{"id":489,"date":"2015-10-24T10:19:41","date_gmt":"2015-10-24T10:19:41","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=489"},"modified":"2023-12-02T10:37:53","modified_gmt":"2023-12-02T05:07:53","slug":"corporate-tax-update-for-the-month-of-october-forth-week","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-tax-update-for-the-month-of-october-forth-week\/","title":{"rendered":"Corporate &#038; Professional Update for Month October 2015"},"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-69ea63cead8a5\" 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-69ea63cead8a5\"  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-tax-update-for-the-month-of-october-forth-week\/#Corporate_tax_Update_for_the_Month_of_Second_week\" title=\"Corporate tax Update for the Month of Second week\">Corporate tax Update for the Month of Second week<\/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-tax-update-for-the-month-of-october-forth-week\/#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-tax-update-for-the-month-of-october-forth-week\/#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><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-tax-update-for-the-month-of-october-forth-week\/#EDUCATIONAL_INSTITUTION\" title=\"EDUCATIONAL INSTITUTION\">EDUCATIONAL INSTITUTION<\/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-tax-update-for-the-month-of-october-forth-week\/#BUSINESS_DISALLOWANCE_%E2%80%93_EXCESSIVE_OR_UNREASONABLE_PAYMENTS\" title=\"BUSINESS DISALLOWANCE &#8211; EXCESSIVE OR UNREASONABLE PAYMENTS\">BUSINESS DISALLOWANCE &#8211; EXCESSIVE OR UNREASONABLE PAYMENTS<\/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-tax-update-for-the-month-of-october-forth-week\/#UNEXPLAINED_INVESTMENT\" title=\"UNEXPLAINED INVESTMENT\">UNEXPLAINED INVESTMENT<\/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-tax-update-for-the-month-of-october-forth-week\/#COMPANIES_ACT\" title=\"COMPANIES ACT\">COMPANIES ACT<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-tax-update-for-the-month-of-october-forth-week\/#More_updates_INCOME_TAX_UPDATE_18_NOVEMBER_2015\" title=\"More updates: INCOME TAX UPDATE 18 NOVEMBER 2015\">More updates: INCOME TAX UPDATE 18 NOVEMBER 2015<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/corporate-tax-update-for-the-month-of-october-forth-week\/#More_updates_INCOME_TAX_UPDATE_14_NOVEMBER_2015\" title=\"More updates:INCOME TAX UPDATE 14 NOVEMBER, 2015\">More updates:INCOME TAX UPDATE 14 NOVEMBER, 2015<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled33.png\" rel=\"attachment wp-att-1555\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1555\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled33-300x123.png\" alt=\"Untitled33\" width=\"822\" height=\"337\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled33-300x123.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled33-768x314.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled33.png 783w\" sizes=\"(max-width: 822px) 100vw, 822px\" \/><\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Corporate_tax_Update_for_the_Month_of_Second_week\"><\/span><span style=\"color: #000080;\"><strong>Corporate tax Update for the Month of Second week<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><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\/\"><strong>INCOME TAX ACT<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #3366ff;\">SECTION 2(22)<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>DEEMED DIVIDEND<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>Loans or advances to shareholder :\u00a0<\/strong>Where current account transactions between two group companies were business\/commercial transactions, same could not be regarded as deemed dividend under section 2(22)(e) &#8211;<em>[2015] (Delhi &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 9<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INCOME_%E2%80%93_DEEMED_TO_ACCRUE_OR_ARISE_IN_INDIA\"><\/span><strong>INCOME &#8211; DEEMED TO ACCRUE OR ARISE IN INDIA<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Where Chinese subsidiary of Indian holding company provides services in China in connection with procurement of goods by Indian company from Chinese vendors, specialized services of market research and information on new developments in China with regard to technology\/product\/process upgrade etc., fees received, by Chinese<a href=\"https:\/\/carajput.com\/blog\/tag\/public-limited-company\/\"> company<\/a> is chargeable to tax in India to extent of full amount received as fees for technical services at the rate of 10% of gross amount &#8211;\u00a0<em>[2015] (AAR &#8211; New Delhi)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 10(23C)<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"EDUCATIONAL_INSTITUTION\"><\/span><strong>EDUCATIONAL INSTITUTION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Furnishing of Audit Report in Form No. 10BB may be necessary for seeking approval under section 10(23C); however, mere failure to file Audit Report along with application under section 10(23C) would not result in rejection if the assessee furnishes the said report subsequently, prior to the rejection of the application &#8211; [2015] (Delhi)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 11<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>CHARITABLE OR RELIGIOUS TRUST &#8211; EXEMPTION OF INCOME FROM PROPERTY HELD UNDER<\/strong><\/p>\n<p style=\"text-align: justify;\">Application of income : Where assessee was carrying out relief work in areas affected by natural calamities but it could not produce details of expenditure on said activities, issue was to be restored to Assessing Officer to give one more opportunity to assessee to produce details &#8211; [2015] (Hyderabad &#8211; Trib.)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 40A(2)<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"BUSINESS_DISALLOWANCE_%E2%80%93_EXCESSIVE_OR_UNREASONABLE_PAYMENTS\"><\/span><strong>BUSINESS DISALLOWANCE &#8211; EXCESSIVE OR UNREASONABLE PAYMENTS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Transportation and handling charges : Where Assessing Officer had merely assumed certain facts without bringing any evidence or material against assessee in respect of excessive payments of transportation and handling charges, disallowance under section 40A(2) was to be deleted &#8211; [2015] (Chandigarh &#8211; Trib.)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 40(a)(ia)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>BUSINESS DISALLOWANCE &#8211; INTEREST, ETC., PAID TO RESIDENT WITHOUT DEDUCTION OF TAX AT SOURCE<\/strong><\/p>\n<p style=\"text-align: justify;\">Section 194C cases : Where Assessing Officer made disallowance under section 40(a)(ia) for failure of assessee to deduct tax at source out of payments made to sub-contractors, Tribunal was justified in restoring matter to Assessing Officer to verify transactions and if found to be correct, pass order accordingly &#8211; [2015] (Punjab &amp; Haryana)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 69<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"UNEXPLAINED_INVESTMENT\"><\/span><strong>UNEXPLAINED INVESTMENT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Cash deposit : Where assessee deposited cash and explained same as sale proceeds from his sole proprietorship concern, since assessee did not produce bank account details as well as sale vouchers to show that amount received was part of sale proceeds, matter was to be readjudicated &#8211; [2015] 61\u00a0 99 (Chandigarh &#8211; Trib.)<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 92C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>TRANSFER PRICING &#8211; COMPUTATION OF ARM\u2019S LENGTH PRICE<\/strong><\/p>\n<p style=\"text-align: justify;\">Comparables and adjustments : In case of assessee, rendering software development services to its AE, companies having functional difference, huge turnover and related party transactions in excess of 15 percent of revenue, could not be accepted as comparables while determining ALP &#8211; [2015] (Bangalore &#8211; Trib.)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 145<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>METHOD OF ACCOUNTING &#8211; ESTIMATION OF PROFIT<\/strong><\/p>\n<p style=\"text-align: justify;\">Net profit rate : Where Tribunal affirmed rejection of account books of assessee, but reduced net profit rate to 6 per cent, since in preceding as well as following year a net profit rate of 6.75 per cent and 5 per cent respectively was applied by Assessing Officer, there was no error in discretion exercised by Tribunal in applying net profit rate of 6 per cent &#8211; [2015] (Punjab &amp; Haryana)<\/p>\n<p style=\"text-align: justify;\"><strong>METHOD OF ACCOUNTING &#8211; REJECTION OF ACCOUNTS<\/strong><\/p>\n<p style=\"text-align: justify;\">Professional income : Assessing Officer could not reject books of assessee-doctor by presuming that all persons who had undergone lab tests had undergone surgery &#8211; [2015] 61 taxmann.com 353 (Chandigarh &#8211; Trib.)<\/p>\n<p style=\"text-align: justify;\">Illustrations : Where assessee failed to verify genuineness of opening and closing balance of labour charges payable or furnish details called for by Assessing Officer rejection of books of account was justified &#8211; [2015] (Chandigarh &#8211; Trib.)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 153A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>SEARCH AND SEIZURE &#8211; ASSESSMENT IN CASE OF<\/strong><\/p>\n<p style=\"text-align: justify;\">Condition precedent : Completed assessments can be interfered with by Assessing Officer while making assessment under section 153A only on basis of some incriminating material unearthed during course of search which was not produced or not already disclosed or made known in course of original assessment &#8211; [2015] (Delhi)<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 271(1)(c)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>PENALTY &#8211; FOR CONCEALMENT OF INCOME<\/strong><\/p>\n<p style=\"text-align: justify;\">Search &amp; Seizure : Where assessee withdrew claim for depreciation on IPR in statement during search and seizure operations undertaken on assessee but nothing incriminating was found during search which was concealed by assessees, penalty could not be levied under section 271(1)(c) merely on basis of statement during search &#8211; [2015] (Mumbai &#8211; Trib.)<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"COMPANIES_ACT\"><\/span><strong>COMPANIES ACT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 446<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>WINDING UP &#8211; SUITS STAYED ON WINDING UP ORDER<\/strong><\/p>\n<p style=\"text-align: justify;\">Proceedings under section 138 of the Negotiable Instruments Act, 1881 cannot be stayed by invoking power under section 446 of Companies Act, 1956 &#8211; [2015] (Kerala)<\/p>\n<p style=\"text-align: justify;\">\u00a0Hope 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 9555555480<\/p>\n<h4><span class=\"ez-toc-section\" id=\"More_updates_INCOME_TAX_UPDATE_18_NOVEMBER_2015\"><\/span><span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/blog\/income-tax-act-3\/\"><em>More updates: INCOME TAX UPDATE 18 NOVEMBER 2015<\/em><\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"More_updates_INCOME_TAX_UPDATE_14_NOVEMBER_2015\"><\/span><em><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/blog\/income-tax-act\/\">More updates:INCOME TAX UPDATE 14 NOVEMBER, 2015<\/a><\/span><\/strong><\/em><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Corporate tax Update for the Month of Second week INCOME TAX ACT SECTION 2(22) DEEMED DIVIDEND Loans or advances to shareholder :\u00a0Where current account transactions between two group companies were business\/commercial transactions, same could not be regarded as deemed dividend under section 2(22)(e) &#8211;[2015] (Delhi &#8211; Trib.) SECTION 9 INCOME &#8211; DEEMED TO ACCRUE OR &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],"tags":[3386,3385,3367,3371,3374,3373],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/489"}],"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=489"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/489\/revisions"}],"predecessor-version":[{"id":1292,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/489\/revisions\/1292"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}