{"id":2203,"date":"2016-02-22T13:12:25","date_gmt":"2016-02-22T07:42:25","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2203"},"modified":"2021-11-23T15:43:04","modified_gmt":"2021-11-23T10:13:04","slug":"corporate-and-professional-update-february-18-2016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-18-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 18, 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-69d005fa1ebc7\" 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-69d005fa1ebc7\"  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-18-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_18_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 18, 2016\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 18, 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-18-2016\/#Income_Tax_Act\" title=\"Income Tax Act\">Income Tax Act<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-18-2016\/#Constitution_Of_India\" title=\"Constitution Of India\">Constitution Of India<\/a><\/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-february-18-2016\/#Service_Tax\" title=\"Service Tax\">Service Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-18-2016\/#Cst_Vat\" title=\"Cst &amp; Vat\">Cst &amp; Vat<\/a><\/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-february-18-2016\/#Cenvat_Credit_Rules\" title=\"Cenvat Credit Rules\">Cenvat Credit Rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-18-2016\/#Statutes\" title=\"Statutes\">Statutes<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-18-2016\/#CORPORATE_LAWS\" title=\"CORPORATE LAWS\">CORPORATE LAWS<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/1.png\" rel=\"attachment wp-att-2123\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2123\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/1-300x159.png\" alt=\"1\" width=\"860\" height=\"456\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/1-300x159.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/1-768x407.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/1.png 844w\" sizes=\"(max-width: 860px) 100vw, 860px\" \/><\/a><\/strong><\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_18_2016\"><\/span><span style=\"color: #000080;\"><strong>CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 18, 2016<\/strong><\/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 10A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>FREE TRADE ZONE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Set off of loss :<\/span>\u00a0<\/strong>Loss suffered by assessee in an unit entitled for exemption under section 10A cannot be set off against income from any other unit not eligible for such exemption &#8211;\u00a0<em>[2016] 66 110 (Chennai &#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: #00ccff;\"><strong>EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Rule 8D :<\/span>\u00a0<\/strong>Where assessee earned dividend income but did not claim any expenditure towards same, rule 8D provisions being prospective in operation could not be applied during year, but since incurring of certain administrative expenses cannot be ruled out, Assessing Officer was directed to disallow 2 per cent of exempt income as expenditure towards earning that income &#8211;\u00a0<em>[2016] 66 110 (Chennai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 92C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>TRANSFER PRICING &#8211; COMPUTATION OF ARM&#8217;S LENGTH PRICE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Comparables and adjustments\/Adjustments &#8211; Related Party Transactions :<\/span>\u00a0<\/strong>In case of assessee, engaged in development and delivery of domain specific software to its AE, companies having turnover in excess of Rs. 200 crore and companies having related party transactions in excess of 15 per cent, could not be accepted as comparables while determining ALP &#8211;\u00a0<em>[2016] 66 119 (Bangalore &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Comparables and adjustments\/Comparables \u2013 Illustrations :<\/span>\u00a0<\/strong>All types of software development services cannot be clubbed together for comparability analysis &#8211;\u00a0<em>[2016] 66 109 (Hyderabad &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Comparables and adjustments\/Comparables \u2013 Illustrations : <\/strong><\/span>Company having brand value, brand building exercise, having huge asset base including ownership of significant intangibles cannot be considered as comparable to company providing simple software development services &#8211;\u00a0<em>[2016] 66 109 (Hyderabad &#8211; Trib.)<\/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 132B<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>SEARCH AND SEIZURE &#8211; RETAINED ASSETS, APPLICATION OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Period of limitation :<\/span>\u00a0<\/strong>Where assessee filed an application on 17-4-2014 for release of seized cash and Assessing Officer decided said application on 20-7-2015, action of Assessing Officer in deciding application on 20-7-2015, i.e., over\u00a0one year later\u00a0could not be countenanced &#8211;\u00a0<em>[2016] 66 124 (Gujarat)<\/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<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Audit objection :\u00a0<\/strong><\/span>Assessing Officer having completed assessment under section 143(3), could not reopen assessment under directive of audit party &#8211;\u00a0<em>[2016] 66\u00a0 125 (Gujarat<\/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 &#8211; NOTICE FOR<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Validity of notice :<\/span>\u00a0<\/strong>It is only Assessing Officer, who has passed original assessment order, is empowered to exercise powers under section 147\/148 to reopen that assessment &#8211;\u00a0<em>[2016] 66 \u00a0126 (Delhi)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 153<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>ASSESSMENT &#8211; TIME &#8211; LIMIT FOR COMPLETION OF REASSESSMENT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where during assessment of original assessee, liability of any third person is found, such third person must be heard before issuing notice on him for purpose reassessment &#8211;\u00a0<em>[2016] 66 87 (Uttarakhand)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 13<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>POWER TO FIX PRICES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">After State of AP had been bifurcated into State of Telangana and residuary State of AP, AP State Government could not have taken into account Oil Extraction Rate of AP Oil Palm Processing Unit located in State of Telangana as basis for price fixation of Oil Palm fresh fruit bunches grown in State of AP &#8211;\u00a0<em>[2016] 66 131 (Andhra Pradesh)<\/em><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Constitution_Of_India\"><\/span><span style=\"color: #0000ff;\"><strong>Constitution Of India<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>ARTICLE 226<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>WRIT PETITION &#8211; ALTERNATIVE REMEDY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where department raised demand of service tax on bank\/financial charges paid for realization of export proceeds by SEZ unit and assessee had filed writ thereagainst, High Court dismissed writ petition in view of effective alternate remedy under provisions of service tax laws &#8211;\u00a0<em>[2016] 66 113 (Madras)<\/em><\/p>\n<h2 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><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 78<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>PENALTY &#8211; FOR EVASION OF DUTY\/TAX<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Argument that tax was not paid due to financial hardship would destroy assessee&#8217;s case of ignorance of tax liability; hence, person pleading financial hardship as a ground for non-payment\/belated-payment of tax cannot plead that he was not aware of tax liability and therefore, he would be liable to evasion penalty &#8211;\u00a0<em>[2016] 66 114 (Gujarat) <\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 97<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>EXEMPTIONS &#8211; SERVICE TAX &#8211; MANAGEMENT, ETC., OF ROADS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Repair and maintenance of roads is exempt and not liable to service tax during period prior to 1-7-2012 and even on or after said date &#8211;\u00a0<em>[2016] 66 112 (Madras)<\/em><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Cst_Vat\"><\/span><span style=\"color: #0000ff;\"><strong>Cst &amp; Vat<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #ff6600;\">SECTION 62 OF PUNJAB VALUE ADDED TAX ACT, 2005<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>APPEALS, REVISION, ETC. &#8211; FIRST APPEAL<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Provisions of section 62(5) of VAT Act are directory in nature meaning thereby that First Appellate Authority in his right to hear appeal is empowered to partially or completely waive condition of pre deposit contained therein in given facts and circumstances &#8211;\u00a0<em>[2016] 66 172 (Punjab &amp; Haryana)<\/em><\/p>\n<h2 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><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>Rule 2(l)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT &#8211; INPUT SERVICE (ADVERTISEMENT SERVICE, CREDIT OF)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee, an asset management company, providing services of managing assets of a mutual fund, incurred advertisement expenses which had not been reimbursed from mutual fund, it was eligible for input service credit on such expenses &#8211;\u00a0<em>[2016] 66 129 (Chennai &#8211; CESTAT)<\/em><\/p>\n<h2 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><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_LAWS\"><\/span><span style=\"color: #ff6600;\"><strong>CORPORATE LAWS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Submission of returns for F&amp;A Non-Life through Business Analytics Project (BAP) Module &#8211;\u00a0<em>CIRCULAR NO.IRDA\/F&amp;A\/MISC\/CIR\/026\/2016, DATED 10-2-2016<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>INDIRECT TAX LAWS (ST.\/EX.\/CUS. &amp; (CST &amp; VAT))<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Section 11C, read with Section 3, of the Central Excise Act, 1944 &#8211; Power not to recover Duty of Excise not levied or short-levied as a result of general practice \u2013 Non-Levy of Duty of Excise on Di-Calcium Phosphate (Animal Feed Grade) of Rock Phosphate origin falling under heading 2835 of first schedule to Central Excise Tariff Act, 1985 &#8211;\u00a0<em>NOTIFICATION NO.4\/2016-C.E. (N.T.), DATED 12-2-2016<\/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 18, 2016 Income Tax Act SECTION 10A FREE TRADE ZONE Set off of loss :\u00a0Loss suffered by assessee in an unit entitled for exemption under section 10A cannot be set off against income from any other unit not eligible for such exemption &#8211;\u00a0[2016] 66 110 (Chennai &#8211; Trib.) SECTION 14A &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":[162,5,333,9038,322,9077],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2203"}],"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=2203"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2203\/revisions"}],"predecessor-version":[{"id":19226,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2203\/revisions\/19226"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}