{"id":938,"date":"2015-12-30T07:55:03","date_gmt":"2015-12-30T07:55:03","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=938"},"modified":"2021-12-17T13:24:27","modified_gmt":"2021-12-17T07:54:27","slug":"corporate-and-professional-update-december-16-2015","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-16-2015\/","title":{"rendered":"corporate and professional update december 16, 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-6a02af5cab28c\" 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-6a02af5cab28c\"  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-16-2015\/#CORPORATE_AND_PROFESSIONAL_UPDATE_DECEMBER_16_2015\" title=\"CORPORATE AND PROFESSIONAL UPDATE DECEMBER 16, 2015\">CORPORATE AND PROFESSIONAL UPDATE DECEMBER 16, 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-16-2015\/#CIT_Vs_Shri_Kapil_Kumar_Agarwal_ITA_No_12_of_2015_Date_of_Decision_04112015_High_Court_of_P_H\" title=\"CIT Vs. Shri Kapil Kumar Agarwal, I.T.A. No. 12 of 2015, Date of Decision: 04.11.2015, High Court of P &amp; H\">CIT Vs. Shri Kapil Kumar Agarwal, I.T.A. No. 12 of 2015, Date of Decision: 04.11.2015, High Court of P &amp; H<\/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-16-2015\/#Hero_Cycles_P_Ltd_Vs_CIT_CA_No_514_of_2008_Date_of_Judgement_05112015_Supreme_Court_of_India\" title=\"Hero Cycles (P) Ltd. Vs. CIT, C.A. No. 514 of 2008, Date of Judgement: 05.11.2015, Supreme Court of India\">Hero Cycles (P) Ltd. Vs. CIT, C.A. No. 514 of 2008, Date of Judgement: 05.11.2015, Supreme Court of India<\/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-16-2015\/#Read_our_articles_Top_Taxation_Relaxation_to_MSMS\" title=\"Read our articles: \u00a0Top Taxation Relaxation to MSMS\">Read our articles: \u00a0Top Taxation Relaxation to MSMS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-16-2015\/#Highlights_of_International_Taxation\" title=\"Highlights of International Taxation\">Highlights of International Taxation<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" class=\"attachment-266x266 \" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/Untitled35.png\" alt=\"Untitled35\" width=\"840\" height=\"304\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_DECEMBER_16_2015\"><\/span><span style=\"color: #800080;\"><strong><span style=\"text-decoration: underline;\">CORPORATE AND PROFESSIONAL UPDATE DECEMBER 16, 2015<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CIT_Vs_Shri_Kapil_Kumar_Agarwal_ITA_No_12_of_2015_Date_of_Decision_04112015_High_Court_of_P_H\"><\/span><span style=\"color: #ff6600;\"><strong><span style=\"text-decoration: underline;\">CIT Vs. Shri Kapil Kumar Agarwal, I.T.A. No. 12 of 2015, Date of Decision: 04.11.2015, High Court of P &amp; H<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Whether to avail the benefit of Section 54F of the <a href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\">Income Tax Act<\/a><a href=\"https:\/\/carajput.com\/income-tax-services.php\">, 1961<\/a>, is it required to utilize the sale proceeds of the original capital asset only for the purchase of the new asset.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>Held_No<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The AO denied the benefits of Section 54F for the reason that assessee did not entirely source the amount invested in new assets from capital gain receipts and investment was made after taking a loan from his employer.<\/p>\n<p style=\"text-align: justify;\">The assessee contended that due to the non-availability of sales consideration at the time of investment he made the investment out of the loan amount.<\/p>\n<p style=\"text-align: justify;\">Hon\u2019ble High Court followed the decision of the Kerala High Court in the case of\u00a0<span style=\"color: #ff6600;\"><strong>ITO vs K.C. Gopalan\u00a0(1999) 107 Taxman 591 (Ker.)<\/strong><\/span> wherein it was held that no provision is made by the statute that the assessee should utilize the amount which he obtained by way of sale consideration for the purpose of meeting the cost of the new asset.<\/p>\n<p style=\"text-align: justify;\">Further, it was held that the law permits utilization of capital gain within the specified time, the assessee may use such funds for other purposes and may find resources from another source for investment in time. The appeal is dismissed.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Hero_Cycles_P_Ltd_Vs_CIT_CA_No_514_of_2008_Date_of_Judgement_05112015_Supreme_Court_of_India\"><\/span><span style=\"color: #ff6600;\"><strong><span style=\"text-decoration: underline;\">Hero Cycles (P) Ltd. Vs. CIT, C.A. No. 514 of 2008, Date of Judgement: 05.11.2015, Supreme Court of India<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><em>Interest paid on borrowed sums further advanced to the subsidiary company for purpose of facilitating the subsidiary in meeting out its working capital requirement is allowable as business expenditure u\/s 36(1)(iii) of Income Tax Act, 1961.<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>Held_Yes<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The AO disallowed the interest paid on the borrowed amount utilized for giving advance to its subsidiary company stating that that money borrowed was not used for business purposes.<\/p>\n<p style=\"text-align: justify;\">Whereas the assessee contended that the amount was advanced in compliance with the stipulations laid down by the financial institutions to which undertaking was given by the assessee for the purpose of providing additional margin to the subsidiary company to meet the working capital for meeting any cash losses.<\/p>\n<p style=\"text-align: justify;\">Hon\u2019ble Supreme Court applied the view taken by Delhi High Court in\u00a0<span style=\"color: #ff6600;\"><strong>CIT v. Dalmia Cement (B.) Ltd. 2002 (254) ITR 377<\/strong><\/span>\u00a0wherein the High Court had held that \u201conce it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the Board of Directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case\u201d.<\/p>\n<p style=\"text-align: justify;\">Held that_the advance to the subsidiary company became imperative as business expediency in view of the undertaking given to the financial institutions by the assessee. The appeal of the assessee is allowed.<\/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<h4><span class=\"ez-toc-section\" id=\"Read_our_articles_Top_Taxation_Relaxation_to_MSMS\"><\/span>Read our articles: \u00a0<a href=\"https:\/\/carajput.com\/blog\/relevant-parts-of-the-honorable-fm-press-conference\/\">Top Taxation Relaxation to MSMS<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Highlights_of_International_Taxation\"><\/span><a href=\"https:\/\/carajput.com\/blog\/international-taxation\/\">Highlights of International Taxation<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE DECEMBER 16, 2015 CIT Vs. Shri Kapil Kumar Agarwal, I.T.A. No. 12 of 2015, Date of Decision: 04.11.2015, High Court of P &amp; H Whether to avail the benefit of Section 54F of the Income Tax Act, 1961, is it required to utilize the sale proceeds of the original capital asset &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150,9],"tags":[5,3808,3806,3807],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/938"}],"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=938"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/938\/revisions"}],"predecessor-version":[{"id":2036,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/938\/revisions\/2036"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}