Dear Friends, I recently launched a website www.taxguru.in all new updates will be given to you now on this website only those who are existing subscriber to www.kanoisandeep.blogspot.com are requested to visit www.taxguru.in to suscribe to www.taxguru.in.

May 18, 2012

Download Free e-filing Excel Software for ITR 1, 2, 3, 4S, 5, 6 for A.Y. 2012-13

Download Free e-filing Excel Software for ITR 1, 2, 3, 4S, 5, 6 for A.Y. 2012-13

Posted: 18 May 2012 07:45 PM PDT

Income Tax Department has enabled online submission of ITR-1 (SAHAJ), ITR-2 & ITR-4S (SUGAM), ITR 5, ITR 6, for Assessment Year 2012-13. These software can be used to file Income Tax Return Online.

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Tax Free Bonds V/S Tax Saving Bonds

Posted: 18 May 2012 07:19 PM PDT

The basic difference between Tax Free Bonds and Tax Saving Bonds is Tax free Bonds yields Interest which is not taxable in the hands of Investor whereas in case of Tax Saving bonds it is chargeable to Tax in hands of Investor. Investor gets Deduction under Section 80CCF if he invests in...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Sub Contractor not responsible for TDS u/s 194C(2)

Posted: 18 May 2012 06:52 PM PDT

In terms of the provisions of section 194C(2) as clarified by the Board vide its Circular No. 715, dated 8-8-1995, conditions to be satisfied are (i) that the assessee should be a contractor, (ii) that the assessee should enter into a contract with a sub-contractor, (iii) that the sub-contractor...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Key Income Tax amendments in Finance Bill 2012

Posted: 18 May 2012 06:17 PM PDT

• Benefit of reduced tax rate of 10 percent on long term capital gain arising from sale of unlisted securities has been extended to all non-residents in parity with Foreign Institutional Investors. • Benefit of capital gains tax exemption has been extended to sale of unlisted securities in an...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Key Indirect Tax amendments in Finance Bill 2012

Posted: 18 May 2012 06:10 PM PDT

Customs -• The rigour of the prosecution provisions originally proposed to be introduced under the Customs Act has been diluted in the following manner: - Only serious offences under the customs law involving prohibited goods or duty evasion exceeding INR 5 million has been retained as 'cognizable...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Section 54EC – Reckoning of Period From Date of Sale or Receipt of Payment?

Posted: 18 May 2012 05:35 PM PDT

Requirement of section 54EC to the effect that investment in specified assets is to be made within a period of six months from the date of transfer, was put to some clarification by the CBDT in Circular No 791 (supra). The question arose before the CBDT regarding exemption of a long term capital...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Excel Tips – Moving to the Last (or First) Cell in a Range

Posted: 18 May 2012 05:33 PM PDT

Using keyboard shortcuts To move to the last (or first) cell in a range: • Vertically from top to bottom, press Ctrl+Down Arrow. • Vertically from bottom to top, press Ctrl+Up Arrow. • Horizontally from left to right, press Ctrl+Right Arrow. • Horizontally from right to left, press Ctrl+Left...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


An Overview of e-TDS & e-TCS

Posted: 18 May 2012 05:32 PM PDT

TCS means collection of tax at source by the seller (collector) from the buyer (collectee/payee) of the goods (specified u/s 206C of Income-tax Act, 1961, like timber obtained under forest lease, scrap, any other forest produce not being timber or tendu leaves etc.,). For e.g. if purchase value of...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Despite Last Chance appeal should be adjourned if there is sufficient cause

Posted: 18 May 2012 05:31 PM PDT

Ordinarily, it is not incumbent on the part of the Tribunal to adjourn the case again when a last opportunity had already been granted to the Counsel for assessee, however, there may be number of circumstances where adjournment becomes necessary, in the interest of justice.

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Partnership deed need not quantify partner's remuneration

Posted: 18 May 2012 05:30 PM PDT

The only dispute by the Revenue is that the amount of remuneration has not been quantified in the partnership deed. It is mentioned in clause 8 of the partnership deed that remuneration will be payable as per norms fixed by the relevant provisions of the Income-tax Act. Thus the quantification of...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


After Filling Appeal appellant can request withdraw of same if Tax Effect not significant

Posted: 18 May 2012 05:20 PM PDT

The captioned appeal is fixed for hearing before the Hon'ble 'G' Bench today. The appellant has received partial relief. As the tax effect of the remaining issue is not significant, the appellant does not wish to pursue the appeal. In the circumstances, kindly allow the appellant to withdraw the...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Objective of Sec. 80-O is mainly supply of technical know-how or technical services to developing countries

Posted: 18 May 2012 04:56 PM PDT

One thing is clear that the DR has not challenged the allowability of deduction u/s. 80-O, he has shown serious reservations on the basis of allowability, i.e. whether the deduction should be allowed on net amount or on gross amount.

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


In case of sale of whole business despite treatment by Assessee as itemised-sale of assets provision of Slump sale applies

Posted: 18 May 2012 01:45 PM PDT

Though the Appellant had treated it as itemised-sale of assets. The Appellant had sold business of Sealants and Adhesives as a whole to PIL.Therefore, the provisions of Sec.50B have been rightly invoked by both the lower authorities.

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


In case of closed business Assessee must establish his intention and seriousness in reviving the business

Posted: 18 May 2012 11:02 AM PDT

The facts emerging out of the assessment order are that the assessee is dealing in organic manure. For the year under consideration, the return of income declaring the total income of Rs.13,50,000/- was efiled on 30.10.2007. This case was selected for scrutiny assessment and accordingly notices...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Section 14A – Onus on AO to show expenditure incurred to earn tax-free income

Posted: 18 May 2012 06:30 AM PDT

Disallowance u/s 14A required a finding of incurring of expenditure and where it was found that for earning exempted income, no expenditure had been incurred, disallowance u/s 14A could not stand. In the present case, as seen, the AO has not established any nexus whatsoever between the borrowed...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


HC Reverses Law on Supply of Reasons for Reopening – Need not be supplied within limitation period

Posted: 18 May 2012 05:28 AM PDT

There is no requirement in Section 147 or Section 148 or Section 149 that the reasons recorded should also accompany the notice issued under Section 148. The requirement in Section 149(1) is only that the notice under Section 148 shall be issued. There is no requirement that it should also be...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


HC dismisses Revenue Appeal for Non-Service of Notice of hearing

Posted: 18 May 2012 05:20 AM PDT

Hon'ble Supreme Court in the case of Para Laminates (P.) Ltd.'s held that the Tribunal is entitled to exercise all incidental and ancillary powers which are reasonably necessary for performing the adjudicative functions. Applying the aforesaid principles, it clearly follows that it was obligatory...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Despite borrowing, gains on shares assessable as STCG & not business profits

Posted: 18 May 2012 05:10 AM PDT

Coming to the revenue's objection that the assessee borrowed the funds from Indiabulls Financial Services Ltd., in our view, this cannot constitute a factor as in none of the case laws or CBDT circular it has been held that borrowings will not be allowed in investment transactions. In our view the...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Tests to determine where shares gain is capital gains or business profits

Posted: 18 May 2012 05:02 AM PDT

In the present case, the assessee is an employee and is in service of a company. He has salaried income. The assessee had also made purchases and had sold securities. He is maintaining two separate portfolios i.e. investment portfolio and trading portfolio. The Assessing Officer has admitted the...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Section 14A & Rule 8D Disallowance Not Automatic

Posted: 18 May 2012 04:16 AM PDT

The correct sequence, in our considered opinion, for making any disallowance u/s. 14A is to, firstly, examine the assessee's claim of having incurred some expenditure or no expenditure in relation to exempt income. If the AO gets satisfied with the same, then there is no need to compute...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Despite concealment Penalty U/s. 271(1)(c) can not be imposed if book profits assessed U/s. 115JB

Posted: 18 May 2012 03:13 AM PDT

In the present case, the income computed as per the normal procedure was less than the income determined by legal fiction namely book profits under Section 115JB of the Act.

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Share Transactions Income – Capital Gain or Business Income – Criteria

Posted: 18 May 2012 02:51 AM PDT

Gujarat High Court in CIT vs. Rewashanker A. Kothari, (2006) 283 ITR 338 (Guj.), after examining earlier judgments on the question has laid down several parameters' tests which have to be applied to find out when income from transactions in shares' securities should be treated as income from...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


TPO Cannot question business purpose of transaction

Posted: 18 May 2012 02:45 AM PDT

There is no force in the Revenue's claim that the assessee was not required to make any payment to its AE for resolving warranty claims. The assessee has the right to enter into an arrangement according to which its business interests are protected. It is the prerogative of the assessee to decide...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Taxes levied in foreign countries on profits or gains is deductible u/s 37(1)

Posted: 18 May 2012 02:11 AM PDT

Due consideration of the provisions of s.37 and s.40(a)(ii) of the Act as well, it emerges that u/s 37, all taxes and rates are allowable irrespective of the place where they are lived i.e., whether on Indian soil or offshore, whereas u/s 40(a)(ii) of the Act, income-tax which is a tax leviable on...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Foreign Permanent Establishment profits may be taxed in India

Posted: 18 May 2012 01:55 AM PDT

Other items of income or capital may not be taxed in the State of source or situs; as a rule they are taxable only in the State of residence of the taxpayer. This applies, for example, to royalties (Article 12), gains from the alienation of shares or securities (paragraph 5 of Article B), private...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


ICAI Invites Suggestions on Common Code for Excise & Service Tax

Posted: 18 May 2012 01:45 AM PDT

The Group has the following terms of reference: To examine the feasibility and develop a draft Common Code for Central Excise and Service Tax that can be implemented under the present Constitutional scheme, keeping however, in view the challenges in the context of the impending goods and Services...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


To 'make available' technical knowledge' payer must be enabled to perform service himself

Posted: 17 May 2012 11:55 PM PDT

On facts, while the Dutch company performed the surveys using substantial technical skills, it has not made available the technical expertise in respect of such collection or processing of data to the assessees, which the assessee can apply independently and without assistance and undertake such...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


SC To Reconsider Verdict In S. A. Builders on allowability of Interest paid to acquire equity capital of subsidiary company

Posted: 17 May 2012 11:16 PM PDT

The respondent-assessee had borrowed certain funds which were utilized by the assessee to subscribe to the equity capital of the subsidiary company, namely, M/s. Tulip Star Hospitality Services Ltd. This subsidiary company used the said funds for the purpose of acquiring the Centaur Hotel, Juhu...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


No Disallowance U/s. 40(a)(ia) if TDS been Paid Before due date of Income Tax Return

Posted: 17 May 2012 11:13 PM PDT

he amendment to s. 40(a)(ia) by the Finance Act, 2010 has been specifically made retrospectively applicable from the asst. yr. 2010-11. It has nowhere been expressly set out that the amendment is curative or merely declaratory of the previous law. The intention of the legislature as gathered from...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Tribunal cannot merely record its conclusions without discussing factual matrix, evidence & material

Posted: 17 May 2012 11:04 PM PDT

The Tribunal is required to deal with the factual findings recorded by the Assessing Officer and, then after examining the document and evidence, give and record their factual conclusions. The factual conclusion should be based upon reasons and should be outcome of analysis and discussion. The...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Notice u/s 148 can be issued to assessee after 4 years if assessee has not truly and fairly disclosed material facts during assessment proceedings

Posted: 17 May 2012 10:27 PM PDT

The assessee, during the course of assessment proceedings for Assessment Year 2004-2005, had not furnished any intimation to the Assessing Officer about the alleged misappropriation of funds. Though the FIR was lodged by the Assessee on 16 March, 2006 and the assessment proceedings for Assessment...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Sinking fund contribution for Replacement / Repair of Fixed Assets is capital receipt

Posted: 17 May 2012 09:35 PM PDT

It has been contended by the ld. counsel of the assessee that the Ld. Commissioner of Income Tax (Appeals) has erred in treating Rs. 35,49,091/- as revenue receipt being the amount received from the flat owners and / or tenants for replacement of capital assets and shown as sinking fund in accounts...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Composite contract for installation & commissioning cannot be split to exempt profits from offshore supply of goods

Posted: 17 May 2012 09:34 PM PDT

In Vodafone International Holdings BV Netherlands vs. Union of India and another (345 ITR 1 (SC). a three judge bench of the Supreme Court has laid down that what is needed is to consider the transaction in its entirety and to look at the transaction as a whole. The Supreme Court has advocated...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Bank Finance Limit to NBFCs Predominantly Engaged in lending against Gold

Posted: 17 May 2012 09:05 PM PDT

The rapid expansion of such NBFCs has led to their increased dependence on public funds, including bank finance. To supplement the prudential measures mentioned above, it is proposed that: banks should reduce their regulatory exposure ceiling in a single NBFC, having gold loans to the extent of...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Clarification regarding classification of Structural Components of Boiler and Admissibility of CENVAT Credit on these Structural Components

Posted: 17 May 2012 09:01 PM PDT

Circular No 966/09/ 2012-CX As clearly stated in para 3 of Boards' above circular dated 2.4.2012, it is once again reiterated that in terms of the Rule 2(k) of the CENVAT Credit Rules, 2004, while CENVAT Credit is available in respect of parts of Boiler, the same is not admissible in respect of...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Treatment of Capital Goods sourced from SEZ and import of spares for such Capital Goods under EPCG Scheme

Posted: 17 May 2012 09:00 PM PDT

Policy Circular No. 65 (RE-2010)/2009-14 It is clarified that Capital Goods sourced from SEZ are treated as 'imported goods'. Hence, EPCG Scheme-under Para 5.2A is available for import of spares for such imported Capital Goods (i.e. sourced from SEZ) with reduced EO. Besides this, EPCG...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Priority Sector Lending – Indirect Finance to Housing Sector – Limit Raised to 10 Lakh

Posted: 17 May 2012 09:00 PM PDT

Please refer to our Circular UBD.PCB.Cir.No.11/09.09.01/2007-08 dated August 30, 2007 forwarding the guidelines for UCBs on lending to priority sector. In terms of para 7.4 of section I of Annex of the above Circular, assistance given to a non-governmental agency approved by the NHB for the purpose...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Web enabled facility to ascertain insurance particulars of motor vehicles

Posted: 17 May 2012 08:26 PM PDT

Insurers are aware that the Insurance Information Bureau (IIB) which acts as insurance data repository of the Authority has been engaged in collecting, collating and compiling inter alia motor insurance data which are useful to the stakeholders.

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Cancellation of transfer order of Judicial Member, Chandigarh Benches to Pune Benches of ITAT

Posted: 17 May 2012 08:25 PM PDT

In partial modification of this office order of even number dated 11th May, 2012; and upon consultations of the collegium of the Income Tax Appellate Tribunal consisting of the President and two senior-most Vice Presidents, the transfer of Ms. Sushma Chowla, Judicial Member, Chandigarh Benches to...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Transfer of specified members of ITAT from one Bench(es) to another Bench(es)

Posted: 17 May 2012 08:23 PM PDT

ORDER [NO. F-46-AD(AT)2012], DATED 11-5-2012 In pursuance of the consultations of the collegium of the Income Tax Appellate Tribunal consisting of the President and two senior-most Vice Presidents, the following Members of the Income Tax Appellate Tribunal are hereby transferred, in public...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Mock Tests for CAT Level-1 Students Appearing For Exam on 24.6.2012

Posted: 17 May 2012 08:06 PM PDT

ATTENTION: CAT LEVEL-1 STUDENTS APPEARING FOR EXAM ON 24.6.2012 All the CAT Level-1 students appearing for June'12 CAT Examination are hereby informed that in order to familiarise them with the new pattern of CAT Level-l exam two mock tests are scheduled at their respective CAT Study Centre/ROCC on...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


ICAI Group to examine eligibility for statutory audit of private/foreign banks vis-à-vis public sector banks

Posted: 17 May 2012 07:55 PM PDT

Group to examine the circular dated 12th August, 2011 of Reserve Bank of India regarding eligibility for statutory audit of private/foreign banks vis-à-vis public sector banks simultaneously and suggest the way forward for taking up the matter with the concerned authorities

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]


Listing of Government Companies in Stock Exchange

Posted: 17 May 2012 06:26 PM PDT

The Financial Advisers, who are on the Board of CPSEs, are requested to emphasize the benefits of listing, as mentioned in the above D.O. letter, and get the CPSEs listed in compliance with the disinvestment policy. Further, Financial Advisers are requested to advise the CPSEs that consequent to...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

No comments:

Post a Comment

Post a Comment

UPDATES FROM TAXGURU