{"id":626,"date":"2015-11-21T13:03:58","date_gmt":"2015-11-21T13:03:58","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=626"},"modified":"2021-10-21T17:36:43","modified_gmt":"2021-10-21T12:06:43","slug":"income-tax-update","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/income-tax-update\/","title":{"rendered":"Income tax update on 20th November 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-69e843489474b\" 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-69e843489474b\"  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\/income-tax-update\/#INCOME_TAX_UPDATE_ON_20TH_NOVEMBER_2015\" title=\"INCOME TAX UPDATE ON 20TH NOVEMBER 2015\">INCOME TAX UPDATE ON 20TH NOVEMBER 2015<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#SECTION_9\" title=\"SECTION 9\">SECTION 9<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#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\/income-tax-update\/#Charitable_or_Religious_trust_%E2%80%93_exemption_of_income_from_property_held\" title=\"Charitable or Religious trust &#8211; exemption of income from property held\">Charitable or Religious trust &#8211; exemption of income from property held<\/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\/income-tax-update\/#Expenditure_incurred_in_relation_to_income_not_includible_in_total_income\" title=\"Expenditure incurred in relation to income not includible in total income\">Expenditure incurred in relation to income not includible in total income<\/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\/income-tax-update\/#Business_lossdeductions_%E2%80%93_allowable_as\" title=\"Business loss\/deductions &#8211; allowable as\">Business loss\/deductions &#8211; allowable as<\/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\/income-tax-update\/#Business_expenditure_%E2%80%93_allowability_of\" title=\"Business expenditure &#8211; allowability of\">Business expenditure &#8211; allowability of<\/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\/income-tax-update\/#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-9\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#Capital_gains_%E2%80%93_computation_of\" title=\"Capital gains &#8211; computation of\">Capital gains &#8211; computation of<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#TRANSFER_PRICING_%E2%80%93_COMPUTATION_OF_ARMS_LENGTH_PRICE\" title=\"TRANSFER PRICING &#8211; COMPUTATION OF ARM\u2019S LENGTH PRICE\">TRANSFER PRICING &#8211; COMPUTATION OF ARM\u2019S LENGTH PRICE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#METHOD_OF_ACCOUNTING_%E2%80%93_SYSTEM_OF_ACCOUNTING\" title=\"METHOD OF ACCOUNTING &#8211; SYSTEM OF ACCOUNTING\">METHOD OF ACCOUNTING &#8211; SYSTEM OF ACCOUNTING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#NON-RESIDENT_%E2%80%93_SHIPPING_BUSINESS_OF\" title=\"NON-RESIDENT &#8211; SHIPPING BUSINESS OF\">NON-RESIDENT &#8211; SHIPPING BUSINESS OF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#DEDUCTION_OF_TAX_AT_SOURCE_%E2%80%93_PAYMENT_TO_NON-RESIDENT\" title=\"DEDUCTION OF TAX AT SOURCE &#8211; PAYMENT TO NON-RESIDENT\">DEDUCTION OF TAX AT SOURCE &#8211; PAYMENT TO NON-RESIDENT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#PENALTY_%E2%80%93_WHERE_SEARCH_HAS_BEEN_INITIATED\" title=\"PENALTY &#8211; WHERE SEARCH HAS BEEN INITIATED\">PENALTY &#8211; WHERE SEARCH HAS BEEN INITIATED<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#SHARE_CAPITAL_%E2%80%93_REDUCTION_OF\" title=\"SHARE CAPITAL &#8211; REDUCTION OF\">SHARE CAPITAL &#8211; REDUCTION OF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#DISHONOUR_OF_CHEQUE_FOR_INSUFFICIENCY_ETC_OF_FUNDS_IN_ACCOUNT\" title=\"DISHONOUR OF CHEQUE FOR INSUFFICIENCY ETC., OF FUNDS IN ACCOUNT\">DISHONOUR OF CHEQUE FOR INSUFFICIENCY ETC., OF FUNDS IN ACCOUNT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#TAXABLE_SERVICES_%E2%80%93_FRANCHISE_SERVICES\" title=\"TAXABLE SERVICES &#8211; FRANCHISE SERVICES\">TAXABLE SERVICES &#8211; FRANCHISE SERVICES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#TAXABLE_SERVICES_%E2%80%93_STORAGE_AND_WAREHOUSING_OF_GOODS_SERVICES\" title=\"TAXABLE SERVICES &#8211; STORAGE AND WAREHOUSING OF GOODS SERVICES\">TAXABLE SERVICES &#8211; STORAGE AND WAREHOUSING OF GOODS SERVICES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/income-tax-update\/#CHARGELEVY_%E2%80%93_EXCISE_DUTY_ON_DTA_CLEARANCES_BY_100_PER_CENT_EOU\" title=\"CHARGE\/LEVY &#8211; EXCISE DUTY ON DTA CLEARANCES BY 100 PER CENT EOU\">CHARGE\/LEVY &#8211; EXCISE DUTY ON DTA CLEARANCES BY 100 PER CENT EOU<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INCOME_TAX_UPDATE_ON_20TH_NOVEMBER_2015\"><\/span><span style=\"color: #000080;\"><strong>INCOME TAX UPDATE ON 20TH NOVEMBER 2015<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_9017\" aria-describedby=\"caption-attachment-9017\" style=\"width: 828px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/28-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9017\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/28-1.png\" alt=\"www.carajput.com\" width=\"828\" height=\"555\" \/><\/a><figcaption id=\"caption-attachment-9017\" class=\"wp-caption-text\">www.carajput.com<\/figcaption><\/figure>\n<p><a href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\"><strong>INCOME TAX<\/strong><\/a> <strong>ACT<\/strong><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SECTION_9\"><\/span><strong><span style=\"color: #3366ff;\">SECTION 9<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Income_%E2%80%93_deemed_to_accrue_or_arise_in_India\"><\/span>Income &#8211; deemed to accrue or arise in India<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Where secondees under secondment agreement with <a href=\"https:\/\/carajput.com\/blog\/a-forign-company-open-a-branch-office-in-india\/\">foreign<\/a> parent co are not ordinary employees but those in high level managerial\/executive positions and draw salaries from foreign parent co.<\/p>\n<p style=\"text-align: justify;\">The amount paid to foreign parent under secondment agreement is FTS under Explanation 2 to sec 9(1)(vii) in view of the fact that secondees were deputed because of their expertise and managerial skills in the field.<\/p>\n<p style=\"text-align: justify;\">Further, FTS or royalty paid to non-resident attracts tax u\/s 44D on gross amount irrespective of any profit element in the payment &#8211;<strong><span style=\"color: #ff9900;\"><em>[2015] (Bangalore &#8211; Trib.)<\/em><\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 11<\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Charitable_or_Religious_trust_%E2%80%93_exemption_of_income_from_property_held\"><\/span><strong>Charitable or Religious trust &#8211; exemption of income from property held<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Capital asset:\u00a0<\/strong>Where assessee disposed of investments being its capital assets held under Trust wholly for charitable purpose and net consideration from such disposal was utilized for acquiring other capital assets for charitable purpose, assessee&#8217;s claim was to be allowed on capital gain arising from such disposal of original investments even though capital assets were not held till end of financial year &#8211;<span style=\"color: #ff9900;\"><strong>\u00a0<em>[2015 (Kolkata &#8211; Trib.)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 14A<\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Expenditure_incurred_in_relation_to_income_not_includible_in_total_income\"><\/span><strong>Expenditure incurred in relation to income not includible in total income<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Applicability of :\u00a0<\/strong>Where Assessing Officer made disallowance in respect of dividend income by relying upon Rule 8D of Income-tax Rules, 1962, since said rule was applicable for assessment year 2008-09 while assessment year under consideration was 2007-08, impugned disallowance was to be deleted &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] (Delhi &#8211; Trib.)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>Dividend :\u00a0<\/strong>Where Assessing Officer did not record any finding that any expenditure incurred by assessee was attributable to earning exempt income, disallowance under section 14A was to be deleted &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] \u00a0(Delhi)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 28(i)<\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Business_lossdeductions_%E2%80%93_allowable_as\"><\/span><strong>Business loss\/deductions &#8211; allowable as<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Foreign exchange fluctuation loss:\u00a0<\/strong><a href=\"https:\/\/carajput.com\/blog\/tag\/fema\/\">Foreign exchange<\/a> fluctuation loss incurred by assessee in respect of outstanding foreign currency term loan was to be allowed as business loss &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] (Delhi &#8211; Trib.)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 37(1)<\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Business_expenditure_%E2%80%93_allowability_of\"><\/span><strong>Business expenditure &#8211; allowability of<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Non-compete fee :\u00a0<\/strong>Where assessee purchased business division of another concern which also included payment to non-compete fee restraining seller from carrying on similar business for three years, said payment was to be regarded as capital expenditure &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] (Delhi &#8211; Trib.)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 40A(2)<\/strong><\/span><\/p>\n<h3><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;\"><strong>Commission :\u00a0<\/strong>Where assessee paid commission on export sales at same rate at which it had been paid by seller of business earlier, disallowance made by Assessing Officer taking a view that a part of commission payment was excessive, was to be deleted &#8211;\u00a0<strong><em>[2015] (Delhi &#8211; Trib.)<\/em><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 48<\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Capital_gains_%E2%80%93_computation_of\"><\/span><strong>Capital gains &#8211; computation of<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Shares :\u00a0<\/strong>Where in order to give effect to business transfer agreement, assessee purchased shares of management staff, since impugned amount was non-recoverable and was a loss on account of business transfer, it was required to be deducted from capital gain in respect of slump sale of trading business &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] 62 \u00a0284 (Delhi &#8211; Trib.)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 92C<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"TRANSFER_PRICING_%E2%80%93_COMPUTATION_OF_ARMS_LENGTH_PRICE\"><\/span><strong>TRANSFER PRICING &#8211; COMPUTATION OF ARM\u2019S LENGTH PRICE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Dispute Resolution Panel :\u00a0<\/strong>DRP cannot be absolved from its duty without going into merits of contention of assessee as to whether a comparable company is comparable to it or not &#8211;<span style=\"color: #ff9900;\"><strong>\u00a0<em>[2015] 62<\/em><em>\u00a0<\/em><em>taxmann.com<\/em><em>\u00a0<\/em><em>321 (Delhi &#8211; Trib.)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 145<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"METHOD_OF_ACCOUNTING_%E2%80%93_SYSTEM_OF_ACCOUNTING\"><\/span><strong>METHOD OF ACCOUNTING &#8211; SYSTEM OF ACCOUNTING<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Professional fees :\u00a0<\/strong>In case of legal fees, only when legal matter is over and assessee advocate decides on quantum of fees, it becomes income in hands of advocate and entire advance amount that includes pocket payments would not bear any particular characterization for purpose of treating it as income &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015]<\/em><em>\u00a0<\/em><em>324 (Delhi)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 172<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"NON-RESIDENT_%E2%80%93_SHIPPING_BUSINESS_OF\"><\/span><strong>NON-RESIDENT &#8211; SHIPPING BUSINESS OF<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">An order computing the taxable income is essentially an assessment order therefore, any order passed under section 172(4) is also an assessment order.<\/p>\n<p style=\"text-align: justify;\">Since Assessing Officer failed to pass draft assessment order under section 172(4) as required under the DRP provisions contained under section 144C, Assessing Officer\u2019s order was null and void.<\/p>\n<p style=\"text-align: justify;\">Order under section 172(4) is an &#8216;assessment order&#8217; so as to make DRP provisions under section 144C applicable. &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] (Rajkot &#8211; Trib.)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>Demurrage charges :\u00a0<\/strong>In view of difference of opinion between orders passed by co-ordinate Benches of Tribunal regarding applicability of section 172 in respect of demurrage paid to non-resident shipping company, matter was to be referred to Larger Bench for consideration &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] (Bombay)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 195<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"DEDUCTION_OF_TAX_AT_SOURCE_%E2%80%93_PAYMENT_TO_NON-RESIDENT\"><\/span><strong><a href=\"https:\/\/carajput.com\/tds.php\">DEDUCTION OF TAX AT SOURCE<\/a> &#8211; PAYMENT TO NON-RESIDENT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Under provisions of Section 10(15A) prior to 1st April 1996 payments made for acquisition of an aircraft or an aircraft engine on lease, were exempted from taxation but from 1st April 1996, the Legislature has excluded the payments made for providing spares, facilities or services in connection with the operation of the leased aircraft from the ambit of the exemption under Section 10(15A).<\/p>\n<p style=\"text-align: justify;\">Supplemental rent did not fall within the ambit of the exclusionary provisions of Section 10 (15A) as revenue was unable to point out any clause in the agreement that required the lesser to provide facilities or services in connection with the leased aircraft.<\/p>\n<p style=\"text-align: justify;\">Thus, there was no obligation of assessee to deduct tax at source on supplementary lease rentals &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] (Delhi)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 271AAA<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"PENALTY_%E2%80%93_WHERE_SEARCH_HAS_BEEN_INITIATED\"><\/span><strong>PENALTY &#8211; WHERE SEARCH HAS BEEN INITIATED<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Illustration :\u00a0<\/strong>Where no question was asked during statement recorded under section 132(4), in respect of manner of earning income surrendered, assessee could not be expected to substantiate same later on; penalty could not be levied under section 271AAA &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] (Chandigarh &#8211; Trib.)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>COMPANIES ACT<\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 100<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SHARE_CAPITAL_%E2%80%93_REDUCTION_OF\"><\/span><strong>SHARE CAPITAL &#8211; REDUCTION OF<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Where reduction of share capital did not affect normal operation of company or its ability to honor commitments and to pay its debts in ordinary course of business, reduction of paid-up share capital was to be allowed &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] 316 (Madras)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>NEGOTIABLE INSTRUMENTS ACT<\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 138<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"DISHONOUR_OF_CHEQUE_FOR_INSUFFICIENCY_ETC_OF_FUNDS_IN_ACCOUNT\"><\/span><strong>DISHONOUR OF CHEQUE FOR INSUFFICIENCY ETC., OF FUNDS IN ACCOUNT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Accused convicted for cheque bouncing as he failed to rebut belief that cheque was issued for legally enforceable debt &#8211;\u00a0<strong><span style=\"color: #ff9900;\"><em>[2015] (Madras)<\/em><\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/carajput.com\/sebi-consulting.php\"><strong>SEBI ACT<\/strong><\/a><\/p>\n<p style=\"text-align: justify;\">REGULATION 6A OF SECURITIES &amp; EXCHANGE BOARD OF INDIA (STOCK BROKERS AND SUB-BROKERS) REGULATIONS, 1992<\/p>\n<p style=\"text-align: justify;\"><strong>CONDITIONS OF REGISTRATION<\/strong><\/p>\n<p style=\"text-align: justify;\">Where to do business as a broker with NSE, a subsidiary of Vadodara Stock Exchange (a company limited by guarantee) is amalgamated with another subsidiary (company limited by shares) to meet the SEBI Policy that &#8220;only one subsidiary of a Stock Exchange can be member of another stock exchange and that subsidiary has to be a company limited by stocks&#8221; .<\/p>\n<p style=\"text-align: justify;\">The amalgamated company registered afresh with BSE, the amalgamated company is not entitled to &#8220;Fee Continuity benefit&#8221; under SEBI Regulations available to &#8220;amalgamation under the compulsion of law&#8221; as the first subsidiary could have been wound up instead of amalgamating it with second subsidiary to qualify for &#8220;only one subsidiary&#8221; policy.<\/p>\n<p style=\"text-align: justify;\">In such a case, amalgamated company will have to pay registration fees afresh to BSE and cannot claim &#8220;fee continuity benefit&#8221; for fees paid by the amalgamating company &#8211; <span style=\"color: #ff9900;\"><strong><em>[2015] (SC)<\/em><\/strong><\/span><\/p>\n<ul>\n<li><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">REGULATION 10C OF SECURITIES &amp; EXCHANGE BOARD OF INDIA (STOCK BROKERS AND SUB-BROKERS) REGULATIONS, 1992<\/p>\n<p style=\"text-align: justify;\"><strong>PAYMENT OF FEES AND THE CONSEQUENCES OF FAILURE TO PAY FEES<\/strong><\/p>\n<p style=\"text-align: justify;\">Stock brokers who have converted their individual\/partnership membership into a corporate entity prior to 1-4-1997 to Securities &amp; Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 are entitled to fee continuity benefit in terms of paragraph 4 of Schedule III &#8211;<span style=\"color: #ff9900;\"><strong>\u00a0<em>[2015] 44 (SC)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/carajput.com\/services-tax-registration.php\"><strong>SERVICE TAX<\/strong><\/a><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #3366ff;\">SECTION 65(47)<\/span><\/strong><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"TAXABLE_SERVICES_%E2%80%93_FRANCHISE_SERVICES\"><\/span><strong>TAXABLE SERVICES &#8211; FRANCHISE SERVICES<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Training\/Course fee shared in ratio of 25:75 between assessee and centres providing training, is akin to revenue sharing model for training services and therefore, 25 per cent retained by assessee cannot be taxed under franchise services &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] (Mumbai &#8211; CESTAT)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #3366ff;\">SECTION 65(102)<\/span><\/strong><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"TAXABLE_SERVICES_%E2%80%93_STORAGE_AND_WAREHOUSING_OF_GOODS_SERVICES\"><\/span><strong>TAXABLE SERVICES &#8211; STORAGE AND WAREHOUSING OF GOODS SERVICES<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Unclaimed auction proceeds, retained by a warehouse from out of sale proceeds of auctioned goods, cannot be taxed under Storage &amp; Warehousing services &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>[2015] (Mumbai &#8211; CESTAT)<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/carajput.com\/services-excise-consultancy.php\"><strong>CENTRAL EXCISE ACT<\/strong><\/a><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>SECTION 3<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CHARGELEVY_%E2%80%93_EXCISE_DUTY_ON_DTA_CLEARANCES_BY_100_PER_CENT_EOU\"><\/span><strong>CHARGE\/LEVY &#8211; EXCISE DUTY ON DTA CLEARANCES BY 100 PER CENT EOU<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Catalyst, which is not consumed in manufacture, cannot be regarded as &#8216;raw material&#8217;; hence, concessional duty conditional upon use of &#8216;domestic raw materials&#8217; cannot be denied merely because of use of imported catalyst &#8211;<strong><span style=\"color: #ff9900;\"><em>[2015]<\/em><em>\u00a0<\/em><em>315 (SC)<\/em><\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>STATUTES<\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>CORPORATE LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Draft of Insolvency and Bankruptcy Bill, 2015 &#8211;\u00a0<strong><span style=\"color: #ff9900;\"><em>PRESS RELEASE, DATED 4-11-2015<\/em><\/span><\/strong><\/p>\n<p style=\"text-align: justify;\">Report of Bankruptcy Law Reforms Committee &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>PRESS RELEASE, DATED 4-11-2015<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Format for Quarterly Holding Pattern, Disclosure Norms for Corporate Governance Report and manner for Compliance with Two-Way Fundability of Indian Depository Receipts (IDRS) &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>CIRCULAR NO.CFD\/CMD\/9\/2015, DATED 4-11-2015<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Format for Business Responsibility Report (BRR) &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>CIRCULAR NO.CFD\/CMD\/10\/2015, DATED 4-11-2015<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Sovereign Gold Bonds, 2015-16 \u2013 Operational Guidelines &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>CIRCULAR IDMD.CDD.NO.968\/14.04.050\/2015-16, DATED 4-11-2015<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Motor Third Party premium rates for e-Carts [A3\/A4], e-Rickshaws (C1(B)]And passenger premium for motorized two wheeler carrying passengers for hire or reward [C4] &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>CIRCULAR NO.IRDA\/NL\/CIR\/MOTP\/196\/11\/2015, DATED 4-11-2015<\/em><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Section 396 of the Companies Act, 2013 \u2013 Registration Offices \u2013 Notified Regional Directors for purpose of section 396(1) &#8211;\u00a0<span style=\"color: #ff9900;\"><strong><em>NOTIFICATION NO. GSR 832(E) [F.NO.1\/16\/2013-CL-V], DATED 3-11-2015<\/em><\/strong><\/span><\/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>\u00a0\u00a0or call at 9555555480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>INCOME TAX UPDATE ON 20TH NOVEMBER 2015 &nbsp; INCOME TAX ACT SECTION 9 Income &#8211; deemed to accrue or arise in India Where secondees under secondment agreement with foreign parent co are not ordinary employees but those in high level managerial\/executive positions and draw salaries from foreign parent co. The amount paid to foreign parent &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,150,172,9,4,12,15],"tags":[3385,3371,9063,2725,5,3479,9038],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/626"}],"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=626"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/626\/revisions"}],"predecessor-version":[{"id":17957,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/626\/revisions\/17957"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}