News
Partners can not forego salary & intt to inflate exemption u/s 10B
Reverses CIT(A)’s orders and upholds AO’s order of reducing interest on capital and remuneration to partners, while computing profits eligible for exemption u/s 10B; Partners chose to forego interest and remuneration but it does not ipso-facto mean that firm is not admissible for deduction; Interest & remuneration payable to partners not charged to inflate profits…
Read MoreChd ITAT dismisses batch of appeals on issue of transfer of membership rights in Pbi Co-op Society
Chandigarh ITAT pronounces 165 pages ruling on development agreement taxability involving over 2 dozen appeals; Capital gains on land taxable in the year when Joint Development Agreement (JDA) entered; JDA alongwith irrecoverable power of attorney & handing over of possession, results into transfer of capital asset; Definition of transfer as per clause (v) of Sec…
Read MoreOnly a statement recorded during survey not basis for reopening assessment
In absence of any independent material, statement of assessee’s son recorded during survey would not form a valid basis for reopening assessment of assessee. Held by Gujarat HC in the case of Shardaben K. Modi. For complete text of judgement shardaben k modi-gujarat HC
Read MoreEscrow Money under SPA can’t be attached for Company’s tax dues – Delhi HC
Part share sale consideration kept with Bank as ‘Escrow’ under Share Purchase Agreement (SPA), cannot be demanded by AO towards tax liabilities of the Company whose shares are transferred; A company is independent entity completely distinct from its shareholders; Neither SPA nor Escrow Agreement provides for any contingency which would enable company whose shares are…
Read MoreIT Dept sends letters to another 35,000 non-filers
IT Dept sends letters to another 35,000 non-filers.
Read MoreSC sets aside Gujarat HC wherein notice u/s 153C was originally quashed
Assessee must exhaust alternate remedy before filing writ petition; Gujarat HC wrong to have entertained writ petition of assessee at initial stage of issuance of show cause notice; Sets aside Gujarat HC order quashing the show cause notices, directs assessee to file reply to notice; Assessee to exhaust all available remedies under Income Tax Act…
Read MoreRBI directs Banks : Accept EMI chqs only where ECS facility not available
Banks have been directed by the Reserve Bank of India to not accept any fresh post-dated equated monthly instalment (EMI) cheques at locations where the facility of electronic clearing service/Regional Electronic Clearing Service is available. Source, The Hindu – 26.07.2013. To read full news AcceptEMIChequesonlywhereECSna
Read MoreAllahabad HC puts life back into SB Judgement in Merilyn Shipping
The Hon’ble Allahabad HC in the case of CIT vs. Vector Shipping Services P. Ltd. decided on 09.07.2013 has laid down as under : “It is to be noted that for disallowing expenses from business and profession on the ground that TDS has not been deducted, the amount should be payable and not which has…
Read MoreCBDT releases circular on method of computation u/s 10A, 10B
CBDT releases ‘Departmental View’ on the stage of set-off of losses and computation of tax deduction applicable to STP, EOU, SEZ units; Deductions u/s 10A/10B/10AA are available from ‘total income’; Income & loss from eligible & ineligible units to be first adjusted against each other; Deductions u/s 10A/10B/10AA and under Chapter VI-A available on the…
Read MoreCertificate as ITP issued by CIT, mandatory to practice before Revenue authorities and ITAT
Certificate of registration as “Income Tax Practitioner” (ITP) issued by CIT, mandatory to practice before Revenue authorities and ITAT; Mere possession of educational qualification or passing prescribed exams not sufficient; Without certificate of registration from CIT, person not authorised to appear before Revenue and ITAT; Filing of combined power of attorney by advocate and ITP,…
Read More