ITAT MUMBAI BENCH ‘E’: Application of section 40A(2) & 40(B) to firm

ITAT MUMBAI BENCH ‘E’ Syntholab Chemicals & Research v. Assistant Commissioner of Income-tax-14(3) K.C. Singhal, Judicial Member and Abraham P. George, Accountant Member IT Appeal No. 5081 (Mum.) of 2006 [Assessment year 2003-04] April 21, 2008 Section 40A(2), read with section 40(b), of the Income-tax Act, 1961 - Business disallowance - Excessive or unreasonable payments - Whether provisions of section 40A would not have an overriding effect over provisions of section 40(b), rather...

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ITAT, DELHI BENCH ‘B’ WHETHER SUB-LICENSEES CAN BE TREATED TO BE THE OWNERS OF THE PROPERTIES AND CAN BE SUBJECTED TO HOUSE PROPERTY INCOME?

WHETHER SUB-LICENSEES CAN BE TREATED TO BE THE OWNERS OF THE PROPERTIES AND CAN BE SUBJECTED TO HOUSE PROPERTY INCOME? RATIO DECIDENDI Sub-licensees are to be treated as deemed owner in view of the definition of ownership and transfer as given in section 27(iii) read with section 269UA(f)(ii) of the IT Act IN THE ITAT, DELHI BENCH ‘B’, NEW DELHI C. J. International Hotels Ltd. v. ACIT ITA No. 1519/Del.05 July 24, 2008 RELEVANT EXTRACTS ** ** ** ** ...

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Financial crisis not to have much impact on remittances: RBI

Financial crisis not to have much impact on remittances: RBI Global financial crisis has so far failed to significantly slow down inflow of remittances in India, the Reserve Bank said. "Available information indicates that inward remittances to India have not been impacted significantly by the economic crisis," the RBI said in its annual report contradicting popular perception of a severe impact on remittances. According to the World Bank estimates (July 2009), remittance flows to developing...

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ICAI insurance-specific accounting norms likely in 2-3 months

ICAI insurance-specific accounting norms likely in 2-3 months The Institute of Chartered Accountants of India (ICAI) is likely to come out with insurance specific accounting standards in the next three months, a top official said. "We are likely to come out with it (insurance sector accounting standards) in the next two-three months," ICAI President, Uttam Prakash Agarwal, told PTI here. A group of experts has been appointed for the purpose. Agarwal had earlier said that the standards, which...

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Meet on e-payment of VAT

Meet on e-payment of VAT The Commercial Taxes Deputy Commissioner, Mattancherry, in association with the Indian Chamber of Commerce & Industry, had convened a meeting on e-payment of VAT for the benefit of the business community. Senior officials of the designated banks, State Bank of India and State Bank of Travancore participated. The department officials spoke about the advantages of the new system to be introduced from September 1, and the bank officials explained the procedures for opening...

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CBDT panel for posting officers in tax havens

Income tax officials from India could be posted in the tax haven nations to collect information about tax evasion from these countries, if a proposal made by a committee set up to investigate abuse of tax treaties goes through. According to the recommendations of the committee, there could also be a special team set up to investigate evasion in cross border transactions, a finance ministry source said. The Central Board of Direct Taxes (CBDT) had set up the committee to examine the investigation...

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Clarification regarding deduction of tax at source from payments of second installment of arrears to Government employees on account of implementation of Sixth Central Pay Commission's recommendations

Clarification regarding deduction of tax at source from payments of second installment of arrears to Government employees on account of implementation of Sixth Central Pay Commission's recommendations Circular No. 6/2009, dated 31-8-2009 Under the provisions of Section 192 of the Income-tax Act, an employer is required to deduct tax at source from any payments in the nature of salary, which inter alia also includes any arrear payments. The Implementation Cell of the Department of Expenditure,...

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WHEN NOTICE OF REASSESSMENT CAN BE ISSUED WITHOUT ANY TIME LIMIT

WHEN NOTICE OF REASSESSMENT CAN BE ISSUED WITHOUT ANY TIME LIMIT RATIO DECIDENDI Where the Assessing Officer includes an item of income for the assessment year 1999-2000 which on appeal is held to relate to the assessment year 1998-99, that finding on appeal can be utilized to reopen the assessment for the assessment year 1998-99 without any time limit by virtue of the provisions of section 150(1) IN THE ITAT, DELHI BENCH ‘D’, NEW DELHI ACIT v. Rajendra Kumar ITA No. 1396/Del/2004 March...

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ALLOWABILITY OF CLAIM UNDER SECTION 54F OF THE INCOME-TAX ACT, 1961 ITAT, ‘B’ BENCH, MUMBAI

ALLOWABILITY OF CLAIM UNDER SECTION 54F OF THE INCOME-TAX ACT, 1961 RATIO DECIDENDI The assessee is not expected to proceed to buy a defective residential house (new asset), which is prone to demolition by the Municipal Authorities in order to qualify for exemption under the provisions of Income Tax Act; exemption under section 54F is available to the assessee, if the intention of the assessee from the very beginning is to invest the long term capital gains in the new asset, though certain conditions...

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ELIGIBILITY OF CLAIM OF DEPRECIATION ON ASSETS PURCHASED/LEASED OUT UNDER A SALE & LEASE BACK TRANSACTION IN THE ITAT, BENCH ‘B’ CHENNAI

ELIGIBILITY OF CLAIM OF DEPRECIATION ON ASSETS PURCHASED/LEASED OUT UNDER A SALE & LEASE BACK TRANSACTION RATIO DECIDENDI Once the assessee - leasing company is to be considered as the owner of the assets, it is eligible for depreciation according to the depreciation schedule to the Income-tax Rules since the theory of sale and lease back had not been invented by the assessee, in fact, it has been accepted by the Legislature IN THE ITAT, BENCH ‘B’ CHENNAI Premier Housing & Industrial...

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PERIOD OF PRESERVATION OF ACCOUNTS

I owe this information to Bomabay Chartered Accountant Society(BCAS) . PERIOD OF PRESERVATION OF ACCOUNTS Period of Preservation of Accounts/Records under Different laws Companies Act, 1956 A company is required to maintain its books of account and vouchers for a period of 8 years immediately preceding the current year. A s. 25 company is required to maintain its books of account and vouchers for a period of not less than 4 years. The books and papers of the Amalgamated/ Transferor Company...

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Claim for exemption allowable under section 10(10C) of IT Act, 1961 HIGH COURT OF CHHATISGARH

 Claim for exemption allowable under section 10(10C) of IT Act, 1961 Benefit in lieu of salary payable to an employee opting for voluntary retirement is exempted from being charged to tax to the extent of Rs. 5 lakhs by reason of section 10(10C); even if the payment is stretched over a period of years, the same would not become chargeable to tax in any subsequent assessment year HIGH COURT OF CHHATISGARH ITO v. Dhan Sai Srivas Tax Case No. 15 of 2007 JUNE...

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Allowability of exemption under section 54F of IT Act, 1961 ITAT, BENCH ‘C’. CHENNAI (THIRD MEMBER)

Allowability of exemption under section 54F of IT Act, 1961 Section 54F exemption cannot be availed if there is a house in existence on the date of transferITAT, BENCH ‘C’. CHENNAI (THIRD MEMBER)ACITv.T. N. Gopal ITA No. 231(Mds.)/2008May 25, 2009  ------------ORDER------------- Per M.K.Chaturvedi (Vice-President): This appeal came before me as a Third Member to express my opinion on the following question:-"Whether, in view of facts and circumstances, exemption under section 54F...

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Invalid versus defective return ITAT, MUMBAI BENCHES ‘L’ MUMBAI

Invalid versus defective return The signing of return by an unauthorized person cannot invalidate the return, but would make the return defective; when a defective return is filed, the Assessing Officer is obliged to give chance to the assessee to rectify the defect within the specified period; it is only on the failure to remove the defect within the said specified or extended period that the defective return is converted into invalid return; section 292B helps the assessee only to the extent...

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