CBEC Circular on recovery during pendency of appeal is arbitrary, unjustified & unlawful – Delhi HC Circular which is issued by the Board is in terrorem and its plain effect and consequence is to deprive the assessee of the remedy which is provided under the law of moving, as the case may be, the CESTAT, the High Court or the Supreme Court against an order of adjudication of the competent...  |
| Re-assessment on the basis of CBDT circular not justified The CBDT, through its circular, could have brought certain aspects to the notice of the Assessing Officer, insofar as assessment was concerned. It had to be the opinion of the Assessing Officer alone which would prevail. In that view of the matter, the circular of CBDT may be a trigger, on the...  |
| Buyback of Shares – Is it a Tool for Companies to Come out of Crisis Situations? SECTION 77 restricts the buyback of own shares from the market by the company or its subsidiaries/parent company. This restriction was imposed on the companies to ensure that these companies do not indulge in unfair and mal trade practices by unnecessarily blowing up their share prices in the...  |
| Budget 2013-14 – Key expectations of Insurance Sector I believe the key to 2013-14 budget will be to rein in fiscal deficit, control expenditure (slashing subsidies etc), show buoyancy in tax revenues (without raising rates) and yet present a people and investment friendly budget. Many of these issues will conflict each other and the trick for the FM...  |
| Notional loss can be claimed in case of computation of income on notional basis Even a notional loss can be claimed by way of a business loss and as a deductible item in computing the income of the assessee for the year, as it is a computation on notional basis, it is made dependent on the manner of conduct of the assessee in respect of the earlier assessment period and...  |
| Form No.10 for income accumulation can be submitted by a trust either on assessment or re-assessment One has to keep in mind the fact that while reopening of an assessment cannot be asked for by the assessee on the ground that it had not furnished Form No. 10 during the original assessment proceedings, this does not mean that when the revenue reopens the assessment by invoking section 147, the...  |
| Difference in income as per TDS certificates & ROI not necessarily leads to income escapement In this case there is nothing in the reasons to indicate that there is an escapement of income, but, at the most, need to verify that the reasons of discrepancy between income from profession as per return of income vis-à-vis as per the certificates of tax deduction at source. A variation in these...  |
| Rate of exchange of conversion of each of foreign currency WEF 08.02.2013 Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 8th February, 2013 be the rate...  |
| Custom House Agent License – CBEC accepts SC Order The Hon'ble Supreme Court in Civil Appeal Nos. 4053-4061 of 2012 [arising out of SLP (C) Nos 19124-19132 of 2010] in the case of Sunil Kohli and others vs. Union of India and others vide order dated 27.04.2012 has held that those who had passed the examination under Customs House Agents Licensing...  |
| Recognition to Members of ICSI under SEBI (Investment Advisers) Regulations, 2013 An investment adviser shall conduct yearly audit in respect of compliance with these regulations from a member of Institute of Chartered Accountants of India or Institute of Company Secretaries of India.  |
| MCA to waive additional fees charged due to non smooth functioning of its website Ministry of Corporate Affairs acknowledges that services on MCA 21 are not of the fullest satisfaction of the stakeholders for last few days. The Ministry is seized of the matter and taking all necessary steps for smooth functioning of MCA21.  |
| Time limit for initial offering of MF and allotment of units under Rajiv Gandhi Equity Saving Scheme extended With respect to Mutual Fund scheme eligible under RGESS, which is a tax-saving scheme notified by the Government of India on November 23, 2012, it has been decided that - a. The maximum period for which initial offering of Mutual Fund scheme eligible under RGESS shall be open for subscription, is...  |
| Reassessment not valid if Material facts already been disclosed during Original Assessment The assessment record reveals that the MLA had been placed on the record of the Assessing Officer in the very first instance when the assessment was completed under section 143(3). Thereafter the reassessment proceedings were initiated for those proceedings too and what drove the revenue to issue...  |
| Surrender of income to buy peace of mind is plausible explanation to avoid penalty for concealment Learned counsel for the appellant submitted that in the facts and circumstances of the case no penalty was leviable as the appellant itself had surrendered the said amount representing the difference in the sundry creditors in order to buy peace. He, thus, submitted that there was no concealment of...  |
| Two wheelers manufacturer can claim cenvat credit on Motor Tool Kit Appellant had supplied the tool kit as per statutory requirements under Central Motor Vehicle Rules, 1989 as accessories to be used in relation to the manufacture of vehicle. Thus, 'tool kit' in our view is squarely covered by the definition of 'input' given under Rule 2(k)(i) of Cenvat Credit...  |
| Service tax dues of company cannot be recovered from directors In the present case the notice to show cause under Section 124 was not issued to the Petitioner. The order of adjudication dated 20 September 2007 was similarly not in respect of the Petitioner. The certificates that were issued under Section 142(1)(c)(ii) on 19 March 2010 were in the names of (i)...  |
| Madras HC grant interim stay in respect of demand raised pursuant to CBEC Circular Madras HC grant interim stay in respect of demand raised pursuant to CBEC Circular No. 967/01/2013-CX, dated 1-1-2013 Despite filing of the stay application, the direction for recovery makes it mandatory for the authority to recover the amount within a period of 30 days after the filing of the...  |
| If no incriminating material seized during search, addition in block assessment not justified As regards investment made in thandal business, there are no materials seized at the time of search of the assessee's premises, to make this as a subject matter of block assessment. When the revenue does not dispute the fact that the assessee had been doing the business along with two others, there...  |
| IREDA can issue tax free bonds during FY 2012-13 SECTION 10(15), ITEM (h) OF SUB-CLAUSE (iv) OF THE INCOME-TAX ACT, 1961 – EXEMPTIONS – INTEREST ON BONDS/DEBENTURES – SPECIFIED COMPANIES AUTHORIZED TO ISSUE TAX-FREE, SECURED, REDEEMABLE, NON-CONVERTIBLE BONDS DURING F.Y. 2012-13 – AMENDMENT IN NOTIFICATION NO. SO 2685(E), DATED...  |
| RBI releases Final Report of the Working Group on Issues Related to Gold Imports and Gold Loan NBFCs in India There is a need to moderate the demand for gold imports considering its impact on the current account deficit. A combination of demand reduction measures, supply management measures and measures to increase monetisation of idle stocks of gold need to be put in place.  |
| Bank Finance for Purchase of Gold As you are aware, presently UCBs are permitted to grant loans against pledge of gold ornaments, but not permitted to grant any advance for purchase of gold in any form. In view of the concerns mentioned in para 2 above, it is reiterated that UCBs should not grant any advance for purchase of gold in...  |
| Anti Dumping Duty on 'Flexible Slab stock Polyol' – Extended Just In Time It seeks to extend levy of anti-dumping duty imposed vide Notification No. 15/2008-Customs, dated the 5th February, 2008, on imports of 'Flexible Slabstock Polyol', originating in, or exported from, United States of America and Japan, upto and inclusive of 4th February, 2014.  |