CIT | Corporate Law Reporter

Monetary Policy Statement for 2013-14 w.r.t Distribution of Banknotes and Coins

RBI/2013-14/322 DCM (Plg) No. G - 14/10.65.03/2013-14 October 10, 2013 The Chairman & Managing Director / Chief Executive Officer (All Scheduled Commercial banks including RRBs) Madam/ Dear Sir, Monetary Policy Statement for 2013-14-Distribution of Banknotes and Coins Alternative Avenues Please refer to Para 110 of the Monetary Policy Statement 2013-14 wherein it was stated that With a… Read More

Tags: Banknote, Business, Cash in Transit, CIT, Coin, Commercial bank, Monetary policy, Para

Section 234D of the IT Act does not apply to assessments prior to June 2003

CLR Editorial Note: This case law refers to a Petition(s) for Special Leave to Appeal which is in respect of retrospectivity of Section 234D of the Income Tax Act, 1961. For the Assessment Year 1998-99, the Assessing Officer passed an assessment order prior to 01st June 2003, in which interest under section 234D was not levied. The assessee… Read More

Tags: Appeal, CIT, Commonwealth Law Reports, High Court, Hon, Income Tax Act 1961, Supreme Court, The Honourable

HC directs CBDT to investigate whether AO did not act in a bonafide manner

CLR Editorial Note: The assessee in this case, had sold an agricultural land for a value of Rs. 1.20 crore and deposited the cash proceeds in his bonafide bank account. With respect to this transaction, he filed a return in which the transaction was disclosed and claimed to be not chargeable to tax. However, as… Read More

Tags: CBDT, CIT, High Court, Income tax, Rupee, Tax, Taxation in India

SC verdict: Payments To LIC Towards Group Gratuity funds is allowed

CIT vs. Textool Co. Ltd (Supreme Court) Ratio of the Case: Though section 36(1)(v) requires a direct payment to a gratuity trust fund, payments made to the LIC Group Gratuity Scheme for the benefit of the employees is also allowable. CLR Editorial Notes: The assessee in question had set up a gratuity fund which was… Read More

Tags: Appeal, CIT, Hon, Income tax, India, LIC Group Gratuity Scheme, Supreme Court, The Honourable

High Court Explains Why Section 43B applies To Employees PF

Ratio of the case: Due date in Section 36(1)(va) for payment of employees™ Provident Fund, ESIC etc contribution should be read with section 43B(b) to mean due date for filing ROI CLR Editorial Notes: The assessee collected employees™ Provident Fund contribution for payment to the provident fund authorities. However, the amount was not paid to the provident… Read More

Tags: CIT, Employee Provident Fund, High Court, Income Tax Act, Income Tax Act 1961, Order of Australia, Provident Fund, Rate of return

Section 54/54F deductions are allowed for purchase of multiple independent house units

Ratio Decidendi: The Andhra Pradesh High Court decided in this case that the ITAT Special Bench Verdict on purchase of multiple under Section 54/54F is not good law. A purchase of two residential flats entitles the buyer to an exemption u/s 54 of the IT Act with respect to capital gains on sale of the properties. CLR… Read More

Tags: Andhra Pradesh High Court, Capital Gain, CIT, Commonwealth Law Reports, Hyderabad, Income tax, Order of Australia, Ratio decidendi

High Court Explains Tax Implications Of Foreign Co’s Liaison Office In India

Ratio of the Case: According to Section 5 & 9 of the Income Tax Act, 1962, the income towards products sourced by overseas buyers, for products manufactured in India - is not attributable to the Liaison Office set up to arrange the sourcing. This is the the case, even if fee for this service rendered is received from… Read More

Tags: Business, CIT, Commonwealth Law Reports, Income, India, transfer pricing, United States

Transfer pricing provisions do not apply to investments in overseas share capital

CLR Editorial Notes: The assessee company M/s Vijay Electricals Ltd. is engaged in the business of manufacture and sale of distribution and power transformers and rural electrification projects on turn key basis. The assessee filed its return of income for the assessment year 2007-08 declaring a total income of Rs. 20 Crore. The scrutiny assessment was completed u/s… Read More

Tags: Appeal, Arm's length principle, CIT, Educational assessment, India, transfer pricing

CBDT™s Scrutiny Guidelines – Section 143(3) assessment not valid if case has been picked up contrary to guidelines

CLR Editorial Notes: In the Assessment Year 2006-07, the assessee filed a ROI declaring income of Rs. 3.97 crore. The case was selected for scrutiny under clause 2(v)(b) of the Scrutiny Guidelines issued by the CBDT. The said clause of the Scrutiny Guidelines provided that a case had to be selected for compulsory scrutiny if… Read More

Tags: Appeal, CBDT, CIT, Disallowance and reservation, Income tax, Rupee

FII™s securities transactions™ profits cannot be assessed as business profits™

CLR Editorial Note: An appeal was placed with the Tirbunal by the assessee which was directed against an earlier order of the CIT(A) Mumbai for the assessment year 2007-08. The appeal was made on the following grounds :- 1. Based on the facts and circumstances of the case, the learned Commissioner of Income-tax (Appeal) [CIT(A)] erred in upholding… Read More

Tags: Appeal, CIT, Income tax, India, Mumbai, Order of Australia, Royal Bank of Canada, Scotland

ITAT Mumbai sets out Requirements of a valid affidavit in support of delay condonation application

CLR Editorial Notes: The assessee in this case, had filed an appeal before the CIT(A), which was delayed by 4 months. The delay was explained to have been caused by the fact that the assistant of the Authorized Representative kept the papers in a drawer and overlooked them till a penalty notice was received. The… Read More

Tags: Affidavit, Appeal, Capital Gain, CIT, Commonwealth Law Reports, Income tax, Law, Mumbai

Section 271(1)(c) penalty not valid for not offering capital gains u/s 50C stamp duty value

CLR Editorial Notes: The assessee in question, had sold a property for a consideration of Rs. 2.50 crore. However, for the purpose of applicable stamp duty, the property was valued at Rs. 5.19 crore and the stamp duty was paid on that value. The assessee then offered capital gains on the basis that the sale consideration… Read More

Tags: Appeal, Capital Gain, CIT, Commonwealth Law Reports, Consideration, Income tax, Rupee, Stamp duty

EPF / ESI Contribution not covered under Sec43B; Deduction u/s 36(1)(va) allowed only if paid within due date

In the assessment year 2008-09 the assessee in this case, collected employees™ contribution to the Provident Fund and ESIC, but did not pay it within the due date prescribed by the relevant legislation. The amount was, however, paid before the due date of filing the ROI. The Assessing Officer assessed the said amounts as income… Read More

Tags: Bengal Chemicals & Pharmaceuticals, CIT, Delhi High Court, Employee Provident Fund, Supreme Court