{"id":798,"date":"2015-12-19T11:50:48","date_gmt":"2015-12-19T06:20:48","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=798"},"modified":"2021-11-23T14:27:45","modified_gmt":"2021-11-23T08:57:45","slug":"corporate-and-professional-update-december-12-2015","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-12-2015\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE DECEMBER 12, 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-69d713fe73eb9\" 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-69d713fe73eb9\"  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-december-12-2015\/#CORPORATE_AND_PROFESSIONAL_UPDATE_DECEMBER_12_2015\" title=\"CORPORATE AND PROFESSIONAL UPDATE DECEMBER 12, 2015\">CORPORATE AND PROFESSIONAL UPDATE DECEMBER 12, 2015<\/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-december-12-2015\/#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-and-professional-update-december-12-2015\/#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-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-12-2015\/#INDIRECT_TAX_LAWS_STEXCUS_CST_VAT\" title=\"INDIRECT TAX LAWS (ST.\/EX.\/CUS. &amp; (CST &amp; VAT)\">INDIRECT TAX LAWS (ST.\/EX.\/CUS. &amp; (CST &amp; VAT)<\/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\/22.png\" rel=\"attachment wp-att-1545\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1545\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/22-300x173.png\" alt=\"22\" width=\"764\" height=\"440\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/22-300x173.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/22-768x442.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/22.png 887w\" sizes=\"(max-width: 764px) 100vw, 764px\" \/><\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_DECEMBER_12_2015\"><\/span><span style=\"color: #ff6600;\"><strong>CORPORATE AND PROFESSIONAL UPDATE DECEMBER 12, 2015<\/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\/\"><strong>INCOME TAX ACT<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 5<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>ACCRUAL OF &#8211;\u00a0INCOME<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Income :<\/span>\u00a0<\/strong>Where interest income from security accrued in terms of books of account maintained by assessee, but same was offered to tax on actual receipt, and Tribunal passed detailed order in favour of assessee in earlier year, which it followed in current assessment year also, exercise undertaken by tribunal could not be termed as perverse &#8211;<span style=\"color: #3366ff;\">\u00a0<em>[2015] 63\u00a0 166 (Bombay)<\/em><\/span><\/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: #3366ff;\"><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: #993300;\">Interest of :<\/span>\u00a0<\/strong>Where assessee invested its own funds in shares resulting in earning of<a href=\"https:\/\/carajput.com\/blog\/taxation-on-income-from-equity-and-debt-mutual-fund\/\"> dividend income<\/a> exempt from tax, impugned disallowance made by Assessing Officer by invoking provisions of section 14A, read with Rule 8D was not sustainable &#8211;\u00a0<span style=\"color: #3366ff;\"><em>[2015] 63\u00a0 198 (Panaji \u2013 Trib.)<\/em><\/span><\/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 32<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>DEPRECIATION &#8211; ALLOWANCE\/RATE OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">100 per cent depreciation :<\/span>\u00a0<\/strong>Electrically operated vehicles including battery power or fuel cell powered vehicles are entitled to 100 per cent depreciation under Appendix I, Part-A, Item III(3)(xiii)(o) of <a href=\"https:\/\/carajput.com\/blog\/taxes-on-income-received-from-blogging-under-income-tax\/\">Income-tax<\/a> Rules, 1962 &#8211;<span style=\"color: #3366ff;\"><em>[2015] 63\u00a0 176 (Calcutta)<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 43A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>CHANGE IN FOREIGN CURRENCY, RATE OF EXCHANGE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Depreciation :<\/span>\u00a0<\/strong>Expenditure incurred to get rid of forward contracts which assessee had entered into for purpose of protecting itself from fluctuations of foreign exchange, could not come within four corners of section 43A &#8211;<span style=\"color: #3366ff;\"><em>[2015] 63 .com 176 (Calcutta)<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 44BBA<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>IN CASE OF NON-RESIDENTS &#8211; BUSINESS OF OPERATION OF AIR CRAFT\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Applicability of :<\/span>\u00a0<\/strong>When there is no taxable income, section 44BBA cannot be applied to bring to tax presumptive income constituting 5 per cent of gross receipts &#8211;<span style=\"color: #3366ff;\">\u00a0<em>[2015] 64\u00a0 93 (Delhi)<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 45<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>CAPITAL GAINS \u2013 CHARGEABLE AS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The question of bringing to tax under Section 45 (5) (b) of the Act the enhanced compensation received by the Assessee during the relevant previous year by furnishing bank guarantee will have to await the final decision in the appellate proceedings emanating from the order of the ADJ in the proceedings under Section 31 (2) LA Act.<\/p>\n<p style=\"text-align: justify;\">Question of assessing to tax the interest received by the assessee on enhanced compensation in the same year in which the enhanced compensation is received will also have to await the final decision in the appellate proceedings. &#8211;\u00a0<span style=\"color: #3366ff;\"><em>[2015] 64 122 (Delhi)<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 80QQB<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>DEDUCTIONS &#8211; ROYALTY INCOMES, ETC. OF AUTHORS OF CERTAIN BOOKS OTHER THAN TEXT BOOKS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee had authored a book on income tax problems in question answer form which was titled &#8220;How to Handle Income-tax problems&#8221;, since his book was on a complex issue which really needed intellect and knowledge, said book was a literary work in terms of section 80QQB; and, hence, royalty received on same would be entitled to deduction &#8211;<span style=\"color: #3366ff;\">\u00a0<em>[2015] 64\u00a0 121 (Kolkata \u2013 Trib.)<\/em><\/span><\/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: #3366ff;\"><strong>TRANSFER PRICING &#8211; COMPUTATION OF ARM&#8217;S LENGTH PRICE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Selling expenses incurred for making sales are distinct from AMP expenses and, hence, should not be included in base amount for computing ALP of AMP expenses &#8211;\u00a0<span style=\"color: #3366ff;\"><em>[2015] 64 120 (Delhi &#8211; Trib.)<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Comparables and adjustments\/Methods \u2013 PSM :<\/span>\u00a0<\/strong>When transactions involved contributions of multiple entities and are integrated and interrelated and they cannot be separately evaluated for purpose of determining ALP of any one transaction, &#8216;PSM&#8217; is &#8216;MAM&#8217; &#8211;\u00a0<span style=\"color: #3366ff;\"><em>[2015] 63\u00a0 304 (Delhi \u2013 Trib.)<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 269SS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>DEPOSITS &#8211; MODE OF TAKING\/ACCEPTING<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Amount received from partners :<\/span>\u00a0<\/strong>Where assessee received deposits from partners and sister concerns in cash, since there was no material whatsoever to infer that those receipts were anything other than loans or deposits, impugned penalty order passed under section 271D for violating provisions of section 269SS, was to be confirmed &#8211;\u00a0<span style=\"color: #3366ff;\"><em>[2015] 63\u00a0 196 (Kerala)<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 271D<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>PENALTY &#8211; FOR FAILURE TO COMPLY WITH SECTION 269SS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #993300;\"><strong>Initiation of penalty proceedings :\u00a0<\/strong><\/span>Penalty proceedings under provisions of sections 271D and 271E are initiated not by Assessing Officer but only with issuance of notice by Joint Commissioner &#8211;<span style=\"color: #3366ff;\">\u00a0<em>[2015] 63\u00a0 196 (Kerala)<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 271E<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>PENALTY &#8211; FOR FAILURE TO COMPLY WITH SECTION 269T<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #993300;\"><strong>Recording of satisfaction :\u00a0<\/strong><\/span>Where pursuant to directions issued by Commissioner (Appeals), Assessing Officer passed a fresh assessment order wherein no satisfaction was recorded for initiating penalty proceedings under section 271E, impugned penalty order passed under said section deserved to be set aside &#8211;<span style=\"color: #3366ff;\">\u00a0<em>[2015] 64 .75 (SC)<\/em><\/span><\/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: #ff6600;\"><strong>SECTION 457<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>WINDING UP &#8211; POWERS OF LIQUIDATOR<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Any claim with regard to Provident Fund dues can only lie before Commissioner, Provident Fund, under relevant statute, consequently, whilst other claims for any unpaid wages etc. may well be admitted by Official Liquidator, however, any claims raised directly to Official Liquiation for payment of Provident Fund dues would be an exercise in futility since it is bound to be rejected on ground that company was never obliged to pay workmen any such amounts in first place &#8211;\u00a0<span style=\"color: #3366ff;\"><em>[2015] 64\u00a0 123 (Delhi)<\/em><\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INDIRECT_TAX_LAWS_STEXCUS_CST_VAT\"><\/span><span style=\"color: #3366ff;\"><strong>INDIRECT TAX LAWS (ST.\/EX.\/CUS. &amp; (<a href=\"https:\/\/carajput.com\/services-vat.php\">CST &amp; VAT<\/a>)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Minutes of Tariff Conference held in Chandigarh on 28-10-2015 and 29-10-2015 &#8211;\u00a0<em>LETTER F.NO.96\/85\/2015-CX.I, DATED 7-12-2015<\/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 DECEMBER 12, 2015 INCOME TAX ACT SECTION 5 ACCRUAL OF &#8211;\u00a0INCOME Income :\u00a0Where interest income from security accrued in terms of books of account maintained by assessee, but same was offered to tax on actual receipt, and Tribunal passed detailed order in favour of assessee in earlier year, which it followed &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,150,172,9,1],"tags":[9018,9082,2601,333,3882],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/798"}],"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=798"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/798\/revisions"}],"predecessor-version":[{"id":19221,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/798\/revisions\/19221"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}