{"id":2950,"date":"2016-12-13T12:50:30","date_gmt":"2016-12-13T07:20:30","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2950"},"modified":"2021-12-22T15:05:51","modified_gmt":"2021-12-22T09:35:51","slug":"corporate-and-professional-update-dec-13-2016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dec-13-2016\/","title":{"rendered":"corporate and professional update dec 13, 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-69e8e17256cef\" 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-69e8e17256cef\"  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-dec-13-2016\/#Professional_Update_for_the_Day\" title=\"Professional Update for the Day:\">Professional Update for the Day:<\/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-dec-13-2016\/#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-dec-13-2016\/#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-dec-13-2016\/#Companies_Act_Update\" title=\"Companies Act \u00a0Update:-\">Companies Act \u00a0Update:-<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dec-13-2016\/#Other_Update\" title=\"Other Update:-\">Other Update:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dec-13-2016\/#Key_Dates\" title=\"Key Dates:-\">Key Dates:-<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/12\/images-2.jpg\" rel=\"attachment wp-att-2951\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2951 aligncenter\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/12\/images-2.jpg\" alt=\"images (2)\" width=\"848\" height=\"848\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/12\/images-2.jpg 225w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/12\/images-2-150x150.jpg 150w\" sizes=\"(max-width: 848px) 100vw, 848px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Professional_Update_for_the_Day\"><\/span><strong>Professional Update for the Day:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"DIRECT_TAX\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/popular-faq-on-direct-indirect-tax-corporate-regulatory-matters\/\"><strong><span style=\"text-decoration: underline;\"><span style=\"color: #ff6600;\">DIRECT TAX:<\/span><\/span><\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li>Reopening u\/s 147 of the assessment is not valid if the reasons recorded are incoherent and do not indicate what the basis for reopening is &#8211; Delhi High Court in Sabharwal Properties Ind Pvt. Ltd vs. ITO.<\/li>\n<li>Continuous payments made to transporters would be aggregated to consider <a href=\"https:\/\/carajput.com\/tds.php\">TDS<\/a> limit under sec. 194C Sri Shivamurthy v. Additional Commissioner of Income-tax, Shimoga Range, Shimoga [2016] (Bangalore &#8211; Trib.)<\/li>\n<li>No bench marking at entity level when assessee was earning more than 50% of revenue from Non-AE clients AXA Technologies Shared Services (P.) Ltd. v.Deputy Commissioner of<a href=\"https:\/\/carajput.com\/income-tax-services.php\"> Income-tax<\/a>, Circle-11(1), Bangalore [2016] (Bangalore &#8211; Trib.)<\/li>\n<li>HC : Reverses ITAT; Concealment penalty unsustainable on DRE-deduction claim despite earlier year disallowance\u00a0[TS-650-HC-2016(BOM)]<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Reopening of assessment &#8211;<\/strong><\/span> return was filed before the wrong authority &#8211; Such being the facts it cannot be stated that the petitioner had filed no return. The very foundation for issuing notice therefore as recorded in the reasons would be belied- (Manish kumar Pravin bhai Kiri versus Asst. Commissioner of Income tax &#8211; 2016 (1) TMI 787 &#8211; GUJARAT HIGH COURT).<\/li>\n<li><span style=\"color: #00ccff;\"><strong><a href=\"https:\/\/carajput.com\/income-tax-services.php\">IT<\/a>: <\/strong><\/span><a href=\"https:\/\/carajput.com\/tds.php\">TDS<\/a> u\/s 194C \u2013 AO erred in law in making disallowance despite the facts that the said amount is paid for purchases and section 194C of the Act is not applicable &#8211;\u00a0ITO, W-7(2), Kol Vs. M\/s Winsome Breweries Ltd. (ITAT Kolkata)<\/li>\n<li><span style=\"color: #00ccff;\"><strong>IT:<\/strong><\/span>Penalty u\/s 271(1)(c) &#8211; The income has been detected on due to scrutiny assessment and would be evaded if the same was not done &#8211; Penalty on concealment should be imposed &#8211;\u00a0Rahul Syal Vs. ITO, W-18 (1) (ITAT Delhi)<\/li>\n<li>Depreciation worked out with reference to the written down value computed as a result of order passed under Section 250(6) &#8211; Higher WDV &#8211; No error could be pointed out in the approach- (Commissioner of Income-tax, Jalandhar Versus M\/s Max India Ltd.\u00a0&#8211; 2016 (1) TMI 784 &#8211; PUNJAB AND HARYANA HIGH COURT).<\/li>\n<li>Non-resident will not to be liable to deduct tax at source from payments made to persons resident in India,if the source of the aforesaid payments is located outside the Indian Territory.<\/li>\n<li>Compensation for breach of contract for sale of land, is not liable to income tax\u00a0either as a revenue receipt or as a capital receipt [C.I.T. vs Sterling Investment Corporation Ltd., 123 I.T.R. p.441 (Bombay.)].<\/li>\n<li>Benefit of section 10(10AA) is available even in case of resignation from service by an employee.<\/li>\n<li>Gifting of property will entitle assessee to claim exemption u\/s 54 if left with only one [ITO v Shri Sameer jasuja (ITAT Delhi), ITA 4187\/Del\/2012,\u00a0A.Y.2009-10].<\/li>\n<li>Section 68 cannot be applied where Assessee discharges onus to prove receipt of share capital along with premium [Dy. Commissioner of <a href=\"https:\/\/carajput.com\/income-tax-services.php\">Income Tax<\/a> -Vs- M\/s Ansh Intermediate Services Pvt. Ltd.(ITAT Lucknow), ITA No.243\/LKW\/2015, A.Y.2010-11].<\/li>\n<li>Warehouse leasing Income of Company incorporated with such object is to be taxed as business income [DCIT vs. DRS Warehousing (North) Pvt. Ltd. (ITAT Delhi), Income Tax (Appeal) No. 4354 of 2012,\u00a0AY 2009-10].<\/li>\n<li>HUF or its Karta cannot become partner or designated partner in LLP [General Circular No. 2\/2016].<\/li>\n<li>Claim of export turnover if foreign exchange not realised in specified period u\/s 80HHC tantamount to deemed concealment of income [Emblem Fashion Wear Exports Pvt. Ltd. vs. ITO (ITAT Mumbai), Income Tax (Appeal) No. 2101 of 2012,\u00a0AY 2003-2004].<\/li>\n<li>Generate Electronic Verification Code (EVC) for e-filing of <a href=\"https:\/\/carajput.com\/income-tax-services.php\">Income Tax Return<\/a> by giving Bank\/ Demat A\/c details.<\/li>\n<li>Adjustment entries being not in nature of loan or advances are outside the purview of deemed dividend u\/s 2(22)(e) [CIT (TDS) vs. Schutz Dishman Bio-Tech Pvt. Ltd. (Gujarat High Court), Tax Appeal nos. 958 &amp; 959 of 2015].<\/li>\n<li>Being an investment company, interest on loan used for investment in jointly controlled entity allowed as revenue expenditure [\u00a0ITO vs. M\/s. First American Securities Pvt. Ltd. (ITAT Delhi), Income Tax (Appeal) No. 4768 of 2012,\u00a0AY 2007-2008].<\/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><span style=\"color: #00ccff;\"><strong>Cenvat Credit<\/strong> &#8211;<\/span> Allocation of input services to the concerned department as earned by the Table-C department &#8211; appellant provides taxable service as well as exempted service &#8211; entire disallowance does not call for any decision in favour of Revenue- (SIFY Technologies Limited Versus Commissioner of Service Tax, LTU, Chennai\u00a0&#8211; 2016 (1) TMI 768 &#8211; CESTAT CHENNAI).<\/li>\n<li><strong><span style=\"color: #00ccff;\"><a href=\"https:\/\/carajput.com\/services-tax-registration.php\">ST<\/a>:<\/span>\u00a0<\/strong>Additional Services to the purchaser of Cars (Viz. like collection of RTO registration charges, Smart Card Fees, Vehicle Registration Fees and other extra charges) are not Business Support Services &#8211;\u00a0Wonder Cars Pvt. Ltd. Vs. CCE (CESTAT Mumbai)<\/li>\n<li><span style=\"color: #00ccff;\"><strong>ST:\u00a0<\/strong><\/span>Valuation of Construction Service provided by a builder to a landowner who transfers his land \/ development rights under tri-partite construction business model should be guided by the BoardCir.No.151\/2\/2012-ST, dt.10.2.2012\u00a0and not the CBEC\u2019s Education Guide on Taxation of Services, 2012 \u2013 High Level Committee.<\/li>\n<li>Cenvat credit cannot be denied to the service recipient for non-payment of Service Tax by the Service provider [Memories Photography Studio vs. Commissioner of CEST, Vadodara].<\/li>\n<li>No <a href=\"https:\/\/carajput.com\/services-vat.php\">VAT<\/a> on free supply of medicines [Mapra Laboratories (P) Ltd. vs. Commercial Tax Officer].<\/li>\n<li>Classification of Import of services from M\/s. Society for Worldwide Interbank Financial Telecommunication (SWIFT) which is a non-resident entity not having an office in India &#8211; reverse charge &#8211; Demand conformed invoking the extended period of limitation- (Bank of Baroda Versus Commissioner of Service Tax, Mumbai-I\u00a0&#8211; 2016 (1) TMI 767 &#8211; CESTAT MUMBAI).<\/li>\n<li>Applicability of <a href=\"https:\/\/carajput.com\/services-tax-registration.php\">Service Tax<\/a> on the services received by apparel exporters in relation to fabrication of garments [Circular No. 190\/9\/2015-ST].<\/li>\n<li>Re-credit of duty, paid through Cenvat Credit, is not allowed [Garden Silk Mills Ltd. vs. Comm. of CEST, Surat, (2016)].<\/li>\n<li>CBEC has issued instructions dated\u00a09th\u00a0December, 2016\u00a0for the use of digital mode of payment while making financial transactions as this will disclose all financial transactions and hence enhanced turnover might get reflected in the Books of Accounts.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Companies_Act_Update\"><\/span><strong><span style=\"text-decoration: underline;\">Companies Act \u00a0Update:-<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li>Of India issued report on Companies Amendment Bill, 2016.<\/li>\n<li>MCA has\u00a0notified\u00a0the Companies (Transfer of Pending Proceedings) Rules, 2016\u00a0which shall come into force w.e.f\u00a015th December, 2016 except rule 4, which shall come into force\u00a0from 1st April, 2017.<\/li>\n<\/ul>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Other_Update\"><\/span><strong><span style=\"text-decoration: underline;\">Other Update:-<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul style=\"text-align: justify;\">\n<li>Senior IRS officer Rajendra Kumar appointed as the new member of the CBDT, the policy making body for the <a href=\"https:\/\/carajput.com\/income-tax-services.php\">Income Tax<\/a> Department.<\/li>\n<\/ul>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Key_Dates\"><\/span><strong><span style=\"text-decoration: underline;\">Key Dates:-<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul style=\"text-align: justify;\">\n<li>Payment of Advance Income Tax for all assessees (75%) :\u00a015\/12\/2016.<\/li>\n<li>E-Payment of <a href=\"https:\/\/carajput.com\/pf-esi.php\">PF<\/a> for Nov:\u00a015\/12\/2016.<\/li>\n<li>Payment of <a href=\"https:\/\/carajput.com\/services-vat.php\">DVAT<\/a> TDS for Nov :\u00a015\/12\/2016.<\/li>\n<li>Issue of<a href=\"https:\/\/carajput.com\/tds.php\"> TDS<\/a> certificate in case of payment\/credit made in Oct for purchase of property u\/s 194IA :\u00a015\/12\/2016.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\u201cBeautiful relation is like a ring when you wear it, it will hold your finger tightly, and when you remove it, it will surely make you feel it&#8217;s absence with a mark.\u201d<\/p>\n<p style=\"text-align: justify;\">\u201cNo candle loses its light while lighting another candle. So never stop sharing and helping others because it makes your life more meaningful.\u201d<\/p>\n<p style=\"text-align: justify;\">We look forward for your valuable comment www.carajput.com<\/p>\n<p style=\"text-align: justify;\">FOR FURTHER QUERIES CONTACT US:<\/p>\n<p style=\"text-align: justify;\">W:\u00a0<a href=\"https:\/\/carajput.com\/\">www.carajput.com<\/a>\u00a0 \u00a0E: <a href=\"https:\/\/carajput.com\/\">singh@carajput.com<\/a>\u00a0 \u00a0, 9-555-555-480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Professional Update for the Day: DIRECT TAX: Reopening u\/s 147 of the assessment is not valid if the reasons recorded are incoherent and do not indicate what the basis for reopening is &#8211; Delhi High Court in Sabharwal Properties Ind Pvt. Ltd vs. ITO. Continuous payments made to transporters would be aggregated to consider TDS &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9933,9,4],"tags":[9156,9019,175,5,9020,322],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2950"}],"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=2950"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2950\/revisions"}],"predecessor-version":[{"id":20361,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2950\/revisions\/20361"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}