{"id":2251,"date":"2016-02-29T15:48:55","date_gmt":"2016-02-29T10:18:55","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2251"},"modified":"2023-09-02T11:00:34","modified_gmt":"2023-09-02T05:30:34","slug":"corporate-and-professional-update-february-272016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-272016\/","title":{"rendered":"corporate and professional update february 27,2016"},"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-6a2030c99c89f\" 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-6a2030c99c89f\"  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-272016\/#CORPORATE_PROFESSIONAL_UPDATE_FEBRUARY_272016\" title=\"CORPORATE &amp; PROFESSIONAL UPDATE FEBRUARY 27,2016\">CORPORATE &amp; PROFESSIONAL UPDATE FEBRUARY 27,2016<\/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-272016\/#Direct_Tax\" title=\"Direct Tax\">Direct Tax<\/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-272016\/#Indirect_Tax\" title=\"Indirect Tax\">Indirect Tax<\/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-272016\/#MCA_Updates\" title=\"MCA Updates\">MCA Updates<\/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-272016\/#Company_Law\" title=\"Company Law\">Company Law<\/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-february-272016\/#Other_updates\" title=\"Other updates\">Other updates<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-272016\/#Key_Dates\" title=\"Key Dates:\">Key Dates:<\/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-272016\/#Govt_extends_few_Direct_Tax_Timelines_due_to_COVID_-19\" title=\"Govt extends few Direct Tax Timelines due to COVID -19\">Govt extends few Direct Tax Timelines due to COVID -19<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-20171\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/corporate.jpg\" alt=\"\" width=\"729\" height=\"507\" \/><\/h2>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_PROFESSIONAL_UPDATE_FEBRUARY_272016\"><\/span><strong><span style=\"color: #000080;\">CORPORATE &amp; PROFESSIONAL UPDATE FEBRUARY 27,2016<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Direct_Tax\"><\/span><span style=\"color: #ff6600;\"><strong>Direct Tax<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li><strong><span style=\"color: #00ccff;\">IT<\/span><\/strong>: CPU alone cannot be described as computer; routers and switches being input\/output devices, are integral part of computer and, hence, entitled to higher rate of depreciation at 60 per cent[2016] 66\u00a0taxmann.com\u00a0239 (Mumbai &#8211; Trib.)\u00a0IBAHN India (P.) Ltd. v. DCIT<\/li>\n<li>Investment in house property need not be sourced from capital gains only for availing of sec. 54F relief<\/li>\n<li><span style=\"color: #00ccff;\"><strong>IT<\/strong><\/span> : For availing exemption under section 54F, amount invested in new asset need not be entirely sourced from capital gain[2016] 66\u00a0taxmann.com\u00a0191 (Punjab &amp; Haryana)\u00a0CIT v. Kapil Kumar Agarwal<\/li>\n<li>Calculation of interest u\/s 244A &#8211; when a refund of tax has to be reduced by refund already granted it is only the tax element which has to be adjusted and not the interest element paid on the delayed refund of the tax.<\/li>\n<li>This is so as the interest which is paid to the assessee is for the wrongful withholding of the assessee s refund by the revenue &#8211;\u00a0CIT Vs. Tata Power Co. Ltd. (2016 (2) TMI 670 Bombay High Court)<\/li>\n<li><strong><span style=\"color: #00ccff;\">IT<\/span>:<\/strong>Non deduction of TDS &#8211; Disallowance u\/s 40(a)(ia) &#8211; payment made on account of offshore supply of equipments &#8211; the subject mentioned payments are not chargeable to tax in India in terms of section 195<\/li>\n<li>Hence no disallowance could be made u\/s. 40(a)(i)\/40(a)(ia) &#8211; Linde India Ltd. Vs. DCIT, Cir-12, Kolkata (2016 (2) TMI 668 ITAT Kolkata)<\/li>\n<li><strong><span style=\"color: #00ccff;\">IT<\/span>:<\/strong>Expenditure on construction of house for labourer &#8211; the structure does not vest in the assessee and it has to pay monthly rent thereof to the Government the expenditure incurred by the assessee thereon has been rightly treated as a revenue expenditure &#8211;\u00a0CIT, Nagpur Vs. Manganese Ore India Ltd (2016 (2) TMI 711 Bombay High Court)<\/li>\n<li>Reopening of assessment &#8211; charging of share premium over and above the intrinsic value of the share is income which has escaped assessment &#8211; the share premium being on the capital amount cannot be subjected to tax as income &#8211;<strong>\u00a0<\/strong>Khubchandani Healthparks Pvt. Ltd. Vs. ITO, Mumbai (2016 (2) TMI 710 Bombay High Court)<\/li>\n<li>Shares Buyback cannot be equated with capital reduction. [Goldman Sachs (India) Securities Pvt. Ltd vs. ITO (ITAT Mumbai)].<\/li>\n<li>CBDT notifies Atal Pension Yojana u\/s 80CCD. Notification No. 7\/2016-Income Tax.<\/li>\n<li>HC denied to admit appeal as assessee changed its stand initially taken before AO<br \/>\n[2016] 66\u00a0taxmann.com\u00a0252 (Punjab &amp; Haryana)\u00a0Maken Cement Industries, Kathua v. CIT<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Rectification of mistake<\/strong><\/span> &#8211; when the issue has been decided by the CIT(A) then only CIT(A) can rectify the order u\/s 154 &#8211; AO has no jurisdiction to rectify such order &#8211;\u00a0\u00a0Income Tax M\/s. NHPC Ltd. Versus Asstt. Commissioner of Income Tax, Circle-II, Faridabad And Vica-Versa- 2016 (2) TMI 676 &#8211; ITAT DELHI<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Calculation of interest u\/s 244A<\/strong><\/span> &#8211; when a refund of tax has to be reduced by refund already granted it is only the tax element which has to be adjusted and not the interest element paid on the delayed refund of the tax.<\/li>\n<li>This is so as the interest which is paid to the assessee is for the wrongful withholding of the assessee s refund by the revenue &#8211; HC &#8211;\u00a0Income Tax Commissioner of Income Tax- 2 Versus M\/s Tata Power Co. Ltd.- 2016 (2) TMI 670 &#8211; BOMBAY HIGH COURT<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Indirect_Tax\"><\/span><span style=\"color: #ff6600;\"><strong>Indirect Tax<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li><strong><span style=\"color: #00ccff;\">ST<\/span>:<\/strong>It was contended that it is under obligation to maintain the building and the appellant being builder only taken re-imbursement of various services which was provided by various service provider, not liable for Service Tax\u00a0on Management Maintenance or Repair service collected from Flat owners &#8211;\u00a0Omega Associates Vs. CST, Mumbai (2016 (2) TMI 690 CESTAT Mumbai)<\/li>\n<li><strong><span style=\"color: #00ccff;\">ST<\/span><\/strong>:\u00a0Scientific and Technical Consultancy service to clients located outside India &#8211; Refund of CENVAT credit allowed based on place of performance of services \u2013\u00a0CCE, Pune-I Vs. Sai Life Sciences Ltd. (2016 (2) TMI 724 CESTAT Mumbai)<\/li>\n<li><span style=\"color: #00ccff;\"><strong>CBEC<\/strong><\/span>:\u00a0CBEC has notified and\u00a0appoints 1st\u00a0day of April, 2016 as the date on which the provisions of sub-section (1) of section 109 of Finance Act, 2015 shall come into effect. Consequentially,\u00a0all the\u00a0services provided by the Government or local authority to a business entity, except the services that are specifically exempted, that is, or are covered by any entry of negative list,\u00a0shall be liable to service tax\u00a0from the 1st\u00a0day of April, 2016.<\/li>\n<li><strong><span style=\"color: #00ccff;\">Service Tax<\/span> <\/strong>: Renting out property to hotels is not liable to service tax; further, notional interest on security deposit cannot be added to &#8216;agreed rent&#8217; for demanding service tax.<br \/>\n[2016] 66\u00a0taxmann.com\u00a0254 (New Delhi &#8211; CESTAT)\u00a0Lake Palace Hotel and Motels (P.) Ltd. v. Commissioner of Central Excise<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Service Tax<\/strong> <\/span>: Burden of proof is on revenue to show that there was wilful suppression of facts by assessee with a view to evade service tax; but, once revenue brings out certain material, then, burden shifts back to assessee [2016] 66\u00a0taxmann.com\u00a0256 (Gauhati)\u00a0Bordubi Engineering Works v. Union of India<\/li>\n<li>A Service export prior to export of service rules, 2005 are eligible for export rebate. [J.P. Morgan Services India Private Ltd. vs. Commissioner of Central Excise (Service Tax) (CESTAT-Mumbai)].<\/li>\n<li>DVAT E-File Form DP-1 before\u00a029.02.16\u00a0positively to give effect to amendments\/ information of dealers provided through it, pending and desired from long.<\/li>\n<li>Appy Fizz is an aerated branded soft drink, taxable at 20 per cent under Kerala VAT<br \/>\n[2016] 66\u00a0taxmann.com\u00a0301 (Kerala)\u00a0Parle Agro (P.) Ltd. v. Commissioner Commercial Taxes<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Application for advance Ruling<\/strong> <\/span>&#8211; Taxability of activity of services for rendering analysis of the drugs and market survey etc. &#8211; AAR rejected both the contentions and admitted the application for consideration.<\/li>\n<li>AAR &#8211; M\/s Steps Therapeutics Ltd, Hyderabad Versus Commissioner of Customs, Central Excise And Service Tax, Hyderabad-IV &#8211; 2016 (2) TMI 692 &#8211; AUTHORITY FOR ADVANCE RULINGS<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Extended period of limitation<\/strong><\/span> &#8211; The initial burden is on the department to prove that the situations visualised by the proviso existed.<\/li>\n<li>But once the department is able to bring on record material to show that the appellant was guilty of any of those situations which are visualised by the section the burden shifts and then applicability of the proviso has to be construed liberally &#8211; HC &#8211;\u00a0\u00a0M\/s Bordubi Engineering Works Versus Union of India, The Commissioner, Central Excise &amp; Service Tax, The Additional Commissioner, Central Excise &amp; Service Tax, The Superintendent (A\/E) , Central Excise, The Joint Commissioner, Central Excise &amp; Service Tax\u00a0&#8211; 2016 (2) TMI 691 &#8211; GAUHATI HIGH COURT<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"MCA_Updates\"><\/span><span style=\"color: #ff6600;\"><strong>MCA Updates<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li>Purchaser of assets of liquidating -co. in a auction wasn&#8217;t liable to pay sales taxes dues of such Co.- HC<\/li>\n<li>MCA has recently issued a notice inviting comments on the draft Companies (Cost Records &amp; Audit) Amendment Rules, 2016 dated 23.02.2016.<\/li>\n<li>CL: Sales tax dues of company-in-liquidation could not be termed as taxes in relation to property hence, Appellants who had purchased property of company-in-liquidation in court auction were not required to pay same[2016] 66com\u00a0220 (Gujarat)\u00a0Readymix Concrete Ltd.\u00a0v.Official Liquidator of Beclawat of India Ltd.<\/li>\n<li>MCA has recently issued a notice inviting comments on the draft Companies (Cost Records &amp; Audit) Amendment Rules, 2016 dated 23.02.2016.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li>MCA invites comments on Draft Companies (Cost Records and Audit) Amendment Rules, 2016, to be submitted latest by\u00a008.03.16.<\/li>\n<li>The MCA invites comments on draft Companies (Incorporation) second Amendment Rules, 2016 &amp; Companies (Authorized to Register) Amendment Rules, 2016 till 2 Mar 2016.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Company_Law\"><\/span><span style=\"color: #ff6600;\"><strong>Company Law<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #00ccff;\"><strong>Query:<\/strong><\/span>\u00a0I have one query as &#8211; Company has appointed an auditor within 90 days of incorporation of company but after taking appointment auditor resigns within a week and then company again appointed auditor. WHETHER COMPANY IS LIABLE TO FILE INFORMATION REGARDING APPOINTMENT OF SECOND AUDITOR TO ROC?<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Answer:<\/strong><\/span>\u00a0There is no statutory obligation on Company regarding the intimation of first Auditor, so appointed by the Company.<\/li>\n<li>In case, Company has filed Form ADT-1 regarding the appointment of first Auditor who was appointed within 90 days of incorporation.<\/li>\n<li>Then only, Company is required to first file Form ADT-3 regarding resignation of first Auditors, so appointed and then file Form ADT-1 for the appointment of Second Auditor.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">In case Company has not intimated about the appointment of first Auditor as well, then statutorily Form ADT-1 is required to be filed within 15 days of the date of AGM of Company.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Other_updates\"><\/span><span style=\"color: #ff6600;\"><strong>Other updates<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>NSE<\/strong><\/span><strong>\u00a0<\/strong><strong>(<\/strong>National Stock Exchange) has issued a\u00a0Circular stating\u00a0that<strong>\u00a0<\/strong>&#8216;One Person Company&#8217; can act as a Stock Broker\u00a0provided the entity has at least two Directors.\u00a0However, such broker would not be allowed to trade in his proprietary account.<\/p>\n<ul style=\"text-align: justify;\">\n<li>SEBI<strong>\u00a0<\/strong>has notified the amendments which may be called as\u00a0the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2016\u00a0and shall come into force on the date of their publication in the Official Gazette.<\/li>\n<li>Controlled by Delhi based CA firm held as resident in India[2016] 66taxmann.com\u00a0283 (Delhi)\u00a0Commissioner of Income-tax, Delhi v. Mansarovar Commercial (P.) Ltd.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li>Get ICAI Now Mobile App for latest ICAI Updates &#8211; Available on Android, iOS, Windows and Blackberry 10. To download please visit\u00a0<a href=\"https:\/\/www.icai.org\/mobile\">https:\/\/www.icai.org\/mobile<\/a><\/li>\n<li>Union Bank invites applications from CA eligible\/interested firms\/companies for empanelment as Concurrent Auditors for F.Y. 2016-17.<\/li>\n<li><strong><span style=\"color: #00ccff;\">ICAI<\/span>\u00a0<\/strong>Inviting\u00a0Suggestions on the drafted Background Material of Certificate Course on Derivatives.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li>A smile is happiness you&#8217;ll find right under your nose.-Tom Wilson<\/li>\n<li>Don&#8217;t cry because it&#8217;s over. Smile because it happened. -Dr. Seuss<strong><u>\u00a0<\/u><\/strong><\/li>\n<\/ul>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Key_Dates\"><\/span><strong><u>Key Dates:<\/u><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul style=\"text-align: justify;\">\n<li>Advance information for 1st\u00a0fortnight of March of functions with booking cost &gt; Rs 1 lakh in Banquet Halls, hotels etc. in Delhi:\u00a027.02.2016<\/li>\n<li>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<\/li>\n<li>Hope the information will assist you in your Professional endeavors. For query or help, contact:\u00a0<a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at\u00a0011-233 433 33<\/li>\n<\/ul>\n<p>popular blog<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Govt_extends_few_Direct_Tax_Timelines_due_to_COVID_-19\"><\/span><a href=\"https:\/\/carajput.com\/blog\/govt-extends-few-direct-tax-timelines-due-to-covid-19-pandemic\/\">Govt extends few Direct Tax Timelines due to COVID -19<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE &amp; PROFESSIONAL UPDATE FEBRUARY 27,2016 Direct Tax IT: CPU alone cannot be described as computer; routers and switches being input\/output devices, are integral part of computer and, hence, entitled to higher rate of depreciation at 60 per cent[2016] 66\u00a0taxmann.com\u00a0239 (Mumbai &#8211; Trib.)\u00a0IBAHN India (P.) Ltd. v. DCIT Investment in house property need not be &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9933,150,172,9,4],"tags":[4994,162,5,333],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2251"}],"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=2251"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2251\/revisions"}],"predecessor-version":[{"id":25347,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2251\/revisions\/25347"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}