[aaykarbhavan] Judgments and Information [1 Attachment]

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SEC. 3,
SUB-SECTION (ii)]
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
INCOME-TAX
New Delhi, the 10th November, 2014
S.O. 2874 (E). – In exercise of the powers conferred by section 295 read with sub-clauses (iv),
(v), (vi) and (via) of clause (23C) of section 10, clause (aa) of sub-section (1) of section 12A
and clause (vi) of sub-section (5) of section 80G of the Income-tax Act, 1961 (43 of 1961), the
Central Board of Direct Taxes hereby makes the following rules further to amend the Incometax
Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (11th Amendment) Rules, 2014.
(2) They shall come into force from the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962, -
(A) in rule 2C, -
(i) in sub-rule (1), the following proviso shall be inserted, namely:-
"Provided that on or after the specified date, the prescribed
authority under sub-clauses (iv) and (v) of clause (23C) of section 10
shall be the Principal Commissioner or Commissioner, to whom the
application shall be made as provided in sub-rule (2).";
(ii) for the Explanation, the following Explanation shall be substituted, namely
: -
"Explanation.—For the purposes of this rule,-
(i) "Chief Commissioner or Director General" means the Chief
Commissioner or Director General whom the Central Board of
2
Direct Taxes may, authorise to act as prescribed authority for the
purposes of sub-clause (iv) or sub-clause (v) of clause (23C) of
section 10 in relation to any fund or trust or institution;
(ii) "Principal Commissioner or Commissioner" means the Principal
Commissioner or Commissioner whom the Central Board of Direct
Taxes may, authorise to act as prescribed authority for the
purposes of sub-clause (iv) or sub-clause (v) of clause (23C) of
section 10 in relation to any fund or trust or institution;
(iii) "specified date" means the date which the Central Board of
Direct Taxes may, by notification in the Official Gazette, specify in
this behalf.";
(B) in rule 2CA,-
(i) in sub-rule (1), the following proviso shall be inserted, namely:-
" Provided that on or after the specified date the prescribed authority
under sub-clauses (vi) and (via) of clause (23C) of section 10 shall be
the Principal Commissioner or Commissioner, to whom the application
shall be made as provided in sub-rule (2).";
(ii) for the Explanation, the following Explanation shall be substituted, namely
: -
"Explanation.—For the purposes of this rule,-
(i) "Chief Commissioner or Director General" means the Chief
Commissioner or Director General whom the Central Board of Direct
Taxes may, authorise to act as prescribed authority for the purposes
of sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 in
relation to any fund or trust or institution;
(ii) "Principal Commissioner or Commissioner" means the Principal
Commissioner or Commissioner whom the Central Board of Direct
Taxes may, authorise to act as prescribed authority for the purposes
of sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 in
relation to any fund or trust or institution;
3
(iii) "specified date" means the date which the Central Board of
Direct Taxes may, by notification in the Official Gazette , specify in
this behalf.";
(C) in rule 11AA, in sub-rule (6), for the words "date on", the words "end of the month
in" shall be substituted;
(D) in the Appendix II,-
(I) in Form 10A, for items 1 to 5, the following items shall be substituted,
namely: -
"1.Name of the * trust/institution in full [in block letters] …..
2.Permanent Account Number …..
3.Address …..
4.Name(s) and address(es) of author(s)/founder(s) …..
5.Date of creation of the trust or establishment of the institution …..
6.Name(s) and address(es) of trustee(s)/manager(s) …..";
(II) in Form 56, in the Notes,-
(a) for item 2, the following item shall be substituted, namely: -
"2. The application form,-
(a) filed before the specified date, should be sent to the
Chief Commissioner or Director General whom the Central Board
of Direct Taxes may authorise to act as prescribed authority, for
the purposes of sub-clause (iv) or sub-clause (v) of clause (23C)
of section 10, through the Commissioner of Income-tax or Director
of Income-tax (Exemptions) having jurisdiction over the trust or
institution;
(b) filed on or after the specified date, should be sent to the
Principal Commissioner or the Commissioner whom the Central
Board of Direct Taxes may authorise to act as prescribed authority
for the purposes of sub-clause (iv) or sub-clause (v) of clause
(23C) of section 10.
Four copies of the application form along with the enclosures should
be sent.";
4
(b) for item 4, the following item shall be substituted, namely: -
"4. The applicant shall furnish any other documents or
information as required by the Chief Commissioner or Director
General or Principal Commissioner or Commissioner or any authority
authorised by the Chief Commissioner or Director General or
Principal Commissioner or Commissioner, as the case may be.";
(III) in Form 56D, in the Notes,-
(a) for item 1, the following item shall be substituted, namely: -
"1. The application form,-
(a) filed before the specified date, should be sent to the
Chief Commissioner or Director General whom the
Central Board of Direct Taxes may authorise to act as
prescribed authority for the purposes of sub-clause (vi)
or sub-clause(via) of clause (23C) of section 10
through the Commissioner of Income-tax or Director of
Income-tax (Exemptions) having jurisdiction over the
university or other educational institution or hospital or
other medical institution referred to in serial number 1
of this Form;
(b) filed on or after specified date, should be sent to the
Principal Commissioner or the Commissioner whom
the Central Board of Direct Taxes may authorise to act
as prescribed authority for the purposes of sub-clause
(vi) or sub-clause (via) of clause(23C) of section 10.
Four copies of the application form along with the enclosures should
be sent.";
(b) for item 3, the following item shall be substituted, namely: -
"3. The applicant shall furnish any other documents or
information as required by the Chief Commissioner or Director
General or Principal Commissioner or Commissioner or any
authority authorised by the Chief Commissioner or Director
5
General or Principal Commissioner or Commissioner, as the
case may be.".
[Notification No. 61 /2014/F.No.142/5/2014-TPL]
(Ashish Kumar)
Director (Tax Policy and Legislation)
Note. - The principal rules were published in the Gazette of India vide notification
number S.O. 969 dated the 26th March, 1962 and was last amended by the Income-tax (10th
Amendment) Rules, vide notification S.O. No.2556 (E) dated 30.09.2014.

Lessor could claim depreciation on machinery leased out in course of its business

November 12, 2014[2014] 49 taxmann.com 353 (Karnataka)

IT: Where machinery owned by assessee was leased out in course of carrying out of business, depreciation was to be allowed

IT: Lease equalization reserve amount is required to be added back for arriving at book profit for purpose of section 155A

 

No reassessment by AO to disallow sum paid to NR after holding that payment wasn't liable to TDS at assessment stage

November 12, 2014[2014] 50 taxmann.com 109 (Kolkata - Trib.)

IT : Where Assessing Officer having considered material on record, concluded that assessee was not required to deduct tax at source while making payment to non-resident, he could not subsequently reopen assessment merely on basis of change of opinion that payment in question was to be made after deducting tax at source

 

Creche constructed in factory compound to increase efficiency of women employees was depreciable at 10%

November 12, 2014[2014] 49 taxmann.com 357 (Andhra Pradesh)/[2014] 364 ITR 208 (Andhra Pradesh)

IT : Creche building constructed within compound of factory for purpose of increasing efficiency and productivity of women employees is part of factory building eligible for 10 per cent depreciation

IT : Excess amounts collected over and above prices notified by Government under Drug Price Control order gave rise to statutory liability; deduction is allowable on depositing same in Drug Price Equalisation Account

 

No sec. 41(1) addition as assessee had acknowledged trading liability and settled it in subsequent years

November 12, 2014[2014] 50 taxmann.com 112 (Ahmedabad - Trib.)/[2013] 28 ITR(T) 561 (Ahmedabad - Trib.)

IT : Where assessee had acknowledged liability for purchases and such liability in subsequent years was either settled by returning goods or by making payment by account payee cheques, liability had not ceased so as to make addition under section 41(1)

IT : Amount received as advance payment by way of sale proceeds of goods sold could not be treated as cash credit under section 68

IT : Where interest-bearing funds were diverted for giving interest-free advances to associate concern without showing any business expediency, proportionate interest on borrowed funds was to be disallowed

Committees and Mechanism to be formed under Companies Act, 2013

Posted In Company Law | Articles | No Comments »

S.No.	Committee/Mechanism to be adopted	Applicability	Constitution	Section and Rules applicable
1.	Audit Committee	1. Public Companies having: Paid up share capital>= 10 cr. Turnover>= 100Cr. Aggregate outstanding loans /borrowings/debentures/deposits> =50cr 2. Listed Companies.	1. Minimum 3 directors (Independent directors with majority)	Section 177 read with Rule 6 of Companies (Meeting of board and its powers) Rules, 2014
2	Vigil Mechanism/whistle blower policy	1. Listed companies.2. Companies which accept deposits from the public; and3. Companies which have borrowed money from banks and public financial institutions >Rs50 crore.	1. Companies which are required to constitute audit committee shall operate the vigil mechanism through the audit committee.2. Other Public Companies: BOD shall nominate a director to play the role of audit committee to whom other directors and employees can report their concerns.	Section 177 read with Rule 7 of Companies (Meeting of board and its powers) Rules, 2014
3	Nomination and Remuneration Committee	1. Public Companies having: Paid up share capital>= 100 cr. Aggregate outstanding loans /borrowings/debentures/deposits> =200cr 2. Listed Companies.	NED>=3 (1/2 should be IDs)*Chairman of the Company may be appointed as the member but shall not chair such committee	Section 178 read with Rule 6 of Companies (Meeting of board and its powers) Rules, 2014
4	Stakeholders Relationship Committee	- Companies having a combined membership of the shareholders, debenture holders, deposit holders and other security holders > 1000 at any time during a financial year shall constitute	- NED Chairperson- Other members as may be appointed by the board	Section 178 read with Rule 6 of Companies (Meeting of board and its powers) Rules, 2014
5.	Internal Audit	1. Listed Companies2. Unlisted Public Company having: Share capital > =50 Crore Turnover>= 200Cr. Outstanding loans/borrowings/debentures/deposit >=100cr Outstanding Deposit>= 25Cr 3. Private Company having: Turnover>= 200 Cr. Outstanding loans/borrowings/debentures/deposit >=100cr *Note every public and private company having Outstanding loans/ borrowings/debentures/deposit>=100cr need to appoint internal auditors	Chartered Accountants/Cost Accountants/Any other professional as may be appointed by the board	Section 138 read with rule 13 of The Companies (Accounts) Rules, 2014
6.	Secretarial Audit	1. Public Company having Paid up Share Capital>= 50 Cr Turnover>= 250cr	Company Secretary in Practice	Section 204 read with rule 9 of the Companies (appointment of Personnel) Rules, 2014

CS Nisha Sharma

- See more at: Committees and Mechanism to be formed under Companies Act, 2013

				Committees and Mechanism to be formed under Compani...             S.No. Committee/Mechanism to be adopted Applicability Constitution Section and Rules applicable 1. Audit Committee 1. Public Companies having: ...
				View on taxguru.in	Preview by Yahoo

Sec. 54F relief denied as assessee had acquired another residential house within 1 year of transfer of capital asset

November 12, 2014[2014] 50 taxmann.com 101 (Mumbai - Trib.)

IT: While computing capital gains arising on transfer of a capital asset acquired by assessee under a gift or will, indexed cost of acquisition has to be computed with reference to year in which previous owner first held asset and not year in which assessee became owner of asset

IT: Where property has become capital asset of assessee through will, cost of acquisition has to be taken in terms of section 55(2)(b) and assessee can adopt either actual cost of acquisition or fair market value of asset as on 1-4-1981

IT: Where assessee had purchased residential house again after purchasing earlier residential unit within a period of one year from date of transfer, exemption under section 54F was rightly denied in view of violation of sub-clause (ii) of clause (a) of section 54F(1

S. 271(1)(c) Penalty Of Rs. 56.67 Cr Levied On Abhishek Manu Singhvi

November 12th, 2014

Eminent Senior Advocate Abhishek Manu Singhvi, who has appeared in several landmark income-tax cases such as Vodafone, has been assessed to undisclosed income of Rs. 91.95 crore by the Income Tax Settlement Commission. Penalty of Rs. 56.67 Cr u/s 271(1)(c) has also been levied.

The addition has been made inter alia in respect of the following issues:

(i) Claim of 100% depreciation on purchase of solar panels allegedly worth Rs 35.98 crore. The supplier admitted receipt of only Rs. 21.39 crore out of the Rs. 25.16 crore claimed to have been paid. The supplier gave a statement admitting that the cost was "inflated" and that Rs 10 crore was to be repaid to Singhvi in the form of a loan to his sons;

(ii) Claim of depreciation on purchase of laptops allegedly worth Rs. 5 crore. The Commission held that since Singhvi had employed only 14 advocates/professionals to assist him, he would have had to purchase 1,250 laptops (each costing Rs 40,000) to account for the amount under that head;

(iii) Non-verifiability of expenditure on account of a "termite attack" on the premises of his chartered accountant in December 2012, which had destroyed all records and expense vouchers, documents;

(iv) Non-verifiability of cheques payments of 10.97 crore as several inquiry letters were returned un-served.

Abhishek Singhvi has filed a Writ Petition in the Jodhpur Bench of the Rajasthan High Court in which he has alleged that he has been "trapped" in a "cat and mouse game". It is also argued that the Commission does not have the jurisdiction to impose penalty on him. "No authority and power has been however been granted to the Settlement Commission in way of the provisions of Chapter XIX-A of the Act to impose and /or direct imposition of penalty under the provisions," the petition stated.

The High Court has granted an interim stay in the matter.

__._,_.___

View attachments on the web

---

Posted by: Dipak Shah <djshah1944@yahoo.com>

---

receive alert on mobile, subscribe to SMS Channel named "aaykarbhavan"
[COST FREE]
SEND "on aaykarbhavan" TO 9870807070 FROM YOUR MOBILE.

To receive the mails from this group send message to aaykarbhavan-subscribe@yahoogroups.com

Visit Your Group

• Privacy • Unsubscribe • Terms of Use