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

AO gets flak from ITAT for analyzing issue which wasn't in accordance with terms of revisional order

IT: Where Commissioner passed a revisional order directing Assessing Officer to examine assessee's claim of tax credit under section 90 afresh in respect of foreign income, Assessing Officer could not redetermine assessee's residential status and change it from resident to non-resident

Accused acquitted under NI Act as complainant didn't prove that cheque was issued for legally subsis

Negotiable Instruments Act: Where complainant filed a complaint against respondent on ground that cheque issued by respondent for discharge of legally subsisting liability had been dishonoured, however failed to prove that cheque was issued for discharging legally subsisting liability, respondent was rightly acquitted by Trial Court for alleged offence under section 138

Bombay HC also directs CBDT to extend due date for filing of return upto 31-10-2015

Bombay HC also directs CBDT to extend due date for filing of return upto 31-10-2015

No sec. 69 additions on basis of loose sheet found during search unless AO prove it as eligible info

IT: Matter remanded for fresh consideration where Commissioner (Appeals) deleted disallowance made by Assessing Officer on account of excess purchase shown by assessee in comparison to purchase reflected in profit and loss account entered in CPU found and impounded during course of survey, without recording any finding as to whether assessee had been able to explain such difference

Interest on overdraft facility availed for business couldn't be considered for sec. 14A disallowance

IT: Where assessee had written off debts in respect of trading transaction in its books of account, same had to be allowed

Investment of borrowed funds in shares would not show that assessee was carrying on business of inve

IT : Excess borrowed funds lying with assessee can always be invested in shares for earning higher returns or through professionally managed Portfolio Management Scheme; it would not mean that assessee was carrying on business of investment in shares

RBI issues framework for issuance of Rupee Denominated Bonds overseas

FEMA/ILT : External Commercial Borrowings (ECB) Policy – Issuance of Rupee Denominated Bonds Overseas

CBDT's instruction of 2014 fixing monetary limits for filing appeals is applicable to pending cases:

IT: CBDT's instruction of 2014 fixing monetary limits for filing appeals is applicable to pending cases: Mumbai ITAT

CBEC directs AOs to complete adjudication within prescribed time limits

EXCISE /M : Streamlining Process of Adjudication

No penalty when additional income was surrendered by assessee only to buy peace and avoid protracted

IT: When subsequent to search certain documents belonged to assessee's father were seized wherein assessee had no interest, and, assessee offered additional income in his own hand to avoid protracted litigation and to save his aged father from harassment, penalty levied by Assessing Officer under section 271(1)(c) was unjustified

Members of Commodity Derivatives Exchanges can become member of SEBI on satisfying certain condition

SEBI : Registration of members of commodity derivatives exchanges

RBI issues framework for issuance of Rupee Denominated Bonds overseas- ECB Policy

FEMA/ILT : External Commercial Borrowings (ECB) Policy – Issuance of Rupee Denominated Bonds Overseas

CBEC reminds its officers to ensure that cigerettes pack carry health warnings

EXCISE/M : IMPLEMENTATION OF PROVISIONS OF CIGARETTES AND OTHER TOBACCO PRODUCTS (PROHIBITION OF ADVERTISEMENT AND REGULATION OF TRADE AND COMMERCE, PRODUCTION, SUPPLY AND DISTRIBUTION) ACT, 2003 (COTPA) AND CIGARETTES AND OTHER TOBACCO PRODUCTS (PACKAGING AND LABELLING) RULES, 2008

Interest on FDRs made out of customer's advances wasn't income from other sources if same was reduce

IT : Where assessee, a construction company, received bank interest on FDRs which were made out of advances received from customers, even if construction was not complete during current year interest income could not be treated as income from other sources as same had been reduced from work-in-progress

CIT(A) wasn't empowered to decide an issue which did not arise out of order of any lower authority

IT : Where Commissioner (Appeals) adjudicated an issue which did not arise from orders of lower authorities appeal preferred by assessee for rectification under section 154 was to be allowed

Exp. incurred on issuance of shares to QIBs was preliminary exp. under sec. 35D

IT : Expenditure incurred by assessee on FCCB and debenture issues was allowable under section 35D

Gujarat HC directs for extension of due date for filing of return by one month subject to Sec. 234A

Gujarat HC directs for extension of due date for filing of return by one month subject to Sec. 234A interest

All directors liable for cheque dishonouring as they were involved in day-to-day management of accus

Negotiable Instruments Act: Where in complaint under section 138 there was an allegation that directors were involved in day-to-day business of accused company, High Court erred in quashing proceedings against all directors

CBDT releases its comments on queries relating to Black Money Act

IT/ILT : Departmental Clarifications on Black Money Act

No penalty for TDS default as sum paid for purchase of satellite rights didn't attract TDS

IT/ILT : Where assessee-company, involved in business of broadcasting and telecasting, paid a certain sum towards purchase of satellite rights said payment not being royalty, penalty could not be levied under section 271C for non-deduction of TDS on same

Prior to 1-6-2015 there was no enabling provision for levying sec. 234E fee at the time of processin

IT : Prior to 1-6-2015, there was no enabling provision in section 200A for raising a demand in respect of levy of fees under section 234E

Customs Dept can't reject FOB value of exports stating that declared value-addition can't be achieve

Customs : Whether value-addition has been made or whether same has been correctly shown, is a subject matter of examination by DGFT; Customs Department can merely examine FOB value and cannot reject declared FOB value on ground that value-addition shown by assessee could not have been achieved

Now Form 15G/15H can be e-filed; payee to specify number of Form15G/15H filed during the year

IT/ILT : Income-Tax (Fourteenth Amendment) Rules, 2015 – Substitution of Rule 29C and Form No.15G and Form No.15H

Govt. notifies twin fold hike in tax-free Transport Allowance for deaf and dumb employees

IT/ILT/INDIAN ACTS & RULES : Income-Tax (Thirteenth Amendment) Rules, 2015 – Amendment in Rule 2BB

Dept. can't invoke extended period as assessee disclosed all facts at the time of registration

Excise & Customs : Where all facts/documents as to use of brand name were disclosed to department at time of registration, department cannot allege suppression of facts so as to invoke extend period to deny SSI-exemption

Corporate guarantee given to foreign AE couldn't be held as international transaction under transfer

IT/ILT : Corporate guarantee given by an assessee to its AEs does not involve any cost to assessee and, therefore, it has no bearing on profits, income, loss or assets of assessee and is outside ambit of international transaction

Custom Dept can't reject FOB value of exports stating that declared value-addition can't be achieved

Customs : Whether value-addition has been made or whether same has been correctly shown, is a subject matter of examination by DGFT; Customs Department can merely examine FOB value and cannot reject declared FOB value on ground that value-addition shown by assessee could not have been achieved

DLF isn't dominant player in Delhi in presence of developers like DDA, Ansal and API

Competition Act: Where there were many real estate developers in relevant market of provision of services relating to development and sale of residential apartment in Delhi, DLF was not dominant in relevant market

Delay in filing of appeal can't be condoned on ground that one of the partners of firm was ill

IT: Delay in filing of appeal cannot be condoned on ground that one of the partners of firm was ill

Even payment made under oral contract would attract TDS under sec. 194C

IT : Where assessee made payments on regular basis to owners of goods carrying vehicles though in terms of 'oral contract', assessee was liable to deduct TDS under section 194C

IRDA releases master circular on anti-money laundering or counter financing of terrorism

INSURANCE : ANTI MONEY LAUNDERING/COUNTER FINANCING OF TERRORISM (AML/CFT) GUIDELINES FOR LIFE INSURERS

Service provider promoting foreign brand isn't eligible for duty credit scrip under SFIS

FT (D&R) Act : Where petitioner-exporter applied for duty credit entitlement under SFIS but same was denied by impugned order, petitioner did not have vested right in seeking incentive as Duty Credit Scrip and, thus, impugned order of Central Govt. was to be upheld

Failure of assessee to show urgency of availing of cash loans above Rs. 20,000 leads to imposition o

IT : Where assessee-company accepted cash loan in contravention of provisions of section 269SS, in absence of any material to show that there was urgency for assessee to avail of loan in cash, such transaction would not come under exception clause of section 271D, and penalty levied was justified

Belief of partner that he wasn't liable for TDS on interest paid to firm wasn't a reasonable cause t

IT: Language of section 194A does not leave scope for any ambiguity on liability of a partner to deduct tax on interest paid by him to firm; therefore, belief of partner that he is not liable to deduct tax at source on interest paid to firm, cannot be considered as reasonable cause as contemplated under section 273B

Tax authorities can't take a stand different from Govt. so as to deny benefit to assessee

CST & VAT: Central Sales Tax - Once Cabinet took a policy decision to extend its 2004 Industrial policy in matter of central sales tax concession to eligible units beyond 31-3-2009 upto 31-3-2013 and notification dated 29-5-2009, accordingly, having been issued by Department of Industries, thereafter Excise and Taxation department could not take a different stand

Sec. 153C doesn't require that seized docs found during search must be incriminating ones

IT : In view of CBDT Instruction No. 5/2004, since total tax effect of all appeals filed by revenue before Tribunal was less than Rs. 4 lakhs, appeal was to be dismissed

No transfer of case as authorities didn't record independent findings that assessee was linked with

IT: Unless an independent finding is recorded by authorities that parties were linked in such a manner where there was major flow of finance from one side to other, transfer of assessment proceeding should not be permitted on ground of search conducted on one party

Officials with unsavory past and dubious reputation shouldn't be appointed as Tax Recovery officer:

IT : Implementation of Administrative Recommendations of Committee for Drafting New TRO Manual

Copy of doc proving ownership of premises is required for registration under Kerala VAT

VAT/KERALA/INDIAN ACTS & RULES : Kerala Value Added Tax (Amendment) Rules, 2015 – Amendment in Rule 17

No excise duty on sum received due to price escalation if it isn't known at or before time of remova

Central Excise : Duty is payable at place, price and time of clearance of goods; hence, price-escalation, which was not contemplated at or before time of removal, cannot form part of transaction value especially when there is no allegation of understatement of value

Ban on import of Palm Oil via Kerala ports is in interest of farmers growing Coconuts: Apex Court

FTDR: Sub-section (2) of section 3 of Foreign Trade (Development and Regulation) Act gives ample power to government to issue notifications in exceptional cases, thus, where decision to issue notifications prohibiting import of palm oil through all ports of Kerala had been taken in interest of farmers, more so for their survival, notifications so issued were to be upheld

Not affording opportunity to cross-examine witness is violation of natural justice

Service Tax/Excise/Customs : Where demand has been confirmed relying upon witnesses of certain witnesses but assessee has not been allowed cross-examination of said witnesses, there was violation of principles of natural justice and therefore, matter was to be remanded back for consideration afresh

Employees contribution to PF paid belatedly but before due date of filing return is deductible: Hyde

IT: Where assessee remitted employees' contribution to provident fund belatedly, but within due date of filing of return of income under section 139(1), in view of provisions of section 43B, business disallowance made by Assessing Officer was not justified

Dept. can't withheld refund or interest thereon unless higher authority stays order granting refund

Excise & Customs : Where Tribunal order granting refund with interest had not been stayed by Supreme Court, department could not withheld refund or interest thereon

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

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

Punjab and Haryana HC directs CBDT to extend due date of filing of return beyond Sept. 30, 2015

IT : The Punjab and Haryana High Court directed CBDT to extend due date of filing of income-tax returns from September 30, 2015 to October 31, 2015

CBDT directed to consider representation for extension of ITR due date peremptorily by 29-09-2015

IT : Karnataka High Court directs CBDT to consider representation for extension of date of filing of return (due by Sept. 30, 2015) peremptorily by Sept. 29, 2015

Presence of substantial number of venture capital firms in relevant market rules out dominance of op

Competition Act : Where there were substantial number of reality linked private equity/venture capital firms such as Kotak gp, HDFC etc. in relevant market of provision of services relating to management of investment in realty linked venture capital funds and reality linked private equity funds in India, OP with whom informant had invested a sum in a scheme, was not dominant in relevant market and, therefore, no case of abuse of dominant position was made out

One time upfront fee to be spread over term of agreement if it is refundable on termination of agree

IT : Where certain amount of upfront fee was received by assessee as advance fee for period of ten years and a portion of same was refundable to operator in case of termination of agreement within ten years, amount was to be spread over in ten years

'Thales Systemes Aeroportes' gets exemption under Section 10(6C)

IT/ILT : Section 10(6c) of the Income-Tax Act, 1961 – Exemption – Foreign Company, Income Arising to, by Way of Fees for Technical Services – Notified Foreign Companies

Quoting of PAN is now mandatory in Form No. MGT-7

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Management and Administration) Second Amendment Rules, 2015 – Amendment in Form No.MGT-7

Sec. 69C additions to be made on amount of Cenvat Credit and not purchases if credit was availed fra

IT : Where assessee had made purchases from open market and shown same to be made from company H just to avail CENVAT credit, addition was to be made only on account of such CENVAT credit, and not on account of total purchases

Raw material to sales ratio was appropriate benchmark to determine ALP of raw materials purchased fr

IT/ILT : Where assessee purchased raw material from its AE located abroad, in view of fact that subsequent sale by assessee to various parties was an uncontrolled transaction, ratio of raw material to sales would be a proper ratio to compare consumption of raw material by assessee and comparable parties while determining ALP

Interest paid to be set-off against interest earned on lending to holding Co. for commercial expedie

IT : Netting off of interest on bank borrowings allowed u/s 57(iii) against interest earned from onlending to holding company if onlending to holding co. is based on commercial expediency and terms of bank loan permit such onlending and the income and expenditure do not pertain to the pre-operative period

Non-compliance with 'AS' in preparation of financials isn't a continuing offence under Companies Act

CL: An offence under section 211 is not a continuing offence and is complete moment balance sheet in question is issued by company unlike offences under sections 113, 162 and 168 of Companies Act, 1956 which are continuing in nature

Rubber Products' Exports Record 5% Growth

Exports of rubber products, which have been growing at a healthy double digit rates for about two decades, have seen the growth rate dwindle in the last three financial years. This is a cause of concern as rubber is a sunrise sector and the potential for exports is immense notwithstanding the economic slowdown in some of the export markets, said Mohinder Gupta, President of All India Rubber Industries Association (AIRIA).

According to Chemicals and Allied Products Export Promotion Council (Capexil) data, the exports of rubber products increased 5 per cent in FY15 to $2.82 billion from $2.74 billion in FY14. The increase in exports was boosted by non-tyre rubber products manufactured largely by around 5,500 rubber MSMEs.

The fact that rubber MSMEs have been able to manage a growth of 10 per cent (from $1,056.82 million in FY14 to $1,168.91 million in FY15) notwithstanding the overall exports scenario is pointer to the fact that there is large potential for growth if policies for rubber MSMEs are in place.

The share of India in rubber export market is a paltry 1.48 per cent, whereas China is 11 per cent. India's share can be easily enhanced to 5 per cent in the next 5- 7 years and India's ranking can be enhanced to fifth position from current 19th.

Firstly import of raw materials needs to be facilitated. India is grossly deficient in production of natural rubber (NR). Import of NR is therefore inevitable. However, there is import duty of 25 per cent on import of NR while rubber products can be imported at 10 per cent or even lower rates of duty under Free Trade Agreements (FTAs), he said.

For encouragement of exports of rubber products, AIRIA has asked for a separate Rubber Export Promotion Council (Rubexil) with to view to maximise the export potential of Rubber industry.

Rubber industry fits in with the Government's initiatives of Make in India and Skill India as thousands of rubber units spread across the country manufacture around 35,000 different rubber products, which find usage in auto, defence, healthcare, agriculture and in various other critical sectors. Rubber industry is labour intensive already employing three million people, a large percentage of which are unskilled and around one million skilled, therefore rubber sector has all the ingredients to lead these initiatives.

Source:- business-standard.com

Payer not at fault for not approaching AO under sec. 195(2) as it made purchase contract and not com

IT : Where agreement entered into by assessee with foreign company was for simple purchase contract and not a composite contract, provisions of section 195(2) would not applied

India's Vegetable Oil Imports To Rise 19% This Season: Industry Body

India's vegetable oil imports will rise 19 percent to 14 million tonnes this marketing year ending Oct. 30, an industry body said on Monday, after weak monsoon rains late last year hit output of rapeseed and other oilseeds.

Pravin S. Lunkad, president of the Solvent Extractors' Association of India, also said the government should lower the import duty on oilseeds to 5-10 percent from 30 percent currently so that under-utilised crushing plants in India can revive their business.

Indian oilseed crushers have been forced to use a fraction of their capacity as the domestic market stays awash with cheap rival palm oil from top producers Malaysia and Indonesia.

Source: economictimes.indiatimes.com

Attempt To Illegally Import Over 8,300 Kg Polythene Bags Foiled

The Excise and Taxation department foiled two attempts of illegally importing polythene bags in Jammu and Kashmir by recovering over 8,300 kg of such bags here today.

Two attempts to smuggle 8,310 kg of polythene bags was thwarted at the Lakhanpur toll plaza today.

"In one instance we found that a truck, on its way to Kathua from Pathankot, was loaded with 400 bags of wheat which was also been loaded with 120 bags full of polythene bags containing 8,230 kg of poly bags," a spokesman of the department said.

He said that in another attempt 80 kg of polythene bags were recovered from a car that was on its way to Kathua from Punjab.

The consignment was later handed over to the pollution control board, Kathua for proper disposal, he said.

The sale and use of polythene bags has been banned by the government in the state, the spokesman said, adding, the drivers of both the vehicles have been detained by the excise department and will later be handed over to police.

Source:- economictimes.indiatimes.com

Indo-Us Bilateral Trade Can Touch $500 Billion By 2025: Report

With India emerging as the most sought after developing market and an important partner for the US, the bilateral trade between the two countries is likely to touch $500 billion by 2025, a recent survey said.

According to a survey conducted by PwC and Indo American Chamber of Commerce (IACC), trade between the two countries has the potential to grow up to $500 billion through concerned efforts from all stakeholders -- government leaders and investors, corporates, businesses and entrepreneurs.

"India continues to emerge as one of the most important markets in the developing world and an important trading partner for the US. This is evident by the four-fold growth in the India-US trade since 2006 to 100 billion $in 2014," PwC India Strategy Consulting Leader Shashank Tripathi said.

He said the drivers to achieve this trade growth would be the five key sectors including aerospace and defence (A&D), infrastructure and logistics, energy, manufacturing and services.

"These sectors are of the utmost importance to the Indo-US relationship. In each of these sectors, in addition to the facilitation of trade by the government, the corporate sector can lead the way into the evolving trade relationships," Tripathi said.

The report further said enormous headroom exists to unshackle the real potential of the trade and strengthen strategic relationship between the two nations through trade.

"This is increasingly important, since in the new world order, economic interests drive strategic partnerships to the mutual benefit of the world's largest and oldest democracies. The two nations should initiate more trade missions and remove barriers that affect the trade and investment among other initiatives from the government and corporates," he added.
According to it, some of the key challenges in achieving mission USD 500 billion include India's poor record in the ease of doing business (EODB) ranking and speed of decision making as well as the US government's restrictive visa policy and restrictions on technology transfer.

"Both the governments need to improve the business environment, provide tax incentives and simplify regulations. Positive signs are already emerging with the government's focus on the Make in India initiative, bilateral shared forum on manufacturing, and the India-US CEO Forum," IACC Secretary General Ranjana Khanna said.

She further said strategic trading relationship is only the first step in creating a more meaningful partnership between two of the largest democracies in the world.

"This can not only lead to deeper engagement in areas such as space exploration, climate change and counter-terrorism, but also build a stronger people partnership and bring together dynamism and new thinking to create solutions to some of the most pressing problems the world is facing," Khanna added.

While roadblocks may arise in the course of time, the commonalities of interests are immense for growth in trade between India and the US, she said.

Source:- economictimes.indiatimes.com

Rupee Pares Initial Gains; Still Up 6 Paise At 66.10

The rupee pared its initial gains, but was still trading higher by 6 paise at 66.10 against the US currency on bouts of dollar selling by banks and exporters.

The rupee resumed higher at 66.10 per dollar against the previous close of 66.16 at the Interbank Foreign Exchange (Forex) market.

It gained further to 66.01 on bouts of dollar selling before quoting at 66.10 at 3.35 pm local time. It hovered in a range of 66.14 to 66.01 per dollar during the evening deals.

In global markets, the US dollar was up against a basket of currencies in early lacklustre Asian trade amid relatively uneventful weekend with the dollar showing potential for gains if the upcoming data strengthen the case for a hike in interest rates this year.

The dollar index was 0.2 per cent up on Monday at 96.328, just shy of Friday’s high of 96.70, while the euro was down 0.2 per cent at $1.1174.

Meanwhile, the benchmark BSE Sensex ended lower by 247 points at 25,616.84.

Source:- thehindubusinessline.com

Govt. grant received for modernization of machinery is liable to MAT

IT : While computing book profit under section 115JB, Central Government grant received by assessee for modernisation of machinery and compensation received from State Government for loss to its compound wall, could not be deducted from net profit computed as per Parts II and III of Schedule VI of Companies Act, 1956

A charitable trust can exercise option of accumulation of income by mere filing return of income

IT : Though law does not mention any specific mode of exercising option for setting apart income for charitable purpose in succeeding year , If such option is exercised when return is filed, that would be treated as in conformity and comply with provisions contained in section 11

Investment in chit-fund Co. for better management of funds to be construed as eligible investment by

IT : Where contribution to chit funds was done only as an arrangement for better management of society's funds, exemption under section 11 could not be denied

All shares couldn't be treated to be held for trading purposes when majority of them were held for a

IT: Where assessee except for shares of two companies held other shares for a very long period and valued same at cost, entire share transactions could not be treated as business transactions

Addition of unexplained investment justified when assessee was taking different stand before authori

IT : Where assessee had initially accepted investment in land as unexplained and had taken different stands before different authority, addition made under section 69 was justified

A commercially insolvent co. which didn't dispute its financial inability was liable for winding-up

CL: Where company did not dispute its financial inability to pay and was commercially insolvent, company was liable to be wound up

Haryana Govt amends composition scheme for developers

VAT/HARYANA/INDIAN ACTS & RULES : Haryana Value Added Tax (Third Amendment) Rules, 2015 – Insertion of Rule 49A , Form VAT-CD1 and FORM VAT-R13

'Satyam' couldn't be selected as comparable as its financial results couldn't be relied upon due to

IT/ILT : Where a company admitted financial irregularities and conspiracy hatched and committed by its directors, financial results of said company cannot be relied upon and said company cannot be selected as comparable

Exp. incurred by hospital on MD's daughter getting knowledge in medical field for hospital was deduc

IT: Where daughter of managing director of assessee-company which was running a hospital was sent abroad for acquiring specialised kowledge in medical field and after acquiring same, she was working with assessee, expenses incurred towards daughter's education were to be allowed under section 37(1)

HC couldn't hold up assignment of debt just because application against sale notice was pending in D

SARFAESI: Merely because an application under section 17 against sale notice was pending before DRT, Court could not have exercised its writ jurisdiction against transfer of debt by secured creditor, as notice for sale of property and transfer of a debt by secured creditor are independent actions

No penalty for late filing of TDS return if TDS was deducted and deposited in time

IT : Where assessee-bank deducted TDS and made payment on time but filed late TDS return as it was not aware that returns were to be filed at branch level, since revenue had not suffered any loss on account of late filing of return, penalty levied was to be cancelled

Prior to 1-6-2013 developer wasn't liable to TDS on purchase of property from NR due to non-discrimi

IT/ILT : In view of article 26(4) of DTAA between India and USA, assessee cannot be burdened with requirement of TDS in case of payment to three Indian individuals including one non-resident for sale or purchase of property in India (Position prior to 1-6-2013)

Single residential project to be deemed as one irrespective of multiple permits granted by developme

IT: Where assessee-company developed a residential project on one single piece of land and in said piece of land assessee constructed six housing towers which was approved by CMDA in accordance with Development Control Rules, assessee would be entitled to deduction under section 80-IB(10)

Even availment of credit on minor inputs would lead to denial of 'Nil' rate of duty

Central Excise : Where NIL rate of duty is based upon condition that no credit of inputs had been taken, assessee cannot claim said benefit if he had taken credit even on minor inputs/consumables

CIT(A) gets flak from HC for deleting estimated additions only on basis of gross profit rate of prec

IT: Where Commissioner (Appeals) merely on basis of gross profit rate applied in preceding year granted relief to assessee to that extent, matter was to be remanded back for fresh examination of books of account

Case restored to AO as assessee didn't get chance to cross-examine parties whose statement was relie

IT: Where assessee was not given an opportunity to cross-examine representatives of two companies whose statement was relied upon by revenue in disallowing amount paid by assessee to said companies to carry out promotional and advertisement activities, same was breach of principles of natural justice and accordingly issue was to be restored for fresh disposal

Payer not liable for TDS default due to amendments made in definition of royalty at later stage with

IT : Where Assessing Officer on basis of amendments introduced in section 9(1)(vi) with retrospective effect held that assessee was liable to deduct tax at source from licence fee paid for use of softwares and disallowed payments by invoking provisions of section 40(a)(ia), assessee could not be held responsible for violation of TDS provisions on basis of subsequent amendments introduced in section 9(1)(vi)

Excise dealers aren't liable to pay excess sum collected in name of duty as it is applicable only fo

Central Excise : Liability to pay 'excess collection in name of duty' lies only on manufacturer of goods and not on registered dealers

Reassessment order rightly set aside as AO didn't came across any material relating suggesting escap

IT: Since during course of proceedings under section 147, Assessing Officer did not come across any material relating to payment of commission suggesting escapement of income under any heads, Assessing Officer was not justified in reopening assessment in respect of commission

Dist. Magistrate rightly ordered recovery as neither bank dues were paid nor notice was challenged b

SARFAESI: Where petitioner failed to pay outstanding dues of respondent bank, order passed by District Magistrate under section 14 directing bank to recover possession of mortgaged property of petitioner was legal

Service tax will not be considered in gross receipts while determining income under sec. 44BB

IT/ILT: Service tax was to be excluded from gross receipts while determining income under section 44BB

Delayed sanction of refund beyond three months from date of application attracts interest

Excise & Customs : If refund is sanctioned belatedly beyond three months from date of application, interest will be payable to assessee

Proportionate interest disallowable u/s 14A even if bank's current deposits exceed tax-free investme

IT : Interest liable to be disallowed u/s 14A on proportionate basis even if assessee-bank's current deposits exceed its investments yielding tax-free returns. Assessee-bank cannot escape disallowance of interest u/s 14A by taking the plea that its interest-free funds (own funds or current account deposits) exceeded the amount of its tax-free income yielding investments in shares and mutual funds

Interest debited in personal books of proprietor due to borrowing used for business purposes was all

IT : Where assessee's personal books of account as well as books of account of his proprietary concern were interlinked and connected with business activity of assessee, interest paid from personal books of account on funds borrowed for business purpose was allowable under section 36(1)(iii)

Bombay HC irked by delay in passing adjudication orders

Service Tax/Excise/Customs : High Court irked by delay in passing adjudication order after conclusion of hearing and huge pendency of cases in adjudication; asks Commissioner/Chief Commissioner to file affidavit listing pending cases along with time requisite to dispose them of

Gains arising on sale of shares out of investment portfolio are capital gains and not business profi

IT: Where assessee-company had maintained accounts with applicable accounting standards and revenue was unable to find fault with assessee's claim, capital gains arising out of investments portfolio was to be taxable under head 'Capital gain' and not as business income

Norms of Compromise/arrangements are applicable even in case of slump sale which is subjected to app

CL : Provisions of sections 391 to 394 attracted even in case of slump sale, which is subject to approval of court