equally Bank could not be said to be guilty of suppression for not having made a declaration on that behalf

Assessee had to pay interest from beginning if refund order was vacated and original demand was revi

IT : Where pursuant to High Court's order, impugned order passed by Tribunal granting refund to assessee was set aside and demand of tax was restored, assessee was liable to pay interest under section 220(2) on unpaid tax liability from date of original order to order passed by Assessing Officer giving effect to order of High Court

No reassessment to curtail sec. 10A benefit when revenue had adequate time to file appeal against or

IT: Where Assessing Officer issued notice for reassessment on ground that excessive deduction was taken by assessee under section 10A and said action was not confirmed by Tribunal, since revenue did not file appeal against order of Tribunal and still revenue had time to file an appeal, reassessment proceedings could not be sustained till filing of an appeal