{"id":1893,"date":"2016-01-23T17:53:24","date_gmt":"2016-01-23T12:23:24","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=1893"},"modified":"2021-11-19T15:05:36","modified_gmt":"2021-11-19T09:35:36","slug":"corporate-and-professional-update-january-17-2016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-17-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE JANUARY 17, 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-6a293a70494b4\" 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-6a293a70494b4\"  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-17-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_17_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE JANUARY 17, 2016\">CORPORATE AND PROFESSIONAL UPDATE JANUARY 17, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-17-2016\/#SECTION_242C\" title=\"SECTION 2(42C)\">SECTION 2(42C)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-17-2016\/#CAPITAL_GAINS_%E2%80%93_SLUMP_SALE\" title=\"CAPITAL GAINS &#8211; SLUMP SALE\">CAPITAL GAINS &#8211; SLUMP SALE<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-17-2016\/#SECTION_13\" title=\"SECTION 13\">SECTION 13<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-17-2016\/#CHARITABLE_OR_RELIGIOUS_TRUST_%E2%80%93_DENIAL_OF_EXEMPTION\" title=\"CHARITABLE OR RELIGIOUS TRUST &#8211; DENIAL OF EXEMPTION\">CHARITABLE OR RELIGIOUS TRUST &#8211; DENIAL OF EXEMPTION<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-17-2016\/#SECTION_40A2\" title=\"SECTION 40A(2)\">SECTION 40A(2)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-17-2016\/#BUSINESS_DISALLOWANCE_%E2%80%93_EXCESSIVE_OR_UNREASONABLE_PAYMENTS\" title=\"BUSINESS DISALLOWANCE &#8211; EXCESSIVE OR UNREASONABLE PAYMENTS\">BUSINESS DISALLOWANCE &#8211; EXCESSIVE OR UNREASONABLE PAYMENTS<\/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-17-2016\/#CENVAT_CREDIT_RULES\" title=\"CENVAT CREDIT RULES\">CENVAT CREDIT RULES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-17-2016\/#STATUTES\" title=\"STATUTES\">STATUTES<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><\/h3>\n<h3 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/Untitled94A.png\" rel=\"attachment wp-att-1756\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1756\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/Untitled94A-300x283.png\" alt=\"Untitled94A\" width=\"812\" height=\"766\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/Untitled94A-300x283.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/Untitled94A.png 530w\" sizes=\"(max-width: 812px) 100vw, 812px\" \/><\/a><del><\/del><\/strong><\/span><\/h3>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_17_2016\"><\/span><span style=\"color: #000080;\"><strong>CORPORATE AND PROFESSIONAL UPDATE JANUARY 17, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\"><span style=\"color: #0000ff;\"><strong>INCOME TAX ACT<\/strong><\/span><\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SECTION_242C\"><\/span><span style=\"color: #ff6600;\"><strong>SECTION 2(42C)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CAPITAL_GAINS_%E2%80%93_SLUMP_SALE\"><\/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> &#8211; SLUMP SALE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Where assessee sold its entire shareholding in its subsidiary company to a third party, since sale consideration was received by assessee itself and not by said subsidiary, it could not be treated as slump sale within meaning of section 2(42C) &#8211;\u00a0<em>[2016] \u00a0161 (Mumbai &#8211; Trib.)<\/em><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SECTION_13\"><\/span><span style=\"color: #ff6600;\"><strong>SECTION 13<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CHARITABLE_OR_RELIGIOUS_TRUST_%E2%80%93_DENIAL_OF_EXEMPTION\"><\/span><span style=\"color: #00ccff;\"><strong>CHARITABLE OR RELIGIOUS TRUST &#8211; DENIAL OF EXEMPTION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Sub-section (1)(c) :<\/strong><\/span>\u00a0Where there was failure by Assessing Officer to indicate in assessment order that salary paid by assessee-society to executive director was unreasonable, no violation of provision of section 13(1)(c) could be alleged and exemption could not be denied &#8211;\u00a0[2016] \u00a095 (Hyderabad &#8211; Trib.)<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SECTION_40A2\"><\/span><span style=\"color: #ff6600;\"><strong>SECTION 40A(2)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"BUSINESS_DISALLOWANCE_%E2%80%93_EXCESSIVE_OR_UNREASONABLE_PAYMENTS\"><\/span><span style=\"color: #00ccff;\"><strong>BUSINESS DISALLOWANCE &#8211; EXCESSIVE OR UNREASONABLE PAYMENTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Others :\u00a0<\/strong><\/span>Where assessee had sold molasses to its sister concern at sale price varied between Rs. 6,000 to Rs. 3,500 per metric ton and Assessing Officer adopted Rs. 6,000 as being uniform price throughout year and Tribunal confirmed this, since assessee had sold molasses only at rate being fixed by Sales Committee, order of Tribunal was erroneous &#8211;\u00a0[2016] 108 (Karnataka)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 119<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENTRAL BOARD OF DIRECT TAXES &#8211; INSTRUCTIONS TO SUBORDINATE AUTHORITY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Delay in filing return :<\/strong><\/span>\u00a0Where assessee had miserably failed to convince that he had any &#8216;genuine hadrship&#8217; in filing his income-tax return late by 30 months, no benefit of section 119(2) could be given to him to claim any refund &#8211;\u00a0[2016] \u00a0104 (Punjab &amp; Haryana)<\/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; REJECTION OF ACCOUNTS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Qualitative records :<\/strong><\/span>\u00a0Books of account could not be rejected merely because qualitative records was not maintained &#8211;\u00a0[2016] \u00a0106 (Rajasthan)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>METHOD OF ACCOUNTING &#8211; VALUATION OF STOCK<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Illustrations :<\/span><\/strong>\u00a0Where assessee adopted cost value for purpose of computation of closing stock of molasses and bagasse and Assessing Officer held that assessee should have adopted market value and Tribunal confirmed this, since Tribunal had overlooked material available, matter required reconsideration &#8211;\u00a0[2016] \u00a0108 (Karnataka)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 234E<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong><a href=\"https:\/\/carajput.com\/tds.php\">DEDUCTION OF TAX AT SOURCE<\/a> &#8211; FEES FOR DEFAULTS IN FURNISHING STATEMENTS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Position prior to 1-6-2015 :<\/strong><\/span>\u00a0Prior to 1-6-2015, there was no enabling provision in section 200A for raising demand in respect of levy of fees under section 234E in respect of default in furnishing TDS statements &#8211;\u00a0[2016] \u00a0105 (Amritsar &#8211; Trib.)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 255<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">APPELLATE TRIBUNAL &#8211; PROCEDURE OF SPECIAL BRANCH<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Special Bench :<\/strong><\/span>\u00a0Where Competent Authority placed matter before a Division Bench of Tribunal for giving effect to majority opinion of Accountant Member and Third Member and assessee raised objections urging to adjourn matter or refer matter to President for Constitution of a Special Bench, objections were liable to be rejected and majority view deserved to be confirmed &#8211;\u00a0[2016] \u00a0109 (Ahmedabad &#8211; Trib.)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 256<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>HIGH COURT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">In a reference u\/s 256,it is not permissible for High Court to make a fresh determination of facts found by ITAT. However, HC can take into account additional facts already on record but not taken note of by ITAT to arrive at its findings.<\/p>\n<p style=\"text-align: justify;\">HC can also construe certain facts found by ITAT of significance as against the contrary view of ITAT that they were of no significance.<\/p>\n<p style=\"text-align: justify;\">There is all the difference between making determination of new or additional facts by HC(which is not permissible) and emphasis on facts found by ITAT on which there is no dispute(which is permissible) &#8211; [2016] 194 (SC)<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENVAT_CREDIT_RULES\"><\/span><a href=\"https:\/\/carajput.com\/services-vat.php\"><span style=\"color: #0000ff;\"><strong>CENVAT CREDIT RULES<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 3<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT &#8211; UTILIZATION OF, IN CASE OF REVERSE CHARGE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">In case of import of services under section 66A, assessee is deemed to be service provider only for purpose of paying service tax; insofar as Cenvat credit is concerned, imported service cannot be regarded as output service and, therefore, credit balance cannot be used to pay service tax under reverse charge on imported services. &#8211;\u00a0[2016] \u00a0100 (New Delhi &#8211; CESTAT)<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"STATUTES\"><\/span><span style=\"color: #0000ff;\"><strong>STATUTES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>DIRECT TAX LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Sovereign Gold Bond Scheme, 2016 &#8211;\u00a0NOTIFICATION [F.NO.4(19)-W&amp;M\/2014], DATED 14-1-2016<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>CORPORATE LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Guidance note on meeting of the Board of Directors (SS-1) and General Meetings (SS-2) PRESS RELEASE DATED 18-01-2016<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>INDIRECT TAX LAWS (ST.\/EX.\/CUS. &amp; (<a href=\"https:\/\/carajput.com\/services-vat.php\">CST &amp; VAT<\/a>))<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Filing of Reconciliation Return for the Year 2014-15 &#8211;\u00a0CIRCULAR NO.34 OF 2015-16, DATED 15-1-2016<\/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 9555555480<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE JANUARY 17, 2016 INCOME TAX ACT SECTION 2(42C) CAPITAL GAINS &#8211; SLUMP SALE Where assessee sold its entire shareholding in its subsidiary company to a third party, since sale consideration was received by assessee itself and not by said subsidiary, it could not be treated as slump sale within meaning of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,150,172,9,4],"tags":[2742,2716,3378,2601,4007,4011],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1893"}],"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=1893"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1893\/revisions"}],"predecessor-version":[{"id":19104,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1893\/revisions\/19104"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=1893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=1893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=1893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}