{"id":2127,"date":"2016-02-08T11:58:54","date_gmt":"2016-02-08T06:28:54","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2127"},"modified":"2021-12-18T11:56:26","modified_gmt":"2021-12-18T06:26:26","slug":"corporate-and-professional-update-february-3-2016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-3-2016\/","title":{"rendered":"corporate and professional update february 3, 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-69d2c56b261e2\" 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-69d2c56b261e2\"  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-february-3-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_3_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 2016\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 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-february-3-2016\/#INCOME_TAX_ACT\" title=\"INCOME TAX ACT\">INCOME TAX ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-3-2016\/#INCOME_FROM_OTHER_SOURCES_%E2%80%93_CHARGEABLE_AS\" title=\"INCOME FROM OTHER SOURCES &#8211; CHARGEABLE AS\">INCOME FROM OTHER SOURCES &#8211; CHARGEABLE AS<\/a><\/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-february-3-2016\/#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-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-3-2016\/#CENVAT_CREDIT_RULES\" title=\"CENVAT CREDIT RULES\">CENVAT CREDIT RULES<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-3-2016\/#_Popular_blog\" title=\"\u00a0Popular blog:\">\u00a0Popular blog:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-3-2016\/#Top_Taxation_Relaxation_to_MSMS\" title=\"Top Taxation Relaxation to MSMS\">Top Taxation Relaxation to MSMS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-3-2016\/#Highlights_of_International_Taxation\" title=\"Highlights of International Taxation\">Highlights of International Taxation<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><\/h3>\n<h3 style=\"text-align: justify;\"><span style=\"color: #000080;\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/29.png\" rel=\"attachment wp-att-2129\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2129\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/29-300x159.png\" alt=\"29\" width=\"606\" height=\"322\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/29-300x159.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/29.png 875w\" sizes=\"(max-width: 606px) 100vw, 606px\" \/><\/a><\/span><\/h3>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_3_2016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 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<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 2(45)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CAPITAL GAINS &#8211; CHARGEABLE AS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Business income v. Capital gains &#8211; Land dealings:<\/span>\u00a0<\/strong>Where in terms of the construction agreement, the assessee handed over a piece of land to the builder, for construction of the multi-storied building, since construction and sale of flats did not change the character of the asset and there was no material to show that assessee ever had any intention to exploit plot as a commercial <a href=\"https:\/\/carajput.com\/blog\/tag\/advantages-of-joint-venture\/\">venture,<\/a> transaction could not be characterized as &#8216;an adventure in nature of trade&#8217; &#8211;\u00a0<em>[2016] 65 136 Delhi<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 32<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DEPRECIATION &#8211; ADDITIONAL DEPRECIATION<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Manufacturer:<\/span>\u00a0<\/strong>Production of prefabricated piles which were going to be used by the assessee in its business of piling, would form part of construction activity irrespective of the fact whether such piles were constructed at the project site or at some other place with help of machinery.<\/p>\n<p style=\"text-align: justify;\">It did not involve production or manufacture of any article or thing entitling assessee to additional depreciation on said machinery &#8211; <em>[2016] 65 140 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 44BB<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>NON-RESIDENTS &#8211; MINERAL OIL, BUSINESS OF PROSPECTING \/EXPLORATION OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where applicant enters into a contract with RIL for providing &#8216;Floating Production storage and offloading (FPSO) facilities, in view of the fact that in terms of &#8216;Change Order&#8217; certain amendments were carried out such as fabrication and installation of new living quarters onboard and mobilizing and commissioning team of the applicant, since both original contract and amendments therein by way of &#8216;Change Order&#8217; are inextricably linked with extraction, processing, production, storing &amp; offloading of crude oil and natural gas for which RIL had floated tender, entire consideration received by the applicant in terms of the original contract as well as &#8216;Charge Order&#8217; is taxable in India under section 44BB &#8211; <em>[2016] 65 244 (AAR &#8211; New Delhi)<\/em><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 56<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INCOME_FROM_OTHER_SOURCES_%E2%80%93_CHARGEABLE_AS\"><\/span><span style=\"color: #00ccff;\"><strong>INCOME FROM OTHER SOURCES &#8211; CHARGEABLE AS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Interest:<\/span>\u00a0<\/strong>Where assessee, engaged in construction activities, deposited its surplus funds in FDRs, interest earned thereon was to be taxed as &#8216;income from other sources &#8211; <em>[2016] 65 139 (Lucknow &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 147<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>INCOME ESCAPING ASSESSMENT &#8211; NON-DISCLOSURE OF PRIMARY FACTS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Section 143 v. Section 147:<\/span>\u00a0<\/strong>Requirements of section 147 cannot be dispensed with when an assessment made under section 143(1) is sought to be reopened &#8211;\u00a0<em>[2016] 65 \u00a017 (Delhi)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 148<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>INCOME ESCAPING ASSESSMENT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Notice For Service of <\/span><\/strong>Merely because assessee participated in proceedings pursuant to notice under section 148, it would not obviate the mandatory requirement of Assessing Officer to issue assessee a notice under section 143(2) before finalizing order of reassessment &#8211; <em>[2016] 65 137 (Delhi)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 276D<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>OFFENCE AND PROSECUTION &#8211; FAILURE TO PRODUCE ACCOUNTS AND DOCUMENTS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Stay of prosecution proceedings:<\/span>\u00a0<\/strong>Pendency of appellate proceedings has no bearing on initiation of prosecution under Act &#8211;\u00a0<em>[2016] 65 138 (Delhi)<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENTRAL_EXCISE_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>CENTRAL EXCISE ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 2(f)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>MANUFACTURE &#8211; GENERAL MEANING<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Cabling\/twisting together of Aluminium wires\/wire rods along with steel wire to form &#8216;plaited wire bands&#8217; would amount to manufacture because plaited wire bands, etc. have a different name, character, and use and are classifiable separately &#8211; <em>[2016] 65 131 (Kolkata &#8211; CESTAT)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 11A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>RECOVERY &#8211; OF DUTY OR TAX NOT LEVIED\/PAID OR SHORT-LEVIED\/PAID OR ERRONEOUSLY REFUNDED &#8211; REVENUE NEUTRALITY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">In case of inter-unit transfer of goods, where transferee unit can take credit of duty paid by assessee-transferor, the department cannot allege suppression of facts with intent to evade duty and, therefore, an extended period of limitation cannot be invoked &#8211; <em>[2016] 65 \u00a0129 (Ahmedabad &#8211; CESTAT)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 35D<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>APPEALS-PROCEDURE-APPELLATE TRIBUNAL-ADJUDICATION ORDER DROPPED DEMAND<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">If assessee-company is being wound up, Revenue&#8217;s appeal before Tribunal would stand abatement as per provisions of rule 22 of CESTAT (Procedure) Rules, 1982, unless an application is made by or against liquidator\/receiver for the continuance of proceedings &#8211; <em>[2016] 65 \u00a0132 (Ahmedabad &#8211; CESTAT)<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENVAT_CREDIT_RULES\"><\/span><span style=\"color: #0000ff;\"><strong>CENVAT CREDIT RULES<\/strong><\/span><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 \u2013 GENERAL<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">In case of an assessee being manufacturer cum service provider, credit of input services may be taken directly in ER-1 returns instead of taking it first in ST-3 and then, transferring to ER-3 return &#8211;\u00a0<em>[2016] 65 \u00a0128 (Ahmedabad &#8211; CESTAT)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 11<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT &#8211; REVERSAL AND LAPSING OF CREDIT WHEN EXEMPTION CLAIMED<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">If the assessee has not lapsed\/reversed credit under rule 11 of CENVAT Credit Rules, 2004 on opting for exemption, then, for violation of CENVAT Credit Rules, action may be taken under CENVAT Credit Rules, but, exemption itself cannot be denied &#8211; <em>[2016] 65 130 (Ahmedabad &#8211; CESTAT)<\/em><\/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.<\/p>\n<p style=\"text-align: justify;\">Hope the information will assist you in your Professional endeavors. For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n<h4><span class=\"ez-toc-section\" id=\"_Popular_blog\"><\/span>\u00a0Popular blog:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Top_Taxation_Relaxation_to_MSMS\"><\/span><a href=\"https:\/\/carajput.com\/blog\/relevant-parts-of-the-honorable-fm-press-conference\/\">Top Taxation Relaxation to MSMS<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Highlights_of_International_Taxation\"><\/span><a href=\"https:\/\/carajput.com\/blog\/international-taxation\/\">Highlights of International Taxation<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 2016 INCOME TAX ACT SECTION 2(45) CAPITAL GAINS &#8211; CHARGEABLE AS Business income v. Capital gains &#8211; Land dealings:\u00a0Where in terms of the construction agreement, the assessee handed over a piece of land to the builder, for construction of the multi-storied building, since construction and sale of flats did &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172,9,4],"tags":[9065,9063,5,9038,9016],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2127"}],"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=2127"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2127\/revisions"}],"predecessor-version":[{"id":20140,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2127\/revisions\/20140"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}