{"id":1393,"date":"2016-01-14T15:06:39","date_gmt":"2016-01-14T09:36:39","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=1393"},"modified":"2021-11-23T11:37:10","modified_gmt":"2021-11-23T06:07:10","slug":"corporate-and-professional-update-january-12-2016-2","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/","title":{"rendered":"Corporate and professional update january 7, 2016"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ea8fd95013b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ea8fd95013b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/#CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_7_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE JANUARY 7, 2016\">CORPORATE AND PROFESSIONAL UPDATE JANUARY 7, 2016<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/#INCOME_TAX_ACT\" title=\"INCOME TAX ACT\u00a0\">INCOME TAX ACT\u00a0<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/#EXPENDITURE_INCURRED_IN_RELATION_TO_INCOME_NOT_INCLUDIBLE_IN_TOTAL_INCOME\" title=\"EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME\">EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/#COMPANIES_ACT\" title=\"COMPANIES ACT\">COMPANIES ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/#SERVICE_TAX\" title=\"SERVICE TAX\">SERVICE TAX<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/#CENTRAL_EXCISE_ACT\" title=\"CENTRAL EXCISE ACT\">CENTRAL EXCISE ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/#CUSTOMS_ACT\" title=\"CUSTOMS ACT\">CUSTOMS ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/#STATUTES\" title=\"STATUTES\">STATUTES<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-12-2016-2\/#CORPORATE_LAWS\" title=\"CORPORATE LAWS\">CORPORATE LAWS<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/6.png\" rel=\"attachment wp-att-1474\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1474\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/6-300x183.png\" alt=\"6\" width=\"833\" height=\"508\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/6-300x183.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/6-768x468.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/6.png 854w\" sizes=\"(max-width: 833px) 100vw, 833px\" \/><\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_7_2016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE JANUARY 7, 2016<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INCOME_TAX_ACT\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\"><span style=\"color: #0000ff;\"><strong>INCOME TAX ACT\u00a0<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 14A<\/strong><\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"EXPENDITURE_INCURRED_IN_RELATION_TO_INCOME_NOT_INCLUDIBLE_IN_TOTAL_INCOME\"><\/span><span style=\"color: #00ccff;\"><strong>EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Rule 8D :<\/strong><\/span>\u00a0When assessee itself admitted that a disallowance had to be made with regard to expenditure for earning of income which was exempted from taxation under Act, such expenditure had to \u00a0computed not on ad hoc basis by estimating same but as per method prescribed under rule 8D(2)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 48<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>COMPUTATION OF<\/strong><\/span><span style=\"color: #00ccff;\"><strong>&#8211;\u00a0<\/strong><\/span><span style=\"color: #00ccff;\"><strong><a href=\"https:\/\/carajput.com\/blog\/tag\/ltcg-stcg-not-chargeable-to-tax-to-non-resident-on-account-of-dtaa-benefit\/\">CAPITAL GAINS<\/a>\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Expenses in connection with transfer :\u00a0Where assessee received a property with clause in his mother&#8217;s will providing overriding title in favour of his three sisters, payment made by assessee to his sisters for acquiring absolute title in property would be reduced as expenditure while computing capital gain on sale of said property<\/p>\n<h4 style=\"text-align: justify;\"><\/h4>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 54EC<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CAPITAL GAINS &#8211; NOT TO BE CHARGED ON INVESTMENT IN CERTAIN BONDS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Bonds, availability of :\u00a0Where REC Bonds in which assessee wanted to invest were not available on date on which period of six months for making such investment under section 54EC expired and as soon as such bonds became available, assessee made investment at earliest possible opportunity, exemption under section 54EC was to be allowed to assessee.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 69<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>UNEXPLAINED INVESTMENTS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Unaccounted sales<\/strong> <\/span>:\u00a0Where assessee failed to justify his stand that there was no unaccounted sale as indicated in seized documents, addition made on basis of seized documents was justified.<\/p>\n<p style=\"text-align: justify;\">Stocks :\u00a0Where there was no material to show that assessee had received any consideration in excess of amount shown in sale deed, merely because valuation given to bank to avail higher bank limit, no addition could be made.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 80G<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DEDUCTIONS &#8211; DONATION TO CERTAIN FUNDS, CHARITABLE INSTITUTIONS <\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Trusts or organizations, which claim exemption under section 80G and perform their duties to further their aims and objects, are duty bound to maintain proper accounts<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 90<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DOUBLE TAXATION RELIEF &#8211; WHERE AGREEMENT EXISTS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Taxes covered :<\/strong><\/span>\u00a0Surcharge and education cess is not leviable when tax rate is prescribed under DTAA<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 92CA<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>PRICING &#8211; REFERENCE TO TPO TRANSFER<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Reference under section 92CA made to TPO where there was no assessment pending was invalid and bad in law, hence, order of TPO pursuant to illegal reference could not be used in reassessment proceedings by Assessing Officer and therefore reassessment proceedings based on illegal reference were held to be void ab initio<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 145<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>METHOD OF ACCOUNTING &#8211; SYSTEM OF ACCOUNTING<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>System of accounting :<\/strong><\/span>\u00a0Position prior to amendment by Finance Act, 1997: Assessee having opted for mercantile system of accounting in respect of all other activities, could have adopted cash system in respect of sales of newspaper and advertisement revenue.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 245F<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>SETTLEMENT COMMISSION \u2013 POWER AND PROCEDURE OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Income Tax Settlement Commission has no right to direct a special audit u\/s 142(2A) in the course of settlement proceedings under Chapter XIX-A of the Act as assessment of the type contained in section 143(3) is outside the purview of settlement proceedings<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 293<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CIVIL COURTS, BARS OF SUITS IN<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Scope of Court&#8217;s power :<\/strong><\/span>\u00a0Where department filed an application under section 132A for handing over of silver bullion seized by police from assessee, in view of fact that neither police nor department had gathered any information regarding ownership of silver bullion, Trial Court was justified in passing order of handing over of goods to department subject to payment of cash security.<\/p>\n<p>Read our articles: \u00a0<a href=\"https:\/\/carajput.com\/blog\/relevant-parts-of-the-honorable-fm-press-conference\/\">Top Taxation Relaxation to MSMS<\/a><\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/international-taxation\/\">Highlights of International Taxation<\/a><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"COMPANIES_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>COMPANIES ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 290<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DIRECTORS &#8211; VALIDITY OF ACTS OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The benefit of Section 290 of the 1956 Act (section 176 of the 2013 Act) is generally available to third parties who enter into transactions with a company not knowing what the internal structure and mechanism of the company.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SERVICE_TAX\"><\/span><span style=\"color: #0000ff;\"><strong>SERVICE TAX<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 65(19)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>TAXABLE SERVICES &#8211; BUSINESS AUXILIARY SERVICES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee-franchisee was only engaged in trading of SIM cards\/recharge coupons of BSNL and his relationship with BSNL was on principal-to-principal basis and assessee was not acting as agent of BSNL and BSNL had already paid service tax on full MRP, no service tax could be demanded from assessee.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 65B(44)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>SERVICE &#8211; ACTIVITY CARRIED OUT FOR A CONSIDERATION<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Provision of a facility by club to its members is an &#8216;activity&#8217; for consideration and since clubs and members are deemed to be separate persons under Explanation 3(a) to section 65B(44), Membership fee\/Entrance fee for provision of such facilities is liable to service tax.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENTRAL_EXCISE_ACT\"><\/span><a href=\"https:\/\/carajput.com\/services-excise-registration.php\"><span style=\"color: #0000ff;\"><strong>CENTRAL EXCISE ACT<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>\u00a0<\/strong><span style=\"color: #ff6600;\"><strong>AP<\/strong><strong>PEALS &#8211; BINDING NATURE OF PRECEDENTS &#8211; HIGH COURT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Judgment passed by co-ordinate Bench of High Court is binding on another bench of High Court even if earlier judgment of High Court has not been appealed against by Revenue owing to monetary limits.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CUSTOMS_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>CUSTOMS ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 125<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>\u00a0<\/strong><span style=\"color: #00ccff;\"><strong>CONFISCATION &#8211; RE-CONFISCATION<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Once goods were confiscated in hands of importer and allowed to be redeemed on payment of redemption fine and penalty, same cannot be re-confiscated in hands of bona fide purchaser of said goods.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"STATUTES\"><\/span><span style=\"color: #ff6600;\"><strong>STATUTES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_LAWS\"><\/span><span style=\"color: #00ccff;\"><strong>CORPORATE LAWS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">SEBI (Terms and Conditions of Service of Chairman and Members) Amendment Rules, 2015 \u2013 Amendment in Rule<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>INDIRECT TAX LAWS\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Reference regarding proper Certificate under Notification No.108\/95-C.E., Dated 28-8-1995<\/p>\n<p style=\"text-align: justify;\">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\u00a0endeavors. For query or help, contact:\u00a0<a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at\u00a0011-233 433 33<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE JANUARY 7, 2016 INCOME TAX ACT\u00a0 SECTION 14A EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME Rule 8D :\u00a0When assessee itself admitted that a disallowance had to be made with regard to expenditure for earning of income which was exempted from taxation under Act, such expenditure had to &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,150,172,9,4],"tags":[3359,9018,9084,162,2601,333],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1393"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=1393"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1393\/revisions"}],"predecessor-version":[{"id":19215,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1393\/revisions\/19215"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=1393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=1393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=1393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}