United States: Forensic Accountant And Certified Fraud Examiner Pleads Guilty To Concealing UBS Account
 |  |  |  |  |  |
On October 3, 2014, according to a U.S. Attorney's Office press release and court records, Howard Bloomberg, a forensic accountant and certified fraud examiner, pleaded guilty to one count of failure to file an FBAR reporting his interest in a bank account at UBS in Switzerland. The account, which Bloomberg opened in 1997, held as much as $930,000 in 2001. In April 2008, Bloomberg requested that UBS close his account and wire approximately $540,000 to an American account. His sentencing will take place in federal district court in Atlanta on December 19, 2014.
Distribution of Cenvat credit by Zonal office to branches cannot be denied merely because it did not obtain Service tax registration
Distribution of Cenvat credit by Zonal office to branches cannot be denied merely because it did not obtain Service tax registration specifically as ISD when for all practical purposes, it was functioning as ISD
Punjab National Bank Vs. Commissioner of Central Excise, Meerut-I [2014 (10) TMI 29 - CESTAT NEW DELHI]
Punjab National Bank ("the Appellant" or "PNB") is the Zonal Audit Office at Meerut of the Punjab National Bank. The Appellant applied and obtained Service tax registration for providing banking and financial services on October 30, 2004. Further, the Appellant conducted audit of the records of different branches of PNB within their jurisdiction. Each branch was also having separate Service tax registration. During the period from January 2008 to March 2009, the Appellant though having Service tax registration under Banking and financial services, was not registered as Input Service Distributor ("ISD"), but they took Cenvat credit on input services on the basis of invoices of various service providers issued in the name of Zonal office and distributed the same to various branches by issuing the invoices.
The Department initiated proceedings for recovery of this Cenvat credit on the ground that when the Appellant was not registered as ISD, they could not have taken the credit and distributed the same by issuing invoices to their branches.
The Appellant contended that the provisions for ISD were introduced in June 2005 but the Appellant started availing Cenvat credit and distributing the same as ISD from October 2007 and that merely because the Appellant did not obtain Service tax registration specifically as ISD, the Cenvat credit availed by them for distribution to branches cannot be denied.
It was held by the Hon'ble CESTAT, Delhi that there is no dispute that the services in question had been received and are covered by the definition of 'Input service' and if the Appellant had obtained separate registration as ISD, there would have been no objection to availing Cenvat credit on the basis of invoices in the name of Zonal Audit Office and distributing the same to the branches of PNB. In the peculiar facts and circumstances of the case, when the Appellant, though not providing the banking and financial services, were registered as provider of banking service since 2004, they should be treated as registered as ISD also, as they were for all practical purposes, functioning as ISD and the availment of Service tax credit and its distribution to various branches by issue of invoices were being reflected in the ST-3 returns being filed by them, which is what a registered ISD would have done. Hence, the credit cannot be denied to the Appellant.
(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email: bimaljain@hotmail.com)
- See more at: http://taxguru.in/excise-duty/distribution-cenvat-credit-zonal-office-branches-denied-obtain-service-tax-registration.html#sthash.14rWutTM.dpuf
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))--PRINT AND ONLINE EDITION
Assessment --Best judgment assessment--Sufficient opportunity of hearing given to assessee by Assessing Officer and Commissioner (Appeals)--Failure by assessee to appear or produce evidence in support of return--Ex parte order disallowing expenses based on materials available on record--No interference--Income-tax Act, 1961, ss. 142(1), 143(2), 144--Income-tax (Appellate Tribunal) Rules, 1963, r. 29-- Shivangi Steel P. Ltd. v. Asst. CIT (Agra) . . . 341
International transactions --Arm’s length price--Determination--Selection of comparables--Failure by Department to furnish assessee with information obtained under section 133(6)--Selection of comparables vitiated--Fluctuating margins of company not reason to establish differences in functional profile warranting exclusion--Companies for which independent function, asset and risk analysis not carried out to be excluded from comparables--Companies developing software products, having significant intangibles, huge revenues, rendering knowledge process outsourcing services and product development services and having related party transaction in excess of 15 per cent. to be excluded from comparables--Income-tax Act, 1961, s. 92CA-- 3 DPLM Software Solutions Ltd. v. Deputy CIT (Bangalore) . . . 305
----Arm’s length price--Risk adjustment--Risk adjustment to be made to margins of comparables for bringing them on par with assessee--Matter remanded--Income-tax Act, 1961-- 3 DPLM Software Solutions Ltd . v. Deputy CIT (Bangalore) . . . 305
Appeal to Appellate Tribunal --Rectification of mistake--Powers to rectify mistakes on record--Issue thoroughly considered and decided on merits cannot be reviewed--Application dismissed--Income-tax Act, 1961, s. 254(2)-- Deputy CIT v. Arvind M. Kariya (Mumbai) . . . 164
Assessment --Scrutiny of cases--CBDT instructions--Instruction prescribing time limit of three months from date of filing of return for scrutiny--Notice under section 143(2) issued after three months--Assessment not valid--Income-tax Act, 1961, s. 143(2)-- Vishal Madnani v. ITO (Lucknow) . . 130
Business expenditure --Accrual of liability--Liability pertaining to earlier year crystallising in year in question--Deduction cannot be denied on ground that expenditure related to earlier period--Income-tax Act, 1961-- Bearingpoint Property Services P. Ltd. v. Deputy CIT (Bangalore) . . . 177
----Business--Setting up of business and commencement of business--Distinction--Revenue expenses incurred during year of setting up of business eligible for deduction--Income-tax Act, 1961 , s. 3-- Jcdecaux Advertising India P. Ltd. v. Deputy CIT (Delhi) . . . 211
----Disallowance--Payments liable to deduction of tax at source--Payment to hotel for boarding--Hotel not working on behalf of assessee as contractor--Section 194C not applicable for payments made by customer to hotel--Income-tax Act, 1961, s. 194C-- Ratnagiri Impex P. Ltd. v. Deputy CIT (Bangalore) . . . 239
----Wholly and exclusively for purpose of business--Expenditure incurred on foreign travel by directors--Possibility of involvement of personal expenditure--Disallowance made on estimate basis should be fair and justifiable estimate--Disallowance restricted to extent of 25 per cent. of expenditure--Income-tax Act, 1961-- Ratnagiri Impex P. Ltd. v. Deputy CIT (Bangalore) . . . 239
----Year in which allowable--Expenditure of earlier period paid in accounting year in question-- Sum not to be disallowed where demand raised and accepted by assessee in earlier year--Assessing Officer to verify issue--Matter remanded--Income-tax Act, 1961-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
Capital gains --Exemption--Sale of residential property and construction of flat--Assessee constructing flat prior to date of transfer of residential house--Deduction available only if assessee constructs new house within three years after date of transfer--Assessee not entitled to claim deduction in respect of cost of new flat--Income-tax Act, 1961, s. 54-- Farida A. Dungerpurwala v. ITO (Mumbai) . . . 205
----Short-term capital gains--Sale of property--Fair market value--Departmental Valuation Officer assessing value of property on basis of comparable sale instances of earlier years--Value cannot be treated as fair market value--Sale instances of dates proximate to date of sale of property of assessee to be considered--Matter remanded--Income-tax Act, 1961-- Rupakula Srinivas v. ITO (Hyd) . . . 245
Capital or revenue expenditure --Expenditure incurred on computer peripherals supply expenses--Commissioner (Appeals) granting relief without finding about nature of expenditure--Matter remanded to Assessing Officer to examine details--Income-tax Act, 1961-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
----Expenditure incurred on glow sign boards and on hoardings--No enduring benefit for assessee--Revenue expenditure--Income-tax Act, 1961, s. 37-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
----Expenditure incurred on software licence fee, purchase and development of miscellaneous software and hosting and maintenance of website and charges for internet bandwidth connectivity--Revenue--Income-tax Act, 1961-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
----Expenditure on horticulture--To facilitate the operations by providing better environment--Revenue expenditure--Income-tax Act, 1961, s. 37-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
----Expenditure on security for staff colony--Expenditure incurred for welfare of employees and general public interest allowable as revenue deduction--Income-tax Act, 1961, s. 37-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
Cash credits --Failure by assessee to furnish confirmation letters from creditors in time before Assessing Officer and Commissioner (Appeals)--Confirmation letters produced before Tribunal--Genuineness of confirmation letters to be verified--Matter remanded--Income-tax Act, 1961, s. 68-- Govindaraj (S.) v. ITO (Chennai) . . . 160
Charitable purpose --Exemption--Advance for availing of infrastructure facilities--Reasonableness of charges to be ascertained to ensure compliance with provisions of section 13(2)(c)--Matter remanded--Income-tax Act, 1961, ss. 13(1)(c), (2)(c), (3)(a)-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
----Exemption--Computation of income applied for charitable purposes--Depreciation to be reduced for determining percentage of funds--Income-tax Act, 1961-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
----Exemption--Disqualification--Payment under contract awarded to concern of one of managing trustees--Contract awarded on competitive basis--Profit reasonable--Disqualification not attracted--Income-tax Act, 1961, s. 13(1)(c), (2)(c), (3)(a)-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
Depreciation --Assessee leasing out trucks--Higher wear and tear due to rough use--Assessee entitled to higher rate of depreciation-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
----Leased rolling mill rollers found to be not in existence--Not eligible to claim depreciation when lease itself a bogus transaction--Income-tax Act, 1961, s. 133A-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
Exemption --Charitable purpose--Disqualification--Purchase of gold for award of gold medals to students and sale of surplus gold--Investment in gold bullion in violation of provisions of section 11(5)--Assessee liable to tax on income from sale of gold--Income-tax Act, 1961, s. 11(5)-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
Export --Exemption--Computation--Expenses reduced from export turnover to be reduced from total turnover also--Income-tax Act, 1961, s. 10A-- Bearingpoint Property Services P. Ltd. v. Deputy CIT (Bangalore) . . . 177
Income --Computation of income--Disallowance of expenditure relating to exempt income--Assessee to be allowed to substantiate its working of disallowance under section 14A with reference to its accounts--Satisfaction or dissatisfaction of Assessing Officer regarding claim to be recorded--Matter remanded--Income-tax Act, 1961, s. 14A--Income-tax Rules, 1962, r. 8D-- NSDL E-Governance Infrastructure Ltd. v. Asst. CIT (Mumbai) . . . 152
----Expenditure in relation to income not includible in taxable income--Assessing Officer to determine expenditure on basis of acceptable and reasonable apportionment--Facts to be analysed and decision taken in light of decision of Delhi High Court--Matter remanded--Income-tax Act, 1961, s. 14A--Income-tax Rules, 1962, r. 8D-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
International transactions --Arm’s length price--Determination--Selection of comparables--Failure to furnish assessee with information obtained under section 133(6) vitiates selection of comparables--Companies for which independent function, asset and risk analysis not carried out to be excluded from comparables--Companies developing software products, significant intangibles, huge revenues, rendering knowledge process outsourcing services, product development services and having related party transactions in excess of 15 per cent. to be excluded from comparables--Income-tax Act, 1961, s. 92CA-- Bearingpoint Property Services P. Ltd. v. Deputy CIT (Bangalore) . . . 177
Penalty --Concealment of income--Assessee furnishing complete particulars regarding stock of rice and selling of rice husk--Additions made solely on estimation without concrete evidence--Penalty to be deleted--Income-tax Act, 1961, s. 271(1)(c)-- Prem Chand v. Asst. CIT (Chandigarh) . . . 174
----Concealment of income or furnishing inaccurate particulars thereof--Denial of carry forward of long-term capital loss on ground of change in majority shareholding in assessee--Not a case of furnishing of inaccurate particulars or concealment of income in return--Penalty not warranted--Income-tax Act, 1961, s. 271(1)(c)-- Century Metal Recycling P. Ltd. v. Deputy CIT (Delhi) . . 143
Reassessment --Income escaping assessment--Prima facie understatement in sale value--Assessment can be reopened--Income-tax Act, 1961, s. 147-- Rupakula Srinivas v. ITO (Hyd) . . . 245
Reassessment--Income escaping assessment--Whether reasons recorded not sufficient for reopening of assessment--Assessee must prove--Income-tax Act, 1961, ss. 147, 148-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
----Notice--Validity--Notice under section 143(2) issued after expiry of twelve months from end of month in which return filed but before expiry of time limit for making assessment or reassessment--Notice valid--Income-tax Act, 1961, ss. 143(2), 148, 153(2)-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
Refund --Interest on excess refund--Assessment completed after 1-6-2003--Section 234D applicable--Income-tax Act, 1961, s. 234D-- NSDL E-Governance Infrastructure Ltd. v. Asst. CIT (Mumbai) . . . 152
S. 3 --Business expenditure--Business--Setting up of business and commencement of business--Distinction--Revenue expenses incurred during year of setting up of business eligible for deduction-- Jcdecaux Advertising India P. Ltd. v. Deputy CIT (Delhi) . . . 211
S. 10A --Export--Exemption--Computation--Expenses reduced from export turnover to be reduced from total turnover also-- Bearingpoint Property Services P. Ltd. v. Deputy CIT (Bangalore) . . . 177
S. 11(5) --Exemption--Charitable purpose--Disqualification--Purchase of gold for award of gold medals to students and sale of surplus gold--Investment in gold bullion in violation of provisions of section 11(5)--Assessee liable to tax on income from sale of gold-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
S. 13(1)(c) --Charitable purpose--Exemption--Advance for availing of infrastructure facilities--Reasonableness of charges to be ascertained to ensure compliance with provisions of section 13(2)(c)--Matter remanded-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
----Charitable purpose--Exemption--Disqualification--Payment under contract awarded to concern of one of managing trustees--Contract awarded on competitive basis--Profit reasonable--Disqualification not attracted-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
S. 13(2)(c) --Charitable purpose--Exemption--Advance for availing of infrastructure facilities--Reasonableness of charges to be ascertained to ensure compliance with provisions of section 13(2)(c)--Matter remanded-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
----Charitable purpose--Exemption--Disqualification--Payment under contract awarded to concern of one of managing trustees--Contract awarded on competitive basis--Profit reasonable--Disqualification not attracted-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
S. 13(3)(a) --Charitable purpose--Exemption--Advance for availing of infrastructure facilities--Reasonableness of charges to be ascertained to ensure compliance with provisions of section 13(2)(c)--Matter remanded-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
----Charitable purpose--Exemption--Disqualification--Payment under contract awarded to concern of one of managing trustees--Contract awarded on competitive basis--Profit reasonable--Disqualification not attracted-- Deputy CIT (Exemptions)-II v. Sri Vekkaliamman Educational and Charitable Trust (Chennai) . . 135
S. 14A --Income--Computation of income--Disallowance of expenditure relating to exempt income--Assessee to be allowed to substantiate its working of disallowance under section 14A with reference to its accounts--Satisfaction or dissatisfaction of Assessing Officer regarding claim to be recorded--Matter remanded-- NSDL E-Governance Infrastructure Ltd. v. Asst. CIT (Mumbai) . . . 152
----Income--Expenditure in relation to income not includible in taxable income--Assessing Officer to determine expenditure on basis of acceptable and reasonable apportionment--Facts to be analysed and decision taken in light of decision of Delhi High Court--Matter remanded-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
S. 37 --Capital or revenue expenditure--Expenditure incurred on glow sign boards and on hoardings--No enduring benefit for assessee--Revenue expenditure-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
----Capital or revenue expenditure--Expenditure on horticulture--To facilitate the operations by providing better environment--Revenue expenditure-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
----Capital or revenue expenditure--Expenditure on security for staff colony--Expenditure incurred for welfare of employees and general public interest allowable as revenue deduction-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
S. 54 --Capital gains--Exemption--Sale of residential property and construction of flat--Assessee constructing flat prior to date of transfer of residential house--Deduction available only if assessee constructs new house within three years after date of transfer--Assessee not entitled to claim deduction in respect of cost of new flat-- Farida A. Dungerpurwala v. ITO (Mumbai) . . . 205
S. 68 --Cash credits--Failure by assessee to furnish confirmation letters from creditors in time before Assessing Officer and Commissioner (Appeals)--Confirmation letters produced before Tribunal--Genuineness of confirmation letters to be verified--Matter remanded-- Govindaraj (S.) v. ITO (Chennai) . . . 160
S. 92CA --International transactions--Arm’s length price--Determination--Selection of comparables--Failure to furnish assessee with information obtained under section 133(6) vitiates selection of comparables--Companies for which independent function, asset and risk analysis not carried out to be excluded from comparables--Companies developing software products, significant intangibles, huge revenues, rendering knowledge process outsourcing services, product development services and having related party transactions in excess of 15 per cent. to be excluded from comparables-- Bearingpoint Property Services P. Ltd. v. Deputy CIT (Bangalore) . . . 177
S. 133A --Depreciation--Leased rolling mill rollers found to be not in existence--Not eligible to claim depreciation when lease itself a bogus transaction-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
S. 143(2) --Assessment--Scrutiny of cases--CBDT instructions--Instruction prescribing time limit of three months from date of filing of return for scrutiny--Notice under section 143(2) issued after three months--Assessment not valid-- Vishal Madnani v. ITO (Lucknow) . . 130
----Reassessment--Notice--Validity--Notice under section 143(2) issued after expiry of twelve months from end of month in which return filed but before expiry of time limit for making assessment or reassessment--Notice valid-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
S. 147 --Reassessment--Income escaping assessment--Prima facie understatement in sale value--Assessment can be reopened-- Rupakula Srinivas v. ITO (Hyd) . . . 245
----Reassessment--Income escaping assessment--Whether reasons recorded not sufficient for reopening of assessment--Assessee must prove-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
S. 148 --Reassessment--Income escaping assessment--Whether reasons recorded not sufficient for reopening of assessment--Assessee must prove-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
----Reassessment--Notice--Validity--Notice under section 143(2) issued after expiry of twelve months from end of month in which return filed but before expiry of time limit for making assessment or reassessment--Notice valid-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
S. 153(2) --Reassessment--Notice--Validity--Notice under section 143(2) issued after expiry of twelve months from end of month in which return filed but before expiry of time limit for making assessment or reassessment--Notice valid-- Deputy CIT v. Chemm Finance Ltd. (Bangalore) . . . 167
S. 194C --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Payment to hotel for boarding--Hotel not working on behalf of assessee as contractor--Section 194C not applicable for payments made by customer to hotel-- Ratnagiri Impex P. Ltd. v. Deputy CIT (Bangalore) . . . 239
S. 234D --Refund--Interest on excess refund--Assessment completed after 1-6-2003--Section 234D applicable-- NSDL E-Governance Infrastructure Ltd. v. Asst. CIT (Mumbai) . . . 152
S. 254(2) --Appeal to Appellate Tribunal--Rectification of mistake--Powers to rectify mistakes on record--Issue thoroughly considered and decided on merits cannot be reviewed--Application dismissed-- Deputy CIT v. Arvind M. Kariya (Mumbai) . . . 164
S. 271(1)(c) --Penalty--Concealment of income--Assessee furnishing complete particulars regarding stock of rice and selling of rice husk--Additions made solely on estimation without concrete evidence--Penalty to be deleted-- Prem Chand v. Asst. CIT (Chandigarh) . . . 174
----Penalty--Concealment of income or furnishing inaccurate particulars thereof--Denial of carry forward of long-term capital loss on ground of change in majority shareholding in assessee--Not a case of furnishing of inaccurate particulars or concealment of income in return--Penalty not warranted-- Century Metal Recycling P. Ltd. v. Deputy CIT (Delhi) . . 143
R. 8D --Income--Computation of income--Disallowance of expenditure relating to exempt income--Assessee to be allowed to substantiate its working of disallowance under section 14A with reference to its accounts--Satisfaction or dissatisfaction of Assessing Officer regarding claim to be recorded--Matter remanded-- NSDL E-Governance Infrastructure Ltd. v. Asst. CIT (Mumbai) . . . 152
----Income--Expenditure in relation to income not includible in taxable income--Assessing Officer to determine expenditure on basis of acceptable and reasonable apportionment--Facts to be analysed and decision taken in light of decision of Delhi High Court--Matter remanded-- Gujarat Guardian Ltd. v. Deputy CIT (Delhi) . . . 217
__._,_.___
No comments:
Post a Comment