The Bombay Chartered Accountants Journal
Curiosity to Creativity
Welcome, Guest |
Accountancy and Audit
Artificial Intelligence Embracing Technology - New Age Audit Approach
Ind AS - Learings from Phase 1 Implementation - Tips for a Smooth implementation (Part 1)
From Published Accounts:
From Published Accounts
Corporate and Other Laws
Public Trusts in Maharashtra : The Changing Legal landscape Recent Amendments to the Maharashtra Public Trusts Act, 1950
Can there be Two Kings of the Jungle? The Delineation of 'Dominance' under the competition Act, 2002
Corporate Law Corner:
Corporate Law Corner
Is It Fair?:
Is it Fair to thrust the avoidable burden of compliance under the GST?
Laws And Business:
Insolvency and Bankuptcy Code: Pill for all Ills - Part II
Supreme Court Widens Powers of SEBI - Penalties Now Even More Easier to Levy
Applicability of Section 68 to Cash Credits in Absence of Books of Account
Glimpses Of Supreme Court Rulings:
Glimpses of Supreme Court Rulings
In the High Courts: Part A - Reported Decisions:
11 Section 37(1) – Business expenditure - Capital or revenue - A. Ys. 2008-09 and 2009-10 – Assessee obtaining mining lease from Government – Writ petitions to quash lease – Legal expenditure to defend and protect lease - Is revenue expenditure
12 Section 41(1) - Business income - Deemed income - A. Y. 2000-01 – Remission or cessation of trading liability – Condition precedent for treating sum as deemed profits – Sum should have been claimed as allowance or deduction in earlier year – Advance received from parent company for business purposes to be adjusted against future supplies – Transfer of advances to capital reserve – Capital receipt not liable to tax
13 Section 206C(1C) – A. Ys. 2005-06 to 2007-08 – Scope of section 206C(1C) – Collection of tax at source from agents who collect toll etc. – No obligation to collect tax at source from agent who collected octroi
14 Sections 194A, 194H, 201(1A), 276B and 279(1), and section 482 of Cr PC 1973 – TDS – Failure to deposit – Assessee depositing tax with interest once mistake of its accountant revealed during audit – Reasonable cause – Prosecution initiated three years after such payment – Not permissible
15 Section 271(1)(c) - Penalty - Concealment of income - A. Y. 2006-07 – Notice for levy of penalty – Notice should state specific grounds for levy of penalty – Printed form not sufficient
16 Section 9(1)(vii) and art 12 of DTAA between India and US - Non-resident - Income deemed to accrue and arise in India - A. Y. 2004-05 – (i) Agreement between resident and non-resident – Non-resident to procure designs and drawings from another non-resident – Designs and drawings supplied and payment received – Transaction one of sale – No royalty accrued to non-resident – tax not deductible at source; (ii) Indian company subsidiary of American company – Expenses incurred on behalf of Indian company by American company – Reimbursement of expenses – No payment for technical services – Amount not assessable u/s. 9 – Tax not deductible at source
17 Section 245D - Settlement Commission - Settlement of cases - Section 245D – A. Y. 2000-01 to 2006-07 – Order of Settlement Commission after considering facts - Writ by Revenue – No evidence that conclusions of Settlement Commission were perverse - Order valid
18 TDS – Karta – HUF – A. Y. 2012-2013 – Erroneous of PAN of Karta – HUF is entitled to benefit of TDS – Revenue has discretion to grant benefit to family
In The High Courts: Part B -Unreported Decisions:
1 Section 45 – Capital Gain - assessee not engaged in the business of dealing in land - the profit arising on its sale is assessable as Capital gain only
2 Section 153A – Search and seizure - Assessment would be limited to the incriminating evidence found during the search
3 Section 263 - Revision - two possible views - the issue is debatable –Revision is not permissible
Tribunal News : PART A - Reported Decision:
Section 68 – Addition u/s. 68 cannot be sustained in respect of share application money received from shareholder who is a daughter of a director and is therefore, not a stranger. Also, shareholder was a resident of USA, earnings statement of her husband were on record, the payments were made through banking channels and receipts in bank account of the shareholder were also through banking channels.
Section 54 – Investment made upto due date of filing return u/s. 139(4) of the Act qualifies for deduction u/s. 54 provided the investment is made upto date of filing of return of income.
Section 54B – Deduction u/s. 54B cannot be denied on the ground that entering into agreement to sell does not amount to `purchase’.
Tribunal News : PART B - Unreported Decisions:
Section 50C – Non-compliance of provisions of section 50C(2) cannot be held valid and justified even if no request was made by the assessee before the authorities below to refer the matter to the DVO for valuation u/s. 50C(2) of the Act.
Section 37 – Expenditure incurred by the assessee in connection with the issue of FCCB is revenue in nature.
Sections 2(24), 28 – Subsidy in the nature of entertainment tax / duty collected, but not to be paid, constitutes capital receipt as it is meant for promotion of new industries by way of multiplex theatres.
DeMo: The Incomplete Agenda
From The President
From The President:
From the President
Principles of Classification
Recent Decision Part C::
Goods and Services Tax (GST)
Recent Decisions: Part A: Service Tax:
Recent Decisions: Part B: VAT:
Works Contract Under GSTvis-a-vis Plant and Machinery
Tribunal News : PART C -:
Section 9 of I T Act, Article 12 of India-USA DTAA – Payment received by an American company for grant of non-exclusive, non-transferable software license to Indian customer for a specific time period was not liable to tax in India as royalty since copyright was retained by the taxpayer.
Article 5 and 22 of India-Saudi Arabia DTAA – Only solar days of services rendered in India should be considered to examine constitution of service PE; question of virtual PE does not arise in the absence of services rendered virtually.
Article 5 of India-Denmark DTAA – Where master and crew on a vessel charter hired by a Denmark company to an Indian company were not employees of the Taxpayer but procured from a group company, and were under control and direction of the Indian company, the Taxpayer could not be said to have 'Service PE' in India in terms of article 5; where decisions relating to business were taken in Denmark, no PE in India in terms of article 5(2)(a) was constituted on account of 'Place of management'.
News and Views
Representation in Respect of Draft Rules 10DA & 10DB