Updates
Madras HC rules disallowance of one time claim of upfront lease money
The Hon’ble Madras High Court in the case of Rane Brake Linings Ltd. dated 07.04.2014 has ruled that long term lease transaction wherein lumpsum upfront is paid, the said upfront is a capital expense and not allowable as revenue expense. The Court held as under : “Incidentally, we may also point out that as early…
Read MoreBombay HC quashes notice u/s 148
The Hon’ble Bombay High Court has quashed the notice issued by Assessing officer u/s 148. The reasons recorded by assessing officer did not contain words that the what the assessee had failed to disclose since the re-opening was beyond 4 years. To read complete text of judgement, click here Bom HC on no mention of…
Read MoreNo 194H on discount to stockist-dealers – Bom HC
The Hon’ble Bombay High Court in the Intervet India Private Limited has ruled that provisions of Sec 194H and thereby sec 40(a)(ia) are not applicable on discounts paid to stockists and dealers as the relationship was on principal to principal basis. For complete text of judgement click here No 194H on discount to stockists-dealers-Bom HC
Read MoreS. 226: AO warned of contempt action
S. 226: AO warned of contempt action for seeking to overreach ITAT’s stay order The assessee filed a stay application before the Tribunal and informed the AO about the same. Thereafter, the Tribunal heard the matter on 14.02.2014 and granted stay of the demand. Despite this, the AO attached the assessee’s bank account on 19.02.2014…
Read Morecommission paid by MF broker to sub-agent, 194H not apply
The Hon’ble Allahabad HC in a decision dated 13.03.2014 has held that on reading of provision of sec 194H, the Mutual fund broker is not required to deduct TDS on payment to sub-agent as section excludes TDS on commission paid for securities. Interestingly the broker was a firm of Chartered Accountants. To read complete text…
Read MoreCash Payment and haunt of Sec 40A(3) partially removed
To read complete article on the subject, click here Detailed article on 40A(3)
Read More“Nil TDS Return” no Need to submit after 01.10.2013.
With effect from 01.10.2013 new version of FVU i.e. 4.00 is published by the TIN-NSDL in place of FVU 3.7 with latest new key features. The latest FVU Ver. 4.00 contains “NIL” TDS/TCS Return but while generating validation through FVU Ver. 4.00, TDS/TCS statement can’not be filed without quoting any valid Challan or deductee row.…
Read MoreAll HC grants 12A registration to Lucknow Dev Authority
The Hon’ble Allahabad HC has granted registration u/s 12AA of the Income Tax Act, 1961 to Lucknow Development Authority. For judgement click here Lucknow Dev Authority-All HC-Grants 12A
Read MoreRajkot SB of ITAT holds amendment to Sec 206C(6A) retrospective; Also rules all scrap trading subject to TCS
ITAT Special Bench discusses law on application of Tax collection at source (TCS) provisions u/s 206C and meaning of “scarp”; TCS apply to sale of ‘brass scarp’ imported by the trader; Meaning of scrap not restricted to one arising only from manufacture or mechanical operations; Sec 206C provisions also apply to business of trading in…
Read MoreLucknow ITAT distinguishes Liberty India SC Judgement on 80-IB
Whether duty drawbacks is to be considered for deduction u/s 80-IB depends upon their nexus with business operations; Question of whether duty drawback an “incidental profit” or “profit of first degree” depends on the business model; Despite SC rulings in Liberty India, there may still be a room for considering a plea that assessee would…
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