Direct Tax

  • Unless and until the capital asset is used as a tool for carrying out the business of the assessee and the assessee becomes the owner this Tribunal is of the considered opinion that the assessee may not be eligible for depreciation – Tri – M/s Hinduja Foundries Ltd. (formerly known as M/s Ennore Foundries Ltd.) Versus The Assistant Commissioner of Income Tax – 2016 (2) TMI 706 – ITAT CHENNAI
  • Controlled by Delhi based CA firm held as resident in India [2016]283 (Delhi)Commissioner of Income-tax, Delhi v. Mansarovar Commercial (P.) Ltd.
  • 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]239 (Mumbai – Trib.) IBAHN India (P.) Ltd. v. DCIT
  • Investment in house property need not be sourced from capital gains only for availing of sec. 54F relief
  • IT : For availing exemption under section 54F, amount invested in new asset need not be entirely sourced from capital gain [2016] 191 (Punjab & Haryana) CIT v. Kapil Kumar Agarwal
  • Deemed dividend addition u/s. 2(22)(e) – loan or advance to a non-shareholder cannot be taxed as Deemed Dividend in the hands of a non-shareholder. Since the Assessee in the present case is not a shareholder in the lender company addition to be deleted. – Tri – M/s. Jet Age Securities Pvt. Ltd. Versus D.C.I.T., Circle-7 (1) , Kolkata – 2016 (2) TMI 703 – ITAT KOLKATA
  • CL: Sales tax dues of company-in-liquidation could not be termed as taxes in relation to property hence, Appellants who had purchased property of company-in-liquidation in court auction were not required to pay same[2016] 220 (Gujarat) Readymix Concrete Ltd. v. Official Liquidator of Beclawat of India Ltd.
  • Controlled by Delhi based CA firm held as resident in India.

Indirect Tax

  • Demand of service tax on Management Maintenance or Repair service collected from Flat owners. – In this fact the appellant is not liable for service tax – Tri – M/s Omega Associates Versus Commissioner of Service Tax, Mumbai – 2016 (2) TMI 690 – CESTAT MUMBAI
  • Valuation – Business auxiliary service (BAS) – inclusion of reimbursement of expenses – the entire amount received from M/s Indian Oil Corporation is liable to be taxed – Tri – Sanjeev Chaudhari Versus Commissioner of Central Excise Chandigarh – 2016 (2) TMI 688 – CESTAT NEW DELHI
  • Purchaser of assets of liquidating -co. in a auction wasn’t liable to pay sales taxes dues of such Co.- HC
  • Cenvat credit available of Service tax paid on construction of commercial complex used for renting of immovable property.

Company Law

Query: In a Private Limited Company, there are two directors since the date of incorporation of the company in around 1985. Now both the director’s age is more than 70 years. Is directors are disqualified or any forms need to be filed with ROC.

Answer: No provision on age limit has been prescribed in the Companies Act 2013 regarding the appointment or disqualification of directors.

However in case of Managing director/Whole-time director/Manager, Section 196(3) of the Companies Act 2013 provides that –“No company shall appoint or continue the employment of any person as MD/WTD/Manager who is below the age of 21 years or has attained the age of 70 years. Provided the appointment of person who has attained the age of 70 years may be made by passing a special resolution in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such person.”

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: or call at 955555480

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: or call at 09811322785/4 9555 5555 480)

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