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Surrender of tenancy right is assessable as capital gain

It is to be noted that in the instant case what has been transferred by the assessee is the tenancy right which is very much part of the capital asset as envisaged in sub-section (2)(a) of section 55. Sub-section (2)(a) of section 55 stipulates...

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Section 80IB deduction available on income disclosed during survey

In the instant case, the search took place in the year 2002 and, therefore, the instant case is governed by Chapter XIV-B. Section 158BB of Chapter XIV-B deals with computation of undisclosed income of the block period.

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After filing appeal, Assessee have no discretion to withdraw it

The assessee herein sought for withdrawal of the appeal to go before the Settlement Commission, which dismissed the petition on the ground that there was no appeal pending, a mandatory requirement as on the date of taking up a required application.

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Probe delay in filing appeal in cases involving huge revenue/demand -SC

In large number of cases, we find a peculiar phenomenon. In cases, where huge revenue/demand from the Department is involved, invariably, there is inordinate delay in filing appeals before the High Court under Section 260A of the Income Tax Act,...

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Interest on loan for acquisition of capital asset is deductible even if such asset not put to use in previous year

Whether interest paid in respect of borrowings for acquisition of capital assets not put to use in the concerned financial year can be permitted as allowable deduction under section 36(1)(iii) of the Income-tax Act, 1961?

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Notice u/s 148 based on vague notice u/s. 154 not maintainable -SC

We have gone through the Notice under Section 154 of the Income Tax Act, 1961 . We find that the said notice is totally vague. The Assessing Officer has not even indicated as to on what basis he has allowed excess set-off. Notice under Section 154...

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One Crore Life insurance for 6000 per Year only

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Calculate your premium online now and get one crore insurance for less than...

Am I Liable to Pay Advance Tax?

In the previous article, we have conversed about the Advance Tax Payment Due Dates. However, readers also searching and asking questions and queries [...]
Related posts:

Advance Tax Payment Due Dates – Last Dates to Deposit Advance Tax
Persons Liable to Deduct Tax at Source (TDS)

Limited Liability Partnership (LLP) – Recent changes

The concept of Limited Liability Partnerships (LLPs) in India was introduced in the year 2009 with the enactment of the Limited Liability Partnership Act, 2008 (6 of 2009) which was notified on 31.03.2009. The first LLP was formed on the 02nd Day of...

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Advance Tax Payment Due Dates – Last Dates to Deposit Advance Tax

Advance Tax is pre paid tax by the assessee on the income earned during the year. In simple words, you can say that assessee have [...]
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Income Tax Obligations – Due Dates Obligations Calendar 2012-13
Tax Calendar for June 2012 – Last Dates/Due Dates for June 2012
Penalty on Failure or Late Payment to Deposit TDS

Retreading of tyre- Service tax Applicability, before & w.e.f 1st July 2012

Tyre retreading is a process where the TREAD (the portion of the tyre which meets the surface of road) of an old tyre is replaced/ repaired using a vulcanizing solution to give fresh lease of life to the tyre. When a tyre is manufactured it is...

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ECB Policy- Bridge Finance For Infrastructure Sector & Trade Credits For Import Into India

As per the extant guidelines, Indian companies in the infrastructure sector, where infrastructure is as defined under the extant guidelines on External Commercial Borrowings (ECB), have been allowed to import capital goods by availing of short term...

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FDI in retail to boost farmers growth

India is sold in the hands of US and European economy. This is the new slogan which might be used across the nation from Monday 17th September 2012 onwards. Every political party will come up with various types of activities like Traffic Jam, and...

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Natural justice is no unruly horse, no lurking land mine, nor a judicial cure-all

The issue which falls for decision is primarily whether the assessment proceeding in the instant case was conducted in a fair manner so much so conforming to principles of natural justice. It is settled law that principles of natural justice cannot be construed in isolation from the factual matrix...

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Low Tax Effect Circular cannot apply Ipso Facto – SC

Liberty is given to the Department to move the High Court pointing out that the Circular dated 9th February, 2011, should not be applied ipso facto, particularly, when the matter has a cascading effect.

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TIEA / DTA between India and Liberia

SECTION 90 OF THE INCOME-TAX ACT, 1961 – DOUBLE TAXATION AGREEMENT – AGREEMENT FOR EXCHANGE OF INFORMATION AND ASSISTANCE IN COLLECTION WITH RESPECT TO TAXES WITH FOREIGN COUNTRIES – LIBERIA Notification No. 32/20012-FT&TR-II [F.No. 503/02/2010-FT&TR-II]/SO 1877(E), dated...

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Amendment in Form No. 11 – Annual Return of LLP

These rules may be called the Limited Liability Partnership (Second Amendment) Rules, 2012. (2) They shall come into force with effect from 16th September, 2012.

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Service tax in respect of same service cannot be paid for second time

There is a fallacy in above reasoning of Commissioner (Appeals). The same service for which the contractor has procured an order, does not stand actually provided by him but is passed on to sub-contractor, who provided the actual service, it cannot...

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Format of CA Certificate to Furnish in case of Failure to deduct TDS / TCS

Notification no. 37/2012 In Budget 2012 CBDT has introduced a provision w.e.f. 01.07.2012 by which a person who has defaulted in payment of TDS / TCS will not be deemed to be a person in default if he furnishes a certificate from CA to the effect...

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E-payment of Customs duty mandatory

Notification No. 83/2012-Customs (N.T.) E-payment of Customs duty mandatory for Importers registered under Accredited Clients Programme & for Importers paying customs duty of one lakh rupees or more per bill of entry.

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Non Disallowance u/s. 40(a)(ia) for shortfall in TDs deduction due to difference of opinion

There is nothing in the said section to treat, inter alia, the assessee as defaulter where there is a shortfall in deduction. With regard to the shortfall, it cannot be assumed that there is a default as the deduction is not as required by or under...

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Form & Rule For Proviso to Section 201 Notified !

Form & Rule For Proviso to Section 201 Notified !Reviewed by Admin on Sep 18.Rating: 5.0Accountant Certificate u/s 201 Saves You From Being Defaulter !CBDT has notified Rule 31ACB and Form 26A for the amendment in section 201 of the I.T.ActCBDT has issued Form and RFules u/s 201 to save deductors from being defaulter under [...]

In case of gift burden is on assessee to prove financial capacity of Donor -SC

On going through the records, we find that an important query was raised by the Department as to whether these two donors had the financial capacity to make the gift(s) in favour of the assessees herein. This query has not at all been answered by...

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Regarding exemption to maize bran from basic custom duty

Notification No. 54/2012-Customs New Delhi, the 17th September, 2012 G.S.R. (E). – In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest...

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Section 234D applies even to refunds granted prior to 1.6.2003

The case of the revenue is that section 234D as introduced on 1st June, 2003 was retrospective in operation by necessary implication. However, as doubts were raised about its retrospectivity, the same was clarified by adding an explanation to...

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Interest on debenture taxable on spread-over basis – SC

We find from the records that the assessee has computed his interest income arising on the difference between purchase price of the debenture and redemption price after six years and calculated the income on amortization basis.

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Cessation of loan liability taken for capital purposes not taxable u/s. 41(1)

The issue arising in this case stand covered by the decision of this Court in the matter of Mahindra & Mahindra (supra).The decision of this court in the matter of Solid Containers (supra) is on completely different facts and inapplicable to...

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Revised Rates of Entry Tax w.e.f. 18.09.2012 in Punjab

Increase in rates of Entry Tax by 0.5% under the Punjab Tax on Entry of Goods into Local Areas Act, 2000 and amendment in Schedule C and E through Public Notice dated 18.09.2012. Punjab Government has increased the rate of entry tax by 0.5% w.e.f....

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Re-valuation of assets in books do not lead to income generation

It is an accepted position of law that the re-valuation of assets in the books of the assessee does not lead to generation of income as no transaction has been taken up with an outside party. In other words, a person cannot make profit from himself...

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Reversal of law by Supreme Court does not justify reopening

We see no error in the observation made by the Division Bench of the High Court in the impugned judgement that once limitation period of four years provided under Section 147/149(1A) of the Income Tax Act, 1961, [for short, `the Act'] expires then...

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Collection of security deposit on loaning gas cylinder cannot be treated as sale

The assessee is a company engaged in the business of supply of LPG to its customers. It supplied the LPG cylinders to its customers on lease basis and collected security deposits. The customers can return the cylinders and take back the security deposits. It was observed by the Assessing Officer...

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Review Petition allowed & judgement recalled on issue of PE & profit attribution

Question no.1 pertains to the business connection of the appellant in India and Question Nos. ‘b’, ‘c’ and ‘d’ relate to Permanent Establishment viz. whether ANR as its agent could be treated as Permanent Establishment. It was submitted by Mr. S....

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Discharging debt / Interest due to bank by issuing share capital would not amount to payment u/s. 43B

In the present case it is seen that the liability was discharged by way of issuance of shares. When the assessee issues shares the assessee does not incur any expenditure as the assessee is not to make any payment legally towards shares issued. The shares cannot be equated with debentures, which is...

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Assesee can not challenges jurisdiction of Assessing Authority after accepting the same

The petitioner is a share broker. A survey was conducted under Section 133-A of the Act on 24.4.2001 in which a large number of incriminating documents were found. The AO proceeded to make enquiries in which it was found that there were serious defects in the books of accounts. Shri Ravindra Kumar...

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Rule 6(3) – Do not specify mode of Service tax refund – Book Credit also valid

The adjudicating Commissioner has also taken objection to the fact that the refunds have been made by way of credit and not by issue of cheques. In this respect, we note that a large number of transactions are involved and the industry practice is...

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Section 80-IA – Texturing & twisting of polyester yarn amount to manufacture – SC

A short question which arises for determination in these civil appeals is, whether texturing and twisting of polyester yarn amount to 'manufacture' for the purpose of computation of deduction under Section 80IA of the Income Tax Act, 1961. This question has been squarely answered by this Court in...

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Cost Inflation Index (Upto A.Y. 2012-13) – Update: Upto A.Y.2013-14

What is Cost Inflation Index The cost of inflation index has been notified by the Central Government year wise, commencing from the financial year [...]
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Exemption From Filing of Income Tax Return to Salaried Person having Income upto Rs.5 Lakhs
Specified Payments on Which TDS is to be Deducted

Taxability of ‘Ready Mix Concrete’ & ‘Concrete Mix’ under Excise & Service Tax

Now a days, real estate industry is in boom phase and flat/apartment culture is picking pace due to economy, comfort, security and liquidity. Therefore, construction of apartment/flats is hot most segment and construction industry is adopting every new relevant and viable technology.

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In a One Time Settlement of principal & interest, it cannot be assumed that assessee has paid the interest due

The assessee has not produced any evidence to indicate the apportionment of the OTS amount of Rs.91 lacs towards principal and interest. It is obvious that a part of above amount was towards interest for the OTS amount was admittedly more than Rs.72...

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Customs – Tariff Value of Brass, Poppy Seeds, Gold & Silver

Notification No. 81/2012-CUSTOMS (N. T.), Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of...

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RBI reduces CRR by 25 basis points , Other key rates unchanged

On the basis of an assessment of the current macroeconomic situation, it has been decided to: reduce the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.75 per cent to 4.50 per cent of their net demand and time liabilities (NDTL) effective the fortnight beginning September...

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FY 2012-13 Cost Inflation Index Out ! Get Complete List

FY 2012-13 Cost Inflation Index Out ! Get Complete ListReviewed by Admin on Sep 17.Rating: 5.0Cost Inflation Index 1981 Onward to Fy 2012-13CBDT has announced cost inflation index for financial year 2012-13 . So here is the list of cost inflation index for all the years.These are required when you compute capital gains on long [...]

Cost Inflation Index for Financial Year 2012-13

Notified Cost Inflation Index for Financial Year 2012-13 / Assessment Year 2013-14 : 852

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COST INFLATION INDEX Financial year 2012-13 NOTIFIED

CBDT has announced the Long awaited Cost Inflation index for the Financial Year 2012-13 . Cost Inflation index is used to calculate Long term capital gain on sale of Capital assets.

Long term capital gain in case of assets other than securities is applicable where holding period of asset is more than 3 years and in case of securities the period is one year.

Capital Gain Index for...

Permitting FDI in Multi-Brand Product Retail Trading (MBRT)

1. The Cabinet has approved the proposal of the Department of Industrial Policy & Promotion (DIPP) for permitting FDI in multi-brand retail trading, subject to specified conditions. The proposal had earlier been approved by the Cabinet in its meeting on 24-11-2011. However, implementation of...

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Interest u/s. 234B/C not payable on deficit in advance tax because of retrospective amendment

The question is as to whether interest under section 234B and 234C of the Act can be charged for default in payment of advance tax and for deferment of advance tax, respectively, where the payment of tax became due only because of the amendment by way of insertion of Explanation 1(h) to s. 115JB...

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Section 194C – Supervising construction work not liable TDS

Engagement for professional service or services simplicter which do not involve contract for carrying out any work itself, or a contract for labour for carrying out such services, is not within the purview of section 194C as it exists.

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Section 271D penalty cannot be imposed for business transactions in cash

Assessee entered into a collaboration agreement with 'D' for purchase of land on its behalf and development thereof by 'D'. 'D' purchased land from farmers on behalf of the assessee through its agent 'J'. In lieu of the consideration paid by 'D' for...

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CBDT cannot take away exemption granted by statute by issuing a circular

The impugned circular issued by the Board came up for consideration before the Bombay High Court and it has struck down the circular holding that powers under section 119 would not empower the Board to issue clarification which would take away the...

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