CBDT signs 11 more unilateral APAs with Indian counterparts of foreign Cos

IT/ILT : Section 92CC of the Income-Tax Act, 1961 – Transfer Pricing – Advance Pricing Agreement (APA) – Signing of 11 More Unilateral APAs

RBI eases norms on filing of online returns by NBFCs

NBFCs : Revision of Online Returns to be Submitted by NBFCs

Delay in filing TDS return due to non-submission of PAN by payee won't invite penalty

IT : Where assessee challenged penalty order passed under section 272A(2)(k) on ground that delay in filing TDS returns occurred due to non-submission of PAN details by concerned deductees within stipulated time, matter was to be remanded back for disposal afresh

Exp. on foreign trip of MD and his wife disallowed in absence of details of business visa and meetin

IT : Where assessee showed value of share in books on which it had never claimed diminution/increase, income earned on sale of shares was capital gain, and not business income

SEBI unveils format for disclosing financial results for entities having listed their debt securitie

SEBI : Format for Financial Results for Listed Entities which have Listed their Debt Securities and/or Non-Cumulative Redeemable Preference Shares

RBI relaxes restriction on deployment of expatriates in Indian branches by foreign banks

BANKING : Engagement of Services of Expatriate Officers in Indian Offices of Foreign Banks

RBI directs AD banks to consider Bill of entry as evidence for physical imports of goods

FEMA/ILT : Import of Goods into India – Evidence of Import

RBI permits FPIs to buy defaulted non-convertible debentures/bonds

FEMA/ILT : Investment by Foreign Portfolio Investors (FPI) in Corporate Bonds

RBI scraps requirement of taking approval from Civil Aviation Ministry on import of aircraft, helico

FEMA/ILT : Advance Remittance for Import of Aircrafts/Helicopters/Other Aviation Related Purchases

Corporate guarantee provided to AE involves rendering of services; covered under TP provisions

IT/ILT: Where assessee made trade advances to AEs, interest was chargeable and TPO was to be directed to adopt EURIBOR + 2 per cent rate of interest as appropriate bench mark price and make adjustments towards interest and advance provided to AEs

Credit of EC can't be used to pay SHEC

Cenvat Credit: As per First Proviso to rule 3(7)(b) of the CENVAT Credit Rules, 2004, credit of EC on excisable goods and EC on taxable services can be used only for payment of EC on finished excisable goods or EC on taxable service; hence, credit of EC cannot be used for discharging SHEC

Date of failure is relevant and not date of imposition of penalty to apply amended sec. 15A of SEBI

SEBI : Where SEBI's summons to respondent to furnish required documents was prior to 29-10-2002 when SEBI(Amendment) Act, 2002 came into force by which penalty under section 15A had been enhanced to Rs. 1 lakh for each day of failure to furnish required document, return or report, or Rs. 1 crore, whichever is less, penalty prior to amendment to section 15A would be applicable, i.e. Rs. 1.5 lakhs on failure of respondent to furnish required documents

Co. providing engineering consultancy services isn't comparable with a co. rendering marketing servi

IT/ILT : In case of assessee, rendering marketing support services to its AE, companies providing engineering consultancy or pay roll services or conducting clinical trials of food and drugs or research and survey or providing consultancy services or advisory services, could not be accepted as valid comparables while determining ALP

No cancellation of trust’s registration just because trust deed allows trust to carry on other busin

IT : Merely because one of clauses of trust deed of assessee trust provided that trust could carry on other business as decided by trustees, it would not per se disentitle trust from being considered for registration under section 10(23C)(vi)

No reassessment on basis of report of investigation wing if assessee had disclosed material facts du

IT : Where assessee had disclosed all material facts in support of loan transactions at time of making assessment, initiation of reassessment proceedings after expiry of four years from end of relevant assessment year merely on basis of report of investigation wing that loan received from one 'R' was bogus, was not sustainable

Delhi Govt. prescribes 3 days deadline for restoration of registration application under DVAT

VAT : Time Limit for Restoration of Registration Application

Co. which earns income from sale of licenses is not comparable with a Co. rendering software develop

IT/ILT: A company which earns income from sale of licences ought to be rejected as comparable for company rendering software development services

Services of seed testing are not liable to service tax; CBEC clarifies

ST : Section 65B(3) of the Finance Act, 1994 – Agriculture - Clarification on Leviability of Service Tax on Seed Testing with Retrospective Effect From 1-7-2012

RBI restores eligibility criteria for factoring companies to register as NBFC-factor

BANKING : Bank Finance to Factoring Companies

SEBI prescribes timelines for commodity derivate exchanges to comply with Securities Laws

SEBI : Timelines for Compliance with Various Provisions of Securities Laws by Commodity Derivatives Exchanges

CBDT invites suggestions for proper implementation of ICDS

IT/ILT : Section 145 of the Income-Tax Act, 1961 – Method of Accounting – Income Computation and Disclosure Standards (ICDS) Notified Under Section 145(2)

Services availed by 'Vodafone' for vendor payment queries and field activations are technical servic

IT : Payments made by assessee to service providers for rendering support services such as field activations, vendor payment queries, tele-calling for bill payments would require deduction of tax at source under section 194J

Appeal not maintainable if filed after expiry of period of one month available to CCE(A) to condone

ST : Where appeal was filed before Commissioner (Appeals) belatedly, even beyond extra period of one month that is condonable by Commissioner (Appeals), appeal would not be maintainable

Duty draw back couldn't be treated as business income if it was being part of equipment cost

IT: Where assessee in respect of materials purchased paid excise duty to vendors in relevant assessment year 2009-10 and its project was not in operation during said year and it lodged a claim for refund of excise duty with Director General of Foreign Trade as deemed export benefits, since amount of excise duty related to cost of acquisition of capital assets/project, refund of excise duty would ultimately reduce cost of project and could not be treated as business income

Dept. couldn't demand reversal of credit just because minor variation were found in inventory during

Excise & Customs: Where during audit, minor variation of less than 0.5 per cent was found in inventory, i.e., Raw Material and/or finished goods, demanding Excise Duty or reversal of credit on such short and excess would be non-sustainable

CCI rejects allegation of unfair trade practice against Reliance Gas

Competition Act : CCI dismissed informant's complaint against Reliance Gas Transportation Infrastructure Ltd (Reliance Gas) for alleged imposition of arbitrary, unfair and unreasonable anti-competitive terms and conditions in hook-up facility agreement

'Annual turnover' can't be interpreted to include only brokerage for computing registration fee: SC

SEBI : Annual turnover of stock broker as per Explanation after paragraph 3 to Schedule III to SEBI (Stock Brokers & Sub Brokers) Regulations, 1992 must include value of entire transaction, for purpose of computing registration fee as per Schedule III of Regulations and in no case term 'annual turnover' can be so interpreted as to mean only amount earned by stock broker by way of brokerage

Working capital adjustment should be made for TP study on basis of average annual working capital

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services to AE, in view of fact that some comparables selected by TPO were improper on account of functional difference as they developed their own software products whereas another comparable was found inappropriate as it had huge turnover, impugned addition was to be set aside

Date of commencement of business isn't relevant to allow depreciation when asset is ready for use

IT: Provisions of section 40(a)(ia) cannot be invoked to disallow expenditure which has been actually paid during previous year and nothing remained payable on last day of previous year

No denial of Cenvat credit on input services availed prior to initiation of manufacturing activity

CENVAT: A manufacturer of excisable goods could not be denied Cenvat Credit of duty paid on input services availed prior to start of manufacturing activity

Income already disclosed prior to search proceedings couldn't be treated as undisclosed

IT: Since disclosure about a particular income was made by assessee nearly three years prior to search, same could not be treated as undisclosed income

Valuation of DTA clearances of 'tea' by EOU to be valued as per Excise law: Apex Court

Central Excise : Where, as per exemption notification, DTA clearances by EOU are liable to 'excise duty leviable on clearances by non-EOUs', said DTA clearances are to be valued as per Central Excise Valuation rules

Excise exemption available to ore can't be extended to concentrate as both are different products

Excise & Customs: Process of conversion of ore into concentrate amounts to deemed manufacture; therefore, concentrate is a different product from ore and, accordingly, CVD/excise exemption to 'ore' cannot be extended to 'concentrate'

ITAT deletes TP addition as impugned transactions were made between two resident persons

IT/ILT : Where assessee-company and company providing management services to it were both resident in India, transaction between them would not fall within definition of international transaction; requiring ALP computation under TP provisions

Reprinting of revised price before packing isn't violation of weight & measurement norms

Standards of Weights and Measures Act: Where a revised price was required to be printed on wrapper before packing contents and it was under such circumstances that initial label was blacked out and a separate MRP was printed same was not in derogation of or inconsistent with sub-clause (7) of rule 23; penalty proceedings imposed on this ground were to be set aside

No penalty if assessee had bonafide belief that charitable institutions not covered under commercial

ST : Where appellant-institution was under bonafide belief that being a charitable trust it was not covered by expression 'Commercial Training and Coaching Centre', though related notification was amended retrospectively to cover such institution, longer period of limitation could not be invoked for raising demand; further, benefit of waiver of penalty would be available to appellant

Cos having huge turnover and excess related party transactions are excludible from list of comparabl

IT/ILT : In case of assessee, rendering software development services to its AE, companies having functional dissimilarities, excess RPT and huge turnover, were to be excluded from list of comparables while determining ALP

Question of change of opinion didn't arise if return of income was accepted under sec. 143(1); reass

IT: There being no assessment under section 143(1)(a), question of change of opinion, does not arise and, reassessment can be made

Apex Court discuss scope of ‘commercial expediency’ to allow deduction of interest to Hero Cycles

Once it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and to decide how much is reasonable expenditure having regard to the circumstances of the case.

CBEC exempts excise duty on raw material and parts used in manufacturing of shipping vessels

EXCISE/NT : Omnibus general exemption to goods specified in Chapters 1 to 98 of Tariff – Amendment in Notification No. 12/2012-C.E., dated 17-3-2012

SC draws distinction between exempted goods and exempted units for allowing input tax credit

Rajasthan VAT- Assessee could claim input tax credit of raw material used in manufacturing of Asbestos Cement Sheets when assessee was specifically exempted from paying VAT due to exemption notification.

Apex Court discus’s scope of ‘commercial expediency’ to allow deduction of interest to Hero Cycles

Once it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and to decide how much is reasonable expenditure having regard to the circumstances of the case.

Dept. can't raise issue of ineligible input service for the first time without raising it in show-ca

Service Tax : Show-cause notice is foundation of demand and order-in-original and subsequent orders passed by appellate authorities under statute would be confined to show cause notice; hence, department cannot challenge order of Tribunal on grounds not mentioned in notice/adjudication order

No service-tax on service portion of works contract for period prior to June 1, 2007

Service Tax: Despite contract giving break-up of price for materials as well as services separately, if contract is treated as 'turnkey contract'/'works contract', no service tax is payable on service portion thereof prior to 1-6-2007

Seized gift couldn't be treated as unexplained if no incriminating material was found during search

IT: Where Authorised Officer conducted search under section 132 upon assessee and thereafter Assessing Officer framed assessment under section 143(3) read with section 153A, whereby he treated amount of gifts received by assessee from two individuals an unexplained cash credit and added same in his income, since there was nothing on record to suggest that gifts were ingenuine, impugned addition was beyond scope and ambit of an assessment envisaged under section 153A

Notional interest on surplus funds can't be deemed as profit of eligible undertaking under sec. 10A

IT : An assessee cannot include notional interest on surplus funds as income in computation of profits and gains derived by its undertaking from export of articles or things, for purpose of claiming exemption under section 10A

Stamp duty value won't apply if value of property adversely affected due to its usage for industrial

IT : Stamp duty value won't apply if value of property adversely affected due to its usage for industrial purposes only

Service-tax is payable on amount of service charges and wages in case of manpower supply services

Service Tax: In case of manpower supply to shipping companies, service tax is payable under 'manpower supply services' on value inclusive of service charges and wages of labour

RBI postpones date of issue of Gold Bonds to Nov 30, 2015

BANKING : Sovereign Gold Bonds, 2015-16 – Shifting of Issue Date Thereof

Comparable chosen in earlier draft order could be used later if such order was set-aside without dec

IT: Where earlier draft assessment order was not dealt on merits, but set aside only on ground of violation of principles of natural justice, there was nothing wrong in adopting comparables selected by TPO in earlier order by revenue in determining arm's length price in international transaction of assessee

Sum received for restrictive covenant in relation to profession is tax-free

IT : Clause (va) of section 28 of the Act taxes a sum received for a restrictive covenant in relation to a business, but not a profession. Compensation attributable to a negative/restrictive covenant is a capital receipt and as the same does not fall within the ambit of section 28(va), it is not taxable

Co. engaged in clinical research isn't comparable with a software development service provider

IT/ILT : In case of assessee-company engaged in rendering software development services to its AE, companies having functional dissimilarities or having related party transactions in excess of 15 per cent of revenue, could not be accepted as comparables while determining ALP

Due date for filing of Form DP-1 under DVAT further extended to Dec 31, 2015

VAT : Online Submission of Information in Form DP-1 – Extension of Date Thereof

Supply of ID smart cards to transport dept. couldn't be treated as sale; not liable to Karnataka VAT

CST & VAT: Karnataka VAT - Where assessee in terms of an agreement entered with a transport department prepared ID smart cards as desired by it and supplied them to it after lamination, since smart cards were not commodities saleable in open market, supply of smart cards to transport department could not be held as sale

HC sets aside block assessment as seized material was destroyed in fire that took place at revenue's

IT: HC sets aside block assessment as seized material was destroyed in fire that took place at revenue's office

Battery and its parts to be deemed as parts of motor vehicle for levying Rajasthan VAT: HC

CST & VAT : Rajasthan VAT- Battery and its parts which were primarily used for installation/fitting in a motor-vehicle would be deemed as parts of motor vehicle for levying VAT

Tribunal doesn't have powers to stay prosecution proceedings

IT : Section 254 does not confer power upon Tribunal to stay consideration of a notice calling upon assessee to show cause why prosecution be not launched against it under section 276C

Forex gain or loss not excludible from operating revenue while computing operating margin for TP stu

IT/ILT : A software product company cannot be compared to software development service provider

Madras HC dismissed appeal without going into its merits due to low tax-effect

IT: Where tax effect in appeal filed by revenue before High Court was less than Rs. 4 lakhs and revenue's case did not fall within exceptions specified inInstruction No. 1979, dated 27-3-2000, impugned appeal was not maintainable

Time-limit to file refund claim to be counted from date of realization of export proceeds and not fr

Cenvat Credit: In case of service exporter, time-limit of 1 year for filing refund claim of cenvat credit will be computed from date of realization of export proceeds

Rupee Recovers From Two-Month Low, Rises 13 Paises Against Us Dollar

The rupee recovered from over two-month low by rising 13 paise to 66.34 against the dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks.

Forex dealers said besides selling of the American unit by exporters and banks, weakness in the dollar against some currencies overseas also supported the rupee.

They said, however, a lower opening in the domestic equity market capped the rupee’s gain.

Yesterday, the rupee had lost 28 paise to close at more than 2-month low of 66.47 against the US dollar on fresh month-end demand for the American currency from importers and
banks amidst volatile equity markets.

Meanwhile, the benchmark BSE Sensex fell by 115.48 points or 0.44 per cent to 25,703.86 in early trade.

Source:- newsworldindia.in

Holding period of capital asset shall not include period for which it was held as stock in trade

IT : Where stock in trade is converted into capital asset, the holding period for the purposes of classifying it as long-term or short-term capital asset shall be reckoned excluding the period for which it was held as stock-in-trade prior to conversion

Assessee eligible to get refund of advance FBT when it got status of trust with retro-effect

IT: Where assessee, for assessment year 2006-07, paid fringe benefit tax in advance and subsequently it was granted registration under section 12AA with retrospective effect from 1-4-2005 and thereupon it moved an application on 31-8-2007 for refund of aforesaid amount of fringe benefit tax, Assessing Officer was to be directed to process application of assessee in accordance with law

Govt. reviews FDI policy on various sectors; defines term 'manufacture'

FDI/FEMA/ILT : Review Of Foreign Direct Investment (FDI) Policy On Various Sectors – Amendments In Consolidated FDI Policy Circular Of 2015 Effective From 12-5-2015

Directorate of income-tax, HRD seeks info of domestic consultants engaged by Ministries for more tha

IT : Information Of Domestic Consultants Engaged By Ministries/Departments For More Than Six Months

IRDA asks insurers to disclose investment return details in advertisements of life insurance product

INSURANCE : Benefit Illustration(S) in Advertisements of Life Insurance Products

Mumbai ITAT denies to treat news distributor of 'Reuters' as its PE in India

IT/ILT : Where assessee, a UK based company, engaged in business of providing news and financial information world-wide, entered into distribution agreement with RIPL in India, since RIPL was not habitually exercising its authority to negotiate and to conclude contracts on behalf of assessee, it could be concluded that assessee did not have PE in India and, consequently, distribution fee received by it could not be brought to tax in India

Arrangement fees paid to foreign banks to finance international acquisition is liable to service-tax

Service Tax : Arrangement/Agency fees paid to foreign banks/Mandated Lead Managers for providing finance (and/or coordinating in providing finance) for international acquisitions is liable to service tax under reverse charge in hands of Indian borrower under 'Banking and Other Financial Services'

Disclosure obligation in takeover code is on promoter’s group and not on every promoter in that grou

SEBI : The obligation to make yearly disclosure under regulation 8(2) and regulation 30(2) of the Takeover Regulations framed by SEBI in the year 1997 & 2011 respectively is on the promoter/ promoter group. If the promoters of a listed company are individual promoters then the obligation is on the individual promoters and in case there is a 'promoter group' then the promoter group is required to make yearly disclosure.

Advertising agency is liable to pay service tax on commission received on newspapers

Service Tax : Even if sale of advertisement space in print media is not liable to service tax, commission received by advertising agency from newspapers is liable to service tax under advertising agency's services

Virginia Firm Signs Deal For Export Of Apples To India

With Virginia looking to boost its trade with India, a firm from the US state has signed a deal for the export of apples to the country.

"I am pleased to announce this new sale of Crown's 2015 apple crop into the highly competitive Indian produce market," Virginia Governor Terry McAuliffe said in a statement.

"After opening the Indian apple market for Virginia producers last year, it was important that we continue that momentum and push hard to expand those sales," he said adding that export deals like this one will play a vital role in generating additional revenue and jobs for the State.

A MoU on the export of apples was signed between officials of Crown Orchard Company and IG International in Mumbai in the presence of McAuliffe.

"We have focused on India as an important strategic market for Virginia agricultural and forestry products since launching the export growth initiative in 2011," said Todd Haymore, Secretary of Agriculture and Forestry.

"Virginia has emerged as the second largest apple exporting state to India, and we are working continuously to drive more sales and make new introductions between our producers and Indian apple importers," he said.

In 2014, Virginia exported about apples worth $1.6 million to India, up from zero in late 2011, when Virginia opened its representative trade office.

As of September of this year, Virginia has exported apples worth $1.2 million in to India.

Exports to India in 2014 represented more than half of the state's total apple exports worldwide, while the year-to-date sales as of September to India account for more than 60 per cent of this year's total apple exports.

"Virginia apples are already earning a solid reputation amongst Indian produce buyers for their high quality, sweet flavour and overall value," said Tarun Arora, CEO of IG International.

"Apples are in high demand in India, and I am pleased to have found a great new source for quality apples in Virginia and the Crown Orchard Company," he said.

Source:- economictimes.indiatimes.com

Imports To Push The Price Of Rubber Further Down

The gap between production and consumption of natural rubber in the country is likely to touch 5 lakh tonnes this fiscal given the pace at which the production has been dropping with plummeting prices.

The current level of prices at Rs 108.50 a kg is at a seven-year low and is expected to push down the production of the commodity further. Already, the production is down by 15% over last year. The total natural rubber production had dropped 15% to 6.55 lakh tonnes in 2014-15.

The various stakeholders in the rubber sector predict the production to reach around 5.50 lakh tonnes this year, with some forecasting further drop. At the same time, the consumption is expected to go over 1 million tonnes.

"Our production is now grossly insufficient to meet the consumption and irrespective of whether prices are low or high, we will have to import. The centre should come out with measures to protect the interest of consumers to the extent of rubber imported to bridge the gap," said Rajiv Budhraja, director general of Automotive Tyre Manufacturers' Association (Atma).

The natural rubber imports reached an all-time-high of 414,606 tonnes last year. With the increase of the import duty by 5% to 25%, there has been a fall in imports till October this year by 11%. But considering that the international prices of rubber are Rs 27 to Rs 30 below the Indian price, the imports are set to rise in the coming months.

"Those who are tapping rubber now are getting a poor yield as there has been no proper maintenance of the rubber trees with price fall. Gradually, from selfsufficiency we are turning into a rubber import dependent country," pointed out a major rubber dealer Biju John.

The market intervention measures by the government to provide succour to the growers through a subsidy have not yielded much dividends. As Kerala accounts for about 90% of the rubber grown in the country, the state government is implementing a Rs 300-crore package to small growers so as to pay them a fixed price of Rs 150 per kg with the difference between the current price and fixed price as subsidy.

Source:- economictimes.indiatimes.com

Mizoram Bans Sale & Import Of Particular Turmeric Powder

Mizoram Health and Family Welfare department has banned the sale and import of reddish turmeric powder from neighbouring Myanmar after the State Public Health Laboratory found the powder "unsafe".

State Commissioner of Food Safety Dr K.

Ropari recently issued a notification banning the turmeric powder, locally called 'Aisen'.

  The notification said the 'Aisen' sample was sent to the State Public Health Laboratory in Guwahati where it was found that the turmeric powder is unsafe.

  The colour used in manufacture of the 'Aisen' was in violation of the Food Safety and Standards Act, 2006 and Rules and Regulations, 2011, the notification said, adding that it was found to be sub-standard.

  While turmeric powder is generally called 'Aieng' in the local dialect, this particular product is called 'Aisen' due to reddish hues and widely used in hotels, restaurants and also at homes.

  It is also used for making pickles.

Source:- niticentral.com

A software developer can't be compared with a software development service

IT/ILT: Where companies having revenues from software sales or software products development or being engaged in research or providing KPO services or product designing/engineering services, could not be compared to assessee providing software development services; further company in which extraordinary events took place could not be comparable

TDI Fun Republic Mall isn't dominant player in West Delhi: CCI

Competition Act : Where appellant, welfare association, representing shop owners of TDI Fun Republic Mall, failed to produce any document or other evidence to show that OP i.e., TDI Fun Republic Mall was only mall in West Delhi, OP was not dominant in relevant market and, therefore, no competition law issue arose for consideration

Purchaser need not reverse tax credit when seller didn't issue credit note for post sales discount

CST & VAT : Delhi VAT - Where selling dealer provided post sell discount and deposited entire VAT collected from purchasing dealer to department, Tribunal was not right in holding that appellant dealers were required to reverse input tax credits claimed on purchases made by them

Extend Export Benefits To Cotton Yarn: Texprocil

The Cotton Textiles Export Promotion Council has urged the Government to extend the three per cent interest subvention benefit to cotton yarn exports, considering the difficult phase the industry is passing through currently.

The much-awaited interest rate subvention scheme on pre- and post-shipment was recently approved by the Cabinet Committee on Economic Affairs. Dubbed as Interest Equalisation Scheme, it will be effective from April 1 for a period of five years. The scheme will be evaluated after three years. The benefits under the scheme were denied for cotton yarn and merchant exporters.

RK Dalmia, Chairman, the Cotton Textiles Export Promotion Council, said the Interest Equalisation Scheme would provide the much needed boost to exports of cotton textiles as all categories of fabrics and made ups have been covered.

Interest rates on export finance are high in India as compared to competing countries such as Bangladesh, Pakistan, Sri Lanka and Vietnam, he said and added that exporters were keenly looking forward towards the announcement of this scheme as they are facing depressed market condition and declining exports.

Lower interest rate would bring down the overall cost for manufacturers and help them to be competitive in the global markets.

The benefits, Dalmia said, should be extended to cotton yarn exporters especially when they are facing intense competition from neighbouring countries amidst sharp fall in demand, especially in China.

“In the present business scenario, the differentiation between manufacturers and merchant exporters is diminishing and there is no reason as to why merchant exporters should be denied the benefit of concession in lending rate on export finance as long as they contribute towards exports,

 

 

Source :thehindubusinessline.com

Co. rendering ITES isn't comparable with software development service provider for TP analysis

IT/ILT : While determining ALP foreign exchange gains/loss arising from transactions of revenue nature was to be considered as part of operating profit/cost of assessee as well as that of comparables

Mere filing of appeal against order of AO couldn’t suo-motu stay recovery proceedings

IT: Power of Assessing Officer under section 220(6) cannot be said to be power to grant stay against recovery of disputed demand and or mere filing of appeal does not suo-moto stay recovery proceedings

Personal loan given by a co. to its shareholder holding substantial interest in it would be taxable

IT : Where assessee, holding 60 per cent shares of a company, took personal loan from accumulated surplus of said company, said amount would be treated as deemed dividend under section 2(22)(e), after reducing therefrom amount repaid by assessee during year

No need to affix MRP on goods declared to be 'not for retail sale'; excise duty payable on transacti

Excise & Customs : Where assessee had declared on goods that they were not meant for retail sale and revenue could not produce any evidence to contrary, there was no requirement to affix MRP thereon and goods were to be valued based on transaction value under section 4

Sales tax subsidy received under West Bengal Incentive Scheme, 1999 was a capital receipt

IT : In case of industrial unit of assessee, covered under West Bengal Incentive Scheme, 1999, sales tax subsidy received from Government was capital receipt and, thus, not liable to tax

Second proviso to sec. 40(a)(ia) is applicable prospectively with effect from 1-4-2013

IT : Benefit of exclusion from purview of section 194A is restricted only to those individuals and Hindu Undivided families, whose total sales, gross receipts or turnover from business or profession do not exceed monetary limit specified under section 44AB(a) or (b)

Assessee wasn't guilty when dept. never asked for correct details even after levelling suppression c

Service Tax : Where, despite alleging suppression, department never asked for correct details, assessee cannot be held guilty of suppressing details and therefore, extended period cannot be invoked

CAT unhappy with CCI for mechanically approving DG's finding that conduct of film association was an

Competition Act: Where Commission had without independently analysing facts and evidence collected by Jt. DG during course of investigation abdicated its duty and mechanically approved findings recorded by Jt. DG that conduct of appellant film association in limiting and controlling exhibition of film rights was anti-competitive, findings recorded by Jt. DG were perverse and had to be set aside

Penalty order passed under DVAT without giving hearing chance to assessee was liable to be set-aside

CST & VAT: Delhi VAT - Where penalty order under section 86(10) was passed by Assessing Authority without service of prior notice on assessee and without affording it an opportunity of being heard, said order was liable to be set aside

Forex loss on advances to be calculated on closing of FY and not in later years when transaction got

IT : Where assessee received certain amount under pre-shipment packing credit facility while diverted certain amount as 'advances' towards its sister concern, in absence of any evidence to show that advance was made out of borrowed fund, no disallowance under section 36(1)(iii) of interest paid by assessee on amount received, was called for

No reassessment beyond 4 years to tax deemed dividend if material facts of such income were disclose

IT : Where all material facts with respect to deemed dividend income necessary for assessment are furnished by assessee, initiation of reassessment proceedings beyond a period of four years is not permissible

Govt. constitutes two regional benches of CESTAT at Chandigarh and Hyderabad

EXCISE : Constitution of Cestat Bench at Chandigarh

Assessee wasn't guilty when dept. never asked it for correct details even after levelling suppressio

Service Tax : Where, despite alleging suppression, department never asked for correct details, assessee cannot be held guilty of suppressing details and therefore, extended period cannot be invoked

Internal TNMM couldn't be rejected just because value of transaction with non-AE was insignificant

IT/ILT : Where assessee had undertaken transactions with both AEs and non-AEs, and it had not only maintained segmental details of such transactions, but had also undertaken comparative analysis in its TP study, internal TNMM had to be adopted as most appropriat method for determining ALP

Govt. authorizes 4,412 PNB branches to receive subscription under PPF and Senior Citizen Saving Sche

IT : Public Provident Fund Scheme, 1968 and Senior Citizens Savings Scheme Rules, 2004 – Notified Branches of Punjab National Bank to Receive, with Immediate Effect, Subscriptions under Said Schemes

Govt. notifies rules for recruitment in departmental canteens

IT/INDIAN ACTS & RULES : Income-Tax Department, Non-Statutory Departmental Canteens (Group 'C' Posts) Recruitment Rules, 2015

No extended period due to issuance of subsequent notices if dept. was aware of all facts while issui

Excise & Customs : When department was aware of all facts while issuing initial three notices and said three notices had been dropped on merits subsequently, fourth notice cannot invoke extended period to raise demand

Govt. constitutes two new regional benches of CESTAT at Chandigarh and Hyderabad

EXCISE : Constitution of Cestat Bench at Chandigarh

Rajeev Kher appointed as member of Competition Appellate Tribunal

COMPETITION ACT : Section 53C, Read With Section 53F of the Competition Act, 2002 – Appellate Tribunal – Composition of - Notified Member

No additions on nursing home alleging non-disclosure of receipt from patients without support of sei

IT : Where pursuant to search proceedings, Assessing Officer made addition to assessee's income on ground that in nursing home run by assessee, treatment was given to various patients and amount received form them was not reflected in books of account, since said conclusion was not supported by seized material, impugned addition was to be set aside

TPO couldn't make addition by considering current year data if revenue had used multiple years data

IT/ILT : TPO could not make addition to assessee's ALP for rendering content related services to its AE by using only current year data at time of selection of comparables when revenue itself had adopted multiple years data in preceding years and there was no change in circumstances during assessment year in question

Income from offshore services isn't taxable if it is provided outside India without any connection w

IT/ILT : Where Japanese company executed Engineering, Procurement, Construction and Commissioning contracts in India through Indian project office, income from offshore services, though chargeable under section 9(1)(vii) was exempt under DTAA and, hence, could not be charged to tax in light of section 90(2)

Amendment in SSI notification covering arms and ammunition parts isn't retrospective

Excise & Customs : Where, after several representations, Government amended SSI-extending exemption to 'parts of Chapter 93' only from 1-10-2001, said amendment could not be regarded as retrospective