Professional Update For the Day:

Untitled21ADirect Tax:-

  • Karnataka High Court in the below citied case held that Sale consideration received by the assessee is entitled to benefit under Section 54 of income tax act 1961, even though the transaction for purchase of new property was not completed and possession was also not handed over to the assessee within 2 years. ( CIT Vs Mrs. Shakuntala Devi .)
  • ITAT Visakhapatnam in the below citied case held that Since, the assessee failed to appear before the CIT, the CIT cannot presume things which is in the minds of assessee, as such opined that CIT has rightly assumed his jurisdiction to revise the assessment order based on the information available on record. (Sannareddy Sudheer Kumar Vs. ITO, Visakhapatnam)
  • Income from sub-letting held as house property income as sub-letting wasn’t business activity of lessor Prolific Consultancy Services (P.) Ltd. v. Income-tax Officer, Ward 8 (2) (4), Mumbai [2016] 74 203 (Mumbai – Trib.)
  • SC to decide applicability of deemed dividend on sum lent to payee having indirect interest in lender-company Principal Commissioner of Income-tax-4 v. Rajeev Chandrashekar [2016] 74 194 (SC)
  • CBDT issued clarification regarding Chapter VI-A deduction on enanced profits vide Circular No. 37/2016 dated 02/11/2016.
  • Kerala High Court in the below citied case held thatthe assessment proceedings generated by the issuance of a notice u/s 153A (1)(a) can be concluded against the interest of the assessee including making additions even without any incriminating material being available against the assessee in the search u/s 132 –  [E.N. Gopakumar Vs. CIT (Central)]
  • IT: Addition u/s 68 – cash credits – The amount of share capital was not doubted – Only amount of premium was doubted – No additions – Hariom Concast and Steel Pvt. Ltd. Vs ITO, Ward-2(2), Hyderabd (2016 (10) TMI 920 – ITAT Hyderabad)

Indirect Tax:-

  • CBEC issued a Defferd payment of Import duty Rules vide Notification No. 134/2016 dated on02/11/2016.
  • Valuation – inclusion of royalty in the value of imports – Running royalties are condition of sale for the transaction value and thus needs to be added in the value for the purpose of payment of Customs duty. – Tri – Customs. Commissioner of Central Excise, Mumbai Versus Herbalife International India Pvt. Ltd. – 2016 (9) TMI 830 – CESTAT MUMBAI
  • Effect of the words Subject to the provisions contained in Section 11AB inserted in section 11AA – The contention therefore that for applying section 11AA all conditions provided in section 11AB must be satisfied is devoid of any merits. – HC – Central Excise. GUJARAT NARMADA VALLEY FERTILIZERS CO. LTD. AND 1 Versus UNION OF INDIA AND 1 – 2016 (10) TMI 276 – GUJARAT HIGH COURT
  • Mode and manner of refund – whether the rebate claims of the assessee(s) were to be allowed in cash or sanctioned by way of re-credit – the duty paid through actual credit or deemed credit account on the goods exported has to be refunded only in cash – HC – Central Excise. Commissioner of Central Excise Versus M/s Auro Weaving Mills M/s Auro Textile Ltd., M/s Auro Spinning Mills – 2016 (10) TMI 275 – HIMACHAL PRADESH HIGH COURT
  • DVAT: Date of filing of DVAT Returns in Form-16, 17 & 48 for Q2 of FY2016-17 has been extended upto 14 NOV 2016. Circular No.17, dt.28.10.2016.
  • ST: Refund of service tax / cenvat credit – export of goods – Notification No. 41 of 2007 dated 6th October 2007 – the Revenue in this case can raise a plea that the merchant exporter was not entitled to seek refund – CST-V Vs Vijay Cotton and Fibre Co. (2016 (10) TMI 917 – Bombay High Court)

FAQ on Company Law:

  • Query: We want to strike off the name of a Private Limited company having two director one of whom expired last month. Now the other director don’t want to continue the working in that company. Kindly advice

Answer: You may file Form FTE attaching Affidavit & Indemnity Bond from one director and enclosing the copy of Death Certificate of other director for striking off the Company throufh FTE mode.

ICAI Updates:-

ICAI issued FAQS regarding dividend distribution tax dated on 03/11/2016.

ICAI issued guidance note on report u/s 92E of the Income Tax Act,1961 dated on 02/11/2016.

ICAI Issued FAQ on Elaboration of terms ‘infrequent number of sales’ or ‘insignificant in value’ used in Ind AS 109 dated on 03/11/2016.

Key Dates:

E-payment of service tax for the month of October by companies-06-11-2016

Payment of TDS/TCS deducted and collected in the month of October-07-11-2016

Submission of form No. 27C(TCS)  received in October to IT Commissioner-07-11-2016

It is true that every effort is not converted into success. But it is equally true that success does not come without effort.

Bad attitude is just like bad engine oil. The longer you keep it running through your system, more damage it does to your drive.

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: or call at 011-233 433 33





  • Income Tax: Exemption u/s 54 on unregistered property purchased from son of the assessee allowed – transferee gets the right over the property and has become the owner of the property therefore for the purpose of deduction U/s 54 read with Section 2(47)(V) of the Act the property has been transferred to him – Rajesh Sharma Vs. ITO W- 2(4), Jaipur (2016  – ITAT Jaipur)
  • Income Tax: TDS u/s 194C – No TDS on contractual payments of cutting and transporting of sugarcane from the fields to the factory gate as the payments were not given for carrying out the work of harvesting cutting and transporting on behalf of the assessee – Shree Chalthan Vibhag Khand Udyog Mandli Ltd. Vs. ITO, Surat (2015  ITAT Ahmedabad)
  • Income Tax: Procedure for registration and submission of statement as per clause (k) of sub section (1) of section 285BA of Income-tax Act, 1961 read with Sub rule (7) of Rule 114G of Income-tax Rules, 1962 – Notification


  • Service Tax: Refund of Service Tax – Goods exported under claim of drawback – While fixing all industry rate of drawback the average duties and service tax paid in respect of inputs and input services are taken into account and the condition of Notification No. 41/2007 – ST has to be strictly construed – Refund inadmissible -M/s Sankalp International  CCE, Jaipur-1 (2016 CESTAT New Delhi)
  • EXCISE : As long as an assessee had manufactured goods, mere fact that he used trade or brand name of another individual, would not disentitle him from exemption – [2016]


  • Advance information for 2nd fortnight of APR of functions with booking cost> Rs. 1 Lakh in Banquet, Hotels, Hotels etc. for D VAT in Delhi: 12/04/2016

“Those who dream by day are cognizant of many things which escape those who dream only by night.”

We look forward for your valuable comments.

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: or call at  9555555480 Continue reading




1. IT : Payment made to retiring partner above his capital for acquiring commercial rights is depreciable as goodwill

IT : Where expenses claimed by assessee were not fully supported by vouchers and bills and some of bills/vouchers were self-made and not in chronological order, disallowance of one-fifth of expenses was proper[2015] 61 296 (Ahmedabad – Trib.) Swastik Industries v. ITO

2. Sec. 54F: Mother can’t be deemed as owner of house purchased by minor-daughter out of her own income [2015] 62 64 (Hyderabad – Trib.)
Smt. S. Uma Devi v. CIT

3. ST: Refund of service tax is to be claimed within one year from date of payment of service tax to service provider, and not from date of advance payment[2015] 62 49 (Mumbai – CESTAT) Commissioner of Central Excise & Customs v. Indiabulls Realtech Ltd.

4. IT : Where assessee used trucks in contract business and could not furnish truck-wise details of huge freight and carriage expenses which were debited against contract income in profit and loss account in respect of said trucks, books of account was to be rejected [2015] 62 158 (Himachal Pradesh) CIT v. Rakesh Mahajan

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:  or call at 9555555480