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Wednesday, September 30, 2015

Fwd: Link of Rachnatmak Sankalp

---------- Forwarded message ----------
From: sankalp patrika <sankalppatrika@yahoo.com>
Date: 2015-09-30 12:14 GMT+05:30
Subject: Link of Rachnatmak Sankalp
To:


"इंस्टीट्यूट ऑफ चार्टर्ड एकाउंटेंट्स की वेस्टर्न रीजन में सेंट्रल काउंसिल के लिए मनीष बक्षी की उम्मीदवारी न आने से पराग रावल का रास्ता और आसान हुआ लगता है" शीर्षक रिपोर्ट पढ़ने के लिए Please click the Link : http://rachnatmaksankalp.blogspot.in/2015/09/blog-post_29.html

Tuesday, September 29, 2015

Imp CBDT Release Reg Extension Of Due Date For Filing ROI + Imp Verdicts Of Supreme Court And High Court


 

Dear Subscriber,

CBDT Press Release Reg Circulation of Fake order for extension of due date for filing of Audit report and return of Income for Assessment Year 2015-16

It is clarified the order is fraudulent. The Government has not extended the due date for filing of returns and audit report due by 30th September 2015. Tax payer and practitioners are advised not to give any credence to the fraudulent order purportedly signed by one Upmanyu Reddy


Shabina Abraham & Ors vs. Collector of Central Excise (Supreme Court)

Entire law on the taxation of deceased persons and their estate explained in the context of the Income-tax Act and the Central Excise Act

The individual assessee has ordinarily to be a living person and there can be no assessment on a dead person and the assessment is a charge in respect of the income of the previous year and not a charge in respect of the income of the year of assessment as measured by the income of the previous year. Wallace Brothers & Co. Ltd. v Commissioner of Income-tax. By section 24B of the Income-tax Act the legal representatives have, by fiction of law, become assessees as provided in that section but that fiction cannot be extended beyond the object for which it was enacted


Sri S. N. Wadiyar (Dead) Through LR vs. CWT (Supreme Court)

Important principles relating to valuation of property subject to the Land Ceiling Act explained in the context of the Wealth-tax Act

One has to assume that the property in question is saleable in the open market and estimate the price which the assumed willing purchaser would pay for such a property. When the asset is under the clutches of the Ceiling Act and in respect of the said asset/vacant land, the Competent Authority under the Ceiling Act had already determined the maximum compensation of Rs.2 lakhs, how much price such a property would fetch if sold in the open market? We have to keep in mind what a reasonably assumed buyer would pay for such a property if he were to buy the same. Such a property which is going to be taken over by the Government and is awaiting notification under Section 10 of the Act for this purpose, would not fetch more than Rs.2 lakhs as the assumed buyer knows that the moment this property is taken over by the Government, he will receive the compensation of Rs.2 lakhs only. We are not oblivious of those categories of buyers who may buy "disputed properties" by taking risks with the hope that legal proceedings may ultimately be decided in favour of the assessee and in such a eventuality they are going to get much higher value. However, as stated above, hypothetical presumptions of such sales are to be discarded as we have to keep in mind the conduct of a reasonable person and "ordinary way" of the presumptuous sale. When such a presumed buyer is not going to offer more than Rs.2 lakhs, obvious answer is that the estimated price which such asset would fetch if sold in the open market on the valuation date(s) would not be more than Rs.2 lakhs


CIT vs. Vijay Singh Kadan (Delhi High Court)

S. 2(14)(iii)(b): To determine whether the "agricultural land" is situated within 8 km of the municipal limits so as to constitute a "capital asset", the distance has to be measured in terms of the approach road and not by the straight line distance on horizontal plane or as per crow's flight

The Court is of the view that for the purposes of Section 2 (14) (iii) (b) of the Income-tax Act, the distance had to be measured from the agricultural land in question to the outer limit of the municipality by road and not by the straight line or the aerial route. The distance has to be measured from the land in question itself and not from the village in which the land is situated


Regards,

 

Editor,

 

itatonline.org

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Latest:

P. Satyanarayana Murthy vs. Dist. Inspector of Police (Supreme Court)

Acche Din For Corrupt Babus: Mere possession and recovery of currency notes from an accused is not sufficient to establish an offense under the Prevention of Corruption Act. Proof of demand illegal gratification is essential. Its absence is fatal to the complaint


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Fwd: Link of Rachnatmak Sankalp




---------- Forwarded message ----------
From: sankalp patrika <sankalppatrika@yahoo.com>
Date: 2015-09-28 12:22 GMT+05:30
Subject: Link of Rachnatmak Sankalp
To:


"इंस्टीट्यूट ऑफ चार्टर्ड एकाउंटेंट्स के सेंट्रल काउंसिल के चुनाव में अनिल भंडारी कहीं दूसरे मितिल चोकसी तो साबित नहीं होंगे" शीर्षक रिपोर्ट पढ़ने के लिए Please click the Link : http://rachnatmaksankalp.blogspot.in/2015/09/blog-post_27.html

Tuesday, September 22, 2015

Status of Tax Audit Date Extension Update with Different High Courts


Status of Tax Audit Date Extension Update with Different High Courts***

 

GUJARAT HIGH COURT

Notice issued to CBDT, Next Date of Hearing Fixed for 24th September 2015.

 

PUNJAB & HARYANA HIGH COURT

HC directed the department counsel to Seek instructions from the CBDT for extension of date.

Matter now fixed for 24th Sept. 2015.

 

RAJASTHAN HIGH COURT.

Writ Filed. Listed on 22nd Spetember 2015.

 

KARNATAKA HIGH COURT.

Writ Filed.

 

BOMBAY HIGH COURT.

Writ will be filed today.

 

DELHI HIGH COURT

High Court dismissed the Writ & asked to file PIL


***Source- CASANSAAR PORTAL


With Best Regards,

CA Vikrant Kulkarni
B.Com, FCA, DISA (ICAI)
(M) 9881880073/ 9561096073


Monday, September 14, 2015

How to tackle with income tax notices

How to tackle with income tax notices

Many of my family members & friends are receiving notices from Income tax department; usually any communication from the Income Tax department, especially receiving a notice from them, can send shivers down anyone's spine. A majority of the notices is sent in the normal course of processing returns & might be for routine enquiry or a request for simple clarification, so don't be panic.

What to do when you receive an Income Tax notice?

1. Don't Ignore: Handle the situation carefully and sincerely, or you may end up paying a penalty of up to Rs 10,000 along with the tax payment.

2. Back to basics: Check the whether the notice is really meant for you by checking basic things like PAN, Name, Assessment year  it related to issuing officer, signature, address with details of ward and circle number. Verify these details to avoid being cheated. To see details go to E filling website see know your AO

3. Preserve  the envelope: If the notice comes by  snail mail, preserve the envelope. It serves as proof of the dates on which it was posted and received.

4. DIN: If the notice is delivered online, then check the Document Identification Number.

5. Identify the reason behind the notice: By normal reading one can easily indentifies the reason behind notice. Reasons could be a simple mismatch in TDS or inconsistency in your returns, or some serious concerns like income concealment. It can also be a survey or scrutiny of accounts.

6. Validity: Check the validity of the notice and the timely issuance. Also check the section under which the notice has been issued. For example: A notice under Section 143(3) for scrutiny assessment has to be served within six months of the end of the financial year in which the return was filed. If served later than this period, it will be considered invalid.

7. Gather the documents: Start collecting the documents that the department has requested via the notice. Documents needed can vary depending on the gravity of the notice, usually scrutiny notice may ask for several documents, including bank statements, pay-slips, rent receipts and brokerage statements. While it may not be possible to put all this together in the short time.

8. Letter: Prepare a covering letter along with the set of documents.

9. Acknowledgement: Prepare two set of all the documents required, along with a copy of the covering letter. Get your copy stamped to maintain personal records, and as a proof of submission of the documents thereby complying with the notice.

10. Reply on time: Always respond to the notice on time even if you are unable to collect the required documents. You can even ask for some time to gather all the documents. Timely response will help establish that you are honest, and cooperating with the law.

11. CA help:- If the notice is simply about a factual matter, such as an arithmetical error, TDS mismatch or deduction amount, a taxpayer should respond on his own, Only when it is a serious issue, such as a notice for scrutiny or reassessment under Section 148, should one get a professional to respond. But A chartered accountant will be better equipped to deal with the situation and provide apt responses.

Interpreting notices under different sections of income tax for individuals

Sec 131(1A):- Assessing officer has reason to suspect that income has been concealed.

§ Enforcing the attendance of any person, including any officers of a banking company and examining him on oath and completing the production of books of accounts and documents.

§ Failure to comply with the summons issued under Section 131(1) has     been made punishable with a penalty of Rs 10,000 for each default under Section 272A.

Sec133(A):-  For  survey or scrutiny of accounts

Sec 139(9):- for filing defective return

Sec142:- For not filing  the income tax return or for the scrutiny of a documents  & accounts in support of the return filed by the tax payer

Sec143(1):- For adjustment or additional tax demand if an error or incorrect information is detected in the return filed by the tax payer.

S
ec143(2):-For scrutiny assesement after detailed inquiry by assessing officer

Sec 148:- For   reassessment if the officer believes   some income has escaped assessment.

Sec156:- For dues(tax, interest,penalty,fine or any other sum) payable by the assessee)

Sec 245  :-for adjustment of refund with any demand due

Reasons behind getting Notice:-

Return not filed or delayed:  Employer deducted tax from you salary. However, Employee did not file the return. In such a case, the tax department will send a notice asking employee to file the return. The notice has to be responded to within the given time. Otherwise, employee may be penalized. Such a notice can be sent for any of the previous six assessment years. In case of delayed filing, the department can levy a penalty of Rs 5,000 a year. However, the penalty is not mandatory, and depends upon the discretion of the assessing officer. However, if any tax is due, the department charges 1% interest per month from the due date.

Mismatch in tax credit: Tax deducted at source, or TDS, figure in your Form 16 may be different from the actual tax credit mentioned in Form 26 AS, a document issued by the income tax department that has all your tax-related information such as tax deducted, refund, etc, against your permanent account number (PAN). In case there is mismatch between the two, the department goes by the figure in Form 26 AS.

The mismatch could be because either the employer has not deposited the tax deducted from your salary with the department or has credited it in someone else's account. In such a case, you have to file a rectified return.

If the employer has not paid the TDS to the tax department, point this out to him. In case the tax has being credited to someone else's account, furnish the TDS certificate to the assessing officer for making the necessary changes.

Investments in the name of spouse

Many individuals resort to purchasing assets in the name of their spouse, children or other close family members in the hope of evading taxes. Assets in this case refer to any kind of investment like land, buildings, fixed deposits, mutual funds, shares, debentures etc.

Let's say x bought mutual funds in your wife's name. As per section 64 of the Income Tax Act, any income x generate out of these mutual funds is still considered  x income and x  will be taxed for it.

You need to ensure that you declare such income at the time of filing your return, else you will attract attention from the taxman and receive a notice for the same.

High Value Transactions

High value transactions need to be updated to the Income Tax department by the entity with which you carry out such a transaction. This is in order to ensure taxes are levied as required on each of these transactions in a timely manner. Failure to do so is an invitation for a tax notice.

What qualifies as a high value transaction?

Cash deposits in a bank worth Rs 10 lakh or more in a yearCredit card purchases of Rs 2 lakh or moreMutual fund investments for Rs 2 lakh or morePurchase of bonds and debentures worth Rs 5 lakh or more in a yearSale or purchase of property worth Rs 30 lakh or more

Non-disclosure of assets for wealth tax

If you own assets whose net value is over Rs.30 Lakhs, you are liable to pay wealth tax at the rate of 1% of the amount that is above the Rs.30 Lakhs limit. If you do disclose such assets that you own or do not pay taxes on them, there is a good chance that you might receive an IT notice.

Assets can include anything from land, second homes, cars, yachts, gold jewellery, antiques, art etc. If you are unsure about the exact value of the assets you own, you can approach government approved valuers for this purpose.

Random Scrutiny

To enforce tax compliance, the IT department has started randomly scrutinizing returns under section 143 (3). If you receive such a scrutiny notice, don't panic. Just follow these simple steps:

1. Check the validity of the notice as well as the duration within which you have to respond to the Assessing Officer. Usually, a scrutiny notice is served to the as

-Regards
CA. C. V. PAWAR

Fwd: Link of Rachnatmak Sankalp



---------- Forwarded message ----------
From: sankalp patrika <sankalppatrika@yahoo.com>
Date: 2015-09-13 10:41 GMT+05:30
Subject: Link of Rachnatmak Sankalp
To:


"इंस्टीट्यूट ऑफ चार्टर्ड एकाउंटेंट्स की नागपुर ब्रांच के स्थापना दिवस समारोह में हुईं बातों ने पिछली बार हुई राजेश लोया की पराजय तथा उस पराजय के लिए जुल्फेश शाह को जिम्मेदार ठहराए जाने की चर्चा को पुनर्जीवित किया और रीजनल काउंसिल के चुनाव को दिलचस्प बनाया" शीर्षक रिपोर्ट पढ़ने के लिए Please click the Link : 

Tuesday, September 8, 2015

ITR (TRIB) Volume 42 : Part 3 (Issue dated : 7-9-2015)


 

ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))--PRINT AND ONLINE EDITION

PRINT EDITION

Volume 42 : Part 3 (Issue dated : 7-9-2015)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Agricultural income --Income from production of seeds--Seed is a product of agricultural activity--Income from sale of seeds amounts to agricultural income--Assessee entitled to exemption--Income-tax Act, 1961, s. 10(1)-- Asst. CIT v . Prabhat Agri Biotech Ltd. (Hyd) . . . 319

Business expenditure --Civil works contractor--Expenditure towards salary and wages to labourers--Entire expenditure not to be disallowed--Deficiencies in vouchers--Difficult to verify genuineness of payment--Disallowance restricted--Income-tax Act, 1961-- Dhanesh Narbheram Bhansali v. Asst. CIT (Mumbai) . . . 357

----Deduction only on actual payment--Value added tax--Difference between liability and amount paid--Disallowance proper--Income-tax Act, 1961, s. 43B-- Dhanesh Narbheram Bhansali v. Asst. CIT (Mumbai) . . . 357

----Disallowance--Payments liable to deduction of tax at source--Time period for deducting tax at source lapsing--Disallowance cannot be made--Income-tax Act, 1961, ss. 40(a)(ia), 194J-- IDBI Capital Market Services Ltd. v. Deputy CIT 
(Mumbai) . . . 379

----Discount under employees’ stock option scheme--Object of scheme not to raise share capital but to earn profit by securing consistent and concentrated efforts of dedicated employees--Discount part of package of remuneration and substitute for cash incentive for services of employees--Is revenue expenditure--Allowable--Income-tax Act, 1961, s. 37--Cera Sanitaryware Ltd. v. Deputy CIT (OSD) (Ahd) . . . 334

----Loss on valuation of interest rate swap contracts--Deductible--Income-tax Act, 1961--IDBI Capital Market Services Ltd. v. Deputy CIT (Mumbai) . . . 379

Charitable purpose --Exemption--Donations disclosed as income--Not to be added as cash credits--Income-tax Act, 1961, ss. 11, 68-- ITO v. Saraswati Educational Charitable Trust(Lucknow) . . . 393

----Registration--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community but for public at large--Provisions of section 13(1)(b) not applicable--Registration to be granted under section 12A--Income-tax Act, 1961, ss. 12A, 12AA(1)(b)(ii), 13(1)(b)-- Diocese of Pune (CNI) v. CIT 
(Pune) . . . 348

----Registration--No distinction between religious or charitable institution for purpose of registration--Registration not to be denied on ground of mixed objects--Absence of certain clauses in trust deed--Director of Income-tax (Exemptions) to give opportunity to assessee to explain and make necessary amendments before refusing registration--Matter remanded--Income-tax Act, 1961, ss. 12A, 12AA-- Sri Sri Sri Dattatreya Seva Samsthanam v. DIT (Exemptions) (Hyd) . . . 384

Depreciation --Additional depreciation--Condition precedent--Machinery or plant should be acquired after 31-3-2005--New machinery or plant need not have operational connectivity to products already being manufactured--Assessee fulfilling all conditions--Entitled to additional depreciation--Income-tax Act, 1961, s. 32(1)(iia)-- Cera Sanitaryware Ltd. v. Deputy CIT (OSD) (Ahd) . . . 334

----Electric cables and fans--Integral part of machinery--Depreciation allowable at 15 per cent.--Income-tax Act, 1961, s. 32-- Cera Sanitaryware Ltd. v. Deputy CIT (OSD) (Ahd) . . . 334

Income --Disallowance of expenditure in relation to exempt income--Dividend income--Whether exempt--Matter remanded--Income-tax Act, 1961, ss. 14A--Income-tax Rules, 1962, r. 8D-- IDBI Capital Market Services Ltd. v. Deputy CIT 
(Mumbai) . . . 379

----Disallowance of expenditure relating to exempt income--Disallowance to be considered part of business profit in computation of deduction under section 10A--Income-tax Act, 1961, ss. 14A, 10A--Income-tax Rules 1962, r. 8D-- iNautix Technologies India P. Ltd. v. Asst. CIT(Chennai) . . . 324

----Disallowance of expenditure relating to exempt income--Dividend--Assessee having sufficient interest-free funds in form of share capital, reserves and surplus--Investment made by assessee less than interest-free funds--Rule 8D applicable only prospectively--Assessing Officer to disallow 2 per cent. of exempt income as administrative expenditure--Income-tax Act, 1961, s. 14A--Income-tax Rules 1962, r. 8D-- iNautix Technologies India P. Ltd. v. Asst. CIT (Chennai) . . . 324

Industrial undertaking --Special deduction under section 80-IC--Condition precedent--Industrial activity in industrially and economically backward State--No manufacturing activity at place where plant located--Assessee not entitled to special deduction under section 80-IC--Income-tax Act, 1961, s. 80-IC-- Japna Exports v. ITO 
(Delhi) . . . 291

----Special deduction--Travelling expenses incurred in foreign currency to be reduced both from export turnover and total turnover--Income-tax Act, 1961, s. 10A-- iNautix Technologies India P. Ltd. v. Asst. CIT (Chennai) . . . 324

International transactions --Arm’s length price--Agreement between assessee and associated enterprise for payment of royalty--Increase in sales achieved by assessee due to utilisation of advanced technical know-how transferred by associated enterprise--Estimating royalty at 2 per cent. applying benefit test in violation of transfer pricing provisions--Transfer pricing adjustment to royalty payment not permissible--Income-tax Act, 1961, s. 92C(3)-- R. A. K. Ceramics India P. Ltd. v. Deputy CIT 
(Hyd) . . . 368

Penalty --Concealment of income--Furnishing of inaccurate particulars of income--Failure by assessee to produce details supporting claim to deduction before Assessing Officer--Assessee producing details of ledger account, bills and vouchers during appellate proceedings--Rejection of claim does not automatically attract penalty--Penalty not sustainable--Income-tax Act, 1961, s. 271(1)(c)-- Smt. Anita Kumar v. ITO 
(Delhi) . . . 362

Presumptive taxation --Books of account--Assessee withdrawing funds from bank to introduce capital in books of account--Assessee offering income under section 44AD in earlier years--No reason to disbelieve--Addition to be deleted--Income-tax Act, 1961, s. 44AD-- Dhanesh Narbheram Bhansali v. Asst. CIT 
(Mumbai) . . . 357

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961 :

S. 10(1) --Agricultural income--Income from production of seeds--Seed is a product of agricultural activity--Income from sale of seeds amounts to agricultural income--Assessee entitled to exemption-- Asst. CIT v . Prabhat Agri Biotech Ltd. 
(Hyd) . . . 319

S. 10A --Income--Disallowance of expenditure relating to exempt income--Disallowance to be considered part of business profit in computation of deduction under section 10A-- iNautix Technologies India P. Ltd. v. Asst. CIT 
(Chennai) . . . 324

----Industrial undertaking--Special deduction--Travelling expenses incurred in foreign currency to be reduced both from export turnover and total turnover-- iNautix Technologies India P. Ltd. v. Asst. CIT (Chennai) . . . 324

S. 11 --Charitable purposes--Exemption--Donations disclosed as income--Not to be added as cash credits-- ITO v. Saraswati Educational Charitable Trust 
(Lucknow) . . . 393

S. 12A --Charitable purposes--Registration--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community but for public at large--Provisions of section 13(1)(b) not applicable--Registration to be granted under section 12A--Diocese of Pune (CNI) v. CIT (Pune) . . . 348

----Charitable purpose--Registration--No distinction between religious or charitable institution for purpose of registration--Registration not to be denied on ground of mixed objects--Absence of certain clauses in trust deed--Director of Income-tax (Exemptions) to give opportunity to assessee to explain and make necessary amendments before refusing registration--Matter remanded-- Sri Sri Sri Dattatreya Seva Samsthanam v. DIT (Exemptions)(Hyd) . . . 384

S. 12AA --Charitable purpose--Registration--No distinction between religious or charitable institution for purpose of registration--Registration not to be denied on ground of mixed objects--Absence of certain clauses in trust deed--Director of Income-tax (Exemptions) to give opportunity to assessee to explain and make necessary amendments before refusing registration--Matter remanded-- Sri Sri Sri Dattatreya Seva Samsthanam v. DIT (Exemptions)(Hyd) . . . 384

S. 12AA(1)(b)(ii) --Charitable purposes--Registration--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community but for public at large--Provisions of section 13(1)(b) not applicable--Registration to be granted under section 12A-- Diocese of Pune (CNI) v. CIT (Pune) . . . 348

S. 13(1)(b) --Charitable purposes--Registration--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community but for public at large--Provisions of section 13(1)(b) not applicable--Registration to be granted under section 12A-- Diocese of Pune (CNI) v. CIT (Pune) . . . 348

S. 14A --Income--Disallowance of expenditure in relation to exempt income--Dividend income--Whether exempt--Matter remanded-- IDBI Capital Market Services Ltd. v. Deputy CIT(Mumbai) . . . 379

----Income--Disallowance of expenditure relating to exempt income--Disallowance to be considered part of business profit in computation of deduction under section 10A-- iNautix Technologies India P. Ltd. v. Asst. CIT (Chennai) . . . 324

----Income--Disallowance of expenditure relating to exempt income--Dividend--Assessee having sufficient interest-free funds in form of share capital, reserves and surplus--Investment made by assessee less than interest-free funds--Rule 8D applicable only prospectively--Assessing Officer to disallow 2 per cent. of exempt income as administrative expenditure-- iNautix Technologies India P. Ltd. v. Asst. CIT 
(Chennai) . . . 324

S. 32 --Depreciation--Electric cables and fans--Integral part of machinery--Depreciation allowable at 15 per cent.-- Cera Sanitaryware Ltd. v. Deputy CIT (OSD) 
(Ahd) . . . 334

S. 32(1)(iia) --Depreciation--Additional depreciation--Condition precedent--Machinery or plant should be acquired after 31-3-2005--New machinery or plant need not have operational connectivity to products already being manufactured--Assessee fulfilling all conditions--Entitled to additional depreciation-- Cera Sanitaryware Ltd. v. Deputy CIT (OSD) (Ahd) . . . 334

S. 37 --Business expenditure--Discount under employees’ stock option scheme--Object of scheme not to raise share capital but to earn profit by securing consistent and concentrated efforts of dedicated employees--Discount part of package of remuneration and substitute for cash incentive for services of employees--Is revenue expenditure--Allowable--Cera Sanitaryware Ltd. v. Deputy CIT (OSD) (Ahd) . . . 334

S. 40(a)(ia) --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Time period for deducting tax at source lapsing--Disallowance cannot be made--IDBI Capital Market Services Ltd. v. Deputy CIT (Mumbai) . . . 379

S. 43B --Business expenditure--Deduction only on actual payment--Value added tax--Difference between liability and amount paid--Disallowance proper-- Dhanesh Narbheram Bhansali v. Asst. CIT (Mumbai) . . . 357

S. 44AD --Presumptive taxation--Books of account--Assessee withdrawing funds from bank to introduce capital in books of account--Assessee offering income under section 44AD in earlier years--No reason to disbelieve--Addition to be deleted-- Dhanesh Narbheram Bhansali v. Asst. CIT (Mumbai) . . . 357

S. 68 --Charitable purposes--Exemption--Donations disclosed as income--Not to be added as cash credits-- ITO v. Saraswati Educational Charitable Trust 
(Lucknow) . . . 393

S. 80-IC --Industrial undertaking--Special deduction under section 80-IC--Condition precedent--Industrial activity in industrially and economically backward State--No manufacturing activity at place where plant located--Assessee not entitled to special deduction under section 80-IC-- Japna Exports v. ITO (Delhi) . . . 291

S. 92C(3) --International transactions--Arm’s length price--Agreement between assessee and associated enterprise for payment of royalty--Increase in sales achieved by assessee due to utilisation of advanced technical know-how transferred by associated enterprise--Estimating royalty at 2 per cent. applying benefit test in violation of transfer pricing provisions--Transfer pricing adjustment to royalty payment not permissible-- R. A. K. Ceramics India P. Ltd. v. Deputy CIT (Hyd) . . . 368

S. 194J --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Time period for deducting tax at source lapsing--Disallowance cannot be made--IDBI Capital Market Services Ltd. v. Deputy CIT (Mumbai) . . . 379

S. 271(1)(c) --Penalty--Concealment of income--Furnishing of inaccurate particulars of income--Failure by assessee to produce details supporting claim to deduction before Assessing Officer--Assessee producing details of ledger account, bills and vouchers during appellate proceedings--Rejection of claim does not automatically attract penalty--Penalty not sustainable-- Smt. Anita Kumar v. ITO (Delhi) . . . 362

Income-tax Rules, 1962

R. 8D --Income--Disallowance of expenditure relating to exempt income--Disallowance to be considered part of business profit in computation of deduction under section 10A-- iNautix Technologies India P. Ltd. v. Asst. CIT (Chennai) . . . 324

----Income--Disallowance of expenditure relating to exempt income--Dividend--Assessee having sufficient interest-free funds in form of share capital, reserves and surplus--Investment made by assessee less than interest-free funds--Rule 8D applicable only prospectively--Assessing Officer to disallow 2 per cent. of exempt income as administrative expenditure-- iNautix Technologies India P. Ltd. v. Asst. CIT 
(Chennai) . . . 324

----Income--Disallowance of expenditure in relation to exempt income--Dividend income--Whether exempt--Matter remanded-- IDBI Capital Market Services Ltd. v. Deputy CIT(Mumbai) . . . 379

 

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Posted by: CA RAJU SHAH <shahmars@hotmail.com>