Tuesday, March 31, 2015

[aaykarbhavan] Judgments and Information [1 Attachment]









PFA

TDS on sale of Immovable Property- Beware CPC TDS issuing intimation for late deposit of TDS

by CA Sandeep Kanoi
In its latest move to penalise late payers of TDS, the CPC TDS has started issuing intimation u/s 200A of the Income Tax Act'1961 to the deductors u/s 194IA i.e the buyers of property who have paid TDS U/s 194IA late. The CPC TDS is not only charging interest u/s 201 but also late fee u/s 234E of the Act.



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[aaykarbhavan] Judgments and Information [2 Attachments]







PFA

S. 271(1)(c): Disallowance of expenditure for failure to deduct TDS does not attract penalty
In this case, the penalty has been levied for disallowance of expenditure u/s.40(a)(ia) of the Act. It is not a case of furnishing of inaccurate particulars of income or concealment of income. The failure to deduct the TDS on the part of the assessee has resulted in disallowance of expenditure. The assessee had not furnished any inaccurate particulars of income or expenditure. The assessee has already faced the consequences by way of disallowance of expenditure for non-deduction of TDS as per the provisions of section 194C of the Act. It is not the case of the Revenue that the assessee had not incurred the expenditure claimed or that the claim of expenditure was bogus or incorrect. The disallowance of expenditure was attracted due to non-deduction of TDS and it cannot be said to be a case of concealment of income or furnishing of inaccurate particulars of income. The levy of penalty u/s.271(1)(c) of the Act is not attracted in this case and the same is accordingly ordered to be deleted.

Related Judgements

  1. DCIT vs. Nepa Limited (ITAT Indore) 
    (i) It is incumbent upon the Assessing Officer to state whether penalty was being levied for concealment of particulars of income by the assessee or whether any inaccurate particulars of income had been furnished by the assessee. There are two different charges i.e. the concealment of particulars of income…
  2. Nayan Builders & Developers Pvt Ltd vs. ITO (ITAT Mumbai) 
    When the High Court admits substantial question of law on an addition, it becomes apparent that the addition is certainly debatable. In such circumstances penalty cannot be levied u/s 271(1) (c). The admission of substantial question of law by the High Court lends credence to the bona fides of…
  3. CIT vs. Reliance Petroproducts (Supreme Court) 
    The argument of the revenue that "submitting an incorrect claim for expenditure would amount to giving inaccurate particulars of such income" is not correct. By no stretch of imagination can the making of an incorrect claim in law tantamount to furnishing inaccurate particulars. A mere making of the claim,

PFA

S. 40(a)(ia): Merilyn Shipping 136 ITD 23 (SB) should be followed in view of approval by Allahabad HC and dismissal of SLP by Supreme Court. In any event as two views are possible, view in favour of assessee should be followed. Amounts already paid without TDS cannot be disallowed
The assessee, having made the payment, section 40(a)(ia) cannot be attracted because it speaks of the amount "payable" and it does not cover the amount already paid. The ITAT Chennai Benches have taken into consideration the decision of the ITAT Special Bench in the case of Merilyn Shipping & Transport 136 ITD 23 (SB), the order of which was suspended by the High Court but at the same time there was a subsequent judgement of the Hon'ble Allahabad High Court in the case of M/s. Vector Shipping Services (P) Ltd. wherein it was held that section 40(a)(ia) applies only to those amount which remains payable by the end of the previous year. In other words, in respect of payments already made section 40(a) (ia) is not attracted: – i. ACIT vs. M/s. Eskay Designs – ITA No.1951/Mds/2012 dated 09.12.2013. ii. ITO vs. Theekathir Press – ITA No. 2076/Mds/2012 & CO No. 155/Mds/2013 dated 18.09.2013. Though there are contrary decisions of the other Hon'ble High Courts, i.e. Hon'ble Calcutta High Court and Hon'ble Gujarat High Court, in the light of the decision of the Hon'ble Allabahad High Court it can be said the there can be two views possible in this matter in which event the one which is in favour of the assessee has to be followed in the light of the decision of the Hon'ble Supreme Court in the case of Vegetable Products Ltd. 88 ITR 192. Hon'ble Allahabad High Court in the case of CIT vs. Vector Shipping Services (P) Ltd.(supra) has held that for disallowing expenses from business and profession on the ground that TDS has not been deducted, amount should be payable and not which has been paid by end of the year. The said decision of Hon'ble Allahabad High Court was made subject to Special Leave Petition filed before Hon'ble Supreme Court and their Lordships vide their order dated 02/07/2014 in CC No.8068/2014 have dismissed the SLP. In view of above discussion, the decision relied upon by Ld. DR would have no application and we have to accept the claim of the assessee to the extent of labour payments are made during the year under consideration and to that extent no disallowance should be made.

Related Judgements

  1. Jignesh P. Shah vs. DCIT (ITAT Mumbai) 
    Since the assessment had attained finality before the date of search and does not get abated in view of second proviso to section 153A, therefore, without there being any incriminating material found at the time of search, no addition over and above the income which already stood assessed can…
  2. DCIT vs. Gupta Overseas (ITAT Agra) 
    S. 40(a)(i): Disallowance of payment to Non-residents without TDS violates 'deduction neutrality non-discrimination' clause in DTAA as there is no similar bar for residents as per Merilyn Shipping 136 ITD 23 (SB)
    In Rajeev Sureshbhai Gajwani 137 TTJ 1 (Ahd)(SB) it was held that differentiation simplicitor is enough to…
  3. The Ramanthali Service Co-operative Bank Ltd vs. ITO (ITAT Cochin) 
    (i) The next question arises for consideration is whether the second proviso to section 40(a)(ia) as incorporated by Finance Act, 2012 is retrospective in operation or prospective in operation. We are conscious that some of the benches of this Tribunal in the country has taken the view that the…



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[aaykarbhavan] Judgments and Information [4 Attachments]




PFA

Aggregator's Services under Service Tax Net

by CA Sandeep Kanoi
The aggregators who were till now not specifically covered under the Service Tax net on strict interpretation of law and could not catch the attention of revenue authorities came under the radar of one and all in Indian regulatory world once the app based cab services received the attention after Uber fiasco.

Import of Second Hand Tyres for direct use– Regarding

OFFICE OF THE COMMISSIONER OF CUSTOMS NS-I & III
JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA-SHEVA.
TAL: URAN, DIST: RAIGAD, MAHARASHTRA-400 707.
F.No. S/22-Gen-90/2014-15 AM (I) NS-III,  Date:27.03.2015
                                                             
PUBLIC NOTICE NO. 28/2015
SUBJECT:  Import of Second Hand Tyres for direct use– Regarding.
Attention of the Trade, Customs Brokers and all concerned is invited towards OM issued by the Ministry of Environment & Forests F No 23-4/2009 HSMD(pt)  dated 24.11.2014 is reproduced below:
The matter herein pertains to import of second hand tyres for direct use purpose. The import of 'waste pneumatic tyres, excluding those which do not lead to resource recovery, recycling, reclamation or direct reuse' falls under Schedule III B (B3140) of Hazardous Waste (Management, Handling and Trans-boundary Movement) Rules, 2008 and hence is regulated for the purpose of import/ export. Accordingly, the applicant has to apply to this Ministry for import of used tyres for any purpose including for re-use purpose.
2. However, as far as import of used tyres for direct reuse is concerned the matter was discussed in 33rd Technical Review Committee (TRC) meeting held on 28.10.2014 in the Ministry. The Committee is constituted under the Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008. The Committee's observations on the issue are as given below:
i. There is adequate capacity for tyre manufacturing in the country and in fact tyres manufactured in India are exported. Therefore there is no need to import second hand pneumatic tyres.
ii. There is an order dated 11th February 2010 from the Ministry of Commerce and Industry, DIPP which says "no person shall be himself or through any person on his behalf, manufacture, import, store for sale, sell or distribute Pneumatic tyres which do not conform to the Specified Standard and which do not bear the Standard Mark of the Bureau on obtaining Certification marks license".
iii. Thus all tyres used in the country must have BIS certification except for tyres imported by Original Equipment Manufacturer (OEM)and distributed through their authorized dealers.
iv. There is no simple test for determining the road safety.
v. There is no simple test for determining the road safety or the residual life of tyres which could be used by the Customs.
3. Taking into account the above observations and related recommendations of the Committee, it is to inform that import of second hand tyre in the country for direct re-use is not permitted.
2.This is brought to the information of the Trade, Customs Brokers and all concerned for their information.
3.Difficulties, faced if any, in implementation of this Circular may kindly be brought in the notice of Additional Commissioner, Centralised Appraising Main, NS-III.
SD/
27.03.2015
(SEEMA JERE BISHT)
COMMISSIONER OF CUSTOMS,
NS-I & III
- See more at: http://taxguru.in/income-tax/import-hand-tyres-direct.html#sthash.EV9XNMBU.dpuf

PFA

Application for Roll Back of Advance Pricing Agreement can be made upto to 30.06.2015

by CA Sandeep Kanoi
Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, the 31st March, 2015 Press Release The rules relating to Roll Back of an Advance Pricing Agreement (APA) have been notified through notification no. S.O. 758 (E) dated 14th March, 2015. As per sub-rule (5) of the newly prescribed […]

Income Tax Dept. issues list of 18 tax defaulters

by CA Sandeep Kanoi
Income Tax Dept. issues list of 18 tax defaulters Download List of 18 tax defaulters

PFA

Income Tax Dept. issues list of 18 tax defaulters

Income Tax Dept. issues list of 18 tax defaulters
1.     BLUE INFORMATION TECHNOLOGY LTD.
2.     LAXMINARAYAN T. THAKKAR (HUF)
3.     JUPITOR BUSINESS LIMITED
4.     HIRAK BIOTECH LTD.
5.     ICON BIO PHARMA & HEALTH CARE LIMITED [Formerly known as moon drugs limited]
6.     APPLITECH SOLUTIONS LIMITED
7.     BANYAN & BERRY ALLOYS LTD.
8.     SOMANI CEMENT CO. LTD.  KHARSALIYA
9.     DIGITAL PC TECHNOLOGIES PVT.LTD.
10.   GOLDSUKH TRADE INDIA LTD.
11.   VICTOR CREDIT & CONSTRUCTION PVT. LTD.
12.   NOBLE MERCHANDISE LTD.
13.   PROTECH INTRADE PVT. LTD.
14.   ATUL JASHVANTRAI MEHTA
15.   Late Shri. G. K. DHARNE Legal Heir : Atul Gopal Dharne (Son).
16.   POONAM INDUSTRIES LTD.
17.   KUNVAR AJAY FOOD PVT. LTD.
18.   VIRAJ DYEING & PRINTING PVT. LTD.
- See more at: http://taxguru.in/income-tax/income-tax-dept-issues-list-18-tax-defaulters.html#sthash.uj6vIlWL.dpuf

Rate of Interest WEF 01.04.2015 on NSC, PPF, KVP, Sukanya Samriddhi A/c

by CA Sandeep Kanoi
Government Announces Interest Rates for Various Small Savings Schemes; Rates to Come Into Force with Effect from Tomorrow          It was decided by the Government of India that interest rates on Small savings Schemes will be linked to yields on government securities of comparable maturity. In pursuance of that decision, the Government has decided to revise […]

Rate of Interest WEF 01.04.2015 on NSC, PPF, KVP, Sukanya Samriddhi A/c

Government Announces Interest Rates for Various Small Savings Schemes; Rates to Come Into Force with Effect from Tomorrow         
It was decided by the Government of India that interest rates on Small savings Schemes will be linked to yields on government securities of comparable maturity. In pursuance of that decision, the Government has decided to revise the rates applicable on various small savings schemes as given in the table below.
     Scheme Rate of interest
w.e.f.01.04.2014
Rate of Interest
w.e.f. 01.04.2015
1. 2. 3.
 Savings Deposit 4.0 4.0
 1 Year Time Deposit 8.4 8.4
 2 Year Time Deposit 8.4 8.4
 3 Year Time Deposit 8.4 8.4
 5 Year Time Deposit 8.5 8.5
 5 Year Recurring Deposit 8.4 8.4
 5 Year SCSS 9.2 9.3
 5 Year MIS 8.4 8.4
 5 Year NSC 8.5 8.5
 10 Year NSC 8.8 8.8
 PPF 8.7 8.7
Kisan Vikas Patra 8.7 8.7
Sukanya Samriddhi Account Scheme 9.1 9.2
The above rates will be effective from tomorrow i.e. 1.4.2015.
Thus the rates on many of the small savings scheme have undergone an upwards revision vis-à-vis 2014-15.
- See more at: http://taxguru.in/income-tax/rate-interest-wef-01042015-nsc-ppf-kvp-sukanya-samriddhi-ac.html#sthash.8SuWuOYY.dpuf


Article on Exemption U/s 54 is attached.


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Posted by: Dipakkumar Shah <cadjshah@yahoo.com>


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[aaykarbhavan] Business Standard





















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Posted by: Dipakkumar Shah <cadjshah@yahoo.com>


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[aaykarbhavan] Rogues Gallery Of Tax Defaulters + ITAT Members Transfer Orders + Four Imp Judgements



Dear Subscribers,

Check Out The Rogue's Gallery Of Absconding 'Wilful Tax Defaulters'

The Income Tax department has adopted the aggressive strategy of 'naming and shaming' some large tax defaulters by publishing names of 18 entities who owe over Rs 500 crore tax to the exchequer


Posting + Transfer Orders Of Hon'ble ITAT Members (March 2015 – IV)

Vide orders passed by the Hon'ble President pursuant to the consultations with the Collegium of Income Tax Appellate Tribunal consisting of the President and two senior most Vice Presidents, the following decisions have been taken


ITAT Members To Get Bonus Points For Intl Tax + Transfer Pricing Orders

Vide Order dated 20th March 2015, the Hon'ble President of the Tribunal has directed that the order dated 2nd February 2015 is withdrawn forthwith and the practice of giving bonus point is restored. It is stated that the Vice Presidents will have the discretion to award bonus points in accordance with the quality and effort required to decide cases relating to International Taxation and Transfer Pricing


Plus Paper Food Pac Ltd vs. ITO (Bombay High Court)

S. 147/ 148: If the recorded reasons show contradiction and inconsistency it means necessary satisfaction in terms of the statutory provision has not been recorded at all. The Court cannot be called upon to indulge in guess work or speculate as to which reason has enabled the AO to act in terms of s. 147

The Court cannot be called upon to indulge in guess work or speculate as to which reason has enabled the Assessing Officer to act in terms of this section. If more than one reason is assigned as in this case then the Court can sustain the notice only if it is of the opinion that an erroneous reference to a statutory provision has been made but still there is an income chargeable to tax which has escaped assessment and on account of which issuance of notice is justified. Which ground is sufficient to sustain the notice is something which must be indicated in clear terms and should not be a matter of speculation or guess work


Suresh Chandra vs. ITO (ITAT Delhi)

S. 147/ 148: Failure to comply with the procedure prescribed in G.K.N. Drive Shaft (India) Ltd. vs. ITO 259 ITR 19 (SC) renders the assessment order invalid & void ab initio

The AO was required to first decide the objection of the assessee filed u/s 148 and serve a copy of the order on assessee. And after giving some reasonable time to the assessee for challenging his order, it is open to him to pass an assessment order. Since such compliance has not been made by the Assessing Officer in the present case, the assessment order is not valid and is void ab initio


Jitendra Mansukhlal Shah vs. DCIT (ITAT Mumbai)

S. 40(a)(ia): Merilyn Shipping 136 ITD 23 (SB) should be followed in view of approval by Allahabad HC and dismissal of SLP by Supreme Court. In any event as two views are possible, view in favour of assessee should be followed. Amounts already paid without TDS cannot be disallowed

Though there are contrary decisions of the other Hon'ble High Courts, i.e. Hon'ble Calcutta High Court and Hon'ble Gujarat High Court, in the light of the decision of the Hon'ble Allabahad High Court it can be said the there can be two views possible in this matter in which event the one which is in favour of the assessee has to be followed in the light of the decision of the Hon'ble Supreme Court in the case of Vegetable Products Ltd. 88 ITR 192


Rushi Builders and Developers vs. ACIT (ITAT Mumbai)

S. 271(1)(c): Disallowance of expenditure for failure to deduct TDS does not attract penalty

The disallowance of expenditure was attracted due to non-deduction of TDS and it cannot be said to be a case of concealment of income or furnishing of inaccurate particulars of income. The levy of penalty u/s.271(1)(c) of the Act is not attracted


Regards,

 

Editor,

 

itatonline.org

---------------------

Latest:

Acche Din! NAMO Cracks Whip On Income-Tax Dept For Harassing Taxpayers




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Posted by: "editor@itatonline.org" <itatonline.org@gmail.com>


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Monday, March 30, 2015

[aaykarbhavan] Business Standard


















??????????????????








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Posted by: Dipakkumar Shah <cadjshah@yahoo.com>


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[aaykarbhavan] Re: [Ranchi_Chartered_Accountants] Re: {Amresh's CA's} Re: {Amresh's CA's}



I may add to the above one experience. There is one company names LWS knitwear Limited of Ludhiana. For last 20 years I was making complaint to Registrar of Companies  Ludhiana. It was a case of payment ( No payment ) of dividend . In fact the comp-any issued T D S certificate to all shareholders. This was the material shareholders had!!!!!But net payment of Dividend was not paid , any way , to shareholders by issue of cheques. This was a case of private placement of shares before public issue of shares!!!!!! Also filed complaint to Commissioner of Income Tax for TDS. The payment of TDS amount is paid or not!!!! So far no reply.....
R O C Did not take any action for 20 years. Every year Complaint was filed!!!!! Now , the result,  just one year back only filed criminal case against the Company!!!!!!! When asking a question why so much delay ? Thye just say they have taken action!!!!!
What Law enforcement carried out by Government Body??!!
If you are absolutely correct in life, do not give up any thing ...... Even in profession also .
Shah D J 



On Monday, March 30, 2015 2:27 PM, "Dipakkumar Shah cadjshah@yahoo.com [Ranchi_Chartered_Accountants]" <Ranchi_Chartered_Accountants@yahoogroups.com> wrote:


 
There are many things they do not know or not taking appropriate action for years together!!! They themselves are not abiding to the Companies Act 1956 of 2013  !!! properly!!
What is their intentions , so many learned fellows  are there in MC A !!!.
God save us.
Shah D J 



On Monday, March 30, 2015 1:18 PM, "Sanjay Khandelwal skh_ca@yahoo.com [ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:


 
Dear Amresh Sir,

It is too little and too late. It appears that this clarification has intentionally been given at the fag end of the FY, when perhaps each and every private limited company may have already done what the MCA officials wanted them to do. The MCA officials had more than one year to give this clarification, which they have given now. Had this been clarified earlier, the affected companies would have not gone through the painful process. This circular could have come a bit earlier. The companies were unnecessarily forced to comply with the requirements, which they were not required to do. 

May good senses prevail on the MCA and they take timely action. 
 
CA. SANJAY KHANDELWAL
9929422950


From: "CA Amresh Vashisht caamreshvashisht@gmail.com [ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com>
To: icai meerut <icai_circ_meerut_ca@yahoogroups.com>; amresh_vashisht@yahoo.com
Sent: Monday, 30 March 2015 4:27 PM
Subject: {Amresh's CA's}

 
GENERAL CIRCULAR 5/2015: DATED 30TH MARCH 2015
 
1) Stakeholders have sought clarifications as to whether amounts received by private companies from their members, directors or their relatives prior to 1st April, 2014 shall be considered as deposits under the Companies Act, 2013 as such amounts were not treated as 'deposits' under section 58A of the Companies Act, 1956 and rules made thereunder. 
 
2.The matter has been examined in consultation with RBI and it is clarified that such amounts received by private companies prior to 16t April, 2Ol4 shall not be treated as 'deposits' under the Companies Act,2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement for the financial year commencing on or after lsi April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the fi nancial statement. 
 
3. Any renewal or acceptance of fresh deposits on or aiter 1st April, 2014 shall, however, be in accordance with the provisions of Companies Act, 20 13 and rules made thereunder. 
 
4.This issues with the approval of the competent authority.


--

Thanks & Regards
,   
 
CA AMRESH VASHISHT, FCA, LLB, DISA (ICAI)
Member,ICAI- Regional Research Committee 2013-14
Member,ICAI- Committee For DIRECT TAXES 2011-12

1 1 5, Chappel Street, Meerut Cantt, UP, INDIA.
 Phone: 0 1 2 1-2 6 6 1 9 4 6. Cell: 9 8 3 7 5 1 5 4 3 2.
 http://in.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA








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