CORPORATE AND PROFESSIONAL UPDATE Aug 10, 2016

Professional Update For the Day:

DIRECT TAX:

• Gujarat High Court allows  Interest u/s 244A on principal claim of refund of tax – AO has not made out the case of delay in refund for any period attributable to the assessee disentitling for interest – officer has no escape from granting interest to the assessee in terms of section 244A(1)(a) of the Act .     [ Gujarat High Court in case of [Ajanta Manufacturing Limited Vs. DCIT]
• Delhi High Court in the below citied case held that Section 80IA(2A): As the words “derived from” are absent, there is no requirement to prove “first degree nexus” of the receipts with the eligible business. All receipts of the undertaking are eligible for 100% deduction. (Pr. CIT vs. Bharat Sanchar Nigam Ltd (Delhi High Court)

Indirect Tax:

• CESTAT NEW DELHI Held that – Central Excise Cenvat credit – availability – duty paid on various iron and steel items used for fabrication of capital goods – Held that – the issue stand covered by the recent decision of Hon ble High Court of Gujarat in the case of Mundra Ports & Special Economic Zone Ltd. vs. CCE & Cus 2015 (5) TMI 663 – GUJARAT HIGH COURT and by the precedent decision of same assessees case. Therefore, in any case, even if the said items are held to be used as supporting structures, the cenvat credit cannot be denied. (Commissioner of Central Excise Versus M/s. Monnet Ispat & Energy Ltd. – 2016 (8) TMI 349 – CESTAT NEW DELHI)

FAQ on Company Law:

• Query:   We have a query regarding the regularization of Additional director in a Private Limited Company. We want to change designation of a person from additional director to Director Are we required to re appoint him as the  Director in the Annual General Meeting of the Company as he is suppose to retire in the ensuing Annual General Meeting or else. Please advise us that how can we change his designation from additional director to Director?

Answer:  You shall have to convene an Extra ordinary General meeting of the Company or you may regularize him in the ensuing Annual General Meeting also, for the purpose. Thereafter, you need to file Form DIR-12 and purpose selected should be “Change in Designation” and attach the copy of Resolution passed in the General Meeting of the Company with the Form.

OTHER UPDATE :

• Co-operative bank is also a banking company; not liable to pay tax on NPA interest on accrual basis Principal Commissioner of Income-tax-5 v. Shri Mahila Sewa Sahakari Bank Ltd. [2016] 72 taxmann.com 117 (Gujarat)
• Provision made by insurer for IBNR claims held as ascertained liability as it was made on basis of scientific method Deputy Commissioner of Income-tax, Circle-6, Kolkata v. National Insurance Co. Ltd. [2016] 72 taxmann.com 116 (Kolkata – Trib.)

Key Dates:

1. Extension to 29.10.2016, of Last Date of filing of e-forms AOC-4 , AOC-4 XBRL, AOC-4 (CFS), & MGT-7. Circular No.08/2016 Dated 29.07.2016.
2. Public Servants Annual Assets Liabilities Return Filing due date extended to 31.12.2016
3. 15-08-16 is the last date for Issue of TDS certificates in form 16A for quarter ended 30-6-16 by all deductors.
4. Excise return in form ER-1 for NON SSI assessee for the month of July: 10/08/2016
5. Return by EOU in the ER-2 form for the month of July-10/08/201

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