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 issued a circular stating that the certified copies of the “Interim Orders” passed by the Principal Bench and New Delhi Bench on its official web site w.e.f 01.2016.
- Applications are invited from advocates of substantial standing and repute and with good academic credentials for the empanelment of Addl. / Asstt Public Prosecutor of Income Tax Department.
- Finance Ministry has asked Income Tax department officials to mandatorily mention their email and official phone numbers in e-letters and notices.
- CBDT issues draft guidelines for determination of Place of Effective Management (POEM) of a company – suggestions to be given by 02.01.2016.
- Section 54F do not stipulate purchase of new asset from sale proceeds of original capital asset only.[CIT vs. Shri Kapil Kumar Agarwal (P&H High Court)].
- Revenue Secretary has directed that Income Tax Notice / letter /communication to contain email and phone number of officer issuing notice.
- Interest paid on borrowed sums further advanced to subsidiary company for purpose of facilitating the subsidiary in meeting out its working capital requirement is allowable as business expenditure. [Hero Cycles (P) Ltd.vs. CIT, Supreme Court of India]
- It is not the ‘profit from export’ but ‘profit of business’ which is to be considered in formula u/s 10B(4) [Delhi High Court in Riviera Home Furnishing vs. Addl. CIT].
- No assessment can be made in the hands of non-existing company. [M/s PVP Ventures Ltd. vs. DCIT: ITAT Chennai]
- Revenue cannot adjust operating costs in allowing capacity adjustment under Transfer Pricing. [DCIT vs. Claas India Pvt. Ltd. Delhi Bench of ITAT.
- Wax used for producing cotton yarn should be treated as Raw Material – Supreme Court in the case of M/S. MERIDIAN INDUSTRIES LTD. vs Commissioner of Central Excise.
- The assessee is an AOP but department wrongly issued PAN as Firm, there cannot be any insistence that return should be filed in the same capacity. [Gujarat High Court in Tulsi Mall AOP vs CIT 2015 (12) TMI 1077]
- Interest in leasehold property includible in net wealth of assessee if he exercises power of owner on it. Bombay High Court: Jaya Hind Sciaky Limited.
- Disallowance cannot be made of expenditure not claimed as deduction in profit and loss account. [ITAT Delhi: Sunaina Tower Pvt. Ltd. vs. ACIT.]
MCA & RBI Update
- MCA clarified that the last date for Annual Filing Forms is 30 Dec 2015 and no further extension would be accorded after this date.
- SEBI mulls collective issue of orders, not via a single officer in a bid to improve accountability and ensure every order is looked upon as a regulatory action.
- From 1st Jan, 2016 LPG subsidy will not be available to Consumers with Taxable Income of 10 lakhs or more in FY 2015-16.
- Only functionally comparable companies can be compared for calculating ALP under Transfer Pricing: [ITAT : Acclaris Business Solutions Pvt. Ltd. vs I.T.O.]
- MCA has notified the Companies (Meetings of Board and its Powers) Second Amendment Rules, 2015 which shall come into force on the date of their publication in the Official Gazette.
- Reserve Bank of India has created an email helpline to provide regulatory advice for start-ups.
- Online Application are invited from CA firms / LLPs from 01.01.2016 to 15.02.2016 for empanelment for appointment as auditors of Govt Co.s / Corporations for the year 2016-2017. saiindia.gov.in.
- Auditors are now required to report any suspected corporate fraud amounting Rs 1 crore or more to the central government, as stringent measures are being put in place to curb misdoings.
- Lok Sabha on Thursday passed the Arbitration and Conciliation (Amendment) Bill, 2015, aimed at making dispute resolution in the country quicker and easier.
- SEBI Meeting on Implementation of OECD Principles of Corporate Governance, spot price determination of commodities etc. PR No. 297/2015.
- Delhi High Court ruled that undervalued property can be registered in the capital.
- Government of the Republic of India and the Government of the Republic of Macedonia enters DTAA for the avoidance of double taxation. Notification No. 94/2015.
- Export Policy of Onions- Removal of Minimum Export Price on onions.Notification No. 29/2015-20.
- SEBI meeting on Implementation of OECD Principles of Corporate Governance, Spot Price Determination of Commodities etc. PR No. 297/2015
- Cheque bounce cases are to be filed at the Place of Presentation of Cheque and not the place of issue (as per Negotiable Instruments (Amendment) Bill.
- Auditors are now required to report any suspected corporate fraud amounting Rs 1 crore or more to the Central Government under the Companies Act, 2013
- RBI has extended the deadline for exchanging pre-2005 currency notes of various denominations, including Rs 500/-and Rs 1,000/-, by another six months to June 30, 2016.
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