As we have informed you that major changes has
been made in ETDS return filing through introduction of new FVU
Version 4.1 wef 04.01.2014. In new
FUV 4.1 ,while creating FVU file ,Form 27A is also generated ,which is required
to be filed along with ETDS fvu file. At present form 27A can be prepared
through any software or can be filed manually and an be furnished
along with etds fvu file at TIN-FC.
Wednesday, 29 January 2014
Electronic filing of annexure-less return of net wealth
Enabling
provisions for facilitatingelectronic filing of annexure-less return of net wealth
1 Section 14 of the
Wealth-tax Act provides for furnishing of return of net wealth as on the
valuation date in the prescribed form and verified in the prescribed manner setting forth
particulars of the net wealth and such other particulars as may be prescribed.
Currently, certain documents, reports are required to be
furnished along with the return of net wealth under the provisions of
Wealth-tax Act read with the provisions of Wealth-tax Rules.
Friday, 24 January 2014
There is no requirement to seek more than one comparable to apply CUP method; TP matter remanded - AND 11 MORE
IT/ILT : Where it is proved that effective rate of royalty paid by assessee was less than royalty paid by other AEs; addition would be unjustified
IT/ILT : Where assessee had adopted only one or at best two quotations, addition on account of purchase was not justified
IT : Where provision made for incurring expenditure on warranty commission is allowable to extent provision is made on a scientific basis
IT : Where evidence/details had been submitted by assessee for first time before Commissioner (Appeals), same was to be decided by Commissioner (Appeals) after obtaining remand report from Assessing Officer
IT : Prior period expenses may be allowed either in present year or in preceding year
IT : Where no business purpose was served from voluntary donation, it would not be treated as business expenditure
IT : In certain cases, deduction under section 43B is allowable even if employer's contribution is paid after due date
IT : Amount being old balance written off is to be allowed even if assessee had written off a part of it in P&L account and remaining amount was set off against credit balance written off
IT : Where assessee incurred a huge loss in current assessment year, it could not be said that it paid consultancy fee to party without obtaining any service; such consultancy fee was to be allowed under section 37
IT : Deduction would be granted if an assessee was able to furnish complete particulars before Assessing Officer showing that write off for obsolescence of inventory was in line with accepted method of valuation of stock
IT : Order once passed by Assessing Officer in an assessment, would be appealable and it is immaterial as to whether decision taken by Assessing Officer as per direction of transfer pricing officer or of Joint Commissioner
IT : Where excess TDS deposited with revenue was shown on asset side of balance sheet and not debited to P & L account, is not allowable as deduction
No addition in relevant year for on money receipts solely on basis of on money disclosed in later years
Addition made by Assessing Officer in year under consideration on basis of disclosure regarding on-money receipt pertaining to land selling transactions in subsequent years could not be sustained in absence of any other incriminating material
Delay in filing appeal to be condoned in absence of either gross negligence or mala fide intention of assessee
Unless there is gross negligence or mala file intention, delay in filing appeal to be condoned
No unexplained investment in stock as assessee had sufficiently explained valuation of stock
Where books of account of assessee were not rejected, and assessee explained valuation of stock based on gross profit rate and discount rate, no interference was called for
Share trading business on own behalf is ‘jobbing’; not speculative in view of proviso to sec. 43(5)
• In normal terminology, share trading business on behalf of oneself is known as jobbing. A transaction carried on by the assessee for sale and purchase of the shares was fully covered by the term 'jobbing' and assessee is entitled for the extension of the benefit of proviso (c) to Section 43(5) of the Act.
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[2014] 41 taxmann.com 363 (Allahabad)
HIGH COURT OF ALLAHABAD
Commissioner of Income-tax
v.
Ram Kishan Gupta
HC slams revenue for making scrutiny assessment without serving scrutiny notice within stipulated period
Assessment order passed under section 143(3) without serving notice to assessee under section 143(2) within stipulated period of time, was invalid and, thus, deserved to be set aside
No deduction merely on basis of treatment given in prior years unless conditions of that provision are fulfilled
Rule of consistency would not come in way of allowing/disallowing deduction under section 35D; authorities have to consider whether assessee has fulfilled all conditions of section for relevant assessment year
No sec. 40(a)(ia) disallowance if tax is deposited before filing of return of income
Where assessee deposited TDS before due date specified in section 139(1), provision of section 40(a)(ia) could not be invoked
Sum paid to retiring partner towards his share of capital can't be claimed as deduction towards 'goodwill'
If there was no transfer of interest and money paid to retiring partner was only towards capital invested and profit thereon, question of money paid towards goodwill would not arise
PAN APPLICATION PROCEDURE CHNAGED WEF 3.2.14 - ORIGINAL PROOFS MANDATORY
The procedure for
PAN allotment process will undergo a change w.e.f.03.02.2014. From
this date onwards, every PAN applicant has to submit self attested copies of
1.
Proof of Identity
(POI),
2.
Proof of Address (POA)
and
3.
Date of Birth (DOB)
documents
Further person is
also required to produce original documents of such POI/POA/DOB
documents, for verification at the counter of PAN Facilitation Centres.
Thursday, 9 January 2014
SERVICE TAX NOT PAYABLE BY ADVOCATES WEF 01.07.2012
In new system of Service Tax
regime of Negative List and reverse change Mechanism, Advocates are one of the beneficiary. After 01.07.2012 services provided by Advocates Or
partnership firm of advocates is not liable to deposit any tax . This has been
done through Two notifications . Through mega exemption Notification services provided by advocates are exempted on certain
condition. And in rest of the case , service tax on services provided by
advocates. is payable by service receiver through reverse tax mechanism
(Notification 30 dated 20.06.2012)
Wednesday, 8 January 2014
Foreign Direct Investment in Limited Liability Partnership
After 2 years of notification of the Limited Liability Partnership Act 2008, and after 5 months of issuing a discussion paper on allowing Foreign Direct Investment (FDI ) in the Limited Liability Partnership (LLP) , the Government of India , has approved the much awaited policy on FDI in Limited Liability Partnership. FDI in LLP is allowed in sectors activities where 100% FDI is allowed under the automatic route and there are no FDI-linked performance related conditions, subject to approval of government .
Tuesday, 7 January 2014
No denial of sec. 54F relief even if construction of new house commences before sale of original asset, says HC
No denial of deduction u/s 54F for commencing construction of new house before the sale of 'original asset'
File TDS return on time to avoid Penalty / Late Payment Fees
The due date for Filing TDS
returns for the quarter Oct-Dec 2013 is 15th Jan, 2014. We request all the deductors to file there
TDS returns in time to avoid penalty / Fees for late filing of return. Income Tax Department has WEF 1st of July 2012 imposed alate filing fees of Rs. 200 per day Under
section 234E of the Income Tax Act, 1961 for late filing of TDS return which can be up to TDS
amount.
Sunday, 5 January 2014
NFRA – A threat to CA fraternity
Cosy relationship between management & auditors of a company
is the key to accounting frauds. To tackle this
issue the government is creating a new quasi judicial body National Financial
Reporting Authority (NFRA), which would look after the quality of audit,
compliance by auditors as also the disclosures that they make.
The Bill for
NFRA is already passed in Lok Sabha and is placed in Rajya Sabha to be passed
by the Members of Parliament (MP).
Saturday, 4 January 2014
Re-assessment can be completed even within time specified for assessment under sec 143(3)
Even where notice under section 143(2) had been issued and time provided for regular assessment under section 143(3) had not been expired, reassessment is permissible
Commission disallowed on assessee's failure to prove actual rendition of services by recipient of sum
Where assessee in support of commission expenses, failed to prove that it had infact availed of certain services from recipients of commission, authorities below were justified in rejecting assessee's claim in respect of said expenses
Thursday, 2 January 2014
Major changes in E-TDS Return-New FVU released by TIN-NSDL applicable wef 04.01.2014
TIN-NSDL has released new file validation utilities for
TDS returns which shall be applicable from 04th Jan 2014.Returns not
validated through new utility post 04th Jan shall be rejected by
NSDL.
Hindu married to non-Hindu can’t get divorce under Hindu Marriage Act
The Bombay high court in the case of Niranjani Roshan
Rao V/S. Roshan Mark Pinto, in Family Court Appeal No. 124 of 2013 has held that a Hindu married to a
non-Hindu in accordance with Hindu rituals cannot seek divorce under the Hindu Marriage Act.
Deduction of pre-operative exp. admissible if assessee's business unit it ready to commence production
Where change in method of valuing closing stock adopted by assessee was a recognized method and it had also been followed consistently in subsequent assessment years, any addition on account of under valuation of stock was not called for
Once Acquired Watch Dog may become Mandate for 5 years
(AUDITORS PROVISIONS AS PER COMPANIES ACT, 2013)
As we bit aware of the
fact thatappointment of auditor shall be made by members at
First AGM and as per the new regulations of the companies act
every subsequent appointment shall be made at 6th AGM. Company shall
intimate the auditor about appointment. After intimating, company shall obtain
written consent and certificate (in accordance with the
conditions prescribed in section 141) from auditor. Then, company is
required to file a notice with the registrar about the appointment within 15 Days
of the meeting.
Wednesday, 1 January 2014
Capital assets would retain their status quo even on conversion of agricultural land into non-agricultural
Merely because co-owners applied for conversion of agricultural land into non-agricultural land and land was sold within 2½ years, it could not be said that land was for business purpose because in case of investment also, same could equally happen
For purpose of computing capital gains, only allowable deduction is cost of property along with cost of improvement and transfer; no deduction is allowable for payment to any third parties
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[2013] 40 taxmann.com 98 (Ahmedabad - Trib.)
IN THE ITAT AHMEDABAD BENCH 'C'
Assistant Commissioner of Income-tax, Circle-3
v.
Mohanbhai N. Turakhiya*
Where assessee made wrong claim for loss on sale of US-64 units, but disclosed same in return, there was no concealment of income
[2013] 40 taxmann. com 86 (Bombay)
HIGH COURT OF BOMBAY
Commissioner of Income-tax - 14, Mumbai
v.
Nalin P. Shah (HUF)*
Section 271(1)(c), read with section 10(33) of the Income-tax Act, 1961 - Penalty - For concealment of income [Disallowance of claim, effect of] - Assessment year 2004-05 - Assessee claimed loss on sale of US-64 units and filed a note of computation with return - Assessing Officer disallowed loss as income from sale of US-64 units is exempt under section 10(33), loss on same is not allowable - Assessing Officer also imposed penalty for concealment of income under section 271(1)(c) - Whether, where assessee made wrong claim for loss on sale of US-64 units, but disclosed same in return, there was no furnishing of inaccurate particulars or concealment of income and penalty was to be set aside - Held, yes [Para 6] [In favour of assessee]
HC allows deduction of sales tax liability on its conversion into a loan
Where sales tax liability was converted into a loan within relevant previous year, assessee was entitled to claim deduction for same
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[2013] 40 taxmann.com 111 (Delhi)
HIGH COURT OF DELHI
Commissioner of Income-tax
v.
Minda Wirelinks (P.) Ltd.*
Section 43B of the Income-tax Act, 1961 - Business disallowance - Certain deductions to be allowed only on actual payment [Sales tax] - Assessment year 2003-04 - Whether where sales tax liability was converted into a loan within relevant previous year, assessee was entitled to claim deduction for same - Held, yes [Para 1] [In favour of assessee]
Sec. 264 revision was not to be allowed automatically even if it was not decided by CIT within stipulated period
If a revision has not been decided by Commissioner with in stipulated period, it does not mean that revision stands allowed
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[2013] 40 taxmann.com 110 (Allahabad)
HIGH COURT OF ALLAHABAD
Uttam Modern Rice & Oil Mill
v.
Union of India*
Gorgeous Gift; Gift can't be treated as unexplained if assessee hasn't filed return which he isn't liable to file
Where assessee had submitted balance-sheet before Assessing Officer and in balance-sheet closing balance or cash in hand was disclosed and entries in balance-sheet had not been disputed by Assessing Officer, opening balance could not be regarded to be undisclosed income
Where assessee was filing his return regularly, non-filing of return for assessment year in question on ground that after allowing deduction under Act income remained below taxable limit could not be a good ground to hold income as undisclosed income for block period
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[2013] 40 taxmann.com 162 (Punjab & Haryana)
HIGH COURT OF PUNJAB AND HARYANA
Commissioner of Income-tax
v.
V.P. Singh*
HC slams CIT(A) for seeking huge demand from assessee without hearing its request on merits
Where Commissioner (Appeals) did not deal with submission of assessee that on reconstruction, benefit arose on capital account, and directed assessee to deposit major part of demand, same could not be complied till application be heard on merits
■■■
HC upholds sec. 40A(3) disallowance on assessee's failure to prove that suppliers insisted on cash payments
Where assessee's claim that suppliers of goods invariably insisted on spot payment of cash to lorry drivers was not supported with any evidence, cash payments attracted provisions of section 40A(3)
[2013] 40 taxmann.com 107 (Andhra Pradesh)
HIGH COURT OF ANDHRA PRADESH
Commissioner of Income-tax
v.
Singamsetty Subba Rao*
Granting less than 24 hours to reply to show-cause notice is a flaw in decision making process; assessment quashed
Justice must not only be done but appear to be done. Allowing assesses less than 24 hours to respond to show cause notice calling upon assessee to show cause as to why claim for deduction under section 80-IA shouldn't be disallowed particularly when there is no fear of the assessment getting time barred in the near future is a flaw in the decision making process and therefore amenable to judicial review. In such circumstances, it is incumbent upon the notice issuing authority to grant reasonable opportunity to the petitioner to respond to the notice. Therefore, High Court will not refrain from quashing assessment and allowing assessee's writ petition merely because assessee has alternative remedy to appeal to CIT(Appeals)
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