Fwd: TaxGuru : “If any establishment or employer claims to be not covered under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, burden to prove in such cases is on the establishment – Delhi HC” plus 18 more

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From: TaxGuru.in - Daily Tax and Corporate Law Update <info@taxguru.in>
Date: Mon, Aug 22, 2011 at 10:18 AM
Subject: TaxGuru : "If any establishment or employer claims to be not covered under Employees' Provident Funds and Miscellaneous Provisions Act, 1952, burden to prove in such cases is on the establishment – Delhi HC" plus 18 more
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TaxGuru : "If any establishment or employer claims to be not covered under Employees' Provident Funds and Miscellaneous Provisions Act, 1952, burden to prove in such cases is on the establishment – Delhi HC" plus 18 more

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• If any establishment or employer claims to be not covered under Employees' Provident Funds and Miscellaneous Provisions Act, 1952, burden to prove in such cases is on the establishment – Delhi HC
• Assessee entitled to claim deduction in respect of the provision for warranty made on the basis of past experience
• Un-quantified and disputed ratable value as determined by Municipal Corporation can be termed as crystallised liability and can be claimed as deduction
• Ad hoc disallowance of foreign tour expenditure not sustainable without questioning the business purpose of the trip
• If two views are possible than Assessing Officers should take the one favourable to the Assessee and penalty for concealment cannot be levied
• Introduction to XBRL, How it works?, Benefits of XBRL and XBRL Glossary
• Fees paid to a foreign company for rendering testing and certification services cannot be treated as income deemed to accrue or arise in India under Section 9(1)(vii) of the Income-tax Act
• Fees received by KPMG for assisting an Indian Company in acquisition of Sugar mills in Brazil is not Fees for Technical Services under the Income-tax Act
• Income of non-resident attributed to its PE in India taxable as business profits; balance income not to be taxed as fee for technical services – ITAT Mumbai
• Expenditure incurred by the assessee-company, incorporated for carrying out the business of the BPO, prior to the setting up of business, cannot be taken into account for computing the business income
• ESOP Holding period to be reckoned from the date of exercise of option to buy shares and not from the earlier date of grant of options
• Amendment brought to cast TDS liability on individuals and HUF under section 194C do not applies to AY 2007-08
• Scope of DRP is restricted only to adjustments proposed in the draft assessment order and not beyond
• Whether when the assessee earns dividend income, disallowance of administrative expenditure incurred, directly or indirectly, can be made even without rule 8 provided AO is able to link the same to earning of the income ?
• Reassessment after four years on change of opinion not valid
• Provisions of Section 72A would be applicable only when 'amalgamating company' and not 'amalgamated company' has accumulated losses
• Cooperative housing Society – Frequently Asked Questions
• When the assessee fails to rebut the unexplained investment in the purchase of fuits, and the CIT(A) and Tribunal fail to record the fact that such entries were made in the books, the addition made by the AO is sustainable
• Section 54 -Capital gains – Exemption qua residential house

If any establishment or employer claims to be not covered under Employees' Provident Funds and Miscellaneous Provisions Act, 1952, burden to prove in such cases is on the establishment – Delhi HC Posted: 21 Aug 2011 09:16 PM PDT J K College Of Nursing & Paramedicals vs. UOI & ORS (Delhi HC)- It was held that if any establishment or employer claims to be not covered under the said Act, then it is for the employer to place sufficient cogent and convincing... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Assessee entitled to claim deduction in respect of the provision for warranty made on the basis of past experience Posted: 21 Aug 2011 08:58 PM PDT Acer India Pvt. Ltd. Vs. DCIT (ITAT Bangalore) - Provision for warranty stood crystallized as soon as the sale was made which a customer would like to be fulfilled within the warranty period and is at the cost of an assessee 'sgoodwili Therefore,... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Un-quantified and disputed ratable value as determined by Municipal Corporation can be termed as crystallised liability and can be claimed as deduction Posted: 21 Aug 2011 08:17 PM PDT CIT Vs DCM Limited (Delhi HC)- Whether a mere proposal for enhancement of property tax would result in crystallization of liability qua that portion of rateable value which was sought to be enhanced. There can be no dispute that liability does not... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Ad hoc disallowance of foreign tour expenditure not sustainable without questioning the business purpose of the trip Posted: 21 Aug 2011 08:03 PM PDT Amit Jain Vs ITO (ITAT Kolkatta) - Assessee made a foreign trip to Roam, Dubai and Kathmandu and claimed expenses at Rs.1,45,151/-. Assessing Officer required the assessee to produce the evidence and also business purposes. Assessee stated that... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

If two views are possible than Assessing Officers should take the one favourable to the Assessee and penalty for concealment cannot be levied Posted: 21 Aug 2011 07:42 PM PDT CIT Vs Mahavir Irrigation Pvt Ltd (Delhi HC)- In this case, there is no finding that any details supplied by the assessee in its Return were found to be incorrect or erroneous or false. Such not being the case, there would be no question of inviting... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Introduction to XBRL, How it works?, Benefits of XBRL and XBRL Glossary Posted: 21 Aug 2011 06:46 PM PDT XBRL is a data-rich dialect of XML (Extensible Markup Language), the universally preferred language for transmitting information via the Internet. It was developed specifically to communicate information between businesses and other users of... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Fees paid to a foreign company for rendering testing and certification services cannot be treated as income deemed to accrue or arise in India under Section 9(1)(vii) of the Income-tax Act Posted: 21 Aug 2011 06:58 AM PDT Havells India Ltd v. ACIT (ITAT Delhi)- It has been held that where services have been rendered outside India and have been utilised for the purpose of making or earning any income from any source outside India, such payments would fall outside the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Fees received by KPMG for assisting an Indian Company in acquisition of Sugar mills in Brazil is not Fees for Technical Services under the Income-tax Act Posted: 21 Aug 2011 06:43 AM PDT ITO v. Bajaj Hindustan Ltd. (ITAT Mumbai)- There is not dispute that the payment in question made by Assessee to KPMG is in respect of services which otherwise fell within the definition of FTS as given in the Act. The dispute is whether the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Income of non-resident attributed to its PE in India taxable as business profits; balance income not to be taxed as fee for technical services – ITAT Mumbai Posted: 21 Aug 2011 06:18 AM PDT Nippon Keiji Kyokoi v. ITO (ITAT Mumbai)- Notwithstanding a change in the position by the assessee, the Tribunal has held that the effective connection with the permanent establishment in India has to be determined based on a functional test in the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Expenditure incurred by the assessee-company, incorporated for carrying out the business of the BPO, prior to the setting up of business, cannot be taken into account for computing the business income Posted: 21 Aug 2011 05:57 AM PDT ITO v Omni Globeinformation Technologies India (P) Ltd (ITAT Delhi) - Business is set up when it reaches a stage where it is in a position to procure business and not before. However, the expenditure becomes deductible from such stage, irrespective... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

ESOP Holding period to be reckoned from the date of exercise of option to buy shares and not from the earlier date of grant of options Posted: 21 Aug 2011 05:47 AM PDT ACIT vs. Pramod H. Lele (ITAT Mumbai)- The Stock Option Plan had granted only an 'option to buy' a specified number of shares in a specified timeframe at a specified price, subject to the fulfilment of other conditions set out in the plan. There was... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Amendment brought to cast TDS liability on individuals and HUF under section 194C do not applies to AY 2007-08 Posted: 21 Aug 2011 05:33 AM PDT Shri Prashant H Shah Vs ACIT (Ahmedabad ITAT)-It is further important to mention that vide an amendment with effect from 1/6/2007 an individual or HUF have also been inducted vide sub-clause (k) in section 194C(1) of the IT Act. At this juncture, it... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Scope of DRP is restricted only to adjustments proposed in the draft assessment order and not beyond Posted: 21 Aug 2011 04:39 AM PDT GE India Technology Centre Pvt. Ltd. v. DRP and ACIT [Writ Appeal No. 1010 of 2011) (Karnatka High Court) - HC held that the scope of powers of the Dispute Resolution Panel (the DRP) under Section 144C of the Income-tax Act, 1961 (the Act) is... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Whether when the assessee earns dividend income, disallowance of administrative expenditure incurred, directly or indirectly, can be made even without rule 8 provided AO is able to link the same to earning of the income ? Posted: 21 Aug 2011 02:47 AM PDT DCIT, Chennai Vs M/s Aban Offshore Ltd (ITAT Chennai) - Whether disallowance u/s 40(a)(ia) is warranted for deduction of tax @ 1% on subcontract where the sub-contract is entered into to fulfill the conditions of the main contract and the same is... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Reassessment after four years on change of opinion not valid Posted: 21 Aug 2011 12:43 AM PDT CIT, Chennai Vs M/s Simpson & Co. (Madras HC)- There must be a nexus between the material at the hands of the Officer and formation of belief that there was escapement of wealth from assessment on account of the failure of the assessee to... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Provisions of Section 72A would be applicable only when 'amalgamating company' and not 'amalgamated company' has accumulated losses Posted: 20 Aug 2011 11:37 PM PDT Wrigley India Private Ltd v ACIT (ITAT Delhi) - Whether the Tax Officer has, inter alia, erred in disallowing the claim of brought forward losses and unabsorbed depreciation of the Taxpayer post amalgamation? The Tribunal agreed with the position... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Cooperative housing Society – Frequently Asked Questions Posted: 20 Aug 2011 09:49 PM PDT 1 .How a cooperative housing society can be formed? An application for registration in Form No. 1 should be signed by 60 members who are forming the society. Along with the application the following documents should also be filed. Four copies of... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

When the assessee fails to rebut the unexplained investment in the purchase of fuits, and the CIT(A) and Tribunal fail to record the fact that such entries were made in the books, the addition made by the AO is sustainable Posted: 20 Aug 2011 09:30 PM PDT CIT Vs Sanjay Chhabra ( Chandigarh HC)- The sole point for consideration in this appeal is that once the Revenue had come to the conclusion that the assessee had made sales of apples amounting to Rs. 5,75,654/- to one Jagdish Chawla, whether it was... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Section 54 -Capital gains – Exemption qua residential house Posted: 20 Aug 2011 09:24 PM PDT Firm is not entitled to exemption - A firm is not entitled to exemption under section 54 - CIT v. K. Gangiah Chetty & Sons [1995] 214 ITR 548 (Mad.). Tax authorities must determine extent of appurtenant land - The expression 'land appurtenant... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

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