corporate and professional update december 20, 2015

CORPORATE AND PROFESSIONAL UPDATE DECEMBER 20, 2015

1. 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].

2. CD (compact disc) is an admissible ‘documentary evidence’-Supreme Court of India. [Shamsher Singh Verma vs. State of Haryana]

3. 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.

6. 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.

7. Finance Ministry has asked Income Tax department officials to mandatorily mention their email and official phone numbers in e-letters and notices.
8. CBDT issues draft guidelines for determination of Place of Effective Management (POEM) of a company – suggestions to be given by 02.01.2016.

Court Decision

8. 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)].

9. Revenue Secretary has directed that Income Tax Notice / letter /communication to contain email and phone number of officer issuing notice.

10. 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]

11. 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].

12. No assessment can be made in the hands of non-existing company. [M/s PVP Ventures Ltd. vs. DCIT: ITAT Chennai]

13. Revenue cannot adjust operating costs in allowing capacity adjustment under Transfer Pricing. [DCIT vs. Claas India Pvt. Ltd. Delhi Bench of ITAT.

14. 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.
15. 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]
16. 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.
17. 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

15. MCA clarified that the last date for Annual Filing Forms is 30 Dec 2015 and no further extension would be accorded after this date.

16. 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.

18. From 1st Jan, 2016 LPG subsidy will not be available to Consumers with Taxable Income of 10 lakhs or more in FY 2015-16.

25. Only functionally comparable companies can be compared for calculating ALP under Transfer Pricing: [ITAT : Acclaris Business Solutions Pvt. Ltd. vs I.T.O.]

26. 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.

27. Reserve Bank of India has created an email helpline to provide regulatory advice for start-ups.
28. 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.
29. 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.

Other Update

28. Lok Sabha on Thursday passed the Arbitration and Conciliation (Amendment) Bill, 2015, aimed at making dispute resolution in the country quicker and easier.
29. SEBI Meeting on Implementation of OECD Principles of Corporate Governance, spot price determination of commodities etc. PR No. 297/2015.
30. Delhi High Court ruled that undervalued property can be registered in the capital.

33. 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.
34. Export Policy of Onions- Removal of Minimum Export Price on onions.Notification No. 29/2015-20.
35. SEBI meeting on Implementation of OECD Principles of Corporate Governance, Spot Price Determination of Commodities etc. PR No. 297/2015
36. 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.
37. 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
38. 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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