Rs. 20,000/- penalty for non-filing of Quarterly Service Tax return?? Posted: 28 Oct 2012 07:57 PM PDT ACES has started accepting Service Tax (ST-3) returns for the period April to June 2012 revising the earlier forms by removing few bugs. The extended time to file now is till 25th Nov for Apr to Jun 12 ST Returns. Returns for July to September 2012 is still undergoing some structural changes. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Details of reshuffle in Union Council of Ministers Posted: 28 Oct 2012 12:19 PM PDT The President of India, as advised by the Prime Minister, appointed and administered the Oaths of Office and Secrecy to the following members of the Union Council of Ministers:- CABINET MINISTERS 1. Shri K. Rahman Khan 2. Shri Dinsha J. Patel 3. Shri Ajay Maken 4. Shri M.M. Pallam Raju 5. Shri... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| PF, ESI paid after 31st March but before filing of return is allowable Posted: 28 Oct 2012 06:00 AM PDT The grievance of the revenue is that proviso appended to section 43B of the Act permitting allowing of deduction of PF, ESI etc., subsequent to the close of the accounting period but before the return is filed, should not have been followed but disallowance must be upheld. It has not been disputed... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| No Section 54 exemption If assessee himself demolishes building before sale Posted: 28 Oct 2012 05:51 AM PDT As per the Development Agreement entered into between the parties, the assessee and his brothers have demolished the existing residential building and handed over the vacant space to an extent of 16800 sq ft. to the Developer for construction of the apartment. Since the residential building has... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Filing returns without full particulars fell within the mischief of section 271(1)(c) Posted: 28 Oct 2012 05:29 AM PDT Section 271(1)(c) empowers the Assessing Officer to impose penalties wherever the assessee does not furnish accurate particulars, in the form of returns, such as concealing the sources of income, or withholding true and full information. This duty was spelt out by the Supreme Court as one cast on... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Striking off of a company can only be done on companies own admission that it is defunct Posted: 28 Oct 2012 05:10 AM PDT On reading sub-sections (1), (2), (3) and (5) of Section 560, it does seem to me that a company can only be defunct, if it does not reply to the notice or says in reply that it does not carry on any business or is not in operation. If it asserts to the contrary, it cannot be struck off at all.... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| In case of common services credit attributable to trading activity is required to be reversed Posted: 28 Oct 2012 04:54 AM PDT Coming to the cenvat credit proposed to be denied on the ground that services were used for both exempted and non exempted goods as per the denial of proportionate credit as per the OIA, it has to be noted that admittedly the first appellant was engaged in the manufacture of animal feed which is... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Deduction u/s. 80-IB(10) cannot be denied for unauthorised excess construction Posted: 28 Oct 2012 12:52 AM PDT As for the excess area constructed, as rightly held by the learned CIT(A), it is for the BBMP to look into the violations if any in the construction of the housing project. That however does not authorize the Assessing Officer to hold that the assessee has not got approval for the housing project... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Commission on sales is to be allowed in year of sale even if sale was realised in next financial year Posted: 28 Oct 2012 12:38 AM PDT In the instant case, the liability to pay commission Rs. 2,94,701/- has arisen by virtue of sales in the financial year 2004-05 relevant to the assessment year 2005-06. The realization of sale amount in the next financial year will not make much difference as the liability to pay commission had... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Penalty cannot be levied for mere rejection of debatable claim Posted: 28 Oct 2012 12:15 AM PDT What is to be seen in the instant case, is whether the claim for deduction of depreciation u/s 32 of the Act, made by the assessee was bona-fide and whether all the material facts relevant thereto have been furnished and once it is so established, the assessee cannot be held liable for concealment... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Approval U/s. 10(23C)(vi) cannot be refused on Mere inference by DGIT(E) as to irregularities in accounts Posted: 28 Oct 2012 12:09 AM PDT Having regard to the facts noted above as well as explanation adduced by the assessee in respect of the payments and the suspicious approach of the DGIT(E) towards the evidence adduced by the assessee without noticing the crucial facts such as payment by cheques etc., it seems that the DGIT(E) was... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Penalty not justified for disallowance of Bona fide claim Posted: 27 Oct 2012 10:10 PM PDT As explained by assessee, the income could not be offered as assessee sought approval under section 10(23G) as early as of 24-8-2005 which was followed with reminder letter addressed to the CCIT on 17-1-2006. Since the application was made in form No. 56E, it is natural that the Board will either... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Simply paying share application money not entitle any applicant of shares to allotment of shares Posted: 27 Oct 2012 10:02 PM PDT The admitted facts of the case under consideration are that during the year under consideration share holding of the company has changed by more than 51% and management and control of the company has been passed on to Pippal family. There is unabsorbed losses of Rs.29,94,643/- of A.Y. 2004-2005.... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Interest on debt capital borrowed from shareholders can not be disallowed as thin capitalization rules not in force Posted: 27 Oct 2012 10:02 PM PDT During the course of the proceedings before the Tribunal the revenue contended that the borrowings on which the interest has been claimed as a deduction are in fact capital of the assessee and brought only under the nomenclature of loan for tax consideration. It was the case of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Insurance of vehicles used in transportation of goods / employees is input service Posted: 27 Oct 2012 09:54 PM PDT The definition of 'input service' provided under rule 2(l) of CENVAT Credit Rules, 2004 covers a gamut of activities relating to the business undertaken by the manufacturer or the service provider. In the case under consideration the appellant has used the vehicles owned by them either for... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Deduction U/s. 80(IB)(10) cannot be denied for projects which are completed within time but granted business use permission after such date Posted: 27 Oct 2012 09:52 PM PDT In the present case, therefore, the fact that the assessee had completed the construction well before 31st March, 2008 is not in doubt. It is, of course, true that formally BU permission was not granted by the Municipal Authority by such date. It is equally true that explanation to clause (a) to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Disallowance of consultancy charges partly u/s. 40A(2) without determining market value not justified Posted: 27 Oct 2012 09:29 PM PDT In order to determine whether the payment is not sustainable, the Assessing Officer has to first return a finding that the payment made is excessive under section 40A (2). If it is found to be so, then the Assessing Officer has to determine what constitutes the fair market value of the services... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Interest u/s 132B is allowable on entire sum seized regardless of any post-assessment adjustments Posted: 27 Oct 2012 09:09 PM PDT Section-132B(4) cannot be construed or interpreted in a manner as to defeat the rights of the assessee/writ petitioner to the property itself. The fact that it limits the liability to the point of time when assessment is completed would mean that authorities have to be alive of this fact and... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Commissioner (Appeals) do not have power of remand under Service Tax Laws Posted: 27 Oct 2012 09:00 PM PDT Thus in case of service tax also the Commissioner (A) is not empowered to remand the matter, he has to decide the matter by himself. Therefore the order of ld. Commissioner (Appeals) remanding the case to the lower authority, is not sustainable. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Where liaison office of assessee merely co-ordinated its purchases in India, it could not be regarded as assessee's PE in India Posted: 27 Oct 2012 08:18 PM PDT Section 9 does not seek to bring into the tax net the profits of a non-resident which cannot reasonably be attributed to operations carried out in India. Even if there be a business connection in India, the whole of the profit accruing or arising from the business connection is not deemed to accrue... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 
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| Companies (Amendment) Regulations, 2012 – Separate Regional Director for Eastern and North Eastern Region Posted: 27 Oct 2012 01:07 AM PDT 1. (1) These Regulations may be called the Companies (Amendment) Regulations, 2012. (2) They shall come into force with effect from the 15th October, 2012. 2. In the Companies Regulations, 1956, in regulation 2, in clause (d)- (i) for serial number (v) and the entries relating thereto, the...
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