His presentation covered the important definitions enumerated
in the Act, essential ingredients of benami transactions, various types of
benami transactions and the exceptions to benami transactions. CA. Anil Sathe
posed interesting questions regarding the safeguards provisions in the Act to
avoid harassment to citizens by law enforcement agencies due to stringent
provisions and retrospective amendments effective from 1988.
Dr. (CA) Dilip K. Sheth discussed the Three Formidable weapons
available to law enforcement agencies
-Prohibition – Section 3, 4, 6
– Punishments – Section 3(2), 53(2), 54
–Confiscation – Section 5, 27
He also discussed other rigorous provisions in the Act –
Section 50, 51, 61 and 67 and discussed the importance of drafting the
agreements/ contracts diligently.
At the end, the floor was opened for Q & A session. The
program was an interactive one with active participation from members present
in the auditorium as well as online members.
CA. Kinjal Shah proposed vote of thanks to Dr. (CA) Dilip K.
Sheth for responding to all the queries candidly and also to CA. Anil Sathe for
making the session lively and interactive.
ITF Study Circle Meeting
on “GAAR – It’s Concepts & Examples” held on 6th April
2017 at BCAS Hall, Jolly Bhavan, Churchgate
It is rightly said that, GAAR is one of the game changer tax
reforms in India, which is applicable from 1st April, 2017.
Acknowledging the above mentioned fact, our society had organised the ITF Study
Circle Meeting on the topic “GAAR – It’s
Concepts & Examples”, which was held on 6th April, 2017 at BCAS
Conference Hall, led by Group Leader CA. Siddharth Banwat.
The Group Leader commenced the meeting by explaining the
concepts like tax planning, tax evasion, tax avoidance, Specific Anti Avoidance
Rules, Targeted Anti Avoidance Rules & General Anti Abuse Rules. He gave an
overview of the provisions of sections 95 to 102 of the Income Tax Act. He also
discussed about applicability of GAAR, grand fathering provisions,
Impermissible Avoidance Agreements, Rule 10U of the Income Tax Rules,
Assessment Procedure u/s. 144BA of the Income-tax Act and concepts like
arrangements to lack commercial substance, bona fide purpose during the course
of the meeting.
The members of the Study
Circle shared their rich experiences on various issues and all the 52
participants were benefitted from their varied experience on the subject.
As the subject of GAAR was vast, the Group Leader was requested to throw light
on the examples in the next ITF Study Circle Meeting to be held on 24th
April 2017.
Human Development Study Circle Meeting on “Management
Lessons from Ramayana” on 11th April, 2017 at BCAS Conference Room by Presenter : CA.
Chandrashekhar N. Vaze
The Speaker CA. Chandrashekhar Vaze is a multifaceted
personality.
He is the chairman of a cooperative bank. A talented orator,
able to grasp complete attention of the audience throughout his speech.He is
the recipient of ‘Yoga Mitra Award’ from
Yoga Vidya Niketan for 2012 and the Best Social Worker Award from Senior
Citizen’s Association at Mulund in 2014.
He explained to the audience how today Ramayana is playing a
significant role in shaping the mindset
and the culture of not only Indians, but also of many scholars the world over.
Ramayana deals with management of personal life, spiritual
life; and also the management of any activity of an organisation. It concerns
itself with Organisation, Administration and Co-ordination.
It deals with Personnel policy, Defense Judiciary Time
management and other facets of
management.
The speaker explained that
one needed to learn not only from Rama’s behaviour but also from many
others – like, Dasharatha, Bharata, Laxmana, Hanumana, Bibhishana and even
Ravana.
He dwelt upon Rama’s culture and explained that Shree Rama
took cognisance of the opinion of even a very insignificant washerman (dhobi).
While in exile, Rishis approached him with a request to save
them from demons. Shree Rama said it was a shame on his part; his lapse in
duty, if the subjects had to beg for protection. The audience appreciated the
learned speaker’s presentation on a totally offbeat subject.
7th Intensive Study Course on Advanced Transfer
Pricing – 2017-18
The Seventh Intensive Study Course on Adv.
Transfer Pricing was successfully conducted at the BCAS on 7th, 8th
and 15th April, 2017. The course was aimed at imparting advanced
knowledge on the practical aspects of understanding and implementing the
benchmarking study. The sessions began with theoretical aspect of benchmarking
and thereafter deep-dived into the aspects of identifying the functions
performed, assets utilised and risks assumed by the comparable companies. It
also touched upon the importance of designing an efficient and effective
transfer pricing system with the importance of when and how to apply various
transfer pricing adjustments that is defensible before tax authorities and in
court.
Mr. Thar started by highlighting that while ICDS was sought
to be scrapped and representations to that effect were made before various
forums, the same still continues to see the light of the day and that it
becomes necessary to understand various standards to effectively apply the
same.
He then explained that various forms for filing return of
income notified so far only have one sheet for computing the effect of each
standard but the same does not get linked to calculation of total income.
The Speaker then proceeded to give a detailed analysis of
impact of certain areas under Ind-AS, its treatment under ICDS and possible
legal view that could be taken on the same. He used lots of examples of
situations that could arise in applying ICDS e.g. valuation of inventories
which has specific treatment under section 145A and effect of the same in
applying ICDS which prescribes treatment different from 145A.
Likewise, issues emanating in application of each standard
were highlighted and the Speaker gave his views on those issues.
It was a very informative and insightful learning experience
for all the participants. The session ended with vote of thanks to the Learned
Speaker.
Direct Tax Study Circle Meeting
on ‘Recent updates and judgments under Direct Tax held on 20th April 2017 at
BCAS Hall, Jolly Bhavan, Churchgate
The group leader, CA. Suraj Nair had circulated a few case
studies based on recent decisions. He discussed the first case study which was
relating to addition made by the Income Tax Department under section 68 in
relation to share premium collected by a private limited company while issuing
shares. After narrating the facts of the case, he described the decision of the
Bombay High Court in case of Gagandeep Infrastructure Pvt. Ltd. The Second case
study pertained to long term capital gain earned on the sale of penny stock.
The group discussed the recent decision of Ahmedabad Tribunal in case of Smt.
Sunita Jain (ITA No. 501 & 502/AHD/2016). Thereafter, the Supreme
Court’s decision in the case of Siemens
Public Communication Network (P) Ltd. (390 ITR 1) was discussed whereby it was
held that subvention grant received by the assessee from its parent company is
a capital receipt and not revenue in nature since the parent company had paid
the amount in order to protect its capital investment. Subsequently case
studies relating to the decisions of the Mumbai Tribunal in case of JSW Steel
Ltd. (taxability of remission of loan principal and interest), the Mumbai
Tribunal in case of Bharat Serums & Vaccines Ltd. 78 taxmann.com188
(consideration received on assignment of patent) and decision of Karnataka High
Court in case of Flipkart India (P.) Ltd. 79 taxmann.com 159 (stay of demand,
operational validity of circular no.1914 and CBDT circular dated 29th
February 2016) were discussed.
Thereafter, the group
leader gave a brief overview of the recent circulars and notifications released
by the CBDT.
