CORPORATE & OTHER LAWS UPDATE DECEMBER 2, 2015

Corporate and Professional Update December 2, 2015

Direct Taxes:

Penalty under Section 271(1)(c) – AO has not specified the relevant portion of the clause (c) of the notice under Section 274 rws 271 of the Act for initiating penalty proceedings under Section 271(1)(c) – Notice is invalid- (Joint Commissioner of Income Tax, LTU, Bangalore Versus M/s. State Bank of Mysore, ITAT BANGALORE).

Indirect taxes:

Deposit of service tax with wrong registration number of other unit – adjustment of service tax payments from the account of one registered unit to the account of another registered unit – there is no provision in the service tax law which prohibits such adjustment. – Adjustment allowed-( M/s. Sahara India TV Network Versus C.C.E. & S.T., Noida, CESTAT NEW DELHI).

Company Law:

Query: Companies (Share Capital and Debentures) Second Amendment Rules, 2015. – Provision specifying the manner in which share certificate are required to be signed modified vide Notification F. No. 1/31/2013-CL-V-Part – Dated: May 29, 2015 –Kindly provide the new procedure under this section.

Answer: Yes, Rule 5(3) of the Companies (Share Capital & Debentures) Rules, 2015 has been amended by the Companies (Share Capital and Debentures) Second Amendment Rules 2015 which has altered the manner in which share certificate are required to be signed now, which is as :

Every Share Certificate shall be issued under the seal, if any, of the company, which shall be affixed in the presence of and signed by-

(a) two directors duly authorised by the Board of directors of the company for the purpose or the committee of the Board, if so authorised by the Board;

(b) the secretary or any person authorised by the Board for the purpose. Provided that in case a company does not have a common seal, the share certificate shall be signed by two directors or by a director and the Company Secretary, wherever the company has appointed a Company Secretary;

Provided further that, if the composition of the Board permits of it, at least one of the aforesaid two directors shall be a person other than a managing director or a whole time director.

Also read-Basic details of IRP on GST

Other Update :

1. RBI eases norms on filing of online returns by NBFCs 

2.IT: Where assessee paid interest on borrowed funds and claimed deduction of same under section 36(1)(iii) and Assessing Officer disallowed Interest claim partly on plea that some interest bearing funds had been advanced to sister concerns as interest-free advances, since assessee had at its disposal sufficient funds to provide interest-free advances and borrowed funds were for purposes of business, no disallowance of interest was justified [2015] 194 (Jaipur – Trib.)  Sharma East India Hospitals & Medical Research Ltd. v. DCIT

3. CBDT releases Explanatory Notes to provisions of the Finance Act, 2015

4. Gold Bond Scheme turns into a blockbuster with collection of 63,000 applications worth Rs. 246.20 crore

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