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march 2024
Accountancy and Audit
  • Article

    Overview of NFRA Inspection Reports of 2023 on Audit Firms– II

    By Raman Jokhakar, Chartered Accountant
    Reading Time 16 mins

    Recycling Of Wastes – An Accounting Conundrum?

    By Nilanjan Paul, Chartered Accountant
    Reading Time 10 mins
  • From Published Accounts

    From Published Accounts

    By Himanshu Kishnadwala, Chartered Accountant
    Reading Time 4 mins
  • IND AS/IGAAP - Interpretation & Practical Application

    Accounting Of Losses in an Associate

    By Dolphy D’Souza, Chartered Accountant
    Reading Time 9 mins
  • NFRA DIGEST

    NFRA Digest

    By Sandip Chandarana, Chartered Accountant
    Reading Time 9 mins
Corporate And Other Laws
  • Allied Laws

    Allied Laws

    By Dr. K. Shivaram, Senior Advocate, Rahul K. Hakani | Shashi Bekal, Advocates
    Reading Time 9 mins
  • Article

    Decoding Residential Status Under FEMA

    By Rajesh P. Shah, Chartered Accountant
    Reading Time 18 mins
  • Corporate Law Corner

    Part A : Company Law

    By Pramod Prabhudesai, Chartered Accountant | Kaushik M. Jhaveri, Company Secretary
    Reading Time 4 mins
  • Laws And Business

    Direct Listing of Indian Companies On International Exchanges

    By Dr Anup P. Shah, Chartered Accountant
    Reading Time 9 mins
Direct Taxes
  • Article

    Section 43B(h) – The Provisions And Debatable Issues

    By Chandrakant K Thakkar, Chartered Accountant
    Reading Time 21 mins
  • Controversies

    Revision under Section 264 of Intimation Issued Under Section 143(1)

    By Pradip Kapasi | Gautam Nayak | Bhadresh Doshi, Chartered Accountants
    Reading Time 19 mins
  • Glimpses Of Supreme Court Rulings

    Glimpses of Supreme Court Rulings

    By Kishor Karia, Chartered Accountant | Atul Jasani, Advocate
    Reading Time 21 mins
  • In the High Courts: Part A-Reported Decisions

    Fees for technical services — Make available — Meaning of — Recipient of services should apply technology — Services offered to Indian affiliates — Tribunal holding services to Indian affiliates not fees for technical services as make available test not fulfilled — Agreement between assessee and its affiliate effective for long period — Recipient of services unable to provide same service without recourse to service provider — Not fees for technical services: DTAA between India and Singapore s. 12(4)(b).

    By K B Bhujle | Ritu Punjabi, Advocates
    Reading Time 2 mins

    Offences and prosecution — Failure to deposit tax deducted at source before due date — Sanction for prosecution — Reasonable cause — Tax deducted at source — Delay to deposit tax deducted at source due to prevalence of pandemic — Assessee depositing tax deducted at source in phased manner with interest though after due date — Reasonable cause for failure — Prosecution orders set aside.

    By K B Bhujle | Ritu Punjabi, Advocates
    Reading Time 4 mins

    Offences and Prosecution — Wilful attempt to evade payment of tax — Self assessment tax shown in the return of income but paid late — Penalty levied for delayed payment of tax — Criminal intent of assessee essential — Nothing on record to show deliberate and wilful default of evasion of tax — Complaint and summoning order quashed.

    By K B Bhujle | Ritu Punjabi, Advocates
    Reading Time 2 mins

    Reassessment — Notice for reassessment after 1st April, 2021 — All relevant information provided by assessee prior to original assessment order — AO has no power to review his own order — Query raised by AO answered and accepted during original assessment — Reopening of assessment on mere change of opinion not permissible.

    By K B Bhujle | Ritu Punjabi, Advocates
    Reading Time 3 mins

    Reassessment — New procedure — Information that income has escaped assessment — Objection from Comptroller and Auditor General required —Internal audit objection cannot form the basis of reassessment — Reassessment based on change of opinion — Reassessment is impermissible in law.

    By K B Bhujle | Ritu Punjabi, Advocates
    Reading Time 3 mins

    Reassessment — Initial notice — Order u/s. 148A(d) for issue of notice — Notice u/s. 148 — Validity — Notice based on information from insight portal that assessee had purchased property — Assessee disclosing all details including bank statement in response to notice u/s. 142(1) and duly examined by AO in original assessment — Notices and order for issue of notice set aside.

    By K B Bhujle | Ritu Punjabi, Advocates
    Reading Time 3 mins

    Reassessment — Notice — New procedure — Effect of decision of Supreme Court in Ashish Agarwal — Liberty available to matters at notice stage — Liberty granted by High Court in assessee’s petition against notice under unamended provision prior to Supreme Court decision — AO issuing second notice but allowing proceedings to lapse — Department cannot proceed for third time invoking liberty granted by Supreme Court — Notices and proceedings quashed.

    By K B Bhujle | Ritu Punjabi, Advocates
    Reading Time 4 mins

    Recovery of tax — Stay of demand pending appeal before CIT(A) — Discretion must be exercised in judicious manner — AO not bound by Departmental instructions.

    By K B Bhujle | Ritu Punjabi, Advocates
    Reading Time 2 mins

    Rectification of mistake — Mistake apparent from record — Exemption — Income received by non-resident for service rendered on foreign ship outside India — Not taxable in India even if credited to bank in India — Assessee mistakenly declaring in return salary received for services rendered outside India — Rejection of application for rectification — Failure to apply circular issued by CBDT — Error apparent on face of record — Orders refusing to rectify mistake set aside — Assessee entitled to exemption u/s. 10(6)(viii) — Matter remanded to AO. Appeal to Appellate Tribunal — Rectification of mistake — Failure to apply judicial precedents and circular issued by CBDT — Error apparent on face of record — Tribunal has jurisdiction to rectify.

    By K B Bhujle | Ritu Punjabi, Advocates
    Reading Time 5 mins
  • In The High Courts: Part B-Unreported Decisions

    Section 11(1A) – Charitable trust – Permission from the Charity Commissioner before disposing of its property.

    By Ajay R. Singh, Advocate
    Reading Time 5 mins

    Section 36(1)(iii): Interest free advance to subsidiary – for the purpose of business – allowable.

    By Ajay R. Singh, Advocate
    Reading Time 3 mins

    Section 148A – Reassessment –Sanction – Non Application of mind.

    By Ajay R. Singh, Advocate
    Reading Time 3 mins
  • Tribunal News: Part A-Domestic Taxation

    Where the assessee transferred 62 per cent of the land to a developer in exchange for 38 per cent of the developed area to be constructed over time under an unregistered joint development agreement / irrevocable power of attorney, the transaction was liable to capital gain under section 2(47)(vi) in the year of the agreement.

    By Jagdish T Punjabi, Chartered Accountant
    Devendra Jain, Advocate
    Reading Time 3 mins

    No exemption under section 54F is allowable in respect of a building which was predominantly used for religious purposes. Section 54F does not allow pro-rata exemption.

    By Jagdish T Punjabi, Chartered Accountant
    Devendra Jain, Advocate
    Reading Time 2 mins

    Where pursuant to a scheme of arrangement and restructuring, assessee’s shareholding in a company was reduced, long-term capital loss arising to assessee on account of reduction of capital has to be allowed even if no consideration is paid to the assessee.

    By Jagdish T Punjabi, Chartered Accountant
    Devendra Jain, Advocate
    Reading Time 3 mins

    Sec. 68: Where assessee, engaged in financial activities, and the records revealed that the credit entries were repayments of loans, and the third party was not a stranger entity and transactions were transparent and had been found to be routed through banking channel and reported in the return of income by the assessee as well as a third party, addition made under section 68 was to be deleted.

    By Jagdish T Punjabi, Chartered Accountant
    Devendra Jain, Advocate
    Reading Time 4 mins

    Sec. 271B r.w. Sec. 44AA, 44AB and Sec. 271A: Where Penalty u/s 271A is levied for not maintaining books of accounts u/s 44AA, the assessee could not further be saddled with penalty u/s 271B for failure to get books of accounts, which were not maintained, audited u/s 44AB.

    By Jagdish T Punjabi, Chartered Accountant
    Devendra Jain, Advocate
    Reading Time 2 mins

    If the original return of income is filed within the due date under section 139(1), the carry forward of loss claimed in the revised return filed after the due date under section 139(1) cannot be denied.

    By Jagdish T Punjabi, Chartered Accountant
    Devendra Jain, Advocate
    Reading Time 2 mins
  • Tribunal News: Part B: International Tax Decisions

    Section 92C, read with section 92B, of the Income-tax Act, 1961 — Interest-free loan is an international transaction. The nature of advances, whether it is quasi capital in nature or not, must be seen at the time of granting of advance/loan to the subsidiary.

    By Geeta Jani | Dhishat B Mehta | Bhaumik Goda, Chartered Accountants
    Reading Time 3 mins

    Section 92C, read with section 92B, of the Income-tax Act, 1961 — In light of peculiar facts, TPO was correct in recharacterizing part consideration of merger in form of cash and CCD as income. Cash payment was to be treated as deemed loan and ALP for CCD interest was determined at Nil.

    By Geeta Jani | Dhishat B Mehta | Bhaumik Goda, Chartered Accountants
    Reading Time 3 mins
Editorial
  • Editorial

    Section 43B (h) – Kahin Khushi Kahin Gham

    By Dr CA Mayur B. Nayak, Editor
    Reading Time 6 mins
From The President
  • From The President

    BCAS President CA Chirag Doshi’s Message for the Month of March 2024

    By CA Chirag Doshi, President
    Reading Time 7 mins
Indirect Taxes
  • Decoding GST

    Punctuations and Grammar

    By Sunil Gabhawalla | Rishabh Singhvi | Parth Shah, Chartered Accountants
    Reading Time 31 mins
  • Recent Decisions: Part A: Goods and Services Tax

    Goods and Services Tax

    By Puloma Dalal | Jayesh Gogri | Mandar Telang, Chartered Accountants
    Reading Time 12 mins
  • Recent Developments In GST

    Recent Developments in GST

    By G. G. Goyal, Chartered Accountant | C. B. Thakar, Advocate
    Reading Time 21 mins
International Taxation
  • International Taxation

    Residential Status – Whether Employment Includes Self Employment

    By Mayur B. Nayak | Tarunkumar G. Singhal | Anil D. Doshi | Mahesh G. Nayak, Chartered Accountants
    Reading Time 15 mins
Namaskaar
  • Namaskaar

    कर्मण्येवाधिकारस्ते मा फलेषु कदाचन | समत्वं योग उच्यते ………..| योग: कर्मसु कौशलम् …|

    By C. N. Vaze, Chartered Accountant
    Reading Time 4 mins
News And Views
  • Miscellanea

    Miscellanea

    By Jhankhana Thakkar | Chirag Chauhan, Chartered Accountants
    Reading Time 6 mins
  • Regulatory Referencer

    Regulatory Referencer

    By Pramod Prabhudesai | Rutvik Sanghvi | Sonalee Godbole, Chartered Accountants
    Reading Time 9 mins
  • Society News

    Learning Events at BCAS

    By Zubin Billimoria | Mandar Telang, Hon. Jt. Secretaries
    Reading Time 9 mins
Practice Management And Technology
  • Ethics And U

    Internal Peer Review (Health Check-Up)

    By C. N. Vaze, Chartered Accountant
    Reading Time 3 mins
  • Tech Mantra

    Interesting Apps

    By Yazdi Tantra, Chartered Accountant
    Reading Time 4 mins

Article

Overview of NFRA Inspection Reports of 2023 on Audit Firms– II

By Raman Jokhakar, Chartered Accountant
Reading Time 16 mins

Recycling Of Wastes – An Accounting Conundrum?

By Nilanjan Paul, Chartered Accountant
Reading Time 10 mins

From Published Accounts

From Published Accounts

By Himanshu Kishnadwala, Chartered Accountant
Reading Time 4 mins

IND AS/IGAAP - Interpretation & Practical Application

Accounting Of Losses in an Associate

By Dolphy D’Souza, Chartered Accountant
Reading Time 9 mins

NFRA DIGEST

NFRA Digest

By Sandip Chandarana, Chartered Accountant
Reading Time 9 mins

Allied Laws

Allied Laws

By Dr. K. Shivaram, Senior Advocate, Rahul K. Hakani | Shashi Bekal, Advocates
Reading Time 9 mins

Article

Decoding Residential Status Under FEMA

By Rajesh P. Shah, Chartered Accountant
Reading Time 18 mins

Corporate Law Corner

Part A : Company Law

By Pramod Prabhudesai, Chartered Accountant | Kaushik M. Jhaveri, Company Secretary
Reading Time 4 mins

Laws And Business

Direct Listing of Indian Companies On International Exchanges

By Dr Anup P. Shah, Chartered Accountant
Reading Time 9 mins

Article

Section 43B(h) – The Provisions And Debatable Issues

By Chandrakant K Thakkar, Chartered Accountant
Reading Time 21 mins

Controversies

Revision under Section 264 of Intimation Issued Under Section 143(1)

By Pradip Kapasi | Gautam Nayak | Bhadresh Doshi, Chartered Accountants
Reading Time 19 mins

Glimpses Of Supreme Court Rulings

Glimpses of Supreme Court Rulings

By Kishor Karia, Chartered Accountant | Atul Jasani, Advocate
Reading Time 21 mins

In the High Courts: Part A-Reported Decisions

Fees for technical services — Make available — Meaning of — Recipient of services should apply technology — Services offered to Indian affiliates — Tribunal holding services to Indian affiliates not fees for technical services as make available test not fulfilled — Agreement between assessee and its affiliate effective for long period — Recipient of services unable to provide same service without recourse to service provider — Not fees for technical services: DTAA between India and Singapore s. 12(4)(b).

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 2 mins

Offences and prosecution — Failure to deposit tax deducted at source before due date — Sanction for prosecution — Reasonable cause — Tax deducted at source — Delay to deposit tax deducted at source due to prevalence of pandemic — Assessee depositing tax deducted at source in phased manner with interest though after due date — Reasonable cause for failure — Prosecution orders set aside.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

Offences and Prosecution — Wilful attempt to evade payment of tax — Self assessment tax shown in the return of income but paid late — Penalty levied for delayed payment of tax — Criminal intent of assessee essential — Nothing on record to show deliberate and wilful default of evasion of tax — Complaint and summoning order quashed.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 2 mins

Reassessment — Notice for reassessment after 1st April, 2021 — All relevant information provided by assessee prior to original assessment order — AO has no power to review his own order — Query raised by AO answered and accepted during original assessment — Reopening of assessment on mere change of opinion not permissible.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 3 mins

Reassessment — New procedure — Information that income has escaped assessment — Objection from Comptroller and Auditor General required —Internal audit objection cannot form the basis of reassessment — Reassessment based on change of opinion — Reassessment is impermissible in law.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 3 mins

Reassessment — Initial notice — Order u/s. 148A(d) for issue of notice — Notice u/s. 148 — Validity — Notice based on information from insight portal that assessee had purchased property — Assessee disclosing all details including bank statement in response to notice u/s. 142(1) and duly examined by AO in original assessment — Notices and order for issue of notice set aside.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 3 mins

Reassessment — Notice — New procedure — Effect of decision of Supreme Court in Ashish Agarwal — Liberty available to matters at notice stage — Liberty granted by High Court in assessee’s petition against notice under unamended provision prior to Supreme Court decision — AO issuing second notice but allowing proceedings to lapse — Department cannot proceed for third time invoking liberty granted by Supreme Court — Notices and proceedings quashed.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

Recovery of tax — Stay of demand pending appeal before CIT(A) — Discretion must be exercised in judicious manner — AO not bound by Departmental instructions.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 2 mins

Rectification of mistake — Mistake apparent from record — Exemption — Income received by non-resident for service rendered on foreign ship outside India — Not taxable in India even if credited to bank in India — Assessee mistakenly declaring in return salary received for services rendered outside India — Rejection of application for rectification — Failure to apply circular issued by CBDT — Error apparent on face of record — Orders refusing to rectify mistake set aside — Assessee entitled to exemption u/s. 10(6)(viii) — Matter remanded to AO. Appeal to Appellate Tribunal — Rectification of mistake — Failure to apply judicial precedents and circular issued by CBDT — Error apparent on face of record — Tribunal has jurisdiction to rectify.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 5 mins

In The High Courts: Part B-Unreported Decisions

Section 11(1A) – Charitable trust – Permission from the Charity Commissioner before disposing of its property.

By Ajay R. Singh, Advocate
Reading Time 5 mins

Section 36(1)(iii): Interest free advance to subsidiary – for the purpose of business – allowable.

By Ajay R. Singh, Advocate
Reading Time 3 mins

Section 148A – Reassessment –Sanction – Non Application of mind.

By Ajay R. Singh, Advocate
Reading Time 3 mins

Tribunal News: Part A-Domestic Taxation

Where the assessee transferred 62 per cent of the land to a developer in exchange for 38 per cent of the developed area to be constructed over time under an unregistered joint development agreement / irrevocable power of attorney, the transaction was liable to capital gain under section 2(47)(vi) in the year of the agreement.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 3 mins

No exemption under section 54F is allowable in respect of a building which was predominantly used for religious purposes. Section 54F does not allow pro-rata exemption.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 2 mins

Where pursuant to a scheme of arrangement and restructuring, assessee’s shareholding in a company was reduced, long-term capital loss arising to assessee on account of reduction of capital has to be allowed even if no consideration is paid to the assessee.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 3 mins

Sec. 68: Where assessee, engaged in financial activities, and the records revealed that the credit entries were repayments of loans, and the third party was not a stranger entity and transactions were transparent and had been found to be routed through banking channel and reported in the return of income by the assessee as well as a third party, addition made under section 68 was to be deleted.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 4 mins

Sec. 271B r.w. Sec. 44AA, 44AB and Sec. 271A: Where Penalty u/s 271A is levied for not maintaining books of accounts u/s 44AA, the assessee could not further be saddled with penalty u/s 271B for failure to get books of accounts, which were not maintained, audited u/s 44AB.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 2 mins

If the original return of income is filed within the due date under section 139(1), the carry forward of loss claimed in the revised return filed after the due date under section 139(1) cannot be denied.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 2 mins

Tribunal News: Part B: International Tax Decisions

Section 92C, read with section 92B, of the Income-tax Act, 1961 — Interest-free loan is an international transaction. The nature of advances, whether it is quasi capital in nature or not, must be seen at the time of granting of advance/loan to the subsidiary.

By Geeta Jani | Dhishat B Mehta | Bhaumik Goda, Chartered Accountants
Reading Time 3 mins

Section 92C, read with section 92B, of the Income-tax Act, 1961 — In light of peculiar facts, TPO was correct in recharacterizing part consideration of merger in form of cash and CCD as income. Cash payment was to be treated as deemed loan and ALP for CCD interest was determined at Nil.

By Geeta Jani | Dhishat B Mehta | Bhaumik Goda, Chartered Accountants
Reading Time 3 mins

Editorial

Section 43B (h) – Kahin Khushi Kahin Gham

By Dr CA Mayur B. Nayak, Editor
Reading Time 6 mins

From The President

BCAS President CA Chirag Doshi’s Message for the Month of March 2024

By CA Chirag Doshi, President
Reading Time 7 mins

Decoding GST

Punctuations and Grammar

By Sunil Gabhawalla | Rishabh Singhvi | Parth Shah, Chartered Accountants
Reading Time 31 mins

Recent Decisions: Part A: Goods and Services Tax

Goods and Services Tax

By Puloma Dalal | Jayesh Gogri | Mandar Telang, Chartered Accountants
Reading Time 12 mins

Recent Developments In GST

Recent Developments in GST

By G. G. Goyal, Chartered Accountant | C. B. Thakar, Advocate
Reading Time 21 mins

International Taxation

Residential Status – Whether Employment Includes Self Employment

By Mayur B. Nayak | Tarunkumar G. Singhal | Anil D. Doshi | Mahesh G. Nayak, Chartered Accountants
Reading Time 15 mins

Namaskaar

कर्मण्येवाधिकारस्ते मा फलेषु कदाचन | समत्वं योग उच्यते ………..| योग: कर्मसु कौशलम् …|

By C. N. Vaze, Chartered Accountant
Reading Time 4 mins

Miscellanea

Miscellanea

By Jhankhana Thakkar | Chirag Chauhan, Chartered Accountants
Reading Time 6 mins

Regulatory Referencer

Regulatory Referencer

By Pramod Prabhudesai | Rutvik Sanghvi | Sonalee Godbole, Chartered Accountants
Reading Time 9 mins

Society News

Learning Events at BCAS

By Zubin Billimoria | Mandar Telang, Hon. Jt. Secretaries
Reading Time 9 mins

Ethics And U

Internal Peer Review (Health Check-Up)

By C. N. Vaze, Chartered Accountant
Reading Time 3 mins

Tech Mantra

Interesting Apps

By Yazdi Tantra, Chartered Accountant
Reading Time 4 mins