Corporate and professional updates february 11, 2016

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 11, 2016

DIRECT TAX:

Reassessment   u/s 147 not permissible merely on change of opinion –ITAT. [ACIT vs. Reliance Industrial infrastructure Ltd.(ITAT Mumbai) I.T.A. No.5872/M/2012].

Penalty under Customs can be imposed simultaneously on firm and its partners: Larger bench of HC[2016] 66 taxmann.com 49 (Bombay) Amritlakshmi Machine Works v. Commissioner of Customs (import)

Deductor to get interest on TDS refund from date of filing claim and not from date of deposit of TDS [2016] 66 taxmann.com 50 (Bombay) Sunflag Iron & Steel Co. Ltd. v. CBDT

Govt. allows credit of commission agent’s services; overrules judgment of Gujarat HC

CBEC eases procedure to claim excise duty refund on cars for physically handicapped persons

No separate deduction of expenditure while computing income on presumptive basis under sec. 44BB [2016] 66 taxmann.com 19 (Mumbai – Trib.) Fugro Rovtech Ltd. v. Assistant Director of Income-tax (International Taxation)

Sum spent on education of father of Church is deemed as spent on charitable purpose as he works as teacher in School[2016] 66 taxmann.com 7 (Amritsar – Trib.) Assistant Commissioner of Income-tax, Hoshiarpur Circle v. Carmelite Charitable Society

Entitlement to Exemption u/s -11, Sum spent on education of father of Church is deemed as spent on charitable purpose as he works as teacher, supervisor & principals etc. in School, run by the assessee. [Assistant Commissioner of Income Tax ,Hoshiarpur vs. M/s. Carmelite  Charitable Society-2016(2) TMI 226 -ITAT AMRITSAR.

Place of registration of motor vehicle would be deemed as place of sale: Apex Court (Commissioner of Commercial Tax v. K.T.C. automobiles.)

 No addition for change in valuation of stock, where method is changed in compliance of ICAI Accounting Standard. [ACIT vs. M/s J.K. Synthetics Ltd. (ITAT Lucknow), ITA

Addition in already assessed income is not sustainable, in absence of any incriminating material found during search.[Shri Vimal Kumar Rathi vs DCIT Mumbai.

Now system generated letters can be sent to non-filers of returns using address given in last return/AIR

Rental income from a fully furnished house is taxable as income from other sources if composite rent is inseparable[2016] 66 taxmann.com 99 (Delhi – Trib.) ACIT v. Ajay Kalia

INDIRECT TAX:

Service Tax: Definition of ‘clearing and forwarding agent’ nowhere requires clearing to be effected from factory; hence, taxability under said service would arise even if such agent does not effect clearing of goods from factory of client[2016] 66 taxmann.com 79 (New Delhi – CESTAT) Somani Agencies v. Commissioner of Central Excise & Service Tax

Time-limit for taking credit of duty paid on inputs : As per proviso to rule 4(1) and sixth proviso to rule 4(7) of Cenvat Credit Rules (inserted w.e.f. 1-9-2014), Cenvat credit should be taken within six months from date of issue of any duty paying document.

Time limit is only for ‘taking credit’, There is no time limit for utilisation of Cenvat credit. Once Cenvat credit is taken in your records, it can be utilized any time without any time limit.

Cenvat credit is allowable to input service distributor even if it is not registered, provided assessee has  maintained all records for verification by revenue.

Re-packing and labelling activities amounts to manufacture under EXIM policy [2016] 66 taxmann.com 100 (Mumbai – CESTAT)  Keva Fragrances (P.) Ltd. v. Commissioner of Central Excise

COMPANY LAW:

Proposed CARO, 2016 brings additional reporting requirements

MCA proposed new CARO, 2016 On 9th February. The newly proposed draft of CARO, 2016 contains 15 clauses, out of which some clauses have been carry forwarded from present CARO, 2015. The draft, if approved, shall be applicable for FY 15-16 onwards.
In comparison to CARO (2015), CARO (2016) proposes few additional reporting requirements and eliminates some of the reporting requirements.

OTHER UPDATE

Online application are invited from CA Firms/LLP from 1^st January 2016 to 15 February 2016 for empanelment for appointment as auditors of government Companies/Corporations for the year 2016-2017

ICAI notifies Manner of Signing of Certificates by Chartered Accountants.Name of the CA Firm ,FRN, Name of member, Designation & Membership number.click here

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