Advertise With Us
Accountancy and Audit
From Published Accounts
FROM PUBLISHED ACCOUNTS
IND AS/IGAAP - Interpretation & Practical Application
KEY DIFFERENCES BETWEEN IND AS 116 AND CURRENT IND AS
Corporate and Other Laws
SEBI ORDER ON ACCOUNTING & FINANCIAL FRAUD - CORPORATE GOVERNANCE & ROLE OF AUDITOR ETC., UNDER QUESTION AGAIN
Laws And Business
ARBITRATION AWARD VS. EXCHANGE CONTROL LAW
ANSWERS TO SOME IMPORTANT RERA QUESTIONS
AMENDMENTS IN COMPANIES ACT BY AN ORDINANCE
Is It Fair?
IS IT FAIR TO EXPAND THE SCOPE OF SBO UNDER THE SECTION THROUGH SBO RULES, 2018?
Corporate Law Corner
CORPORATE LAW CORNER
AMOUNTS NOT DEDUCTIBLE U/S. 40(a)(ii) AND TAX
In the High Courts: Part A - Reported Decisions
Sections 68, 69A and 254(1) Appeal to Appellate Tribunal Jurisdiction and power Cannot go beyond question in dispute Subject matter of appeal in regard to addition made u/s. 68 Tribunal holding addition u/s. 68 unjustifiable Tribunal cannot travel beyond issue raised in appeal and make addition u/s. 69A Order vitiated
Sections 253 and 260 A Appeal to High Court Power of High Court to review High Court has power to review its decision Appeal to Appellate Tribunal Decision of Commissioner (Appeals) based on report on remand by AO Tribunal not considering report Decision of Tribunal erroneous Decision of High Court upholding order of Tribunal High Court can recall its order Matter remanded to Tribunal
Section 37 of the Act and Rule 9A of IT Rules, 1962 Business expenditure capital or revenue expenditure Expenditure incurred on account of abandoned teleserial Revenue expenditure
Section 10B Export oriented undertaking (Date of commencement of production) Deduction u/s. 10B Where in order to determine admissibility of assessee's claim u/s. 10B, date of commencement of manufacture or production could be ascertained from relevant documents such as certificate of registration by competent authority, mere wrong mentioning of said date in Form No. 56G filed in support of claim of deduction, could not be a ground to reopen assessment
Section 80-IB(10) Housing project Deduction u/s. 80-IB(10) TDS Amendment w.e.f. 01/04/2010 barring deduction where units in same project sold to related persons Prospective in nature Flats sold to husband and wife exceeding prescribed area in 2008 Assessee entitled to deduction
Sections 147 and 148 Reassessment Validity of notice No action taken on notice u/s. 148 dated 23/03/2015 for A. Y. 2008-09 Another notice u/s. 148 issued on 18/01/2016 for A. Y. 2008-09 by new AO Notice not mentioned that it was in continuation of earlier notice Notice barred by limitation No reasons given Notices and consequent reassessment not valid
Section 222 and Rule 68B of Second Schedule Recovery of tax Where TRO had issued on assessee a notice dated 18/11/2004 for auction of its attached property and SC vide order dated 16/01/2001 had dismissed SLP of assessee filed against assessment order, period of three years enacted in Rule 68B(1) of Second Schedule to the Act would begin to run from 01/04/2001 and notice dated 18/11/2004 was, therefore, barred by limitation
Sections 160, 161, 162 and 163 Representative assessee Non-resident Agent Conditions precedent for treating person as agent of non-resident Transfer of shares in foreign country by non-resident company No evidence that assessee was party to transfer Notice seeking to treat assessee as agent of non-resident Not valid
Section 132 Search and seizure Block assessment Declaration by assessee Effect of section 132(4) Declaration after search has no evidentiary value Additions cannot be made on basis of such declaration
Sections 92C and 144C Transfer pricing Computation of arms length price (Reasoned order) Order passed by DRP u/s. 144C (5) must contain discussion of facts and independent findings on those facts by DRP Mere extraction of rival contentions will not satisfy requirement of consideration
Glimpses Of Supreme Court Rulings
GLIMPSES OF SUPREME COURT RULINGS
Tribunal News : PART A - Reported Decision
Section 40A(2) Where AO made disallowance u/s. 40A(2)(a) without placing on record any material which could prove that payments made by assessee were excessive or unreasonable, having regard to fair market value of services for which same were made or keeping in view legitimate needs of business of assesee or benefit derived by or accruing to assessee therefrom, said disallowance could not be sustained.
Section 2(24) r.w. section 12AA Corpus specific voluntary contributions being in nature of 'capital receipt', are outside scope of income u/s. 2(24)(iia) and, thus, same cannot be brought to tax even in case of trust not registered u/s.12A/12AA
Section 54 r.w. section139 and 143 There is no bar/restriction in provisions of section 139(5) that assessee cannot file a revised return after issuance of notice u/s. 143(2). The AO could not reject assessee's claim for deduction u/s. 54 raised in revised return on ground that said return was filed after issuance of notice u/s. 143(2)
Section 68 - No addition u/s. 68 can be made when assessee is not liable to maintain books of accounts, further bank passbook cannot be regarded as books maintained by assessee.
Section 10(1) - Cultivation of Mushroom, although in controlled condition using trays placed above land, is an agricultural activity and income derived there from is exempt u/s. 10(1).
Section 145(3) - Books of Accounts cannot be rejected u/s. 145(3) merely because Gross profit from a particular segment was lower and assessee was not in possession of proper documentary evidences in respect of expenses where the genuineness of expenses was not doubted.
Sections 22, 24 Income earned by assessee, society, by letting out space on terrace for installation of mobile tower / antenna is taxable as Income from House Property and consequently, deduction u/s. 24(a) is allowable in respect of such income.
Sections 50, 54F Deemed short term capital gains, calculated u/s. 50, arising on transfer of a depreciable asset, which asset was held for more than 36 months before the date of transfer qualify for exemption u/s. 54F, subject to satisfaction of other conditions mentioned in section 54F. Assessee having utilised the net consideration by the due date as specified u/s. 139(4), is entitled to exemption u/s. 54F though he failed to deposit the net consideration in the capital gain account scheme within the time specified u/s. 139(1).
Tribunal News : PART B - Unreported Decisions
Section 2(47) Conversion of compulsory convertible preference shares into equity shares does not amount to transfer
Section 194C Value of by-products arising during the process of milling paddy into rice, which remained with the millers, not considered as part of the consideration for the purpose of TDS
In The High Courts: Part B -Unreported Decisions
Section 28(iv) : Remission or cessation of trading liability Loan waiver cannot be assessed as cessation of liability, if the assessee has not claimed any deduction and section 28(iv) does not apply if the receipts are in the nature of cash or money [ Section 41(1) ]
Section 22: Income from house property vis a vis Income from business - Real estate developer - main object not acquiring and holding properties - Rental income is held to be assessable as Income from house property. [Section 28(i)] Section 80IB(10) : Housing projects - stilt parking is part & parcel of the housing project - Eligible to deduction
Section 45: Capital gains-Transfer-Capital gains are levied in the year in which the possession of the asset and all other rights are transferred and not in the year in which the title of the asset gets transferred. [Section 2(47), Transfer of Property Act, 1953]
Is the word Expert a misnomer?
From The President
From The President
FROM THE PRESIDENT
SUCCESSION OF PROPERTY OF HINDUS
SUCCESSION FOR MOHAMMEDANS, PARSIS AND CHRISTIANS
TAXATION ASPECTS OF SUCCESSION
SUCCESSION PLANNING VIA PRIVATE TRUSTS AN OVERVIEW
ENTRY TAX ON GOODS IMPORTED FROM OUT OF INDIA
Recent Decisions: Part A: Service Tax
Recent Decisions: Part B: VAT
SCOPE OF GST AUDIT
Recent Decision Part C:
GOODS AND SERVICES TAX (GST)
OECD RECENT DEVELOPMENTS AN UPDATE
Tribunal News : PART C -
Article 5(6) & Article 12 of India-Singapore DTAA; Explanation 2 to section 9(1)(vii) of the Act Presence of employees is to be tested separately for each type of service for computing Service PE threshold; Application of beneficial provisions of the Act for one source of income and treaty for another source of income is permissible
Article 5 & Article 12 of India-South Africa DTAA; Explanation 2 to section 9(1)(vii) of the Act Payment for rendering line production services did not qualify as FTS/ royalty under the Act as well as the DTAA.
Article 5(1) & 5(2)(g) of India-Mauritius DTAA; Ownership over oil or gas well is not a precondition for constitution of exploration PE under Article 5(2)(g) of India- Mauritius DTAA.
Article 12(4) of India-USA DTAA; Explanation 2 to section 9(1)(vii) as consideration received for rendering on call advisory services in the nature of troubleshooting, isolating problem and diagnosing related trouble and repair services remotely, without any on-site support, did not satisfy make available condition under DTAA, it was not taxable in India.
TRANSFER PRICING: WHAT HAS CHANGED IN OECDS 2017 GUIDELINES? [PART 1]
EGO - Edging God out
News and Views
THE LIGHT ELEMENTS
TOP BOOKS ON PROFESSIONAL SERVICES MANAGEMENT