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Accountancy and Audit
From Published Accounts
FROM PUBLISHED ACCOUNTS
IND AS/IGAAP - Interpretation & Practical Application
ACCOUNTING OF DIVIDEND DISTRIBUTION TAX
Corporate and Other Laws
APPLICABILITY OF MONEY LAUNDERING LAW TO SECURITIES LAWS VIOLATIONS
Right To Information
RIGHT TO INFORMATION (r2i)
Laws And Business
INSOLVENCY & BANKRUPTCY CODE, 2016 – SC’S BOOSTER SHOTS
Is It Fair?
IS IT FAIR TO DENY BENEFIT OF TAX DEDUCTED AT SOURCE (TDS) IN ABSENCE OF SUCH TDS IN FORM 26AS
Corporate Law Corner
CORPORATE LAW CORNER
Taxability of interest of NPAs in case of NBFCs
BOOK-PROFIT FOR PAYMENTS TO PARTNERS – SECTION 40(B)
In the High Courts: Part A - Reported Decisions
Section 37 (1) – Business expenditure – Rule of consistency – Expenditure claimed and allowed against professional income in earlier years and subsequent years – Allocation of expenditure between capital gains and professional business income in year in question – Not proper
Section 37 (1) and 41 (1) – A. Business expenditure – Allowability of (Illegal payment) – Where assessee had purchased oil from Iraq and payments were made by an agent, there being no evidence to suggest that assessee had made any illegal commission payment to Oil Market Organisation of Iraqi Government as alleged in Volckar Committee Report, Tribunal's order allowing payment for purchase of oil was to be upheld
Business income or long-term capital gain – Income from shares and securities held for period beyond 12 months – Investments whether made from borrowed funds or own funds of assessee – No distinction made in circular issued by CBDT – Department bound by circular – Profit is long term capital gain
Section 80P(1), (2)(a)(i) – Co-operative society – Co-operative bank – Deduction u/s. 80P(1), (2)(a)(i) – Income from sale of goods for public distribution system of State Government – Ancillary activity of credit society – Entitled to deduction
Section 5 – Income – Accrual of income – Telecommunication service provider – Payments received on prepaid cards – Liability to be discharged at future date – To the extent of unutilised talk time payment did not accrue as income in year of sale – Unutilised amount is revenue receipt when talk time is actually used or in case of cards that lapsed on date when cards lapsed
Section 144, 147 and 148 – Reassessment – Service of notice u/s. 148 – Notice sent to old address – Assessee’s returns for earlier years already on file and reflecting new address – Issue of notice at old address mechanically – Notice and order of reassessment and consequential attachment of bank accounts – Liable to be quashed
Sections 9, 147 and 148 of ITA 1961 and Article 11 of DTAA between India and Mauritius – Reassessment – Income – Deemed to accrue or arise in India (Interest) – Where Assessing Officer, during assessment had accepted claim of assessee that it was entitled to benefit of India Mauritius DTAA, assessment could not have been reopened on ground that assessee did not carry out bona fide banking activities in Mauritius
Section 194C and 194-I – TDS – Works contract/rent – Assessee refining crude oil and selling petroleum products – Agreement with another company for transportation of goods – Agreement stipulating proper maintenance of trucks – Not conclusive – Payment covered by section 194C and not section 194-I
Glimpses Of Supreme Court Rulings
GLIMPSES OF SUPREME COURT RULINGS
Tribunal News : PART A - Reported Decision
Section 56(2)(vii)(b) – Agricultural land falls within the definition of immovable property and covered within the scope of section 56(2)(vii)(b) irrespective of whether the same falls within the definition of capital asset u/s. 2(14) of the Act or otherwise.
CBDT Circulars – CBDT Circular No. 3 of 2018 dated 11th July, 2018 which specifies the revised monetary limits for filing appeal by the department before Income-tax Appellate Tribunal, High Courts and SLPs/appeals before the Supreme Court is applicable even in respect of the appeals filed prior to the date of circular
Section 23 – Assessee is entitled to claim benefit u/s. 23(1)(c) if assessee intended to let out property and took efforts in letting out of property and the property remained vacant despite such efforts made by the assessee.
Section 54F r.w.s 50 – Deeming fiction of section 50 cannot be extended to the deduction allowable u/s. 54F and therefore, assessee is entitled for deduction u/s. 54F on the capital gains arising on the sale of depreciable assets as these assets were held for a period of more than thirty-six months.
Section 153A – Copies of sale deeds of land found during the course of search operation which were already considered by the AO while framing the assessment u/s. 143(3) cannot be considered as incriminating material and, therefore, the assessment framed u/s. 153A on the basis of the contents of the same sale deeds is bad in law.
Section 40(a)(ia) - No Disallowance u/s. 40(a)(ia) for non-deduction of TDS u/s. 194C if no oral or written contract between the contractor and contractee.
Section 40A(3) - No Disallowance u/s. 40A(3) when genuineness of the transaction is not doubted and incurring of such cash expenses was necessary as part of business expediency.
Tribunal News : PART B - Unreported Decisions
Section 56(2)(vii) – Provisions do not apply to rights shares offered on a proportionate basis even if the offer price is less than the FMV of the shares.
Counsel for Assessee/Revenue: Lalchand Choudhary/Vijay Kumar Soni Section 24(a) - Rental income earned by a co-operative society for letting out the building terrace is assessable under the head 'Income from House Property' and is entitled to deduction u/s. 24(a).
In The High Courts: Part B -Unreported Decisions
Section 263 : Commissioner- Revision - Book profit - only power vested upon the Revenue authorities is the power of examining whether the books of accounts are certified by the authorities under the Companies Act - Revision was not valid. [Section 115JB]
Section 37(1) : Business expenditure–Capital or revenue-Non-compete fee –Allowable as revenue expenditure
Section 92C: Transfer pricing - Notional interest on Redemption of preference shares money paid to Associated enterprises- transfer pricing adjustments by re-characterising was held to be not legal Corporate guarantee commission – No comparison can be made between guarantees issued by commercial banks as against a corporate guarantee issued by a holding company for benefit of its AE
MAY THE GOLDEN GLOW GROW
From The President
From The President
FROM THE PRESIDENT
BCA JOURNAL @50 – HISTORY OF THE LAST 10 YEARS
BLAST FROM THE PAST
INTERVIEW - N. R. NARAYANA MURTHY
INTERVIEW - CHAIRMAN AND CEO OF THE INSTITUTE OF INTERNAL AUDITORS
AUDITOR RESIGNATION - PRESCRIPTIONS AND RESPONSIBILITIES
JOSH OF CAN ACHIEVE : A KALEIDOSCOPIC VIEW
THE LIGHT ELEMENTS
LANRUOJ TNATNUOCCA DERETRAHC YABMOB EHT (JACB)
DEBT OF GRATITUDE
PACKAGE SCHEME OF INCENTIVES - PROPORTIONATE INCENTIVES VIS-À-VIS RETROSPECTIVE EFFECT TO SECTION 93 OF THE MVAT ACT
Recent Decisions: Part A: Service Tax
Recent Decisions: Part B: VAT
INTERCEPTION, INSPECTION, DETENTION OR SEIZURE, CONFISCATION
Recent Decision Part C:
GOODS AND SERVICES TAX (GST)
Tribunal News : PART C -
Article 23(3), India-Thailand DTAA – credit of tax that would have been payable on dividend paid by Thai subsidiary in Thailand, but for the exemption granted, could be claimed as credit against tax payable in India on the dividend.
Article 12 and Protocol to India-Belgium DTAA; Article 12, India-Portugal DTAA - due to MFN Clause in Protocol to India-Belgium DTAA, scope of FTS was to be restricted to that under India-Portugal DTAA and ‘make available’ condition was to be read into – as IT support services provided by a Belgian company did not ‘make available’ knowledge, experience, etc., the receipts were not in the nature of FTS.
Articles 5, 7 of India-Italy DTAA; Section 9 of IT Act – Where liaison office was involved in strategic business decision making in India including price negotiation and agreement finalisation, liaison office would constitute fixed place PE. Employees of a group entity in India carrying on core sale related activities, results in the emergence of a Dependent Agency PE in India
News and Views
52ND RESIDENTIAL REFRESHER COURSE (RRC) — THE KUMBH OF KNOWLEDGE
Letters from the Readers
LETTERS FROM THE READERS