corporate update for 3rd november 2015

CORPORATE UPDATE FOR 3rd NOVEMBER 2015

1. Non-disclosure of cost formula used for inventory valuation would amount to violation of AS 2

2.IT: Where Assessing Officer made certain addition to income of assessee on account of excess stock of gold found at its business premises during survey, since assessee failed to prove source of acquisition of said gold, impugned addition was justified [2015] (Ahmedabad – Trib.)  Radhakrishna Gold Jewellary (P.) Ltd. v. JCIT

3. Money held in saving account on behalf of employer couldn’t be held as unexplained

IT : Where assessee deposited certain sum in her bank accounts and explained that said amounts belonged to her employer company J, as assessee filed all details and books of account of J, bank statement, etc., first time before Tribunal, matter was to be readjudicated for detailed examination [2015] (Cochin – Trib.)  Vaijayanthi Badri v. ITO

4. Accounting Policy regarding valuation of each significant item of inventory should be disclosed

5. Press Information Bureau Government of India Ministry of Finance

Mere transfer of title in immovable property is exempted from Service Tax
In order to resolve a long standing issue relating to levy of Service Tax on sale of flats/dwellings etc. after issue of occupancy certificate but before issue of completion certificate in areas under the jurisdiction of Municipal Corporation of Greater Mumbai i.e. Brihan mumbai Municipal Corporation (BMC), where the entire consideration is received after issue of occupancy certificate by BMC, leading to a mere transfer of title in immovable property, not taxable.

6. CL: Where petitioner who had filed petition under sections 397 and 398 was not a member of company and was not holding any shares, petitioner had not fulfilled criteria as enumerated in section 399 and, therefore, petition was not maintainable [2015](CLB – Chennai) Mrs. Manju Prabha Prasad Pillai v. R.P. Hospitalities (P.) Ltd.

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