CORPORATE AND PROFESSIONAL UPDATE DECEMBER 24, 2015

CORPORATE AND PROFESSIONAL UPDATE DECEMBER 24, 2015

INCOME TAX ACT

SECTION 4

INCOME – CHARGEABLE AS

Capital receipt : In case of issue of FCCB, increase or decrease in liability on account of fluctuation in foreign exchange as on date of balance sheet would be on capital account and, therefore, any gain or loss is not taxable – [2015] 64  256 (Bangalore – Trib.)

SECTION 14A

EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME

Variable ‘A’ prescribed in the formula in Rule 8D(2)(ii) (to make disallowance in case of common interest expenditure) would exclude both interest attributable to tax exempt income as well as taxable income. – [2015] 64  340 (Delhi)

Read our articles:  Top Taxation Relaxation to MSMS

SECTION 35D

PRELIMINARY EXPENSES

Deduction : Shares acquired cannot be treated as land or building, plant or machinery etc., but only as ‘cost of project’ for purpose of allowing deduction under section 35D – [2015] 64  256 (Bangalore – Trib.)

SECTION 68

CASH CREDITS

Deposits : Where Assessing Officer received information from Enforcement Directorate that in books of assessee there were huge cash deposits which were not explained, he could not reopen assessment on basis of said information alone without even examining as to whether amount in question was reflected in return filed by assessee  – [2015] 64  257 (Delhi)

SECTION 80-IA

DEDUCTIONS – PROFITS AND GAINS FROM INFRASTRUCTURE UNDERTAKINGS

Power generation : Benefit under section 80-IA cannot be denied to assessee, merely because power generated by its power undertaking was consumed at home or by other business of assessee and was not sold to outsiders – [2015] 64  214 (Calcutta)

COMPETITION ACT

SECTION 3

PROHIBITION OF AGREEMENTS – ANTI-COMPETITIVE AGREEMENTS

Where a drug manufacturer had unilaterally and voluntarily stopped supply of drugs to informant distributor for a short span of time due to business exigencies it could not be said that it was in contravention of provisions of section 3 – [2015] 64  250 (CCI)

CENTRAL EXCISE ACT

SECTION 3

CHARGE/LEVY – EXCISE DUTY ON DTA CLEARANCES BY 100 PER CENT EOU

For computing excise duty equal to customs duty on DTA clearances by EOU, CVD component of notional customs duty would be taken as Nil, if excise duty in India is exempt on ‘no-cenvat condition’ – [2015] 64 247 (Allahabad – CESTAT)

SECTION 4

VALUATION UNDER CENTRAL EXCISE – TRANSACTION VALUE – EXCLUSION OF COST OF TRANSPORT/TRANSIT INSURANCE

There is no provision in excise law to deny benefit of exclusion of ‘freight beyond place of removal’ merely because same is not shown separately in excise invoice; hence, freight is not includible in value even if not shown separately in invoice – [2015] 64  248 (Allahabad – CESTAT)

SECTION 35C

APPEALS – ORDERS OF – APPELLATE TRIBUNAL

Where Tribunal held assessee’s contentions to be correct without assigning any reasons and, without even recording revenue’s contentions, dismissed revenue’s appeals, said order was liable to be set aside and matter remanded back for consideration afresh – [2015] 64  245 (Karnataka)

STATUTES

CORPORATE LAWS

Section 4 of the Special Economic Zones Act, 2005 – Hindalco Industries Ltd.

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