News
Madras HC holds Sec 292B cant cure irregularity committed by revenue
Block assessment u/s 158BC not valid in case of consequential search on assessee based on material found in search of another person; Provisions of Sec. 158BD applicable in such case; Revenue not permitted to follow time limit applicable to assessment u/s 158BD in respect of assessment made u/s 158BC; Sec. 292B cannot cure every irregularity,…
Read MoreKerala HC holds Service Tax on AC Bar Restaurants & Hotels as Unconstitutional
The constitutional validity of the aforesaid amendment as made by the Finance Act, 2011 was challenged before the Hon’ble Kerala High Court by “the Kerala Classified Hotels and Resorts Association” vide WP(C) 14045 of 2011 and other Hotels and Restaurants contending that the aforesaid levy by the Central Government deviates form the subject matter falling…
Read MoreDelhi HC holds derivative loss as speculative
Loss from trading of derivatives in shares held as ‘deemed speculative’; When underlying asset (i.e. shares) is covered by Sec 73 explanation, derivatives deriving its values from shares falls within the Explanation to Sec 73(4); Overrules ITAT ruling; Exclusion of derivatives from definition of speculative transactions u/s 43 limited to computation of business income; It…
Read MoreMadras HC Upholds Sec 54EC exemp before set-off of long term capital loss
Exemption u/s 54EC for investment in specified bonds available on long term capital gains (LTCG) before set-off of long term capital loss (LTCL); Rejects Revenue’s contention that effect of Sec 70(3) (loss set off) to be given before Sec. 54EC; Sec. 54EC not on different footing vis-a-vis similar sections (like Sec. 54/ 54EA/ 54EB) despite…
Read MoreNBFCs not to be Partners in Partnership Firms
The RBI has issued Circular No. RBI/2012-13/526/DNBS.PD/CC.No.328/03.02.002/2012-13 on 11.06.2013 stating that currently NBFCs are prohibited from Contributing capital to any partnership firm or To be partners in partnership firms. It is now clarified that partnership firms mentioned above will also include Limited Liability Partnerships (LLPs) and Association of persons, these being similar in nature to…
Read MoreITAT holds no disallowance u/s 14A when assessee’s own funds much exceeds investments : ITAT Delhi Bench
During the year only an amount of 4 lakh was invested out of total investment of 3.39 crores. In the earlier years the assessment of the assessee were complete u/s 143(3) and the AO did not make any disallowance u/s 14A. the term loan taken by the assessee was for specific purposes and it cannot…
Read MoreDelhi HC admits winding up petition filed by E&Y against a Corporate for non Payment of Fees
At no point of time did JIL terminate the LOE. It also did not write to E&Y in response to the invoices received by it after 10-4-2010 protesting that the success fee claimed was either not payable or that the rate was not 1.15 per cent. Also JIL never wrote to E&Y stating that it…
Read MoreSC directs Election commission to control corrupt practices in elections; Defines Powers & Duties of CAG
The Supreme Court held as under: 1) Promise of ‘freebies’ (TV sets, laptops, mixers, grinders etc.) in election manifestoes of political parties was not ‘corrupt practice’ under section 123 of Representation of People Act, 1951. As the said section covered corrupt practices & inducements by candidates for winning elections (irrespective of whether the candidate’s party…
Read MoreAssessee can seek cross-examination of witnesses whose statements have been relied on to confirm charge of evasion against him; and any denial thereto may amount to violation of principles of natural justice and entire adjudication proceedings would be liable to be set aside : Gujarat HC
Assessee can seek cross-examination of witnesses whose statements have been relied on to confirm charge of evasion against him; and any denial thereto may amount to violation of principles of natural justice and entire adjudication proceedings would be liable to be set aside : Gujarat HC Gujarat Cypromet Ltd
Read MoreAssessment can legitimately be reopened on basis of material which comes to Assessing Officer after original assessment or during course of assessment proceedings for next assessment year : Bombay HC
Assessment can legitimately be reopened on basis of material which comes to Assessing Officer after original assessment or during course of assessment proceedings for next assessment year : Bombay HC Rabo India Finance Ltd.
Read More