Monthly Archives: October 2015

Delhi Govt ordering tariff audit of discoms by CAG quashed by HC

By | October 31, 2015

Direction of Delhi Govt ordering tariff audit of discoms by CAG quashed as the opportunity given to discoms to represent against the proposal for audit was not a “reasonable opportunity” within the meaning of section 20(3) of the CAG Act as the opportunity was given without disclosing the public interest in which audit of DISCOMS… Read More »

Compulsory acquisition under Section194LA does not include land acquired under agreement

By | October 31, 2015

Whether acquisition of land under an agreement by Karnataka Industrial Area Development Board (a state Government Undertaking) with landowners under the Karnataka Industrial Areas Development Act, 1966 (‘KIA Act’) would be deemed as compulsory acquisition within the meaning of Section 194LA?” Held Section 194LA applies only when there is a compulsory acquisition under law. Under… Read More »

No Search proceddings under Section 153C due to seizure of CA Hard disk containing Income tax return data of Client

By | October 31, 2015

HIGH COURT OF DELHI Commissioner of Income-tax.-7 v. RRJ Securities Ltd. DR. S.MURALIDHAR AND VIBHU BAKHRU, JJ. IT APPEAL NOS. 164,175,176 & 177 OF 2015 OCTOBER  30, 2015 N.P. Sahni Senior Standing Counsel and Nitin Gulati Junior Standing Counsel for the Appellant. Kapil Goyal and V.M. Chaurasia for the Respondent. JUDGMENT Vibhu Bakhru, J –… Read More »

Stock market Glossary

By | October 31, 2015

Account closure (depositor account) The closure of beneficiary and pool accounts by the investor and the clearing member or at the discretion of the participant, if the client has defaulted in its obligations towards the participant. Accounts Payable A current liability showing the amounts due to others within a period of one year when such… Read More »

FAQ’s on delisting of Equity Shares

By | October 31, 2015

FREQUENTLY ASKED QUESTIONS ON SEBI (DELISITING OF EQUITY SHARES) REGULATIONS, 2009 These FAQs offer only a simplistic explanation/clarification of terms/concepts related to the SEBI (Delisting of Equity Shares) Regulations, 2009 [“Delisting Regulations, 2009”]. Any such explanation/clarification that is provided herein should not be regarded as an interpretation of law nor be treated as a binding… Read More »

FAQ on Issue of Capital and Disclosure Requirements

By | October 31, 2015

 FREQUENTLY ASKED QUESTIONs SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2013 dated August 26, 2013 Q.1.What is the applicability of SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2013 notified on August 26, 2013? Ans.1.The said amendments are applicable for the preferential issuances where notice for the general meeting for… Read More »

AO could not issue reassessment Notice if he did not have jurisdiction over assessee

By | October 31, 2015

Assessment year 2010-11 Facts of the case: One of income-tax officers was designated to collect AIR information and to make necessary enqury .Designated officer having received information from AIR, issued notice under section 148 to assessee . He also made an attempt to frame assessment over assessee .When assessee raised objection about his jurisdiction over… Read More »

Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013

By | October 30, 2015

Auditing and Assurance Standards Board Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013 The Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has today issued the Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013. For the benefit of… Read More »

Packaged,readymade, off the shelf software are liable only to VAT

By | October 30, 2015

 High Court of Karnataka Finance Department of Karnataka Department vs IBM India Private Limited, STRP No. 215/2011  18th September 2015, Following aspects in respect of sale and development of customized software has been held with regard to their taxability: 1.The packaged, readymade, off the shelf software are pure goods liable only to VAT. 2. The… Read More »

No addition of sundry creditors while making assessment under section 44AF

By | October 30, 2015

No addition can be made in respect of sundry creditors while making assessment under section 44AF IN THE ITAT PANAJI BENCH Good Luck Kinetic v. Income-tax Officer, Ward -2, Margao GEORGE MATHAN, JUDICIAL MEMBER AND N.K. BILLAIYA, ACCOUNTANT MEMBER IT APPEAL NO. 26 (PNJ.) OF 2013 [ASSESSMENT YEAR 2006-07] JUNE  15, 2015 A perusal of… Read More »

Advances paid for purchase of Machinery amount to utilization u/s 54G

By | October 30, 2015

Advances paid for purpose of purchase and/or acquisition of plant/machinery, and land/building amount to utilization by assessee of capital gains under section 54G SUPREME COURT OF INDIA Fibre Boards (P.) Ltd. v. Commissioner of Income-tax, Bangalore A.K. SIKRI AND ROHINTON FALI NARIMAN, JJ. CIVIL APPEAL NOS. 5525 – 5526 OF 2005 AUGUST  11, 2015  A… Read More »

Assessee can claim Section 10A even though he claimed Section 80HHE in earilier Assessment Year

By | October 30, 2015

PR. Commissioner of Income Tax Vs. E-funds International India Pvt. Ltd., I.T.A. No. 607/2015, Date of Order: 06.10.2015, High Court of Delhi Whether AO is correct while not allowing deduction under Section 10A to the Assessee either for the same or any subsequent assessment year where assessee had claimed deduction under Section 80HHE of the… Read More »

Framework for Revitalising Distressed Assets in the Economy

By | October 30, 2015

Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalising Distressed Assets in the Economy – Review of the Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP) RBI/2015-16/214 DNBR.CC.PD.No. 070/03.10.01/2015-16 October 29, 2015 To All Non-Banking Financial Companies (NBFCs) Madam/ Sir, Early Recognition of Financial… Read More »

Subscription to National Pension System by Non Resident Indians

By | October 30, 2015

RBI/2015-16/216 A.P. (DIR Series) Circular No. 24 October 29, 2015 To, All Authorised Dealer Category – I Banks Madam/Sir Subscription to National Pension System by Non-Resident Indians (NRIs) Attention of Authorised Dealers Category – I (AD Category – I) banks is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person… Read More »

Short Selling allowed by RBI between CSGL account holder (custodian) and its gilt account holder (GAH)

By | October 30, 2015

RBI/2015-16/217 FMRD.DIRD.5/14.03.007/2015-16 October 29, 2015 All market participants Dear Sir/Madam Secondary Market Transactions in Government Securities – Short Selling This has reference to circular IDMD.No.03/11.01.01(B)/2005-06 dated February 28, 2006, as updated vide circulars IDMD.No/11.01.01(B)/2006-07 dated January 31, 2007, IDMD.DOD.No.3165 /11.01.01(B)/ 2007-08 dated January 1, 2008, IDMD.PCD.14/14.03.07/2011-12 dated December 28, 2011, IDMD.PCD.21 /14.03.07/2011-12 dated June 21,… Read More »

Change in name on account of marriage or otherwise

By | October 30, 2015

Amendment to Prevention of Money Laundering (Maintenance of Records) Rules, 2005 – Submitting ‘Officially Valid Documents’ – Change in name on account of marriage or otherwise RBI/2015-16/213 DBR. AML.BC. No. 46/14.01.001/2015-16 October 29, 2015 The Chairpersons/ CEOs of all Scheduled Commercial Banks/ Regional Rural Banks/ Local Area Banks/ All India Financial Institutions/ all NBFCs/ All… Read More »

Education Cess and SHE allowed to be utilized for service tax payment

By | October 30, 2015

Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the premises of the provider of output service on or after the 1st day of June, 2015 can be utilized for payment of service tax on any output service [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART… Read More »

FAQ on Options on USD INR Spot Rate

By | October 30, 2015

What are Currency Options? Currency Options are contracts that grant the buyer of the option the right, but not the obligation, to buy or sell underlying currency at a specified exchange rate during a specified period of time. For this right, the buyer pays premium to the seller of the option. What is the need… Read More »

FAQ on 10 Year notional coupon bearing Security Futures of Government of India

By | October 30, 2015

 Q1. What is Interest Rate Futures? A. Interest Rate Futures means a standarised interest rate derivative contract traded on a recognized stock exchange to buy and sell a notional security or any other interest bearing instrument or an index of such instruments or interest rates at a specified future date, at a price determined at… Read More »

FAQ on Equity and Currency Derivatives

By | October 29, 2015

 Q1 What are Derivatives? The term “Derivative” indicates that it has no independent value, i.e. its value is entirely “derived” from the value of the underlying asset. The underlying asset can be securities, commodities, bullion, currency, live stock or anything else. In other words, Derivative means a forward, future, option or any other hybrid contract… Read More »

Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s

By | October 29, 2015

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA NOTIFICATION Hyderabad, the 19th October, 2015 Insurance Regulatory Development Authority of India (Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) Regulations, 2015 F.No.IRDAI/Reg/17/107/2015.—In exercise of the powers conferred by Section 3 read with 114A of the Insurance Act, 1938, and sections 14 read with… Read More »

Acquisition of Surrender and Paid Up Values under Life Insurance Policies

By | October 29, 2015

INSURANCE REGULATORY AND DEVELOPMENT  AUTHORITY OF INDIA NOTIFICATION Hyderabad, the 16th September, 2015 Insurance Regulatory and Development Authority of India (Acquisition of Surrender and Paid Up Values) Regulations, 2015 F. No. IRDAI/Reg/15/105/2015.—In exercise of the powers conferred under Section 114 (A) of the Insurance Act, 1938 read with Section 26 of Insurance Regulatory and Development… Read More »

Target Plus Scheme to reduce benefit to exporter retrospectively Ulta virus : supreme Court

By | October 29, 2015

Notification No. 48/2005 dated February 20, 2006 and Notification No. 8/2006 dated June 12, 2006 amending ‘Target Plus Scheme’ under EXIM Policy/Foreign Trade Policy 2004-2009 to restrict/reduce benefit to exporter retrospectively from 1-4-2005 were ultra vires, as already accrued benefit cannot be taken away by retrospective amendment; therefore, the said notifications were read down to… Read More »

SEBI ISSUED REGULATION FOR DISCLOSURES IN ABRIDGED PROSPECTUS

By | October 29, 2015

THE GAZETTE OF INDIA EXTRAORDINARY PART – III – SECTION 4 PUBLISHED BY AUTHORITY NEW DELHI, OCTOBER 27, 2015 SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 27th of October, 2015 SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) (SEVENTH AMENDMENT) REGULATIONS, 2015 No. SEBI/ LAD-NRO/GN/2015-16/025 ─ In exercise of… Read More »