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SECTION 14A
EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME
Reassessment: Where assessee had disclosed all material facts relating to tax free dividend income at time of making the assessment, initiation of reassessment proceedings merely on basis of change of opinion that assessee did not offer any expenditure for disallowance under section 14A in respect of said income, was not sustainable – [2016] 66 168 (Delhi)
More read: Taxation on Income from Equity and Debt Mutual Fund
SECTION 92C
TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE
Projected profits of subsequent years can’t be considered for working out the PLI under TNMM – [2016] 66 185 (Delhi – Trib.)
Comparables and adjustments/Comparables – General: Where TPO made an addition to assessee’s ALP in respect of pharmaceutical products exported to its AE since Commissioner (Appeals) deleted said addition without taking into account effect of provisions contained in Chapter X of Act, the matter was to be remanded back for disposal fresh – [2016] 66 132 (Mumbai – Trib.)
Comparables and adjustments/Comparables – Illustrations: In the case of the assessee rendering non-binding investment advisory services to its AE, a company providing services of merchant banking and investment, could not be accepted as valid comparable while determining ALP – [2016] 66 130 (Mumbai – Trib.)
SECTION 153
INCOME ESCAPING ASSESSMENT – TIME LIMIT FOR COMPLETION OF REASSESSMENT
An extended period of limitation: Where in the writ petition, High Court gave direction to reconsider matter with regard to auditing books of account under section 142(2A), time taken by Commissioner to decide the matter in respect of auditing would stand excluded while computing period of limitation – [2016] 66 taxman 138 (Allahabad)
SECTION 235
INVESTIGATION INTO AFFAIRS OF COMPANY
Where as per directions of Court a Special Investigating Team (SIT) was constituted comprising of officers of departments of Serious Fraud Investigation Office (SFIO) of Company Affairs under Ministry of Corporate Affairs, Government of India; Enforcement Directorate, Income-tax Department as well as Central Bureau of Investigation, SFIO segment of SIT would look into violations and would have supremacy over investigations under Companies Act and other constituents would look into violation of provisions of Laws/Acts governing them and they would be within their rights to initiate appropriate actions under their respective Acts – [2016] 66 118 (Punjab & Haryana)
SECTION 391
COMPROMISE AND ARRANGEMENT
Where there was a representative union, duly recognized under Gujarat Industrial Relations Act, 1946, applicant committee of workers not being representative nor recognised union, would have no locus standi to appear as party respondent in company Petition – [2016] 66 170 (Gujarat)
SECTION 4
PROHIBITION OF ABUSE OF DOMINANT POSITION
CCI rejected the complaint filed by Meru Cabs against Uber for alleged conduct of unfair trade practice by providing heavy discounts to drivers and customers. CCI said that the fluctuating market share figures of the various players show that the competitive landscape in the relevant market is quite vibrant and dynamic and therefore, the radio taxi services market in Delhi is competitive in nature and UBER does not appear to be holding a dominant position in the relevant market therefore, no case of contravention is made out against Uber Group under Sections 3 or 4 of the Act – [2016] 66 199 (CCI)
SECTION 65(90a)
TAXABLE SERVICES – RENTING OF IMMOVABLE PROPERTY SERVICES
Where assessee had provided ‘leased vehicles’ to its officials and had merely recovered from officials excessive expenses incurred on ‘leased vehicles’ beyond entitlement of such officials, such recovery would not amount to ‘vehicle renting services to officials’ and cannot be charged to Service tax – [2016] 66 154 (New Delhi – CESTAT)
SECTION 73
RECOVERY – OF DUTY OR TAX NOT LEVIED/PAID OR SHORT-LEVIED/PAID OR ERRONEOUSLY REFUNDED
Where assessee availed cenvat credit on capital goods/services installed/availed in Jammu & Kashmir by including premises of J&K in centralized registration though no taxable services were provided in state of J&K, by virtue of section 64(1) of Finance Act, 1994, extended period was applicable to demand duty tax – [2016] 66 128 (Kolkata – CESTAT)
SECTION 2(f)
MANUFATURE – CLASSIFICATION
Process involved in production of Gulabari & Keora Water amounts to manufacture and these products are classifiable under Heading 33030020 and 33030030 respectively – [2016] 66 155 (New Delhi – CESTAT)
Shilajit Capsules (Ayurvedic medicine) manufactured by assessee as per its own patented formula and not as per formula given in any Authoritative ayurvedic text, would be classified as PP medicine under heading 33049011 and not as generic ayurvedic medicine under heading 30.03 – [2016] 66 155 (New Delhi – CESTAT)
SECTION 4A
VALUATION UNDER CENTRAL EXCISE – RETAIL SALE PRICE/MRP BASED
Where assessee has cleared goods to ultimate customer as per declared RSP (Retail Sale Price) and there is no flowback from retail seller to assessee, then, declared RSP cannot be challenged as incorrect – [2016] 66 136 (Chennai – CESTAT)
SECTION 3(1)
CHARGE/LEVY – ADDITIONAL DUTY OF CUSTOMS/CVD
For purpose of payment of CVD equal to excise duty based on RSP, since there is no procedure under Customs Act to challenge RSP, hence, RSP can be challenged only as per section 4A of the Central Excise Act and rules made thereunder – [2016] 66 136 (Chennai – CESTAT)
RULE 1
CENVAT CREDIT – SHORT TITLE, EXTENT AND COMMENCEMENT OF
Cenvat Credit Rules do not apply on cenvat credit of service tax in state of Jammu & Kashmir and, therefore, credit taken with respect to services availed in state of Jammu & Kashmir has to be denied – [2016] 66 128 (Kolkata – CESTAT)
RULE 9
CENVAT CREDIT – DOCUMENTS AND ACCOUNTS UNDER CENVAT
Where details prescribed in rule 4A(1) of Service Tax Rules are available in a document, it will be a proper document for availing cenvat credit – [2016] 66 128 (Kolkata – CESTAT)
DIRECT TAX LAWS
Section 90 of the Income-tax Act, 1961 – Double Taxation Agreement – CBDT resolves disputes of RS.5000 crore under Mutual Agreement Procedure (MAP) of tax treaties – PRESS RELEASE, DATED 16-2-2016
CORPORATE LAWS
Review of Offer for Sale (OfS) of Shares through Stock Exchange Mechanism – CIRCULAR NO.CIR/MRD/DP/36/2016, DATED 15-2-2016
Notice inviting comments on the draft rules W.R.T. NCLT related provisions under the Companies Act, 2013 –PRESS RELEASE, DATED 28-1-2016
INDIRECT TAX LAWS (ST,EX,CUS. & (CST & VAT))
Service Tax and Central Excise (Furnishing of Annual Information Return) Rules, 2016 – NOTIFICATION NO.4/2016-ST, DATED 15-2-2016
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