CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 1, 2016 INCOME TAX ACT SECTION 2(47) CAPITAL GAINS – TRANSFER Sweat equity Stock option : Where sweat equity shares were offered to assessee by employer was accepted immediately and assessee exercised option after three years and on same date shares were also sold, gains would be short-term capital gain or, …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 29, 2016 Central Govt. establishes Central Registration Centre for Reservation of Names under the Companies Act, 2016 w.e.f. 26th January, 2016 [Notification No.SO.218(E), and published in the Gazette of India Extraordinary, dated 22nd January, 2016]. Brief highlights of CRC are that it — Has territorial jurisdiction all over India Is located at Indian …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 18, 2016 Addition u/s 68 cannot be made solely on the ground of non-production of payer’s bank statement [Shri Ashutosh Garg vs. ACIT (ITAT Delhi), IT Appeal No.-5642/2012, A.Y 2003-04]. SEBI looking to lower expense charges for mutual funds. Extension of the last date of filing of online return in …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 15,2016 INCOME TAX ACT SECTION 2(15) CHARITABLE PURPOSE Object of general public utility/Trade promotion association : Where assessee-association was formed with an object to promote leather trade, in view of fact that assessee’s receipt of rent from non-members by allowing them to keep their stalls in trade fairs organised by assessee …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 13,2016 DIRECT TAX: Income Tax 1st Amendment Rules, 2016 Notified vide notification no. 3/2016/2015. Corrigendum to Notification No. 93/2015 dated 16/12/2015 has been issued vide Notification No 1/2016 – Dated 12-1-2016. Service of an independent contractor – whether would be taxable as salary contrary to the contract of service – …
CORPORATE AND PROFESSIONAL UPDATE ON TAX JANUARY 10, 2016 DIRECT TAX The Revenue Department Delhi has made the e-filing of applications mandatory for companies for payment of stamp duty on share certificates. E-filing of appeal before CIT (Appeals) made mandatory for taxpayers who are required to file the return of income electronically. CBDT has issued draft guidelines …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 5, 2016 INCOME TAX ACT SECTION 2(22) DEEMED DIVIDEND Loans and advances to shareholders : SLP dismissed against High Court’s order wherein it was held that amount advanced to assessee-partner by firm could not be taxed as deemed dividend merely on ground that some amount lying in firm’s account was collected …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 03, 2016 INCOME TAX ACT SECTION 9 INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA Permanent establishment : Where assessee’s branch office, which was considered as assessee’s PE in India, was compensated at arm’s length for performing services in respect of direct sales made by assessee in India, no part …
CORPORATE AND PROFESSIONAL UPDATE DECEMBER 26, 2015 INCOME TAX ACT INCOME TAX ACT SECTION 2(15) CHARITABLE PURPOSE The object of general public utility – Banking technology service: Where assessee-society was established by RBI to provide Banking Technology services and to carry out research which was charitable in nature; merely because it had generated surplus during the …
CORPORATE AND PROFESSIONAL UPDATE DECEMBER 20, 2015 TPO can reject transfer pricing study report based on multiple year data and use only current year data [ITAT Bangalore DCIT vs. M/s. Parametric Technology (India) Pvt. Ltd]. CD (compact disc) is an admissible ‘documentary evidence’-Supreme Court of India. [Shamsher Singh Verma vs. State of Haryana] CLB has …