Re: UPDATES FROM TAX GURU (in this message: 21 new items)

On Mon, Jan 11, 2010 at 9:36 AM, LEGAL & FINANCIAL UPDATES FROM TAX GURU <info@taxguru.in> wrote:

UPDATES FROM TAX GURU (in this message: 21 new items)

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• If a trust fulfills all conditions of section 12A/12AA, registration cannot be denied on ground that some conditions of section 11 and 12 not fulfilled
• Payment of compensation for obtaining vacant & peaceful possession of premises cannot be allowed as revenue expenditure
• Tribunal, in no circumstances whatsoever, can be led to take a different view on same facts and law on which Jurisdictional High Court has already taken a view
• After Settlement Commission order no power vests in the assessing authority or any other authority in respect of period and income covered under the order
• NBFCs not entitled to deduction of any provision created for bad and doubtful debts
• Penalty u/s 271(1)(b) of the Income tax act, 1961 is not for mere technical non-compliance but for actual or habitual defaulters
• TDS liability of a builder for sub-contracting of main contract is 1% u/s 194C
• Bank interest is not eligible for deduction under sections 80-IB/80HHC
• Assessee is entitled for depreciation on assets of a closed unit which are part of block of assets
• If AO assume concealment without considering the actual payments made in the subsequent years, such attempt would be premature
• TDS is not required to be deducted from royalty payment made for distribution and marketing of cinematographic films on DVD and VCD
• A declarant under KVSS, 1998 cannot take a different stand after adjustment in record has been made as per instruction of declarant
• Words "any other law for the time being in force" in section 100A of CPC shall also cover appeal u/s 483 of Companies Act
• Production of certified copy of instrument of partnership is mandatory for claiming assessment in status of a firm for any assessment year commencing from 1993-94
• New Office address of Regional Authority of DGFT, Surat
• Import policy of items under Exim Code "7208"
• Amendment of paragraph 4.22.1 of HBP v1 for extension of Export Obligation Period (EOP) for advance authorisations issued for import of raw sugar
• Standardized lot size for derivative contracts on individual securities
• Even introduction of stock-in-trade as capital contribution into firm attracts s. 45(3)
• New Decade of Mahindra and Mahindra
• China's financial reform in 2010

If a trust fulfills all conditions of section 12A/12AA, registration cannot be denied on ground that some conditions of section 11 and 12 not fulfilled Posted: 10 Jan 2010 05:46 AM PST assessees who fulfill all the conditions are entitled to registration cannot be faulted. The contention of the Revenue that the assessees are not registered as an institution and hence not entitled for registration is also without any merit,... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Payment of compensation for obtaining vacant & peaceful possession of premises cannot be allowed as revenue expenditure Posted: 10 Jan 2010 05:42 AM PST CASE LAW DETAILS Decided by: ITAT, MUMBAI BENCH `C', MUMBAI,  In The case of: ITO v. Pritam Juice,  Appeal No.: ITA No. 6096/Mum/06 , Decided on: September 30, 2009 RELEVANT PARAGRAPH 10. We have heard the rival submission and perused the... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Tribunal, in no circumstances whatsoever, can be led to take a different view on same facts and law on which Jurisdictional High Court has already taken a view Posted: 10 Jan 2010 05:40 AM PST n this decision, vide order dated 15.9.2008, the Hon'ble Apex Court had held that even a decision of Apex Court or Jurisdictional High Court rendered subsequent to the Tribunal decision can render the said Tribunal decision liable of rectification... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

After Settlement Commission order no power vests in the assessing authority or any other authority in respect of period and income covered under the order Posted: 10 Jan 2010 05:39 AM PST After passing of order by Settlement Commission, no power vests in Assessing Authority or any other authority to issue notice in r/o period and income covered under order of Settlement Commission. [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

NBFCs not entitled to deduction of any provision created for bad and doubtful debts Posted: 10 Jan 2010 05:36 AM PST Unfortunately, for the appellant NBFCs. are not covered by Section 36(l)(viia) of the I.T Act and so much so, explanation to section 36(l)(vii) squarely applies or in other words, the appellant-N. B.F.Cs. are not entitled to deduction of any... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Penalty u/s 271(1)(b) of the Income tax act, 1961 is not for mere technical non-compliance but for actual or habitual defaulters Posted: 10 Jan 2010 05:31 AM PST It shows that these assessees had really intended to comply with the notices and therefore it should not be inferred that there was a default which could invite penalty u/s 271(l)(b). The ITAT Delhi Bench-G in the case of Akhil Bhartiya Prathmik... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

TDS liability of a builder for sub-contracting of main contract is 1% u/s 194C Posted: 10 Jan 2010 05:27 AM PST We have heard rival submissions and perused the orders of the authorities below. Copies of Registration Certificate under Kerala Value Added Tax and Form ST-2 under Service Tax Act placed at pages 20 and 21 clearly mentions that assessee has been... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Bank interest is not eligible for deduction under sections 80-IB/80HHC Posted: 10 Jan 2010 05:24 AM PST The next two items are penal charges of Rs.5,11,688/ - and Rs. 10,970/-. These amounts have already been held to be business income while discussing the issues of section 80IB. Accordingly, we direct the AO to treat these two amounts as part of... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Assessee is entitled for depreciation on assets of a closed unit which are part of block of assets Posted: 10 Jan 2010 05:20 AM PST The assets did not fall under any of the above exceptional three conditions. The said block of assets was used for the purpose of business during the year. Under the circumstances the assets of the said closed unit amounts to use for the purpose of... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

If AO assume concealment without considering the actual payments made in the subsequent years, such attempt would be premature Posted: 10 Jan 2010 05:18 AM PST We have heard both the sides in detail. Thrust given by the C1T(A) on the mens rea reflected in the conduct of the assessee does not survive with usual force, since the judgment of the Hon'ble Supreme Court in the case of Union of India &... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

TDS is not required to be deducted from royalty payment made for distribution and marketing of cinematographic films on DVD and VCD Posted: 10 Jan 2010 05:11 AM PST In this view of the matter, we hold that the payment of royalty made by the assessee is out side the purview of section 40(a) of the Income-tax Act, 1961, and therefore, no TDS is required to be made from such royalty payment. Accordingly, we set... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

A declarant under KVSS, 1998 cannot take a different stand after adjustment in record has been made as per instruction of declarant Posted: 10 Jan 2010 05:07 AM PST In Y. Venugopala Reddy Vs. Commissioner of Income Tax and another, (2003) 263 ITR 30, the Karnataka High Court interpreted the words 'notwithstanding' used in Section 88 of KVSS and has held that a matter which has already been settled cannot be... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Words "any other law for the time being in force" in section 100A of CPC shall also cover appeal u/s 483 of Companies Act Posted: 10 Jan 2010 05:05 AM PST even if under Section 483,there was no condition prohibiting an appeal against an order of the learned Single Judge passed in appellate exercise of jurisdiction, the said exclusion has been now specifically provided in by the Legislature under... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Production of certified copy of instrument of partnership is mandatory for claiming assessment in status of a firm for any assessment year commencing from 1993-94 Posted: 10 Jan 2010 05:04 AM PST The consequence of non-production of certified copy will naturally lead to disallowance of claims of deduction toward? payment of interest, remuneration, bonus etc. paid to partner by the firm by virtue of Section 185 of the Act We, therefore, hold... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

New Office address of Regional Authority of DGFT, Surat Posted: 10 Jan 2010 04:54 AM PST In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy 2009-2014, the Director General of Foreign Trade hereby makes the following amendment in Appendix 1 (List of Regional Authorities and their Jurisdiction) of the Handbook... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Import policy of items under Exim Code "7208" Posted: 10 Jan 2010 04:50 AM PST In exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby amends Schedule – I (Imports) of the ITC (HS)... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Amendment of paragraph 4.22.1 of HBP v1 for extension of Export Obligation Period (EOP) for advance authorisations issued for import of raw sugar Posted: 10 Jan 2010 04:48 AM PST "For the Advance Authorisation (erstwhile licences) where raw sugar has been imported between 21.09.04 and 15.4.08, but the export obligation is yet to be fulfilled, the export obligation period stands automatically extended upto 31.03.2011 without... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Standardized lot size for derivative contracts on individual securities Posted: 10 Jan 2010 04:28 AM PST The Stock Exchanges shall review the lot size once in every 6 months based on the average of the closing price of the underlying for last one month and wherever warranted, revise the lot size by giving an advance notice of atleast 2 weeks to the... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Even introduction of stock-in-trade as capital contribution into firm attracts s. 45(3) Posted: 10 Jan 2010 04:14 AM PST The assessee was engaged in the business of real estate development. It held land as stock in trade with a book value of Rs. 4.4 crs. The said land was introduced at its market value of Rs. 11.50 crs as capital contribution into a new firm. The... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

New Decade of Mahindra and Mahindra Posted: 10 Jan 2010 03:48 AM PST When Satyam collapsed and the buzz in the word was that this will be another winding up of the company as the situation demand. Moreover no one was there to remove the stains of corporate default and the broken corporate governance. The world... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

China's financial reform in 2010 Posted: 10 Jan 2010 03:44 AM PST When the Obama administration is launching a broad push for action on financial regulatory reform China is making a big leap towards changing its financial structure of its economy. They have planned to bring new reforms which will crown their... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

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