S.14A: Disallowance of expenditure - Exempt income-Book profit-Disallowance has to be
applied while computing book profits under clause (f) of Explanation to s.115JA. [S.115JA]
The assessee's contention that in view of the Proviso to s. 14A, the said provision could not have been
invoked for AY 2000-01 in a revision u/s 263 is not acceptable because the assessment order was
passed after section 14A was enacted (Honda Siel Power Products 340 ITR 53 (Del) (approved by
SC) followed). The failure of the AO to invoke s. 14A had resulted in the order being erroneous and
prejudicial to the interests of the Revenue. ( ITA No. 1179/2010, dt.9/12/2014)( AY. 2000-01)
CIT .v. Goetze (India) Ltd.(2014) 361 ITR 505(Delhi)(HC)
CAs cannot undertake assignment of audit & accounting work together for same entity
Announcement on prohibition to undertake the assignment of audit and accounting work together for the same entity. – (20-05-2014)
No. ICAI/ESB/2014/03
It has come to the knowledge of some members that certain entities , while inviting tenders for services of chartered accountants for the assignment of statutory audit , are mentioning accounting and book keeping related works in the scope of works required to done by the auditor.
Members are hereby advised not to undertake such assignment since it is violative of the provisions of 'Code of Ethics' and 'Guidance Note on Independence of Auditors' for auditor of an entity to do book keeping work of the entity. The said prohibition in the case of Companies is further also mentioned in Section 144 of the Companies Act, 2013.
Source- ICAI
Overseas Direct Investments – LLP as Indian Party
RBI/2013-14/595
A.P. (DIR Series) Circular No.131
May 19, 2014
To
All Category – I Authorised Dealer Banks
Madam/ Sir,
Overseas Direct Investments – Limited Liability Partnership (LLP) as Indian Party
Attention of the Authorised Dealers (AD) is invited to Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 notified by the Reserve Bank vide Notification No. FEMA.120/RB-2004 dated July 07, 2004 and amended from time to time.
2. On a review, it has been decided to notify a Limited Liability Partnership (LLP), registered under the Limited Liability Partnership Act, 2008 (6 of 2009), as an "Indian Party" under clause (k) of Regulation 2 of the Notification ibid. Accordingly, an LLP, may henceforth undertake financial commitment to / on behalf of a JV / WOS abroad in terms of the extant FEMA provisions under Regulation 6 (and regulation 7, if applicable) of the Notification ibid.
3. Necessary amendment to the Notification ibid has been issued vide Notification No. FEMA.299/2014-RB dated March 24, 2014 (copy enclosed), which is effective from the date of publication in the Gazette i.e. May 07, 2014.
4. The AD banks shall report the financial commitment/s undertaken by an LLP in Form ODI Part I and II and also other reporting (APR, disinvestments, etc.) as per the extant reporting requirements.
5. AD – Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(C D Srinivasan)
Chief General Manager
Exposure Draft of ASLB on 'Financial Reporting under Cash Basis of Accounting' for public comments
Sub: Exposure Draft of the Accounting Standard for Local Bodies (ASLB) on 'Financial Reporting under the Cash Basis of Accounting' for public comments.
As you would kindly be aware that the Institute of Chartered Accountants of India (ICAI), in the year 2005, constituted the Committee on Accounting Standards for Local Bodies (CASLB) with the primary objective of formulation of the Accounting Standards for Local Bodies (ASLBs). The CASLB has already issued 'Preface to the Accounting Standards for Local Bodies' which sets out the objectives and operating procedures of the Committee and explains the scope and authority of the Accounting Standards for Local Bodies. So far, the Committee has issued seven ASLBs which are available on the website of the ICAI, i.e., www.icai.org. Apart from these Standards ASLB 31, 'Intangible Assets' is under consideration of Council and likely to be issued shortly.
While formulating the ASLBs, CASLB gives due consideration to the International Public Sector Accounting Standards (IPSASs) issued by the International Public Sector Accounting Standards Board (IPSASB) of IFAC and tries to integrate them, to the extent possible, in the light of the conditions and practices prevailing in India.
Recently, the Committee has finalised the Exposure draft of proposed ASLB on, 'Financial Reporting under the Cash Basis of Accounting' which is enclosed herewith for your valuable comments and suggestions. The text of the Exposure Draft is also available at the following link on the website of the Institute: http://www.icai.org/post.html?post_id=424
May we request you to kindly send your comments and suggestions on the Exposure Draft on or before June 30, 2014, to the undersigned. Comments can also be sent by e-mail at caslb@icai.in .
Thanking you,
Yours faithfully,
(Deepti Dhiman Chadha)
Secretary
Committee on Accounting Standards for Local Bodies
The Institute of Chartered Accountants of India
ICAI Bhawan
Post Box Number 7100
Indraprastha Marg
New Delhi-110002
Phone: 011-30110449
E-mail: caslb@icai.in
(Deepti Dhiman Chadha)
Secretary
Committee on Accounting Standards for Local Bodies
The Institute of Chartered Accountants of India
ICAI Bhawan
Post Box Number 7100
Indraprastha Marg
New Delhi-110002
Phone: 011-30110449
E-mail: caslb@icai.in
Link to Download Exposure Draft- http://www.icai.org/post.html?post_id=424
Source- ICAI
CIT to report Order Passed by him under section 264 to CCIT
Orders Passed Under Section 264 of the Income Tax Act – Administrative Supervision.
Instruction No. 11/2014, Dated – 16th May, 2014
F. No. 279/Misc./M-115/2013-ITJ
Government of India,Ministry of Finance, Department of Revenue, Central Board of Direct Taxes
To,
All Chief Commissioners of Income-tax,
All Directors General of Income-tax
Sir/ Madam,
Subject: – Orders passed under section 264 of the Income Tax Act – Administrative supervision reg.
Under Section 264 of the Income Tax Act, 1961 (hereinafter referred to as the Act), the Commissioner of Income Tax (CIT) may, either of his own motion or on an application made by the assessee, revise an order passed by an authority subordinate to him. The CIT may, before revising such, order, make enquiry or cause such enquiry to be made and subject to the provisions of the Act, pass such order which is not prejudicial to the assessee.
2. The statutory function under section 264 of the Act performed by the CIT is required to be reported by the CIT and also appraised by the supervisory Officers. Therefore, it has been decided to issue the following guidelines to be complied forthwith in respect of orders passed under section 264 of the Act:-
a) The CIT shall prepare a brief of the orders passed under section 264 of the Act and report the same to the Principal Chief Commissioner of Income Tax/ Chief Commissioner of Income Tax (CCIT) in the monthly DO letter along with a copy of such order.
b) The Pr. CCIT/ CCIT shall report the number of orders passed under section 264 of the Act by the CsIT under his/her jurisdiction along with his/her observation in relation to any order, if deemed fit, to the Zonal Member of the CBDT in the monthly DO letter. The Pr. CCIT/CCIT shall also communicate his/her observation to the CIT.
3. The above Instruction may be brought to the knowledge of all concerned.
4. Hindi version of the Instruction will follow.
Yours faithfully,
(Priyanka Singh)
(OSD), ITJ, CBDT
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