Section 40a(ia): Applicability in case of capitalization of expenses ? Held- Not applicable Income Tax Officer vs. M/s Hariom Organizers Pvt. Ltd (ITAT Ahmedabad Bench ITA no. 1496/Ahd/2009) Where an expenditure has been capitalized and tds is not deducted thereon u/s40a(ia) the same is not disallowable. Section 40a(ia)- Whether Depreciation is to be disallowed on expenses capitalized on… Read More »
Loss due to confiscation of Stock by Custom authorities for over-invoicing whether allowable ? Held-No Section 37 of the Income Tax Act Commissioner of Income Tax –I Ludhiana vs. Ambassador Industrial Corporation (Punjab & Haryana High Court)(ITA no. 199 of 2007) Where the goods were confiscated due to over invoicing to claim excess DEPB/Export benefits and for such… Read More »
Section 37- Expenditure on corporate membership of Club- Whether capital or revenue ? Held- Revenue CIT vs. Groz Beckert Asia Ltd. (Punjab & Haryana High Court – Full bench)(ITA No. 366 of 2008) Expenditure on corporate membership of club is revenue expenditure The assessee obtained corporate membership of the Golf Club on payment of Rs.6 lakhs. The AO disallowed… Read More »
Section 2(22)(e)-Whether deemed dividend is attracted in case of common shareholders ? Held – No CIT vs Gopal Clothing Company Pvt Ltd.(Delhi High Court)(ITA 333/2006 ) Merely because the shareholders are common between the borrowing and lending company, the amount received are not taxable as dividend if the receiver company didn’t have the requisite shareholding. Following its… Read More »
RBI/2015-16/209 DCBR.CO.RCBD.BC.No. 5/19.51.026/2015-16 October 21, 2015 The Chief Executive Officer All State/Central Cooperative Banks Madam/Dear Sir, Investments in Market Infrastructure Companies by State/Central Cooperative Banks Please refer to our circulars RPCD CO RF BC 65/07.02.03/2003-04 dated February 23, 2004 and RPCD CO RF BC 26/07.02.03/2005-06 dated August 04, 2005 in terms of which guidelines were… Read More »
RBI/2015-16/211 Master Direction No.DBR.IBD.No.45/23.67.003/2015-16 October 22, 2015 Gold Monetisation Scheme, 2015 In exercise of the powers conferred on the Reserve Bank of India (RBI) under Section 35 A of the Banking Regulation Act, 1949 and in pursuance of the Central Government notification issued vide Office Memorandum F.No.20/6/2015-FT dated September 15, 2015 regarding “ Gold Monetisation… Read More »
The Reserve Bank of India today issued a Direction to all Scheduled Commercial Banks (excluding Regional Rural Banks) on implementation of the Gold Monetisation Scheme, 2015 notified by the Central Government. The Scheme The GMS will replace the existing Gold Deposit Scheme, 1999. However, the deposits outstanding under the Gold Deposit Scheme will be allowed… Read More »
Applicable Sections ;– Section 11A, read with sections 4, 11 and 33A of the Central Excise Act, 1944, sections 73 and 87 of the Finance Act, 1994 and sections 28 and 142 of the Customs Act, 1962 Issue : On death of sole proprietor, department issued notice alleging clandestine removal to sole proprietor’s wife/daughters .… Read More »
Government exempts the services provided by a business facilitator or a business correspondent to a banking company with respect to Basic Savings Bank Deposit Accounts covered by Pradhan Mantri Jan Dhan Yojana (PMJDY) from Service Tax. In order to promote financial inclusion, the Government has exempted services provided by a business facilitator or a business… Read More »
Punjab & Haryana High Court Principal CIT vs. M/s Mobisoft Tele Solutions Pvt. Ltd. Income tax (Appeal) no. 193, 194 & 197 of 2015, 07/08/2015 Summary of Case :- Punjab & Haryana High Court held In the case of Principal CIT vs. M/s Mobisoft Tele Solutions Pvt. Ltd. that Tarun Mohan had obtained the copyright… Read More »