Re: UPDATES FROM TAX GURU (in this message: 15 new items)

On Tue, Dec 29, 2009 at 9:35 AM, LEGAL & FINANCIAL UPDATES FROM TAX GURU <info@taxguru.in> wrote:

UPDATES FROM TAX GURU (in this message: 15 new items)

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• If the income is surrendered with the condition that no penalty be imposed, then the AO not justified in imposing the penalty
• Incidental revenue generating activities do not end the principle of mutuality
• Advance ruling on tax rate applicable to royalty income derived by a Japanese company in India
• The burden of proving understatement or concealment is on the revenue
• A shareholder has no "say" in management of a company unless and until he becomes part of management
• Draft Bank Branch Auditors' Panel 2009-10
• Concessional rate of tax for foreign oil exploration and production companies
• 19 PwC tax partners resigned following the resignation of the PwC tax head Dinesh Kanabar
• Ernst & Young and six of its current and former partners charged for failing to disclose fraudulent financial accounting
• Income earned by CA from audits will not be entitled to relief u/s 80RR
• Advance Ruling on taxability of an American Institute for rendering certain work and service to FICCI-DRDO Innovation programme
• Income from trading of shares will be speculative business within meaning of provision of Explanation to section 73
• Determination of ALV of a let out property
• Even promise to render services at a future date would entitle Assessee to deduction u/s 80O of the Income Tax Act, 1961
• Donation made for business purpose is allowable expenditure

If the income is surrendered with the condition that no penalty be imposed, then the AO not justified in imposing the penalty Posted: 28 Dec 2009 06:57 PM PST In the case of CIT Vs. Manga Ram & Sons 107 ITR 307 (All.) and in CIT Vs. Sarankhan Siri Sugar Works 246 ITR 216 (All) proposition of the law laid down by the Hon'ble High Court are that if the income is surrendered with the condition that no... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Incidental revenue generating activities do not end the principle of mutuality Posted: 28 Dec 2009 06:48 PM PST Simply because some incidental activity of the assessee is revenue generating, does not provide any justification to hold that it is tainted with "commerciality" and reaches a point where relationship of mutuality ends and that of trading begins. [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Advance ruling on tax rate applicable to royalty income derived by a Japanese company in India Posted: 28 Dec 2009 06:41 PM PST The income by way of royalty accruing to the Japanese company is liable to be taxed in terms of Article 12 of the DTAA between India and Japan at a rate not exceeding 10 per cent from the assessment year 2008-09 onwards. [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

The burden of proving understatement or concealment is on the revenue Posted: 28 Dec 2009 06:30 PM PST The burden of proving an understatement or concealment is on the revenue; this burden may be discharged by the revenue by establishing facts and circumstances from which a reasonable inference can be drawn that the assessee has not correctly... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

A shareholder has no "say" in management of a company unless and until he becomes part of management Posted: 28 Dec 2009 06:26 PM PST Brief facts relevant for the purpose of deciding this issue are that the defendant no.1 company was a tenant in property no. 3 Amrita Shergill Marg, New Delhi. This property was leased by defendant no.5 M/s H.G.Gupta & Sons (HUF) to defendant... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Draft Bank Branch Auditors' Panel 2009-10 Posted: 28 Dec 2009 05:56 PM PST Draft Bank Branch Auditors' Panel 2009-10. MEF00001 to MEF10000, MEF10001 to MEF20000, MEF20001 to MEF30000, MEF30001 to MEF40000 http://www.meficai. org/mef_draft_ panel.jsp? list=list4 [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Concessional rate of tax for foreign oil exploration and production companies Posted: 28 Dec 2009 05:42 PM PST Income of foreign companies providing technical services and data to oil exploration and production companies in India will be taxed at a concessional rate, the Authority for Advance Rulings (AAR) on income tax has said in a recent decision. The... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

19 PwC tax partners resigned following the resignation of the PwC tax head Dinesh Kanabar Posted: 28 Dec 2009 05:03 PM PST 19 PwC tax partners have resigned following the resignation of the PwC tax head Dinesh Kanabar on Saturday December 26. Among the people who quit today are H Kotak, G Mistry and R Dhume - all of whom have joined KPMG. All the resigning partners were... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Ernst & Young and six of its current and former partners charged for failing to disclose fraudulent financial accounting Posted: 28 Dec 2009 04:54 PM PST The US watchdog has charged Ernst & Young and six of its current and former partners for their roles at a fitness business, for failing to know about its fraudulent financial accounting and disclosures. E&Y in the US issued unqualified... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Income earned by CA from audits will not be entitled to relief u/s 80RR Posted: 28 Dec 2009 01:53 AM PST Income earned by the assessee by exercise of his profession as a Chartered Accountant and which is nothing to do with the exercise of the profession as a author will not be entitled to relief under Section 80RR. [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Advance Ruling on taxability of an American Institute for rendering certain work and service to FICCI-DRDO Innovation programme Posted: 28 Dec 2009 01:17 AM PST The services/activities provided by the American Institute to DRDO pursuant to the agreement entered into between FICCI and the American Institute do not fall within the purview of Article 12(4)(b) of the Indo-US DTAA and the payments received by... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Income from trading of shares will be speculative business within meaning of provision of Explanation to section 73 Posted: 28 Dec 2009 01:13 AM PST Where assessee is engaged in trading in share of other companies, the business carried on by the assessee will be in nature of speculative business and profit or loss arising therefrom will be the speculative profit/loss. [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Determination of ALV of a let out property Posted: 28 Dec 2009 01:06 AM PST In respect of the properties where restriction under Rent Control Act is not applicable, the annual letting value has got to be determined after taking into consideration various factors and the standard rent or Municipal valuation may be adjusted... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Even promise to render services at a future date would entitle Assessee to deduction u/s 80O of the Income Tax Act, 1961 Posted: 27 Dec 2009 11:35 PM PST As rightly pointed out by Shri Pardiwalla, even a promise to render services at a future date would entitle the assessee for deduction u/s 80-O in view of the specific wordings in the section. [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Donation made for business purpose is allowable expenditure Posted: 27 Dec 2009 11:31 PM PST But now, we have to consider the alternative claim of the assessee, whether the assessee is entitled for deduction u/s.37(1) of the Act, of donation made in lieu of appeal made by the GOG as the abovementioned amount was paid because Gujarat State... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

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