CORPORATE & PROFESSIONAL UPDATE FEBRUARY 29, 2016 INCOME TAX ACT SECTION 2(22) DEEMED DIVIDENDS Loans and advances to shareholders : Where assessees P and S were directors in two sister companies, namely AE and AI, and AI received Rs. 10 lakh as loan from AE, it would be treated as deemed dividend under section 2(22)(e) in …
CORPORATE & PROFESSIONAL UPDATE FEBRUARY 28, 2016 TAXABILITY OF SERVICES PROVIDED BY GOVERNMENT Finance Act, 2015 has proposed to cover all services provided by Government or local authority to business entities under service tax net however effective date of this amendment was awaited for a long. Now, Central Government vides Notification No. 06/2016 ST dated …
CORPORATE & PROFESSIONAL UPDATE FEBRUARY 27,2016 Direct Tax IT: CPU alone cannot be described as computer; routers and switches being input/output devices, are integral part of computer and, hence, entitled to higher rate of depreciation at 60 per cent[2016] 66 taxmann.com 239 (Mumbai – Trib.) IBAHN India (P.) Ltd. v. DCIT Investment in house property need not be …
CORPORATE & PROFESSIONAL UPDATE FEBRUARY 26, 2016 Direct Tax When the issue has been decided by the CIT(A) then only CIT(A) can rectify the order u/s 154, AO has no jurisdiction to rectify such order – Tribunal.[M/s. NHPC Ltd. vs Asstt. Commissioner of Income Tax, Circle-II, Faridabad And vica-versa – 2016 (2) TMI 676 – ITAT DELHI] Section 292C inter alia provides that where …
CORPORATE & PROFESSIONAL UPDATE DATED FEBRUARY 25, 2016 INCOME TAX ACT CBDT sets monetary limit to waive interest SECTION 4 CHARGEABLE AS INCOME General principle : Tax cannot be levied on assessee at a higher amount or at a higher rate merely because assessee, under a mistaken belief or due to an error, offered income for …
CORPORATE AND PROFESSIONAL UPDATE DATED FEBRUARY 24, 2016 IT: CIT(A) was fully justified in deleting the addition made by the AO for alleged bogus purchases particularly when the GP rate declared by the assessee was progressive and was accepted by the AO – ITO, W-2(2), Ghaziabad Vs. Ray Steels (2016 (2) TMI 498 ITAT Delhi) IT: As the …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 22, 2016 DIRECT TAX The petitioner is admittedly not a foreign Company. – Since the petitioner is not an eligible assessee in terms of Section 144C(15)(b) no draft order can be passed in the case of the petitioner u/s 144C(1) –( Honda Cars India Limited (Formerly – M/s. Honda Siel Cars …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 21, 2016 INCOME TAX ACT SECTION 14A EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME Reassessment: Where assessee had disclosed all material facts relating to tax free dividend income at time of making the assessment, initiation of reassessment proceedings merely on basis of change of opinion that assessee …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 20, 2016 Income Tax Act SECTION 9 INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA Business income : Where assessee, engaged in operation and maintenance of international airport, obtained services of non-resident companies for running duty free retail shops, matter was to be remanded back to determine as to whether …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 19, 2016 Direct Tax Section 80IB(10) : Deduction allowed on additional business declared post search.[Madhav Corporations vs. ACIT (ITAT Ahmedabad), IT(SS) A Nos. 380 to 382/AHD/2014, AY 2010-11]. Non TDS deduction disallowance is not sustainable if payee discharges his tax liability.[ Kurian Ulahannan Moothukuzhiyil vs. ITO (ITAT Ahmedabad), I.T.A. No. …