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Accountancy and Audit
From Published Accounts
FROM PUBLISHED ACCOUNTS
IMPLEMENTATION OF EXPECTED CREDIT LOSS MODEL FOR NON-BANKING FINANCIAL COMPANIES
IND AS/IGAAP - Interpretation & Practical Application
WHAT'S IN A NAME? PREFERENCE SHARE VS. FCCB
Corporate and Other Laws
DIFFERENTIAL VOTING RIGHTS SHARES - AN INSTRUMENT WHOSE TIME HAS COME?
Right To Information
RIGHT TO INFORMATION (r2i)
Laws And Business
FAMILY SETTLEMENTS - PART II
Corporate Law Corner
CORPORATE LAW CORNER
APPLICABILITY OF SECTION 14A RELEVANCE OF DOMINANT PURPOSE OF ACQUISITION OF SHARES/ SECURITIES PART - II
PERIOD OF LIMITATION PROVIDED IN SECTION 154(7) VIS-ΐ-VIS DOCTRINE OF MERGER
In the High Courts: Part A - Reported Decisions
Appeal to Commissioner (Appeals) Revision Power of Commissioner(Appeals) Application for revision and withdrawal of appeal to Commissioner(Appeals) Order passed in revision granting relief Commissioner(Appeals) has no power to decide appeal
Business expenditure Disallowance u/s. 40(a)(ia) Payments liable to TDS Effect of insertion of second proviso to section 40(a)(ia) Declaratory and curative and applicable retrospectively w.e.f. 01/04/2005 Payee offering to tax sum received in its return Disallowance not attracted
Business expenditure Deduction u/s. 35AD Specified business Hotel Business Commencement of new business not disputed by Department and income offered to tax accepted Certification of hotel as three-star category hotel in subsequent year Time taken by competent authority for certification beyond control of assesse Assessee not to be denied deduction u/s. 35AD on the ground that the certification was in the later year
Charitable or religious trust - Denial of exemption Section 13(2)(c) In order to invoke provisions of section 13(2)(c), it is essential to prove that amount paid to person referred to in sub-section (3) of section 13 is in excess of what may be reasonably paid for services rendered
Income Declaration Scheme 2016 Determination of sum payable and payment of first instalment by assessee Rejection of application pursuant to issue of notice for assessment Tax already deposited under scheme to be adjusted by Department
Loss Capital or revenue loss Investment in shares as stock-in-trade Loss in sale of portion of shares Transaction in course of business Revenue in nature Not capital loss
Recovery of tax Stay of demand when assessee in appeal before Commissioner (Appeals) Discretion of AO to grant stay CBDT Office Memorandum cannot oust jurisdiction of AO to grant stay Prima facie case showing high pitched assessment and financial burden on assesse Stay on condition of deposit of 20% of amount demanded Not justified
Settlement of cases Construction business Receipt of on money Additional disclosure of undisclosed income for one assessment year during settlement proceedings Does not amount to untrue disclosure for other assessment years under settlement proceedings Commission accepting disclosures made by assessees and passing orders on their settlement applications Order of Settlement Commission not erroneous
TDS Payment to non-resident Effect of amendment to section 195 by F. A. 2012 with retrospective effect from 01/04/1962 No change in condition precedent for application of section 195 Income arising to non-resident must be taxable in India
Time limit for issuing notice u/s. 148 Amendment to section 149 by Finance Act, 2012, which extended limitation for reopening assessment to sixteen years, could not be resorted for reopening proceedings concluded before amendment became effective
Glimpses Of Supreme Court Rulings
GLIMPSES OF SUPREME COURT RULINGS
Tribunal News : PART A - Reported Decision
Section 153A, Rule 27 - Any issues other than those relating to undisclosed income which come to the AOs knowledge while conducting enquiries relating to Search shall not be considered by AO for making assessment u/s. 153A if normal assessment for such relevant assessment years had already been completed earlier. Rule 27 gives liberty to the respondent to raise any ground which had been decided against him by the first appellate authority.
Section 68 - Mere non production of Director of Shareholder Company cannot justify adverse inference u/s. 68 of the Act.
Section 69 r.w.s.5 & 6 Where additions were made to income of assessee, who was a non-resident since 25 years, since, no material was brought on record to show that funds were diverted by assessee from India to source deposits found in foreign bank account, impugned additions were unjustified.
Section 194H Where assessee, engaged in business of providing DTH services, sold set top Box (STB) and recharge coupon vouchers to distributors at a discounted rate, discount so offered could not be considered as commission and, hence, not liable for deduction of tax at source under provisions of section 194H.
Section 194IA The limit of Rs. 50 lakh in section 194-IA(2) is qua the transferee and not qua the amount as per sale deed. Each transferee is a separate income-tax entity and the law has to be applied with reference to each transferee as an individual transferee/person.
TAXABILITY OF LOAN WAIVER POST SC DECISION IN CASE OF MAHINDRA & MAHINDRA
PROSECUTION AND COMPOUNDING
Tribunal News : PART B - Unreported Decisions
Sections 28(iv), 68 The fact that premium is abnormally high as per test of human probabilities is not sufficient. The AO has to lift the corporate veil and determine whether any benefit is passed on to the shareholders/directors.
In The High Courts: Part B -Unreported Decisions
Section 68 : Cash credits Unsecured loans received Confirmation, balance sheet and bank accounts of creditor was produced A.O has not made enquiry in respect of the creditors - Deletion of addition was held to be justified.
Section 37 (1): Business expenditure - books of accounts, and details not produced - being destroyed due to flood - filed evidence indicating the destruction of physical accounts due to heavy rains - Allowable as deduction - 'best judgment assessment' should not be made as a 'best punishment assessment'.
Main object is carry out infrastructure projects - Amendment in object clause as do business in futures and options Amended clause to be considered
From The President
From The President
FROM THE PRESIDENT
DEVELOPMENT OF TAX LAWS AND ADMINISTRATION IN INDIA PAST, PRESENT AND FUTURE
INTERNATIONAL TAXATION AND FEMA KAL AAJ AUR KAL
THE AUDITORS TRAGEDY
ELECTORAL AND POLITICAL REFORMS
Recent Decisions: Part A: Service Tax
Recent Decisions: Part B: VAT
GOVERNMENT SUPPLIES UNDER GST
Recent Decision Part C:
GOODS AND SERVICES TAX (GST)
Tribunal News : PART C -
Article 2 & Article 12 of India-Japan DTAA; rate prescribed in DTAA is total withholding rate inclusive of surcharge and cess.
Article 5(2)(h) of India-UAE DTAA Grouting activity undertaken in India by UAE Company for a period of 9 months does not result in construction PE under India-UAE DTAA
Article 12(1) of India-Israel DTAA and India -Russia DTAA since charge of tax on royalty arises only at the time of payment, tax is not required to be withheld when provisions for payment of royalty is made.
Article 13 of DTAAs; Section 9(1)(vii) Payment made to non-resident LLPs towards professional services qualified as IPS.
Article 13 (4) of India-France DTAA Make available condition of India-UK DTAA to be read into India-France DTAA. Advisory services for review of strategic and mergers and acquisitions options, do not qualify as FIS in absence of satisfaction of make available condition.
TRANSFER PRICING: WHAT HAS CHANGED IN OECDS 2017 GUIDELINES? [PART 2]
News and Views
Ethics and You
ETHICS AND U
Letters from the Readers
LETTERS FROM THE READERS
ARE PROFESSIONAL FIRMS HEADING TOWARDS EXTINCTION?