Financial Reporting Dossier

From Published Accounts

Own Use Exception

Allied Laws

Rights of the Accused under PMLA for Obtaining Copies of the Records / Documents

Shift In US Trade Policy on Tariffs – Impact on the Indian Economy and the World

Part A | Company Law

Trust Under A Will

Specialised Investment Funds (SIFs) – Way To New Investment Opportunities

Agricultural Income Revisited

Section 43B(H) Of The Income Tax Act And MSME Payments: Interpreting The Fine Print

Consideration for Issue of Shares by a Company

Glimpses of Supreme Court Rulings

A. Offences and Prosecution — Sanction for prosecution — Deduction of tax at source — Delay in depositing with revenue — Assessee depositing tax deducted with Revenue for A.Ys. 2012-13 to 2018-19 with interest though belatedly — Effect of circulars issued by CBDT — Interpretation of provisions of s. 276B to include delay in deposit of tax deducted at source manifestly arbitrary — Prosecution quashed: B. Offences and prosecution — Sanction for prosecution — Principal Officer — Directors of Assessee company prosecuted for delay in payment of tax deducted at source with Revenue — Non-issue of notice and order to treat any of them as principal officer of the assessee — No order imposing penalty as “deemed to be an assessee in default” on assessee or its directors — Criminal complaints against directors of assessee not stating consent, connivance or negligence on their part as required u/s. 278B(2) — Directors of assessee cannot be prosecuted: C. Offences and prosecution — Deduction of tax at source — Scope of s. 278B(2) — Conduct of business of company must have nexus with the offence committed — Amendment in law from year 1997 — Use of the phrase “as required by or under the provisions of Chapter VII-B” — Linked only with and explains manner of deduction of tax and payment thereof — Assessee deposited entire tax deducted at source with Revenue for A.Ys. 2012-13 to 2018-19 with interest belatedly — Prosecution quashed:

Offences and prosecution — Deduction of tax at source — Delay in payment of tax deducted at source — Delayed payment of tax deducted at source to Department with interest without objection by Department — Delay explained by assessee as due to crisis in company — No malafide intention of evasion on part of assessee — Prosecution after a lapse of more than three years quashed:

Salary — Perquisites :— 1) Meaning of perquisite — Condition precedent for considering payment as perquisite — Amount must have been paid to the Assessee as employee — Stock options provided to ex-employees — Stock option was not perquisite — No exercise of stock option — No income chargeable to tax; 2) Assessability — Stock options given to ex-employee — No exercise of stock option — No income chargeable to tax:

Settlement Commission — Settlement of case — Power of Settlement Commission — Immunity from penalty and prosecution — Factors to be considered — Assessee co-operated in process of settlement and made full and true disclosure — Settlement Commission exercising discretion to proceed with application and granting immunity from penalty and prosecution considering Bonafide conduct of assessee — Order of Settlement commission need not be interfered with in writ jurisdiction:

Section 37 : Disallowing write-off of the deposits and interest – the business loss incurred by the appellant company u/s 28 of the Act in the course of its business – commercial expediency: Section 115J : The provision does not contain any reference to concept of ‘above the line’ or ‘below the line’:

Section 271(1)(c) : Penalty – Notice must be precise and there should be no room for ambiguity – Veena Estate (P.) Ltd. (Bom) distinguished.

Disallowance in respect of interest expenditure, attributable to interest free advances, under section 36(1)(iii), is unsustainable when commercial expediency in transaction is substantiated.

Section 50 applies only if the asset qualifies for inclusion in block of assets and therefore for grant of depreciation. Accordingly, section 50 was held not to apply to gains on transfer of trademarks since they were acquired by the assessee before the amendment by Finance (No. 2) Act, 1998 providing for inclusion of intangible assets in block and grant of depreciation thereon.

Property received by assessee from his step-sister is not taxable under section 56(2)(vii). Receipt of property from step-sister qualifies as a receipt from a relative viz. sister.

Payment of consideration, pursuant to an unregistered agreement, towards interior fit out costs claimed as cost of improvement, entered into prior to receiving possession of the property held to be allowable.

S. 194IA – Even though the transferee’s share in the sale transaction exceeded the threshold, where the amount paid to each seller / transferor was below ₹50,00,000, the assessee was not required to deduct tax under section 194IA.

S. 12AB – Where objects of assessee-trust were for benefit of residents and members of a specific society and were not meant for public at large, assessee-trust was not entitled to registration under section 12AB.

S. 271(1)(c) – Where the AO did not specify in the penalty notice the limb of section 271(1)(c) under which penalty had been initiated, such notice was ambiguous and void ab initio and all subsequent proceedings became nullity in the eyes of law.

Article 13 of India-Singapore DTAA – Short Term Capital Gains from transfer of mutual funds is taxable under Article 13(5) of DTAA, and taxing right vests only with State of Residence.

Article 8 of India-Mauritius DTAA – Shipping Company is not entitled to benefit under Article 8 if its place of effective management is located in a third country; on facts, booking agent did not constitute DAPE.

Prowess of the Indian Army, Indian Economy and CAs

From The President

GST Implications on Educational Institutions

Doctrine of Mutuality under GST

Goods And Services Tax

Recent Developments in GST

शीलं परं भूषणम् (नीति शतक ८०)

Book Review

Associate? Beware!

Miscellanea

Regulatory Referencer

Learning Events at BCAS