CORPORATE AND PROFESSIONAL UPDATE JANUARY 04, 2016

CORPORATE AND PROFESSIONAL UPDATE JANUARY 04, 2016

INCOME TAX ACT

SECTION 69

UNEXPLAINED INVESTMENTS

Purchase of property : Where Tribunal after a detailed examination of documents had arrived at conclusion that assessee-firm failed to explain source of amount paid for purchase of property, same was rightly held as unexplained investment.

SECTION 92C

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE

Comparables and adjustments/Adjustments – General : Payment making good foreign exchanges losses in hands of AE due to unexplained delay in payment could not be considered as payment for management and consultancy services

Comparables and adjustments : Where comparables had debtors, inventories and creditors, while assessee was not having any debtors and was entirely funded by advance received from AE against supplies, then in order to bring parity between results of selected comparables and that of assessee, it was essential that adjustment for working capital was made on results of such comparables

SECTION 158BA

BLOCK ASSESSMENT IN SEARCH CASES – ASSESSMENT OF UNDISCLOSED INCOME

Two set of books of account : Where document said to be maintained by assessee for invoking section 158BA(3) was very vague, without having details of dates and proof of transaction with parties except parties names and amount, this document would not be considered as ‘other documents’ maintained in normal course to exclude relevant amount from block period

SECTION 206AA

DEDUCTION OF TAX AT SOURCE – REQUIREMENT TO FURNISH PERMANENT ACCOUNT NUMBER

Correction of PAN entries : System of processing TDS statements gives an option to assessee-deductor to correct invalid/No PAN entries in TDS statement through a correction statement without any restriction of correcting particular PAN with regard to number of characters

SECTION 221

COLLECTION AND RECOVERY OF TAX – PENALTY PAYABLE WHEN TAX IN DEFAULT

Defective notice : Where notice for initiation of penalty proceedings against assessee had not been issued under section 221 and penalty order had also not been passed under section 221 but under section 140A(3), this mistake was not covered under umbrella of provisions of section 292B

SECTIONS 234A

ADVANCE TAX – INTEREST, CHARGEABLE AS

Rectification : Where rectification order was passed in respect of short levy of interest under sections 234A and 234B but she was never given opportunity to file her objections, said order, being in violation of principles of natural justice, was to be set aside

COMPANIES ACT

SECTION 433

WINDING UP – CIRCUMSTANCES IN WHICH COMPANY MAY BE WOUND UP

Where company had raised a bonafide dispute in respect of debt alleging failure of winding up petitioner, a travel agent, to secure visa for company’s Managing Director, no order for winding up could be passed against company

 

CENTRAL EXCISE ACT

SECTION 35G

APPEALS – CONDONATION OF DELAY – HIGH COURT

In case of delay in filing of appeal by department, condonation of delay application must be signed by department’s officials and signing of said application/affidavit by clerk of department’s counsel is highly condemnable

CENVAT CREDIT RULES

RULE 2(a)

CENVAT CREDIT – CAPITAL GOODS

Where applicant gas transporter will engage a contractor to lay pipelines and contractor will procure pipes and valves from the manufacturer who will issue an invoice to contractor showing the applicant as consignee and pipes will be delivered directly at applicant’s work-site, the applicant can avail cenvat credit on pipes and valves on basis of the invoice issued by contractor if a contractor is a registered dealer

STATUTES

DIRECT TAX LAWS

Section 197, read with sections 195, 206C, of the Income-tax Act, 1961 – Deduction of Tax at Source – Certificate for deduction at lower rate – Advisory for deductors

CORPORATE LAWS

Section 458, read with section 208, of the Companies Act, 2013 – Delegation by Central Government of its powers and functions – Delegation of powers to specified Regional Directors under section 208 Online System for Registration/Renewal of Broking Licenses –

Investment by Gold ETFs in Gold Monetisation Scheme of Banks

Procedure for ensuring Compliance with Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 (SECC Regulations) by listed Stock Exchanges

Extension of credit facilities to Overseas Step-Down subsidiaries of Indian Corporates

Revised contents of Application-Cum-Bidding form and Manner of Disclosure

Procedure to deal with cases prior to 1-4-2014 involving offer/allotment of securities to more than 49 up to 200 investors in a Financial Year

INDIRECT TAX LAWS 

Omnibus general exemption to goods specified in Chapters 1 to 98 of Tariff – Amendment in Notification No. 12/2012-C.E., Dated 17-3-2012

Cenvat Credit (Sixth Amendment) Rules, 2015 – Amendment in rule 9

Basic formulas in Excel include arithmetic operations like addition, subtraction, multiplication, and division

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