CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 23, 2016

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 23, 2016

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  • Supply Of Goods to Indian Navy not must to claim excise exemption.
  • Manufacture of rosin and turpentine without aid of power , seeking retrospective exemption is not a constitutional right – HC. [Mangalam Organics Limited vs Union of India – 2016 (2) TMI 529 – Delhi High Court].
  • Brokerage paid to the third party has nothing to do with the rental income paid by the tenant brokerage not deductible in computing income from house property
  • Cenvat of Goods/ Service used in construction of rented property allowed. [Nirlon Ltd. vs. Commissioner of Central Excise,Mumbai].
  • Proceedings under rule declared unconstitutional by HC in invalid. [Vipul-S Plasticrafts P. Ltd. vs. Commissioner of Central Excise].
  • The petitioner is admittedly not a foreign company : Since the petitioner is not an eligible assessee in terms of section 144C(15)(b), no draft order can be passed in the case of the petitioner u/s 144C(1) – HC. [Honda Cars India Limited (Formerly – M/s. Honda Siel Cars India Limited vs Deputy Commissioner of Income Tax & Another – 2016 (2) TMI 527 – Delhi High Court].
  • Kindly attend the Annual Award Function of NIRC of ICAI  on February 20th at 3 PM in NDMC Convention Centre, Connaught Place, New Delhi.

Direct Tax:

  • Bogus purchases – CIT(A) was fully justified in deleting the addition made by the AO on account of alleged bogus purchases particularly when the GP rate declared by the assessee was progressive and was accepted by the AO. – ITO, Ward 2 (2) , Ghaziabad Versus Ray Steels – 2016 (2) TMI 498 – ITAT DELHI
  • Disallowance of short term capital loss on sale of shares – sale of share was effected between two group companies having the same directors about the shares of the group company during the lock-in period – it is case of sham transaction – loss booked not allowed –  AAA Portfolios Pvt. Ltd. Versus DCIT, Circle-1 (1) , New Delhi – 2016 (2) TMI 499 – ITAT DELHI

Indirect Tax:

  • Claim of refund of service tax paid by them during the period from April 2011 to March 2012 on services of constructions of college building – Ld. Commissioner (Appeals) by proper application of mind set aside rejection of refund claim and allowed appeal of the respondent. – Refund cannot be denied – Commissioner of Service Tax-VII Versus M/s SM Sai Construction – 2016 (2) TMI 486 – CESTAT MUMBAI

Updates:

  • IRDAI has issued Clarification on IRDAI (Registration of corporate Agents) Regulations, 2015 Vide Ref: IRDA/CAGTS/CIR/LCE/029/ 02/2016 dated 16.02.2016.
  • RBI has recently issued Notification on the Implementation of Section 51-A of Unlawful Activities Prevention Act (UAPA), 1967 – Updates to ISIL (Da’esh) & Al-Qaida Sanctions List Vide Notification No.  DBR.AML.No.10293/14.06.001/ 2015-16 dated 16.02.2016

Company Law:

Query:  Does income tax representation services can be rendered by an auditor under section 144? Are they covered in management services?

Answer:  No, they are not considered as management services. So, an auditor can render tax representation services provided it shall be approved by the Board or Audit committee of the company, as the case may be, in pursuant to Section 144 of the Act.

Key Dates:

  • E-payment of DVAT & CST tax for Jan: 21.02.2016
  • New appeal filing monetary limit shall  apply to pending appeals also.[ITO vs. Smt. Sudha Brijratan Damani (ITAT Mumbai), I.T.A. No. 6952/Mum/2013].
  • CBEC makes it mandatory for RBI and Electricity Board to file Annual Information Return. Notification no. 04/2016 dated 15.02.2016.
  • Interest from surplus fund is taxable as income from other sources. [M/s Himlayan Expressway Limited vs. ITO (ITAT Chandigarh), ITA No. 690/ Chd /2014, AY 2009-2010].
  • 172 : No TDS on payment to Non–Resident shipping companies. [CIT vs. V.S. Dempo & Co. Pvt. Ltd. (Bombay High Court), Income Tax Appeal Nos. 989, 991, 948, 957,978 of 2015].
  • WIP Valuation on receipt basis is forbidden in Mercantile Accounting. [The ACIT vs. M/s. Ambarwadikar & Co., Engineers & Contractors (ITAT Pune), ITA Nos.169 to 171/PN/2006 & C.O.No.27/PN/2010].
  • MCA invites comments on The Draft Companies (Accounting Standards) & (Indian Accounting Standards) Amendment Rules 2016 to be submitted latest by03.2016.
  • Last date for submission of online application form for emplacement with O/o C&AG for the year 2016-2017 for audit of PSUs is extended to 2.2016.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-233 433 33

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