{"id":2188,"date":"2016-02-15T15:36:08","date_gmt":"2016-02-15T10:06:08","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2188"},"modified":"2021-12-01T17:01:43","modified_gmt":"2021-12-01T11:31:43","slug":"corporate-and-professional-update-february-15-2016-2","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-15-2016-2\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 15, 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-69d005fe73625\" 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-69d005fe73625\"  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-15-2016-2\/#CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_15_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 15, 2016\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 15, 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-15-2016-2\/#INCOME_TAX_ACT\" title=\"INCOME TAX ACT\">INCOME TAX ACT<\/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-february-15-2016-2\/#AGRICULTURAL_INCOME\" title=\"AGRICULTURAL INCOME\">AGRICULTURAL INCOME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-15-2016-2\/#_ASSESSABLE_AS_HINDU_UNDIVIDED_FAMILY\" title=\"\u00a0ASSESSABLE AS HINDU UNDIVIDED FAMILY\">\u00a0ASSESSABLE AS HINDU UNDIVIDED FAMILY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-15-2016-2\/#INCOME_%E2%80%93_DEEMED_TO_ACCRUE_OR_ARISE_IN_INDIA\" title=\"INCOME &#8211; DEEMED TO ACCRUE OR ARISE IN INDIA\">INCOME &#8211; DEEMED TO ACCRUE OR ARISE IN INDIA<\/a><\/li><\/ul><\/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-february-15-2016-2\/#ARBITRATION_AND_CONCILIATION_ACT\" title=\"ARBITRATION AND CONCILIATION ACT\">ARBITRATION AND CONCILIATION 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-february-15-2016-2\/#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-february-15-2016-2\/#STATUTES\" title=\"STATUTES\">STATUTES<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><\/h2>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled93A.png\" rel=\"attachment wp-att-1631\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1631\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled93A-300x174.png\" alt=\"Untitled93A\" width=\"820\" height=\"476\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled93A-300x174.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled93A.png 551w\" sizes=\"(max-width: 820px) 100vw, 820px\" \/><\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_15_2016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 15, 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(1A)<\/strong><\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"AGRICULTURAL_INCOME\"><\/span><span style=\"color: #800000;\"><strong>AGRICULTURAL INCOME<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>Compensation on acquisition of agricultural land :\u00a0<\/strong><\/span>Where Assessing Officer&#8217;s decision that compensation received by assessee for acquisition of her agricultural land was exempt from tax, was one of possible views, Commissioner could not impose his view on Assessing Officer by invoking provisions of section 263 &#8211;\u00a0<em>[2016] 65 \u00a0321 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 4<\/strong><\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"_ASSESSABLE_AS_HINDU_UNDIVIDED_FAMILY\"><\/span><span style=\"color: #800000;\"><strong>\u00a0ASSESSABLE AS HINDU UNDIVIDED FAMILY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Pursuant to Hindu Succession (Amendment) Act, 2005, plaintiff, a female, being first born amongst co-parceners of HUF property, would by virtue of her birth, be entitled to be its Karta &#8211;\u00a0<em>[2016] 66 \u00a028 (Delhi)<\/em><\/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<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 9<\/strong><\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INCOME_%E2%80%93_DEEMED_TO_ACCRUE_OR_ARISE_IN_INDIA\"><\/span><span style=\"color: #800000;\"><strong>INCOME &#8211; DEEMED TO ACCRUE OR ARISE IN INDIA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Deduction of export commission paid to foreign agents for sourcing of export orders in favour of assesse-firm without deduction of tax at source under section 195 is to be allowed where export commission paid to foreign brokers is not a sum chargeable to tax in hands of foreign brokers as contemplated under section 195 and is neither a fee for technical\/managerial services as defined in explanation 2 to Section 9(1)(vii) so as to bring it to tax under fiction created by deeming provisions of Section 9 &#8211;\u00a0<em>[2016] 66 30 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 10A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>FREE TRADE ZONE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Under section 10A only condition for software exported from India to be considered in an year is receipt of consideration of sale proceed\u00a0within six months\u00a0from end of previous year (or within period extended by RBI) in convertible foreign exchange and importing of any other condition such as furnishing of SOFTEX Form or obtaining of STPI clearance is completely unwarranted &#8211;\u00a0<em>[2016] 65 \u00a0318 (Hyderabad &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 12AA<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>CHARITABLE OR RELIGIOUS TRUST &#8211; REGISTRATION OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">Cancellation of registration :<\/span>\u00a0<\/strong>Merely because certain expenditure was incurred on religious purpose, registration granted to trust or institution could not be cancelled &#8211;\u00a0<em>[2016] 65 \u00a0327 (Pune &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 14A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Interest paid to partners on capital contribution is not a statutory allowance under section 40(b) but is an expenditure under section 36(1)(iii) and, thus, if this expenditure is incurred in relation to income which does not form part of total income as envisaged under section 14A, same shall only be allowed as deduction only against exempt income under section 14A or in other words, such interest expenditure on partner&#8217;s capital shall be disallowed under section 14A &#8211;\u00a0<em>[2016] 66 \u00a030 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 68<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>CASH CREDITS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">Gift :<\/span>\u00a0<\/strong>Where assessee failed to explain source of gift made by his wife and showed it as a liability repayable, addition under section 68 was to be upheld &#8211;\u00a0<em>[2016] 65 \u00a0325 (Pune &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">Construction contracts :<\/span>\u00a0<\/strong>Where certain addition was made to assessee&#8217;s income on basis of amount credit in books of account in respect of sale of shops based on percentage completion method, in absence of proper explanation regarding accounting entries so made, matter was to be remanded back for de novo assessment &#8211;<em>[2016] 65\u00a0<\/em><em>22 (Delhi &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 194C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>DEDUCTION OF TAX AT SOURCE &#8211; CONTRACTORS\/SUB-CONTRACTORS PAYMENT TO<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">Condition precedent :<\/span>\u00a0<\/strong>Where assessee failed to prove transportation charges paid, but Assessing Officer had not confronted assessee with results of verification exercise carried out, issue was to be readjudicated &#8211;\u00a0<em>[2016] 65 325 (Pune &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 194H<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>DEDUCTION OF TAX AT SOURCE &#8211; COMMISSION OR BROKERAGE ETC.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">Supply of building materials :<\/span>\u00a0<\/strong>Payments made by assessee for supply of building materials was not liable to deduction of tax at source under section 194H &#8211;\u00a0<em>[2016] 65 \u00a0324 (Chandigarh &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 271(1)(c)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>PENALTY FOR CONCEALMENT OF INCOME<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee had only claimed expenditure which was disallowed by AO and due to which carry forward loss arose.<\/p>\n<p style=\"text-align: justify;\">It could not be said that assessee had furnished inaccurate particulars of income by showing carried forward loss as once a loss was shown in e-return, the software suo-motu reflects the returned loss as carried forward loss.<\/p>\n<p style=\"text-align: justify;\">Further, the fact that assessee had not claimed carry forward loss in subsequent year was evident of the fact that there was no intent on part of assessee to furnish inaccurate particulars &#8211;\u00a0<em>[2016] 66 \u00a027 (Bombay)<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"ARBITRATION_AND_CONCILIATION_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>ARBITRATION AND CONCILIATION ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 9<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>COMPOSITION OF ARBITRAL TRIBUNAL &#8211; GROUNDS FOR CHALLENGE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">As per principles of tracing benefits acquired by fraud, breach of confidence, breach of fiduciary relationships or by other wrongdoings do not get benefit under the defence of change of position.<\/p>\n<p style=\"text-align: justify;\">Change of position as a defence has to be casually linked to the receipt that makes it inequitable for the recipient to make restitution.<\/p>\n<p style=\"text-align: justify;\">Mere fact that the recipient has spent the money in whole or in part does not make it inequitable as expenditure might have been incurred by him in any event in ordinary course of things.<\/p>\n<p style=\"text-align: justify;\">But a bona fide recipient is entitled to establish the defence that he had increased his outgoings as a result of the receipt.<\/p>\n<p style=\"text-align: justify;\">Since analogous principles have to be applied in the instant case, the sketchy pleadings and no material save and except the shareholding pattern in Southend does not entitle VSL to any tracing order against Southend which is an independent entity &#8211;<em>[2016] 66 29 (Delhi)<\/em><\/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 112<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">PENALTY &#8211; SMUGGLING\/ILLEGAL IMPORT<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\">Penalty under Customs can be imposed simultaneously on firm and its partners: Larger bench of HC &#8211;\u00a0<em>[2016] 66 \u00a049 (Bombay)<\/em><\/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;\">Government Sets up Tax Policy Research Unit and Tax Policy Council &#8211;\u00a0<em>PRESS RELEASE, DATED 2-2-2016<\/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; 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","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 15, 2016 INCOME TAX ACT SECTION 2(1A) AGRICULTURAL INCOME Compensation on acquisition of agricultural land :\u00a0Where Assessing Officer&#8217;s decision that compensation received by assessee for acquisition of her agricultural land was exempt from tax, was one of possible views, Commissioner could not impose his view on Assessing Officer by invoking &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,150,9],"tags":[162,3917,4078,5,333,9038],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2188"}],"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=2188"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2188\/revisions"}],"predecessor-version":[{"id":2191,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2188\/revisions\/2191"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}