The Central Board of Direct Taxes recently asked Chief Commissioners and Director Generals to direct their tax officers to utilise effectively the provisions of information exchange such as tax treaties, tax information exchange agreements, and multilateral conventions when seeking information from the tax administration of a foreign jurisdiction. Tax officers have been asked to follow the guidelines in the Manual on Exchange of Information, issued by the CBDT in January 2013, for enquiries and navigating investigations. Similarly, the CBDT directed that clarifications sought by foreign tax administrators should be given due weightage and timely responses. These measures may aid effective and transparent tax administration and lend credibility to the Government's efforts in checking money laundering.
APA applications are pouring in
The enthusiasm for the Advance Pricing Agreement programme is on the rise. Barely eight months into it and sources report there are more than 160 applications for pre-filing consultation (PFC), with over 100 within the past month. APA authorities have displayed a professional, positive and transparent attitude towards PFC, which has restored taxpayers' confidence. During a PFC, there is a marked willingness to understand the issue in an unbiased manner. The authorities have indicated their intention to make site visits to confirm the functional analysis impacting the fact pattern for a five-year period. There is an overwhelming response from taxpayers participating in the PFC on receiving transparent and congenial suggestions. The PFC concludes with a formal memorandum outlining the meeting details and providing a formal approval to proceed with the main application. The first round of PFC suggests that the tax administration would be progressive and mature, paving the way for making APA a success in India.
Divine exemption
In a recent decision by the Nagpur Income-tax Appellate Tribunal, a trust set up to look after a shrine was held to be non-religious in nature and, hence, eligible for Section 80G recognition, which grants tax benefit for donations to certain charitable institutions that do not benefit any particular religious community or caste.
The tax authorities rejected the recognition for the trust on the ground that it catered to Hindus only; the tribunal overruled the tax authorities on the premise that Hinduism is actually not a religion. A religion prescribes certain rituals and observances, ceremonies and modes of worship. Hinduism was considered to lack this dogmatic uniformity and, hence, not considered a religion. Therefore, the trust was considered non-religious and eligible for Section 80G recognition.
Stay plea not meaningless formality
The Bombay High Court recently reprimanded tax authorities for taking coercive action in attaching the assessee's bank account to recover outstanding tax demands. The tax authorities ignored the petitioner's request to keep the demand in abeyance pending disposal of the appeal. The court observed that demand recovery without disposing of the impending stay application was not justified, and that stay applications cannot be treated as meaningless formalities. Disapproving the action of the tax authorities, the court directed them to restore the entire amount to the assessee's bank account. The judiciary's intervention to end undue hardship to taxpayers would aid in transparent and fair tax administration.
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Sunday, March 31, 2013
The bad business of taxing agentsMake 'doing business' in India easier by cleani
The bad business of taxing agentsMake 'doing business' in India easier by cleaning up how 'business connections' of foreign companies are taxed
The finance minister in his Budget speech said "doing business" in India must be seen as easy, friendly and mutually beneficial, through improved communication that removes any apprehension or distrust in the minds of investors, including fears about undue regulatory burdens or application of tax laws. These fears need to be addressed urgently. Internationally, too, India's reputation is not very strong on this count. A World Bank report in June 2012 ranked India at 132 out of 185 countries in its "Ease of Doing Business" rankings.
To make "doing business" in India easier, one of the desirable steps would be to re-examine some of the income tax provisions concerning taxation of income from "business connections" in respect of non-residents. Application of tax laws becomes coercive, time-consuming, litigious and unproductive if they are not simple, or if they are based on too many presumptions and require too much documentation. The same World Bank report has also given details regarding hours per year spent preparing tax returns under the sub-head "Paying Taxes". In the case of India, "Time (hours per year)" taken in preparing a return is shown at 243. In Singapore, it takes 82 hours. In the UK, France and the US it takes 110, 132 and 175 hours, respectively. Of course, there are many countries where the time taken is much more. However, it does not take into account the time spent in tax compliance and the proceedings before different authorities. Include all that and the time spent paying taxes in India would be colossal.
The only purpose of any tax legislation is to collect revenue by law and under a procedure. It should not be required to delve too far into the semantics of words and phrases used in the Act and, wherever possible, should be settled through a simple process. Making the application of tax laws simple leads to better tax collection. Presumptive taxation is one of the effective ways to attain that objective - especially where vertical equity may not be a consideration, such as in collecting tax from non-residents.
For the sake of illustration, if a foreign company wants to sell its product in India, it may do so directly to a client in India on a principal-to-principal basis, and no income tax is payable in India on the profits earned by it from that sale. But if it appoints an agent in India, it may be headed for a long and argumentative handling of his tax liability in India.
Under the Income Tax Act, all income accruing or arising, whether directly or indirectly, through or from any business connection in India is taxable. If a person in India habitually exercises authority to conclude a contract on behalf of the company or maintains stocks in India for delivery of goods and merchandise or secures orders for it, the business connection is established and profit will attract tax. But it will not be taxable if the agent is of independent status, acts in the ordinary course of his business and does not work mainly or wholly on behalf of the non-resident. Where such income becomes taxable, it has to be further ascertained as to what is the proportion of operations in India over the total global operations of the non-resident to earn that profit. None of these is applicable if the non-resident is engaged in purchase of goods for export purposes.
Will the independence of the agency be judged on an overall basis or on year-to-year basis? In his ordinary course of business, the agent may have acted only for one foreign company in a particular year for lack of business from other principals; or it may be his first year of business even though he is an independent agent. With what accuracy can the proportion of operations in India over global operations be determined, especially if the foreign company is a manufacturing company? Is this not highly presumptive?
According to an earlier Central Board of Direct Taxes (CBDT) circular, where a non-resident had an agent in India but made sales directly to Indian customers, the commission paid by the resident to his agent was not taxable if the agent neither performed nor undertook to perform any service directly or indirectly in respect of the sales. But if sales were secured through the services of an agent in India, the income was taxable but limited to profit attributable to the agent's services if the non-resident's principal business activities were wholly channelled through the agent. In both situations, the contract was to be made outside India on a principal-to-principal basis. How profound, if any, was the difference between "having an agent" and "securing the services of an agent"?
In fact, if the foreign company appoints an agent in India and pays taxable commission to him, there is gain in foreign exchange and in employment opportunities that would not have happened had it sold goods directly. If the agent maintains godowns, warehouses and cold storages to stock their goods and merchandise, construction activities would increase. The man-hours engaged in litigation would be deployed for more productive purposes. More income tax officers would be available for working on tax evasion. All these benefits far outweigh the small addition to tax revenue in such contentious cases.
Therefore, it may be more prudent to do away with such provisions. No income tax need be levied where a foreign company sells its goods and merchandise in India directly or through any agent where there is no value-addition done in India. Alternatively, if such transactions need to be taxed at all, it should be done by prescribing a presumptive income tax rate on sales or otherwise by levying an additional duty on imports. Similar benefits may be secured for the sale of Indian goods and merchandise in foreign countries. Then, trading in India and, for that matter, in the world would be much more easy, friendly and mutually beneficial.
The finance minister in his Budget speech said "doing business" in India must be seen as easy, friendly and mutually beneficial, through improved communication that removes any apprehension or distrust in the minds of investors, including fears about undue regulatory burdens or application of tax laws. These fears need to be addressed urgently. Internationally, too, India's reputation is not very strong on this count. A World Bank report in June 2012 ranked India at 132 out of 185 countries in its "Ease of Doing Business" rankings.
To make "doing business" in India easier, one of the desirable steps would be to re-examine some of the income tax provisions concerning taxation of income from "business connections" in respect of non-residents. Application of tax laws becomes coercive, time-consuming, litigious and unproductive if they are not simple, or if they are based on too many presumptions and require too much documentation. The same World Bank report has also given details regarding hours per year spent preparing tax returns under the sub-head "Paying Taxes". In the case of India, "Time (hours per year)" taken in preparing a return is shown at 243. In Singapore, it takes 82 hours. In the UK, France and the US it takes 110, 132 and 175 hours, respectively. Of course, there are many countries where the time taken is much more. However, it does not take into account the time spent in tax compliance and the proceedings before different authorities. Include all that and the time spent paying taxes in India would be colossal.
The only purpose of any tax legislation is to collect revenue by law and under a procedure. It should not be required to delve too far into the semantics of words and phrases used in the Act and, wherever possible, should be settled through a simple process. Making the application of tax laws simple leads to better tax collection. Presumptive taxation is one of the effective ways to attain that objective - especially where vertical equity may not be a consideration, such as in collecting tax from non-residents.
For the sake of illustration, if a foreign company wants to sell its product in India, it may do so directly to a client in India on a principal-to-principal basis, and no income tax is payable in India on the profits earned by it from that sale. But if it appoints an agent in India, it may be headed for a long and argumentative handling of his tax liability in India.
Under the Income Tax Act, all income accruing or arising, whether directly or indirectly, through or from any business connection in India is taxable. If a person in India habitually exercises authority to conclude a contract on behalf of the company or maintains stocks in India for delivery of goods and merchandise or secures orders for it, the business connection is established and profit will attract tax. But it will not be taxable if the agent is of independent status, acts in the ordinary course of his business and does not work mainly or wholly on behalf of the non-resident. Where such income becomes taxable, it has to be further ascertained as to what is the proportion of operations in India over the total global operations of the non-resident to earn that profit. None of these is applicable if the non-resident is engaged in purchase of goods for export purposes.
Will the independence of the agency be judged on an overall basis or on year-to-year basis? In his ordinary course of business, the agent may have acted only for one foreign company in a particular year for lack of business from other principals; or it may be his first year of business even though he is an independent agent. With what accuracy can the proportion of operations in India over global operations be determined, especially if the foreign company is a manufacturing company? Is this not highly presumptive?
According to an earlier Central Board of Direct Taxes (CBDT) circular, where a non-resident had an agent in India but made sales directly to Indian customers, the commission paid by the resident to his agent was not taxable if the agent neither performed nor undertook to perform any service directly or indirectly in respect of the sales. But if sales were secured through the services of an agent in India, the income was taxable but limited to profit attributable to the agent's services if the non-resident's principal business activities were wholly channelled through the agent. In both situations, the contract was to be made outside India on a principal-to-principal basis. How profound, if any, was the difference between "having an agent" and "securing the services of an agent"?
In fact, if the foreign company appoints an agent in India and pays taxable commission to him, there is gain in foreign exchange and in employment opportunities that would not have happened had it sold goods directly. If the agent maintains godowns, warehouses and cold storages to stock their goods and merchandise, construction activities would increase. The man-hours engaged in litigation would be deployed for more productive purposes. More income tax officers would be available for working on tax evasion. All these benefits far outweigh the small addition to tax revenue in such contentious cases.
Therefore, it may be more prudent to do away with such provisions. No income tax need be levied where a foreign company sells its goods and merchandise in India directly or through any agent where there is no value-addition done in India. Alternatively, if such transactions need to be taxed at all, it should be done by prescribing a presumptive income tax rate on sales or otherwise by levying an additional duty on imports. Similar benefits may be secured for the sale of Indian goods and merchandise in foreign countries. Then, trading in India and, for that matter, in the world would be much more easy, friendly and mutually beneficial.
Saturday, March 30, 2013
2000 CRORE IT DEMAND ON NOKIA
The Income Tax department has served a Rs2,000 crore demand notice on Finnish mobile firm maker Nokia for alleged evasion of taxes in its business transactions in the country.
The department had on March 21 asked the firm to submit the amount of Rs 2,000 crore in about a week's time, IT department sources said.
The Delhi High court has granted an interim stay of the demand after the mobilephone manufacturing company filed a petition challenging the order.
Nokia confirmed receiving the notice and said it is in "full compliance" with laws related to its business operations.
"Nokia confirms it has received an order from Indian tax officials. Nokia reiterates its position that it is in full compliance with local laws as well as the bilaterally negotiated tax treaty between the governments of India and Finland, and will defend itself vigorously.
"In this regard, Nokia filed a writ before the Delhi High Court last week and on Friday, March 22 the Court has issued notice to the Income Tax department to file its counter affidavit and has granted interim stay of the entire tax demand raised against Nokia till further orders," a Nokia spokesperson said in a statement.
The IT department will soon file its reply in the Delhi High Court stating the provisions that "enable and authorise" it to issue such a time-bound notice, department sources said.
The notice has been issued by the IT department after it completed its probe and had conducted a 'survey' operation on the premises of the Chennai in January this year.
The tax evasion, according to IT department sources, pertains to royalty payment made against supply of software by the compamy's parent company which attracts a 10% tax deduction under the Tax Deducted at Source (TDS) category.
The department has analysed the company's business statements since 2006, they said.
"Since establishing the Chennai factory in 2006, indeed since starting business operations in India in the mid-1990s, Nokia has been scrutinized by the authorities regularly and its policies have been validated by the Indian and Finnish Tax authorities in the normal course of tax proceedings.
"Nokia arrived in India 18 years ago and has grown to become a market leader, contributing to the rapid growth of the Indian economy. Nokia has invested over $330 million in Chennai since setting up the factory," the Nokia spokesperson said
-
The department had on March 21 asked the firm to submit the amount of Rs 2,000 crore in about a week's time, IT department sources said.
The Delhi High court has granted an interim stay of the demand after the mobilephone manufacturing company filed a petition challenging the order.
Nokia confirmed receiving the notice and said it is in "full compliance" with laws related to its business operations.
"Nokia confirms it has received an order from Indian tax officials. Nokia reiterates its position that it is in full compliance with local laws as well as the bilaterally negotiated tax treaty between the governments of India and Finland, and will defend itself vigorously.
"In this regard, Nokia filed a writ before the Delhi High Court last week and on Friday, March 22 the Court has issued notice to the Income Tax department to file its counter affidavit and has granted interim stay of the entire tax demand raised against Nokia till further orders," a Nokia spokesperson said in a statement.
The IT department will soon file its reply in the Delhi High Court stating the provisions that "enable and authorise" it to issue such a time-bound notice, department sources said.
The notice has been issued by the IT department after it completed its probe and had conducted a 'survey' operation on the premises of the Chennai in January this year.
The tax evasion, according to IT department sources, pertains to royalty payment made against supply of software by the compamy's parent company which attracts a 10% tax deduction under the Tax Deducted at Source (TDS) category.
The department has analysed the company's business statements since 2006, they said.
"Since establishing the Chennai factory in 2006, indeed since starting business operations in India in the mid-1990s, Nokia has been scrutinized by the authorities regularly and its policies have been validated by the Indian and Finnish Tax authorities in the normal course of tax proceedings.
"Nokia arrived in India 18 years ago and has grown to become a market leader, contributing to the rapid growth of the Indian economy. Nokia has invested over $330 million in Chennai since setting up the factory," the Nokia spokesperson said
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Value education--Fourth Dimension Editorial
The main problem with value education is not in knowing but living. Most of us know what are the right values. But values are mere words unless and until they are internalized in our consciousness and lived in our behaviour and action. An intellectual wakening to values through rational analysis is helpful as a beginning but not enough. A lasting moral change can be achieved only through an inner discipline which transforms our character and life. Next to this inner discipline, the other important aids in value education are stories and examples of role models - individual as well as institutions - who can inspire in us the conviction and the confidence that these values can be lived in our daily life.
These are the two factors: inner discipline and the living example of role models which are essential for an effective and dynamic value-education.
These are the two factors: inner discipline and the living example of role models which are essential for an effective and dynamic value-education.
Due Dates for March 13
Due date to deposit tax deducted(TDS) in March 2013 is 30.04.2013
Etds return due date for salary Q4 (01.01.2013to 31.03.2013) (form 24 Q) is 15.05.2013
Etds return due date for other than salary Q4(01.01.2013 to 31.03.2013) (26q) is 15.05.2013
Due date for form 16(salary) Fy 2012-13 is 31.05.2013
Due date for Form 16A quarter four (01.01.2013 to 31.03.2013) is 30.05.2013
Etds return due date for salary Q4 (01.01.2013to 31.03.2013) (form 24 Q) is 15.05.2013
Etds return due date for other than salary Q4(01.01.2013 to 31.03.2013) (26q) is 15.05.2013
Due date for form 16(salary) Fy 2012-13 is 31.05.2013
Due date for Form 16A quarter four (01.01.2013 to 31.03.2013) is 30.05.2013
IT : When Legislature amends provisions of Act with retrospective effect, it can
IT : When Legislature amends provisions of Act with retrospective effect, it cannot be said that there was failure on part of assessee to disclose fully and truly all material facts at relevant time and, thus, reassessment proceedings can not be initiated in such a case
[2013] 31 taxmann.com 278 (Bombay)
HIGH COURT OF BOMBAY
Commissioner of Income-tax
v.
K. Mohan and Co. (Exports) (Regd.)*
[2013] 31 taxmann.com 278 (Bombay)
HIGH COURT OF BOMBAY
Commissioner of Income-tax
v.
K. Mohan and Co. (Exports) (Regd.)*
CL : Where film production/distribution association had no power to boycott or r
CL : Where film production/distribution association had no power to boycott or restrict competition in respect of any independent producer and there was a settlement between parties, enquiry was to be closed
[2013] 31 taxmann.com 283 (CAT)
COMPETITION APPELLATE TRIBUNAL, NEW DELHI
Time Magnetic (India) Ltd.
v.
Film Makers Combine
-
[2013] 31 taxmann.com 283 (CAT)
COMPETITION APPELLATE TRIBUNAL, NEW DELHI
Time Magnetic (India) Ltd.
v.
Film Makers Combine
-
CL : Where majority shares of appellant-company were held by Government company
CL : Where majority shares of appellant-company were held by Government company and it was under direct control of Ministry of Petroleum, appellant was a State within meaning of article 12 of Constitution and was amenable to writ jurisdiction of High Court
[2013] 31 taxmann.com 282 (SC)
SUPREME COURT OF INDIA
Balmer Lawrie and Co. Ltd.
v.
Partha Sarathi Sen Roy
[2013] 31 taxmann.com 282 (SC)
SUPREME COURT OF INDIA
Balmer Lawrie and Co. Ltd.
v.
Partha Sarathi Sen Roy
IT : In order to assess individuals to be forming 'association of persons', indi
IT : In order to assess individuals to be forming 'association of persons', individual co-owners should have joined their resources and thereafter acquired property in name of association of persons and said property should have been commonly managed
[2013] 31 taxmann.com 279 (Punjab & Haryana)
HIGH COURT OF PUNJAB & HARYANA
Sudhir Nagpal
--
[2013] 31 taxmann.com 279 (Punjab & Haryana)
HIGH COURT OF PUNJAB & HARYANA
Sudhir Nagpal
--
IT: Where less than 50 per cent funds of assessee were invested in granting loan
IT: Where less than 50 per cent funds of assessee were invested in granting loans and advances, it could not be treated as assessee's principal business; and therefore, share trading loss would be treated as speculative loss
[2013] 31 taxmann.com 277 (Calcutta)
HIGH COURT OF CALCUTTA
ALFA Tie-up (P.) Ltd.
[2013] 31 taxmann.com 277 (Calcutta)
HIGH COURT OF CALCUTTA
ALFA Tie-up (P.) Ltd.
s IT : Where assessee was engaged in business of dredging and for assessment year
IT : Where assessee was engaged in business of dredging and for assessment year 2008-09 it claimed depreciation on two dredgers stating that it had purchased same during financial year 2007-08, since record showed that assessee was not owner of dredgers either wholly or partly, it was not entitled to claim depreciation
[2013] 31 taxmann.com 273 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'A'
Dharti Dredgers & Infrastructure Ltd.
[2013] 31 taxmann.com 273 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'A'
Dharti Dredgers & Infrastructure Ltd.
IT : To claim deduction of interest paid on borrowed capital, some business obje
IT : To claim deduction of interest paid on borrowed capital, some business objective should be achieved while extending interest-free advance
[2013] 31 taxmann.com 270 (Allahabad)
HIGH COURT OF ALLAHABAD
Commissioner of Income-tax-I, Lucknow
v.
Sahu Enterprise (P.) Ltd.*
[2013] 31 taxmann.com 270 (Allahabad)
HIGH COURT OF ALLAHABAD
Commissioner of Income-tax-I, Lucknow
v.
Sahu Enterprise (P.) Ltd.*
Appointment Of Chartered Accountants For Internal Audit Work.
Sardar Sarovar Narmada Nigam Limited 
Last Date : 31/03/2013
Appointment Of Chartered Accountants For Internal Audit Work.
Address: Sardar Sarovar Narmada Nigam Limite Gandhinagar Gujarat
Phone:
Email:
Last Date : 31/03/2013
Appointment Of Chartered Accountants For Internal Audit Work.
Address: Sardar Sarovar Narmada Nigam Limite Gandhinagar Gujarat
Phone:
Email:
Vacancy for CA/ CS in The Clearing Corporation of India Ltd
| Company: | The Clearing Corporation of India Ltd. |
| Industry: | Accounting/Banking/Financial Services/Stock broking |
| Job Function: | Finance & Accounting |
 |
|
Company Details: CCIL has been promoted by major banks and financial institutions and its core business activities include settlement of transactions in Government Securities, Money Markets Instruments, Forex, OTC Derivatives |
Vacancy for CA Inter / ICWA Inter in Ministry of Health and Family Welfare
Ministry of Health & Family Welfare
Financial Consultant
Ministry of Health & Family Welfare
Address: Ministry of Health & Family Welfare, Nirman Bhawan
Postal Code: 110108
City New Delhi
State Delhi
Pay Scale: Rs. 50,000-60,000 per month (consolidated)
Educational Requirements: Inter CA/Inter ICWA/M.Com or MBA (Finance).
Experience Requirements:
Minimum 5 years of experience in financial management and accounting
including analysis, financial planning , budgeting, Familiarity with
financial management software and reporting system and General Finance
Rules. Experience of working in Health Care Financing/ National
Friday, March 29, 2013
President should automatically pardon convicts below 35 and above 50 years! !!!!
President should automatically pardon convicts below 35 and above 50 years!
SHAILESH GANDHI | 29/03/2013 01:14 PM |
Former Central Information Commissioner Shailesh Gandhi, in an open letter to President Pranab Mukherjee, requested that all below the age of 35 and above the age of 50 at the time of committing a crime should be automatically pardoned under Article 72 of the Constitution, if they are not terrorists
Here is an open letter written by Shailesh Gandhi, former Central Information Commissioner, to Pranab Mukherjee, president about the `pardon for Sanjay Dutt' episode that is being played continuously in the media by the Press Council chairman and few MPs and celebrities…
Dear Mr President,
I understand that worthy Members of Parliament (MPs) have sent petitions to you to use your powers of pardon under Article 72 of the Constitution. This plea is also reported to have been made by the Chairman of the Press Council of India (PCI), which is a statutory authority, and Ministers. The framers of the Constitution gave the President unfettered power to pardon any convict, without any reasons. It is also true that the Constitution did not specify who could ask for pardon.
However, Shri Markandey Katju, a former judge of the Supreme Court, and chairman of PCI would not ask for pardon without any reasons. He is reported to have stated that since Mr Sanjay Dutt was not convicted under TADA, he was not a terrorist. Besides, he has stated that since the trial has taken 20 years, and Mr Dutt was less than 40 years of age at that time, he should be pardoned. To maintain consistency, he has also stated that Smt. Zaibunisa should also be pardoned since she is over 70. Though Mr Dutt has in a dignified and logical manner stated that he is not seeking pardon, this mounting cacophony from lawyers, MPs and the head of an important statutory authority may lead you to consider using your powers to pardon.
Considering the impressive voices asking you to show mercy, you may be tempted by Portia's lines:
"The quality of mercy is not strain'd,
It droppeth as the gentle rain from heaven
Upon the place beneath. It is twice blest:
It blesseth him that gives and him that takes….
It is enthroned in the hearts of kings,
It is an attribute to God himself; "
to consider being blessed by showing mercy after some months.
The constant repetition to you to show mercy and gain the attributes of God may continue for months. Since I too was a statutory authority a few months ago, I would like to add my advice to this. The fact that our Courts take decades to decide cases finally is well known. Everyone, including the Courts has convinced themselves that this can only deteriorate.
If you use the power of pardon this time, consider using it in a logical manner, which should not result in allegations of partisanship. By the logic given by Justice Katju, cases in Courts can take fifteen to twenty years, and humanitarian grounds demand that senior citizens should not be able to suffer in prison. On the other hand, people below 35 can make mistakes due to lack of maturity.
Taking this together, and to maintain consistency of action, I plead with you to consider recommending that all below the age of 35 and above the age of 50 at the time of committing a crime should be automatically pardoned under Article 72 of the Constitution, if they are not terrorists. It would look bad if you pardoned terrorists.
There are no conditions in the Constitution when the President can use this power, and I believe if you use it in the manner suggested above, it will also reduce the burden on the judicial system. You could consider this act to be in larger public interest.
The reduction of cases in the Courts, will lead to establishing the rule of law in our Nation, and Citizens will not have to complain any longer that `Justice delayed is Justice Denied.'
You may then find justification in using the power of pardon under Article 72 in a Historic manner.
Yours truly,
Shailesh Gandhi
Former Central Information Commissioner
SHAILESH GANDHI | 29/03/2013 01:14 PM |
Former Central Information Commissioner Shailesh Gandhi, in an open letter to President Pranab Mukherjee, requested that all below the age of 35 and above the age of 50 at the time of committing a crime should be automatically pardoned under Article 72 of the Constitution, if they are not terrorists
Here is an open letter written by Shailesh Gandhi, former Central Information Commissioner, to Pranab Mukherjee, president about the `pardon for Sanjay Dutt' episode that is being played continuously in the media by the Press Council chairman and few MPs and celebrities…
Dear Mr President,
I understand that worthy Members of Parliament (MPs) have sent petitions to you to use your powers of pardon under Article 72 of the Constitution. This plea is also reported to have been made by the Chairman of the Press Council of India (PCI), which is a statutory authority, and Ministers. The framers of the Constitution gave the President unfettered power to pardon any convict, without any reasons. It is also true that the Constitution did not specify who could ask for pardon.
However, Shri Markandey Katju, a former judge of the Supreme Court, and chairman of PCI would not ask for pardon without any reasons. He is reported to have stated that since Mr Sanjay Dutt was not convicted under TADA, he was not a terrorist. Besides, he has stated that since the trial has taken 20 years, and Mr Dutt was less than 40 years of age at that time, he should be pardoned. To maintain consistency, he has also stated that Smt. Zaibunisa should also be pardoned since she is over 70. Though Mr Dutt has in a dignified and logical manner stated that he is not seeking pardon, this mounting cacophony from lawyers, MPs and the head of an important statutory authority may lead you to consider using your powers to pardon.
Considering the impressive voices asking you to show mercy, you may be tempted by Portia's lines:
"The quality of mercy is not strain'd,
It droppeth as the gentle rain from heaven
Upon the place beneath. It is twice blest:
It blesseth him that gives and him that takes….
It is enthroned in the hearts of kings,
It is an attribute to God himself; "
to consider being blessed by showing mercy after some months.
The constant repetition to you to show mercy and gain the attributes of God may continue for months. Since I too was a statutory authority a few months ago, I would like to add my advice to this. The fact that our Courts take decades to decide cases finally is well known. Everyone, including the Courts has convinced themselves that this can only deteriorate.
If you use the power of pardon this time, consider using it in a logical manner, which should not result in allegations of partisanship. By the logic given by Justice Katju, cases in Courts can take fifteen to twenty years, and humanitarian grounds demand that senior citizens should not be able to suffer in prison. On the other hand, people below 35 can make mistakes due to lack of maturity.
Taking this together, and to maintain consistency of action, I plead with you to consider recommending that all below the age of 35 and above the age of 50 at the time of committing a crime should be automatically pardoned under Article 72 of the Constitution, if they are not terrorists. It would look bad if you pardoned terrorists.
There are no conditions in the Constitution when the President can use this power, and I believe if you use it in the manner suggested above, it will also reduce the burden on the judicial system. You could consider this act to be in larger public interest.
The reduction of cases in the Courts, will lead to establishing the rule of law in our Nation, and Citizens will not have to complain any longer that `Justice delayed is Justice Denied.'
You may then find justification in using the power of pardon under Article 72 in a Historic manner.
Yours truly,
Shailesh Gandhi
Former Central Information Commissioner
Service Tax on AC restaurants – Food for Thought
Service Tax on AC restaurants – Food for Thought
PRIOR to 1st April 2013, Service Tax is leviable on air-conditioned restaurants, eating joints, mess having license to serve liquor. However, w.e.f. 1st April, 2013 air-conditioned restaurants, eating joints, mess would be subject to Service Tax irrespective of the fact whether they have licence to serve liquor or not [kindly refer Notfn. no. 3/2013-ST which amends Notification No. 25/2012-ST].
It may be noted that the terms used viz. `restaurant', `eating joint' or `mess' in the Mega exemption Notification No.3 25/2012-ST are not defined therein.
Since the terms used are not defined and the only differentiation that has been put forward for levy of Service Tax is having vis-à-vis not having facility of air-conditioning or central air-heating, it appears that all air-conditioned places serving food may get covered within the ambit of Service Tax.
Thus, the following may get covered under ambit of Service Tax (if they have facility of air-conditioning):
Restaurants
Canteen
Eating joints
Cafeteria
Mess
Eatery
Hotel
Eating house
Café
Permit-rooms
Resto-bars
Tiffin Room
Refreshment house
Soda-house
Ice-crème parlor
Dhaba etc
E ven a modest food counter in a centrally air-conditioned multiplex/theatre serving the following may get covered within its ambit:
- pop corns, samosa, sandwiches, pizzasetc.
- Soft-drink through dispenser, tea, coffee etc.
- Soft-drink bottle, water bottle, chips (MRP printed products)
It may be noted that the `service' element at these food counters in multiplex would be minimal or even absent. However, no clarification in this regard is provided in the Budget documents.
In this regard, we may refer to erstwhile TRU Circular No. TRU Circular F. No. 334/3/2011-TRU, dated 28-2-2011 wherein it was clarified that:
"The new levy is directed at services provided by high-end restaurants that are air conditioned and have license to serve liquor. Such restaurants provide conditions and ambience in a manner that service provided may assume predominance over the food in many situations. It should not be confused with mere sale of food at any eating house, where such services are materially absent or so minimal that it will be difficult to establish that any service in any meaningful way is being provided.
… The levy is intended to be confined to the value of services contained in the composite contract and shall not cover either the meal portion in the composite contract or mere sale of food by way of pick-up or home delivery, as also goods sold at MRP."
Based on the rationale contained in the aforesaid TRU Circular, one may state that while selling food items, soft drinks, water and other edibles at such counters the services are materially absent or minimal. Support can also be drawn from the judgment of Apex Court in the case of K. Damodarasamy Naidu & Bros. - 2002-TIOL-884-SC-CT-CB, The East India Hotels - 2002-TIOL-883-SC-CT-LB and the Delhi High Court judgment in case of Indian Railways Catering &Tourism Corporation Ltd.- 2010-TIOL-517-HC-DEL-ST.
The CBEC should immediately come out with a Circular clarifying the above issues before the D-day dawns.By Pritam Mahure
PRIOR to 1st April 2013, Service Tax is leviable on air-conditioned restaurants, eating joints, mess having license to serve liquor. However, w.e.f. 1st April, 2013 air-conditioned restaurants, eating joints, mess would be subject to Service Tax irrespective of the fact whether they have licence to serve liquor or not [kindly refer Notfn. no. 3/2013-ST which amends Notification No. 25/2012-ST].
It may be noted that the terms used viz. `restaurant', `eating joint' or `mess' in the Mega exemption Notification No.3 25/2012-ST are not defined therein.
Since the terms used are not defined and the only differentiation that has been put forward for levy of Service Tax is having vis-à-vis not having facility of air-conditioning or central air-heating, it appears that all air-conditioned places serving food may get covered within the ambit of Service Tax.
Thus, the following may get covered under ambit of Service Tax (if they have facility of air-conditioning):
Restaurants
Canteen
Eating joints
Cafeteria
Mess
Eatery
Hotel
Eating house
Café
Permit-rooms
Resto-bars
Tiffin Room
Refreshment house
Soda-house
Ice-crème parlor
Dhaba etc
E ven a modest food counter in a centrally air-conditioned multiplex/theatre serving the following may get covered within its ambit:
- pop corns, samosa, sandwiches, pizzasetc.
- Soft-drink through dispenser, tea, coffee etc.
- Soft-drink bottle, water bottle, chips (MRP printed products)
It may be noted that the `service' element at these food counters in multiplex would be minimal or even absent. However, no clarification in this regard is provided in the Budget documents.
In this regard, we may refer to erstwhile TRU Circular No. TRU Circular F. No. 334/3/2011-TRU, dated 28-2-2011 wherein it was clarified that:
"The new levy is directed at services provided by high-end restaurants that are air conditioned and have license to serve liquor. Such restaurants provide conditions and ambience in a manner that service provided may assume predominance over the food in many situations. It should not be confused with mere sale of food at any eating house, where such services are materially absent or so minimal that it will be difficult to establish that any service in any meaningful way is being provided.
… The levy is intended to be confined to the value of services contained in the composite contract and shall not cover either the meal portion in the composite contract or mere sale of food by way of pick-up or home delivery, as also goods sold at MRP."
Based on the rationale contained in the aforesaid TRU Circular, one may state that while selling food items, soft drinks, water and other edibles at such counters the services are materially absent or minimal. Support can also be drawn from the judgment of Apex Court in the case of K. Damodarasamy Naidu & Bros. - 2002-TIOL-884-SC-CT-CB, The East India Hotels - 2002-TIOL-883-SC-CT-LB and the Delhi High Court judgment in case of Indian Railways Catering &Tourism Corporation Ltd.- 2010-TIOL-517-HC-DEL-ST.
The CBEC should immediately come out with a Circular clarifying the above issues before the D-day dawns.By Pritam Mahure
Income-tax departmentto issue draft order on Rs 15000 crore tax liabilty of Shel
Income-tax departmentto issue draft order on Rs 15000 crore tax liabilty of Shell India
MUMBAI: The income-tax department is all set to issue a draft order estimating a tax liability of more than Rs 15,000 crore on Shell India due to alleged undervaluation of shares when it raised money from its global parent Shell Gas BV a few years ago. The Transfer Pricing wing of the I-T department has finalised the order.
According to the department, in 2009, Shell India had issued Rs 8.7 crore shares to its parent at a price that undervalued the stock by Rs 15,220 crore. Tax authorities believe the stock should have been priced at 187 a piece instead of 10 at which issuance happened.
Shell India will be served with a 'draft order' before March 31. A taxpayer, as per rules, can challenge such an order before the Dispute Resolution Panel (DRP), an appellate body that looks into draft orders related to transfer pricing issues.
The assessing officer will issue a demand notice only after taking into account the DRP's decision on the appeal filed by the taxpayer company (in this case, Shell India). The law ministry had sought an opinion from the Attorney General of India on the I-T department's stand on the Shell matter. The department, however, is yet to receive the AG's opinion on the issue.
The law ministry had recently endorsed the Transfer Pricing Officer's right to make adjustments in cross-border share transactions between associate enterprises, but wanted a final view from AG.
Transfer pricing rules stipulate that the draft order should be sent to the taxpayer before the end of the fiscal after which it becomes time-barred. Therefore, according to an I-T official, the department is bound to issue the draft order before March 31 failing which it cannot pursue the matter.
Soon after media reports of a possible tax demand, Shell had denied any tax liability arising out of its transaction with the parent, and alleged that this would be a tax on foreign direct investment. The MNC, which is likely to challenge the order, had said that the transaction related to capital raising and no income (that could be taxed) was generated.
MUMBAI: The income-tax department is all set to issue a draft order estimating a tax liability of more than Rs 15,000 crore on Shell India due to alleged undervaluation of shares when it raised money from its global parent Shell Gas BV a few years ago. The Transfer Pricing wing of the I-T department has finalised the order.
According to the department, in 2009, Shell India had issued Rs 8.7 crore shares to its parent at a price that undervalued the stock by Rs 15,220 crore. Tax authorities believe the stock should have been priced at 187 a piece instead of 10 at which issuance happened.
Shell India will be served with a 'draft order' before March 31. A taxpayer, as per rules, can challenge such an order before the Dispute Resolution Panel (DRP), an appellate body that looks into draft orders related to transfer pricing issues.
The assessing officer will issue a demand notice only after taking into account the DRP's decision on the appeal filed by the taxpayer company (in this case, Shell India). The law ministry had sought an opinion from the Attorney General of India on the I-T department's stand on the Shell matter. The department, however, is yet to receive the AG's opinion on the issue.
The law ministry had recently endorsed the Transfer Pricing Officer's right to make adjustments in cross-border share transactions between associate enterprises, but wanted a final view from AG.
Transfer pricing rules stipulate that the draft order should be sent to the taxpayer before the end of the fiscal after which it becomes time-barred. Therefore, according to an I-T official, the department is bound to issue the draft order before March 31 failing which it cannot pursue the matter.
Soon after media reports of a possible tax demand, Shell had denied any tax liability arising out of its transaction with the parent, and alleged that this would be a tax on foreign direct investment. The MNC, which is likely to challenge the order, had said that the transaction related to capital raising and no income (that could be taxed) was generated.
REQUIRED PARTNER
We Required partners for our Firm .
Our Partnership Firm is based on Lakhimpur (UP) with a branch from 2006 .
if any body interested for partnership/merger then call to me on these numbers.
mob. 9839161438 , 9452087882
05872-263493
Thanking You
CA C . B. GUPTA
Our Partnership Firm is based on Lakhimpur (UP) with a branch from 2006 .
if any body interested for partnership/merger then call to me on these numbers.
mob. 9839161438 , 9452087882
05872-263493
Thanking You
CA C . B. GUPTA
Cellular company providing services in the form of talk time can recognize
IT : Cellular company providing services in the form of talk time can recognize revenue to extent of talk time used
[2013] 31 taxmann.com 239 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'G'
Assistant Commissioner of Income-tax
v.
Shyam Telelink Ltd
[2013] 31 taxmann.com 239 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'G'
Assistant Commissioner of Income-tax
v.
Shyam Telelink Ltd
FOR CAs MOTOR INSURANCE SCHEME
Motor Insurance Scheme
Announcement: Accounting Standards for Local Bodies
The Committee for Capacity Building of CA Firms
and Small & Medium Practitioners (CCBCAF &
SMP) of ICAI has arranged Motor Insurance Scheme
at discounted OD premium for members of ICAI.
The salient feature of the aforesaid scheme as under:-
Members would get 55% discount on Own Damage
Premium in respect of private four wheelers and two
wheelers if Member approaches the office of Oriental
Insurance Company directly.
Please approach to the office of the Oriental
Insurance Company Limited with a self attested
photo copy of the Membership Card for availing the
aforesaid scheme. Please quote the special Client
code: AI0000001313 for the aforesaid arrangement.
For details about the motor insurance scheme offered
by Oriental Insurance Company, kindly visit http://
icai.org/post.html?post_id=9385
--
Announcement: Accounting Standards for Local Bodies
The Committee for Capacity Building of CA Firms
and Small & Medium Practitioners (CCBCAF &
SMP) of ICAI has arranged Motor Insurance Scheme
at discounted OD premium for members of ICAI.
The salient feature of the aforesaid scheme as under:-
Members would get 55% discount on Own Damage
Premium in respect of private four wheelers and two
wheelers if Member approaches the office of Oriental
Insurance Company directly.
Please approach to the office of the Oriental
Insurance Company Limited with a self attested
photo copy of the Membership Card for availing the
aforesaid scheme. Please quote the special Client
code: AI0000001313 for the aforesaid arrangement.
For details about the motor insurance scheme offered
by Oriental Insurance Company, kindly visit http://
icai.org/post.html?post_id=9385
--
ICAI HEALTH INSURANCE SCHEME
The Committee for Capacity Building of CA Firms and
Small & Medium Practitioners (CCBCAF & SMP) of
ICAI has arranged the specialised Health Insurance
Scheme for Members of ICAI. The Committee has
signed afresh an MoU with New India Assurance Co.
Ltd., Mumbai for the same on 12th March, 2013 The
scheme has become effective from 12th March, 2013
for the Members of ICAI.
The highlights of the Health Insurance Scheme for
Members of ICAI are as follows:
• 5% discount in Premium to be paid to the Insurance
company, where the Member has not preferred any
claim in the expiring policy in case of renewal of
the policy.
• Sum Insured available in slabs of R5 lacs, 7 lacs
and 10 lacs.
• Floater Sum Insured for the entire family of Self,
Spouse and dependent children.
• No Health check-up. No entry age barrier.
• Dependant Parents covered under separate Floater
Sum Insured, equivalent to the Sum Insured of the
Member family.
• No Health check-up. No age limit.
• Premium discount in lieu of Cumulative Bonus.
• Hospital Cash Allowance @ 0.10% of Sum
Insured, for a maximum of 10 days.
• Wide Coverage for Pre-existing diseases.
• Competitive Premium Rates
The member can carry over credit for previous
continuous insurance. For a member with three years
of continuous coverage with any other insurer, pre
existing diseases are covered.
Pre existing disease coverage: under individual
policies, pre existing disease is covered only after
four years. Whereas, in CA super mediclaim,
coverage for pre existing disease commences from
first year, as per limits below:
Health Insurance Scheme
Health Insurance Scheme
For Members of ICAI
An Initiative of the Committee for Capacity Building
of CA Firms and Small & Medium Practitioners, ICAI
First Year of
Coverage
25% of the admissible
claim amount, subject to a
maximum of 25% of the sum
insured
Second Year of
Coverage
50% of the admissible
claim amount, subject to a
maximum of 50% of the sum
insured
Third Year of
Coverage
75% of the admissible
claim amount, subject to a
maximum of 75% of the sum
insured
Fourth Year of
Coverage
100% of the admissible claim
amount, subject to a maximum
of 100% of the sum insured
Members desirous to avail the benefits
of the aforesaid scheme may please visit:
http://icai.newindia.co.in & online solution
for the same.
For grievance or any other queries please contact
the New India Personnel Shri Satyanarayan Mohapatra,
Sr. Divisional Manager at satyanarayan.mohapatra@
newindia.co.in, Telephone: 022-24620311 or Dr.
Sambit Kumar Mishra, Secretary, CCBCAF&SMP,
ICAI at ccbcaf.query@icai.org, Telephone: 0120-
3045994.
CA. Naveen N.D. Gupta
Chairman
Committee for Capacity Building of CA Firms
and Small & Medium Practitioners (CCBCAF &
SMP), ICAI
--
Small & Medium Practitioners (CCBCAF & SMP) of
ICAI has arranged the specialised Health Insurance
Scheme for Members of ICAI. The Committee has
signed afresh an MoU with New India Assurance Co.
Ltd., Mumbai for the same on 12th March, 2013 The
scheme has become effective from 12th March, 2013
for the Members of ICAI.
The highlights of the Health Insurance Scheme for
Members of ICAI are as follows:
• 5% discount in Premium to be paid to the Insurance
company, where the Member has not preferred any
claim in the expiring policy in case of renewal of
the policy.
• Sum Insured available in slabs of R5 lacs, 7 lacs
and 10 lacs.
• Floater Sum Insured for the entire family of Self,
Spouse and dependent children.
• No Health check-up. No entry age barrier.
• Dependant Parents covered under separate Floater
Sum Insured, equivalent to the Sum Insured of the
Member family.
• No Health check-up. No age limit.
• Premium discount in lieu of Cumulative Bonus.
• Hospital Cash Allowance @ 0.10% of Sum
Insured, for a maximum of 10 days.
• Wide Coverage for Pre-existing diseases.
• Competitive Premium Rates
The member can carry over credit for previous
continuous insurance. For a member with three years
of continuous coverage with any other insurer, pre
existing diseases are covered.
Pre existing disease coverage: under individual
policies, pre existing disease is covered only after
four years. Whereas, in CA super mediclaim,
coverage for pre existing disease commences from
first year, as per limits below:
Health Insurance Scheme
Health Insurance Scheme
For Members of ICAI
An Initiative of the Committee for Capacity Building
of CA Firms and Small & Medium Practitioners, ICAI
First Year of
Coverage
25% of the admissible
claim amount, subject to a
maximum of 25% of the sum
insured
Second Year of
Coverage
50% of the admissible
claim amount, subject to a
maximum of 50% of the sum
insured
Third Year of
Coverage
75% of the admissible
claim amount, subject to a
maximum of 75% of the sum
insured
Fourth Year of
Coverage
100% of the admissible claim
amount, subject to a maximum
of 100% of the sum insured
Members desirous to avail the benefits
of the aforesaid scheme may please visit:
http://icai.newindia.co.in & online solution
for the same.
For grievance or any other queries please contact
the New India Personnel Shri Satyanarayan Mohapatra,
Sr. Divisional Manager at satyanarayan.mohapatra@
newindia.co.in, Telephone: 022-24620311 or Dr.
Sambit Kumar Mishra, Secretary, CCBCAF&SMP,
ICAI at ccbcaf.query@icai.org, Telephone: 0120-
3045994.
CA. Naveen N.D. Gupta
Chairman
Committee for Capacity Building of CA Firms
and Small & Medium Practitioners (CCBCAF &
SMP), ICAI
--
INSURANCE PROTECTION FOR CA FIRMS
Insurance Protection
An Insurance Protection for Members in practice & CA
Firms of ICAI...
An Initiative of the Committee for Capacity Building
of CA Firms and Small & Medium Practitioners, ICAI...
The Committee for Capacity Building of CA Firms
and Small & Medium Practitioners (CCBCAF &
SMP) of ICAI has arranged insurance protection for
members in practice/firms in the form of specially
designed professional indemnity insurance at a
reasonable premium i.e. 85% discount in market
rate. The scheme has become effective from 12th
March, 2013 for the Members in practice/ Firms
of the ICAI.
Scope
The policy covers all sums which the insured
professional becomes legally liable to pay as damages
to third party in respect of any error and/or omission on
his/her part committed whilst rendering professional
service. Legal cost and expenses incurred in defense
of the case, with the prior consent of the insurance
company, are also payable, subject to the overall limit
of indemnity selected.
Only civil liability claims are covered. Any liability
arising out of any criminal act or act committed in
violation of any law or ordinance is not covered.
Eligibility:
Chartered Accountants, individual/jointly or
Proprietorship Concern or a Partnership Firm / Partnership
The applicants/firms should not have been
subjected to disciplinary action by the Institute.
Premium Rates:
For Individual Members in Practice:
For SI of R10 lacs, the premium proposed is R1000/-
(1:1), R803/- (1:2), R 705/- (1:3) and R600/- (1:4).
Ratios indicate relationship between AOA and AOY
Additional: Per Capita for named professional
employee - R100
Excess: 1/2% of Any One Year Limit subject to
minimum R5,000/- and maximum of R 1 Lac. (as per
Market Agreement) For higher limits.
For Chartered Account Firm:
The premium of 0.10% shall be as per rates for
Individual Chartered Accountants and shall be applied
on the AOY limit chosen. All named professionals
shall be charged R100/- extra over and above the basic
premium.
For Example: If the CA firm chooses a Sum Insured
of 2 Crore the Premium rate of 0.10% is to be applied
on the AOY limit and each professional (including
partners) have to be charged R100/- each. For example
a CA firm with 20 professionals including 9 partners
will pay R20, 000/- plus 20X R100 totalling to R22,
000/-. This would be on 1:1 ratio. If the ratio is 1:2,
the Premium rate would be .08%, if the ratio is 1:3, the
Premium rate would be .07% and if the ratio is 1:4, the
ROL would be .06% on the indemnity limit chosen.
* Jurisdiction: India only
*Above Premium rates are subject to Service Tax @
10.3%.
Members and CA firms desirous to avail the benefits
of the aforesaid scheme may please visit http://icai.
newindia.co.in & online solution for the same.
For grievance or any other queries please contact
the New India Personnel Shri Satyanarayan Mohapatra,
Sr. Divisional Manager at satyanarayan.mohapatra@
newindia.co.in, Telephone: 022-24620311 or Dr.
Sambit Kumar Mishra, Secretary, CCBCAF&SMP,
ICAI at ccbcaf.query@icai.org, Telephone: 0120-
3045994.
CA. Naveen N.D. Gupta
Chairman
Committee for Capacity Building of CA Firms and
Small & Medium Practitioners (CCBCAF & SMP),
ICAI
E-Mail: chairman.ccbcaf@icai.org
--
An Insurance Protection for Members in practice & CA
Firms of ICAI...
An Initiative of the Committee for Capacity Building
of CA Firms and Small & Medium Practitioners, ICAI...
The Committee for Capacity Building of CA Firms
and Small & Medium Practitioners (CCBCAF &
SMP) of ICAI has arranged insurance protection for
members in practice/firms in the form of specially
designed professional indemnity insurance at a
reasonable premium i.e. 85% discount in market
rate. The scheme has become effective from 12th
March, 2013 for the Members in practice/ Firms
of the ICAI.
Scope
The policy covers all sums which the insured
professional becomes legally liable to pay as damages
to third party in respect of any error and/or omission on
his/her part committed whilst rendering professional
service. Legal cost and expenses incurred in defense
of the case, with the prior consent of the insurance
company, are also payable, subject to the overall limit
of indemnity selected.
Only civil liability claims are covered. Any liability
arising out of any criminal act or act committed in
violation of any law or ordinance is not covered.
Eligibility:
Chartered Accountants, individual/jointly or
Proprietorship Concern or a Partnership Firm / Partnership
The applicants/firms should not have been
subjected to disciplinary action by the Institute.
Premium Rates:
For Individual Members in Practice:
For SI of R10 lacs, the premium proposed is R1000/-
(1:1), R803/- (1:2), R 705/- (1:3) and R600/- (1:4).
Ratios indicate relationship between AOA and AOY
Additional: Per Capita for named professional
employee - R100
Excess: 1/2% of Any One Year Limit subject to
minimum R5,000/- and maximum of R 1 Lac. (as per
Market Agreement) For higher limits.
For Chartered Account Firm:
The premium of 0.10% shall be as per rates for
Individual Chartered Accountants and shall be applied
on the AOY limit chosen. All named professionals
shall be charged R100/- extra over and above the basic
premium.
For Example: If the CA firm chooses a Sum Insured
of 2 Crore the Premium rate of 0.10% is to be applied
on the AOY limit and each professional (including
partners) have to be charged R100/- each. For example
a CA firm with 20 professionals including 9 partners
will pay R20, 000/- plus 20X R100 totalling to R22,
000/-. This would be on 1:1 ratio. If the ratio is 1:2,
the Premium rate would be .08%, if the ratio is 1:3, the
Premium rate would be .07% and if the ratio is 1:4, the
ROL would be .06% on the indemnity limit chosen.
* Jurisdiction: India only
*Above Premium rates are subject to Service Tax @
10.3%.
Members and CA firms desirous to avail the benefits
of the aforesaid scheme may please visit http://icai.
newindia.co.in & online solution for the same.
For grievance or any other queries please contact
the New India Personnel Shri Satyanarayan Mohapatra,
Sr. Divisional Manager at satyanarayan.mohapatra@
newindia.co.in, Telephone: 022-24620311 or Dr.
Sambit Kumar Mishra, Secretary, CCBCAF&SMP,
ICAI at ccbcaf.query@icai.org, Telephone: 0120-
3045994.
CA. Naveen N.D. Gupta
Chairman
Committee for Capacity Building of CA Firms and
Small & Medium Practitioners (CCBCAF & SMP),
ICAI
E-Mail: chairman.ccbcaf@icai.org
--
ST : I. Tax paid on freight for dutiable transportation of goods from depots is
ST : I. Tax paid on freight for dutiable transportation of goods from depots is admissible as input service credit
II. CENVAT Credit, otherwise admissible, cannot be denied merely on ground that it was availed on basis of invoices raised by their head office, which was not registered under central registration during material period
[2013] 31 taxmann.com 246 (New Delhi - CESTAT)
CESTAT, NEW DELHI BENCH
Rohit Surfactants (P.) Ltd.
II. CENVAT Credit, otherwise admissible, cannot be denied merely on ground that it was availed on basis of invoices raised by their head office, which was not registered under central registration during material period
[2013] 31 taxmann.com 246 (New Delhi - CESTAT)
CESTAT, NEW DELHI BENCH
Rohit Surfactants (P.) Ltd.
CBDT streamlines taxation rules for IT sector
CBDT streamlines taxation rules for IT sector
CBDT streamlines taxation rules for IT sector
NEW DELHI: Seeking to encourage Research and Development (R&D) activities in the IT sector, the CBDT today issued circulars to streamline the taxation rules in line with the recommendations of the Rangachary Committee.
The circulars, issued with relation to the applicability of Transfer Pricing rules for taxation of development centres in the IT sector, will help in providing certainty to tax payers, the finance ministry said in a statement.
The development centres, it said, should be treated as contract R&D service provider to their foreign principal if the risk attached to such centres is insignificant.
The Transfer Pricing officers, while deciding on taxation issues concerning development centres, it said, should look into the conduct of the parties and not on mere contractual terms.
With regard to the applicability of Profit Split Method (PSM), the circular said it should be considered as the most appropriate method for the purpose of computing tax liability under the Transfer Pricing.
In case of the non-applicability of the (PSM), the circular said the Transfer Pricing officer should record the reason in writing.
The PSM is one the methods to determine arm's length price for determining the tax liability in cases of sale of goods and services between related entities.
These clarifications are aimed at providing certainty with regard to taxation of IT development centres.
CBDT streamlines taxation rules for IT sector
NEW DELHI: Seeking to encourage Research and Development (R&D) activities in the IT sector, the CBDT today issued circulars to streamline the taxation rules in line with the recommendations of the Rangachary Committee.
The circulars, issued with relation to the applicability of Transfer Pricing rules for taxation of development centres in the IT sector, will help in providing certainty to tax payers, the finance ministry said in a statement.
The development centres, it said, should be treated as contract R&D service provider to their foreign principal if the risk attached to such centres is insignificant.
The Transfer Pricing officers, while deciding on taxation issues concerning development centres, it said, should look into the conduct of the parties and not on mere contractual terms.
With regard to the applicability of Profit Split Method (PSM), the circular said it should be considered as the most appropriate method for the purpose of computing tax liability under the Transfer Pricing.
In case of the non-applicability of the (PSM), the circular said the Transfer Pricing officer should record the reason in writing.
The PSM is one the methods to determine arm's length price for determining the tax liability in cases of sale of goods and services between related entities.
These clarifications are aimed at providing certainty with regard to taxation of IT development centres.
Thursday, March 28, 2013
AAGHAAZ- CPT starts 7th April,2013,,Last Date Of Registration at ICAI is 31st March, 2013
-
,,,,,,,,,,CPT starts 7th April, 2013,,,,Last Date Of Registration at ICAI is 31st March, 2013,,,,,,,,CPT June,2012 Highest Marks 182 out of 200,,,,,,,,,,
,,,,,,,,,,CPT starts 7th April, 2013,,,,Last Date Of Registration at ICAI is 31st March, 2013,,,,,,,,CPT June,2012 Highest Marks 182 out of 200,,,,,,,,,,
SOME USEFUL AUDIT EXCEPTION / ANALYTICAL REPORTS GENERALLY AVAILABLE IN CBS ENVIRONMENT
*SOME USEFUL AUDIT EXCEPTION / ANALYTICAL REPORTS GENERALLY AVAILABLE IN
CBS ENVIRONMENT*
* *
For Balance Sheet and Profit and Loss Account Audit
* *
1. Age wise and nature (head) wise classification of all office accounts
2. Advances disbursed by transferring to deposit accounts
3. Abnormal transactions in term deposit accounts
4. GL error report
5. Accounts having minimum interest rate pegged
6. Interest applied/ failed report for deposits
7. Interest applied /failed report for advances
8. Loan accounts with Zero interest rate
* *
For LFAR Procedures
* *
1. Overdue stock/book-debts/ QIS statements
2. Overdue reviews /renewals of credit limits
3. Expired insurances/under-insurances of securities
4. Overdue inspection of securities
5. Overdue renewal of loan documents
6. Overdue valuations of fixed assets charged in NPA
7. TDRs where lien has been lifted
8. Loans against TDR where lien Not marked
9. Cash balance above the cash retention limit
10. Accounts having sanction limit exceeding rupees five crore.
For IRAC Compliance Audit
* *
1. Accounts where moratorium period expired and interest flag "N"
2. Sub standard accounts restructured during the year
3. Standard accounts rescheduled during the year
4. Transaction turnover in CC accounts
5. Report on overdue instalments and interest in loan accounts
6. Accounts where value of securities is less than drawing power
7. Accounts out of order for more than 90 days
8. Sub standard NPA upgraded during the year
* *
For Tax Audit
* *
1. Interest paid on term deposit above the exemption limit
2. TDS not remitted within seven days from the last day of previous month
by
CA. Mukesh Saran
CBS ENVIRONMENT*
* *
For Balance Sheet and Profit and Loss Account Audit
* *
1. Age wise and nature (head) wise classification of all office accounts
2. Advances disbursed by transferring to deposit accounts
3. Abnormal transactions in term deposit accounts
4. GL error report
5. Accounts having minimum interest rate pegged
6. Interest applied/ failed report for deposits
7. Interest applied /failed report for advances
8. Loan accounts with Zero interest rate
* *
For LFAR Procedures
* *
1. Overdue stock/book-debts/ QIS statements
2. Overdue reviews /renewals of credit limits
3. Expired insurances/under-insurances of securities
4. Overdue inspection of securities
5. Overdue renewal of loan documents
6. Overdue valuations of fixed assets charged in NPA
7. TDRs where lien has been lifted
8. Loans against TDR where lien Not marked
9. Cash balance above the cash retention limit
10. Accounts having sanction limit exceeding rupees five crore.
For IRAC Compliance Audit
* *
1. Accounts where moratorium period expired and interest flag "N"
2. Sub standard accounts restructured during the year
3. Standard accounts rescheduled during the year
4. Transaction turnover in CC accounts
5. Report on overdue instalments and interest in loan accounts
6. Accounts where value of securities is less than drawing power
7. Accounts out of order for more than 90 days
8. Sub standard NPA upgraded during the year
* *
For Tax Audit
* *
1. Interest paid on term deposit above the exemption limit
2. TDS not remitted within seven days from the last day of previous month
by
CA. Mukesh Saran
IFRS-GOING CONCERN-AUSTRALIAN COMPANY-AICPA
Basis of Presentation, Statement of Compliance, Going Concern Assessment 1.72 Diploma Group Limited (Jun 2011) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (in part)
1. Corporate Information and Basis of Preparation Diploma Group Limited is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange. The address of the registered office is First floor, 140 Abernethy Road, Belmont, Western Australia 6104. The financial report of Diploma Group Limited for the year ended 30 June 2011 was authorised for issue in accordance with a resolution of the Directors on 28 September 2011. Basis of Preparation The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has been prepared in accordance with the historical cost basis. The financial report is presented in Australian dollars and all values are rounded to the nearest
thousand dollars ($'000) unless otherwise stated under the option available to the Company under ASIC Class Order 98/0100. The Company is an entity to which the class order applies. Statement of Compliance The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Going Concern For the year ended 30 June 2011, the Group had a cash deficit at the end of the financial year of $1.806 million, a net operating cash outflow of $8.269 million, and project specific debt totalling $12.490 million due for repayment by September 2011. This amount includes $9.326 million of debt relating to an associate (Zenith), not recognised on the Group's balance sheet. The $9.326 million represents Diploma's share of the total project specific debt of $22.397 million. In addition the Group was
in breach of a financial covenant on a corporate facility which had a net drawn down balance at 30 June 2011 of $5.518 million. Notwithstanding the above, the Directors' are of the opinion that, at the date of signing the financial report, the Group is a going concern having regard to the following pertinent matters: 1. $13.071 million of the $22.397 million of debt associated with the Zenith project was refinanced on 26 September 2011. The balance of this project specific debt totalled $9.326 million which represents Diploma's share. Approval for the refinance of Diploma's share of the project specific debt was received on 28 September 2011. The refinanced facility together with subsequent unit sales in the Zenith project will enable Diploma to repay its share of the Zenith project debt and provide the Group with $1.488 million in working capital along with 30% from each subsequent sale. The settlement profile of the currently contracted
apartments will generate further cash inflow to the Group with the refinanced facility expected to be cleared by December 2011.
2. The project specific debt on the Group's Rockingham project (Salt 5) totalling $1.704 million was refinanced on 8 September 2011 and is now due for repayment on 5 April 2012 at which point the facility is expected to be refinanced into a construction facility.
3. Since year end the project specific debt associated with the Cove and Foundry Road projects, totalling $4.618 million has been repaid. The Group has obtained additional funding secured against the remaining unsold stock in these developments totalling $3.1 million.
4. The repayment date on the project specific debt on the Group's iSpire project totalling $1.500 million was extended to February 2012 at which point the facility is expected to be refinanced into a construction facility.
5. The Eleven78 project is due for completion by November 2011. 122 of the 126 apartments in this development have been presold either during or post the GFC. This project is expected to settle quickly once complete and is expected to return in excess of $10 million in cash to the Group.
6. The bank acknowledged the breach at 30 June 2011 and do not intend to take any action. The bank has renewed the facility for a further term until 31 October 2012. The new facility will include a reduction to the measure of the covenant breached and the limit will be reduced to $5.0 million. Furthermore, the same bank has re-affirmed their commitment to the financing of the last stage of the Group's Joondalup (Edge) development due to commence in October 2011.
7. The Group has cash in hand of $2.3 million as at 29 September 2011.
1. Corporate Information and Basis of Preparation Diploma Group Limited is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange. The address of the registered office is First floor, 140 Abernethy Road, Belmont, Western Australia 6104. The financial report of Diploma Group Limited for the year ended 30 June 2011 was authorised for issue in accordance with a resolution of the Directors on 28 September 2011. Basis of Preparation The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has been prepared in accordance with the historical cost basis. The financial report is presented in Australian dollars and all values are rounded to the nearest
thousand dollars ($'000) unless otherwise stated under the option available to the Company under ASIC Class Order 98/0100. The Company is an entity to which the class order applies. Statement of Compliance The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Going Concern For the year ended 30 June 2011, the Group had a cash deficit at the end of the financial year of $1.806 million, a net operating cash outflow of $8.269 million, and project specific debt totalling $12.490 million due for repayment by September 2011. This amount includes $9.326 million of debt relating to an associate (Zenith), not recognised on the Group's balance sheet. The $9.326 million represents Diploma's share of the total project specific debt of $22.397 million. In addition the Group was
in breach of a financial covenant on a corporate facility which had a net drawn down balance at 30 June 2011 of $5.518 million. Notwithstanding the above, the Directors' are of the opinion that, at the date of signing the financial report, the Group is a going concern having regard to the following pertinent matters: 1. $13.071 million of the $22.397 million of debt associated with the Zenith project was refinanced on 26 September 2011. The balance of this project specific debt totalled $9.326 million which represents Diploma's share. Approval for the refinance of Diploma's share of the project specific debt was received on 28 September 2011. The refinanced facility together with subsequent unit sales in the Zenith project will enable Diploma to repay its share of the Zenith project debt and provide the Group with $1.488 million in working capital along with 30% from each subsequent sale. The settlement profile of the currently contracted
apartments will generate further cash inflow to the Group with the refinanced facility expected to be cleared by December 2011.
2. The project specific debt on the Group's Rockingham project (Salt 5) totalling $1.704 million was refinanced on 8 September 2011 and is now due for repayment on 5 April 2012 at which point the facility is expected to be refinanced into a construction facility.
3. Since year end the project specific debt associated with the Cove and Foundry Road projects, totalling $4.618 million has been repaid. The Group has obtained additional funding secured against the remaining unsold stock in these developments totalling $3.1 million.
4. The repayment date on the project specific debt on the Group's iSpire project totalling $1.500 million was extended to February 2012 at which point the facility is expected to be refinanced into a construction facility.
5. The Eleven78 project is due for completion by November 2011. 122 of the 126 apartments in this development have been presold either during or post the GFC. This project is expected to settle quickly once complete and is expected to return in excess of $10 million in cash to the Group.
6. The bank acknowledged the breach at 30 June 2011 and do not intend to take any action. The bank has renewed the facility for a further term until 31 October 2012. The new facility will include a reduction to the measure of the covenant breached and the limit will be reduced to $5.0 million. Furthermore, the same bank has re-affirmed their commitment to the financing of the last stage of the Group's Joondalup (Edge) development due to commence in October 2011.
7. The Group has cash in hand of $2.3 million as at 29 September 2011.
How to identify development centres engaged in contract R&D services with insignificant risk
*SECTION 92C OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - COMPUTATION
OF ARM'S LENGTH PRICE - CLARIFICATIONS ON FUNCTIONAL PROFILE OF DEVELOPMENT
CENTRES ENGAGED IN CONTRACT R&D SERVICES WITH INSIGNIFICANT RISK -
CONDITIONS RELEVANT TO IDENTIFY SUCH DEVELOPMENT CENTRES*
*CIRCULAR NO. 3/2013 [F NO. 500/139/2012], DATED 26-3-2013***
It has been brought to the notice of CBDT that there is divergence of views
amongst the field officers and taxpayers regarding the functional profile
of development centres engaged in contract R&D services for the purposes of
transfer pricing audit. Moreover, while at times taxpayers have been
insisting that they are contract R&D service providers with insignificant
risk, the TPOs are treating them as full or significant risk-bearing
entities and making transfer pricing adjustments accordingly. The issue has
been examined in CBDT. It is hereby clarified that a development centre in
India may be treated as a contract R&D service provider with insignificant
risk if the following conditions are cumulatively complied with :****
1.****
Foreign principal performs most of the economically significant functions
involved in research or product development cycle whereas Indian
development centre would largely be involved in economically insignificant
functions;****
2.****
The principal provides funds/ capital and other economically significant
assets including intangibles for research or product development and Indian
development centre would not use any other economically significant assets
including intangibles in research or product development;****
3.****
Indian development centre works under direct supervision of foreign
principal who not only has capability to control or supervise but also
actually controls or supervises research or product development through its
strategic decisions to perform core functions as well as monitor activities
on regular basis;****
4.****
Indian development centre does not assume or has no economically
significant realized risks. If a contract shows the principal to be
controlling the risk but conduct shows that Indian development centre is
doing so, then the contractual terms are not the final determinant of
actual activities. In the case of foreign principal being located in a
country/territory widely perceived as a low or no tax jurisdiction, it will
be presumed that the foreign principal is not controlling the risk.
However, the Indian development centre may rebut this presumption to the
satisfaction of the revenue authorities; and****
5.****
Indian development centre has no ownership right (legal or economic) on
outcome of research which vests with foreign principal, and that it shall
be evident from conduct of the parties.****
The satisfaction of all the above mentioned conditions should be borne out
by the conduct of the parties and not merely by the contractual terms.****
The above may be brought to the notice of all concerned.****
** **
*Circular No. 02/2013 - Sub: Circular on application of profit split method*
**
* *
It has been brought to the notice of CBDT that clarification is needed for
selection of profit split method (PSM) as most appropriate method. The
issue has been examined in CBDT. ****
OF ARM'S LENGTH PRICE - CLARIFICATIONS ON FUNCTIONAL PROFILE OF DEVELOPMENT
CENTRES ENGAGED IN CONTRACT R&D SERVICES WITH INSIGNIFICANT RISK -
CONDITIONS RELEVANT TO IDENTIFY SUCH DEVELOPMENT CENTRES*
*CIRCULAR NO. 3/2013 [F NO. 500/139/2012], DATED 26-3-2013***
It has been brought to the notice of CBDT that there is divergence of views
amongst the field officers and taxpayers regarding the functional profile
of development centres engaged in contract R&D services for the purposes of
transfer pricing audit. Moreover, while at times taxpayers have been
insisting that they are contract R&D service providers with insignificant
risk, the TPOs are treating them as full or significant risk-bearing
entities and making transfer pricing adjustments accordingly. The issue has
been examined in CBDT. It is hereby clarified that a development centre in
India may be treated as a contract R&D service provider with insignificant
risk if the following conditions are cumulatively complied with :****
1.****
Foreign principal performs most of the economically significant functions
involved in research or product development cycle whereas Indian
development centre would largely be involved in economically insignificant
functions;****
2.****
The principal provides funds/ capital and other economically significant
assets including intangibles for research or product development and Indian
development centre would not use any other economically significant assets
including intangibles in research or product development;****
3.****
Indian development centre works under direct supervision of foreign
principal who not only has capability to control or supervise but also
actually controls or supervises research or product development through its
strategic decisions to perform core functions as well as monitor activities
on regular basis;****
4.****
Indian development centre does not assume or has no economically
significant realized risks. If a contract shows the principal to be
controlling the risk but conduct shows that Indian development centre is
doing so, then the contractual terms are not the final determinant of
actual activities. In the case of foreign principal being located in a
country/territory widely perceived as a low or no tax jurisdiction, it will
be presumed that the foreign principal is not controlling the risk.
However, the Indian development centre may rebut this presumption to the
satisfaction of the revenue authorities; and****
5.****
Indian development centre has no ownership right (legal or economic) on
outcome of research which vests with foreign principal, and that it shall
be evident from conduct of the parties.****
The satisfaction of all the above mentioned conditions should be borne out
by the conduct of the parties and not merely by the contractual terms.****
The above may be brought to the notice of all concerned.****
** **
*Circular No. 02/2013 - Sub: Circular on application of profit split method*
**
* *
It has been brought to the notice of CBDT that clarification is needed for
selection of profit split method (PSM) as most appropriate method. The
issue has been examined in CBDT. ****
Accounts Manager Job
There is a vacancy of Account Manager .
If you are intersted pl send us your Resume at
CL : Where company's admitted liability was in excess of its claim against petit
CL : Where company's admitted liability was in excess of its claim against petitioner's associate concern, winding up petition against company was to be admitted
[2013] 31 taxmann.com 241 (Calcutta)
HIGH COURT OF CALCUTTA
Braithwaite & Co. Ltd., In re
[2013] 31 taxmann.com 241 (Calcutta)
HIGH COURT OF CALCUTTA
Braithwaite & Co. Ltd., In re
Public speech training/personality development program,@BANGALORE entry free!! only for Chartered Accountants.
Dear All
GREETINGS FROM BANGALORE
CA'S TOASTMASTERS CLUB
The way we communicate decides the quality of our
lives.r
The GMCS program was introduced by ICAI to improve
Communication and Managerial skills of CA's. It has helped many
CA's in improving their life style. Some of us who attended may not
have utilised the program fully and many after joining the rat race of
career building, may feel that some more exposure to similar atmosphere
would be useful to beat the heat of completion. Those of us who passed out
before GMCS started did not get the benefit of the GMCS. As we promote
ourselves, in life it is important that we polish our skills regularly. As
1st class professionals we have opportunities to meet people on
various occasions. How many times have we felt?
* I had the presence of mind to think and reassspond to his
query instantaneously.
* I had the courage and confidence to ask the question.
* I had listened to the query before responding.
* I could have made a better presentation.
Bangalore CA's Toastmasters Club is a great initiative
started recently to answer the above questions and dedicated to improve
the communication skills of Chartered Accountants. Membership of this club is open to all CA's and CA students.
Toastmasters program will substantially help in improving the self
confidence and communication skills of the participating CAs. The details
of the meeting are as below:
dt.30.03.2013
Friday 4.00 pm to 6.00 pm
Venue: 2nd flr Party hall, Karnataka State Hockey
Association,
Langford Town, Bangalore.
What
is Toastmasters?
Toastmasters International is a world leader in communication
and leadership development. The membership is 280,000 strong. These members
improve their speaking and leadership skills by attending one of the 13,500
clubs in 116 countries that make up the global network of meeting
locations.
Membership in Toastmasters is one of the greatest investments
you can make in yourself. This global edifice works on the principle
'One for All: All for One'. The membership is readily
transferable across all destinations and countries where the Toastmasters
exist. Being a member of one club, makes you a world-wide recognized
member.
How Does It Work?
A Toastmasters meeting is a learn-by-doing workshop in which
participants hone their speaking and leadership skills in a no-pressure
atmosphere.
There is no instructor in a Toastmasters meeting. Instead,
members evaluate one another's presentations. This feedback process
is a key part of the program's success. This peer to peer learning
and mentoring is the edge that 'Toastmasters'
offer.
Participants also give impromptu talks on assigned topics,
conduct meetings and develop skills related to timekeeping, grammar and
parliamentary procedure.
Members learn communication skills by working in the
Competent Communication manual, a series of 10 self-paced speaking
assignments designed to instil a basic foundation in public speaking. From
here, begins the perpetual path towards confident communication and
leadership.
Toastmasters help you to:
ü Overcome
your fear of public speaking and gain self-confidence
ü Improve
the quality of your communication
ü Learn to
deliver effective speeches and presentations and
ü Experience high personal and professional
growth.
Toastmasters make learning fun!
TI believes that speakers are not
born but made. Toastmasters offer a proven and enjoyable way to practice
communication and leadership skills.
entry free!! only for Chartered Accountants.
CA Rajkumar Jayanth
Partner
RAJ BABU & ASSOCIATES,
Chartered Accountants
# 86, HMT
Main Road,
Mathikere,
Bengaluru - 560 054
Karnataka
India
Ph:080-23571078/41278054/ 9844118384
URL :www.raj-babu.com
email: raj@raj-babu.com
GREETINGS FROM BANGALORE
CA'S TOASTMASTERS CLUB
The way we communicate decides the quality of our
lives.r
The GMCS program was introduced by ICAI to improve
Communication and Managerial skills of CA's. It has helped many
CA's in improving their life style. Some of us who attended may not
have utilised the program fully and many after joining the rat race of
career building, may feel that some more exposure to similar atmosphere
would be useful to beat the heat of completion. Those of us who passed out
before GMCS started did not get the benefit of the GMCS. As we promote
ourselves, in life it is important that we polish our skills regularly. As
1st class professionals we have opportunities to meet people on
various occasions. How many times have we felt?
* I had the presence of mind to think and reassspond to his
query instantaneously.
* I had the courage and confidence to ask the question.
* I had listened to the query before responding.
* I could have made a better presentation.
Bangalore CA's Toastmasters Club is a great initiative
started recently to answer the above questions and dedicated to improve
the communication skills of Chartered Accountants. Membership of this club is open to all CA's and CA students.
Toastmasters program will substantially help in improving the self
confidence and communication skills of the participating CAs. The details
of the meeting are as below:
dt.30.03.2013
Friday 4.00 pm to 6.00 pm
Venue: 2nd flr Party hall, Karnataka State Hockey
Association,
Langford Town, Bangalore.
What
is Toastmasters?
Toastmasters International is a world leader in communication
and leadership development. The membership is 280,000 strong. These members
improve their speaking and leadership skills by attending one of the 13,500
clubs in 116 countries that make up the global network of meeting
locations.
Membership in Toastmasters is one of the greatest investments
you can make in yourself. This global edifice works on the principle
'One for All: All for One'. The membership is readily
transferable across all destinations and countries where the Toastmasters
exist. Being a member of one club, makes you a world-wide recognized
member.
How Does It Work?
A Toastmasters meeting is a learn-by-doing workshop in which
participants hone their speaking and leadership skills in a no-pressure
atmosphere.
There is no instructor in a Toastmasters meeting. Instead,
members evaluate one another's presentations. This feedback process
is a key part of the program's success. This peer to peer learning
and mentoring is the edge that 'Toastmasters'
offer.
Participants also give impromptu talks on assigned topics,
conduct meetings and develop skills related to timekeeping, grammar and
parliamentary procedure.
Members learn communication skills by working in the
Competent Communication manual, a series of 10 self-paced speaking
assignments designed to instil a basic foundation in public speaking. From
here, begins the perpetual path towards confident communication and
leadership.
Toastmasters help you to:
ü Overcome
your fear of public speaking and gain self-confidence
ü Improve
the quality of your communication
ü Learn to
deliver effective speeches and presentations and
ü Experience high personal and professional
growth.
Toastmasters make learning fun!
TI believes that speakers are not
born but made. Toastmasters offer a proven and enjoyable way to practice
communication and leadership skills.
entry free!! only for Chartered Accountants.
CA Rajkumar Jayanth
Partner
RAJ BABU & ASSOCIATES,
Chartered Accountants
# 86, HMT
Main Road,
Mathikere,
Bengaluru - 560 054
Karnataka
India
Ph:080-23571078/41278054/ 9844118384
URL :www.raj-babu.com
email: raj@raj-babu.com
IT : Court should resort to section 260A after being satisfied that appeal invol
IT : Court should resort to section 260A after being satisfied that appeal involves more/additional substantial question of law other than one on which appeal was admitted for hearing
IT : Finding of Tribunal that investments unearthed during search belonged to assessee and not to his relatives was a pure finding of fact and did not give rise to any substantial question of law
[2013] 31 taxmann.com 238 (Madhya Pradesh)
HIGH COURT OF MADHYA PRADESH
Vinod Prakash Saxena
IT : Finding of Tribunal that investments unearthed during search belonged to assessee and not to his relatives was a pure finding of fact and did not give rise to any substantial question of law
[2013] 31 taxmann.com 238 (Madhya Pradesh)
HIGH COURT OF MADHYA PRADESH
Vinod Prakash Saxena
INTERNET UNDER ATTACK
Hundreds of thousands of Britons are unsuspecting participants in one of the internet's biggest cyber-attacks ever – because their broadband router has been subverted.
Spamhaus, which operates a filtering service used to weed out spam emails, has been under attack since 18 March after adding a Dutch hosting organisation called Cyberbunker to its list of unwelcome internet sites. The service has "made plenty of enemies", said one expert, and the cyber-attack appeared to be retaliation. A collateral effect of the attack is that internet users accustomed to high-speed connections may have seen those slow down, said James Blessing, a member of the UK Internet Service Providers' Association (ISPA) council. "It varies depending on where you are and what site you're trying to get to," he said. "Those who are used to it being really quick will notice." Some people accessing the online streaming site Netflix reported a slowdown.
Spamhaus offers a checking service for companies and organisations, listing internet addresses it thinks generate spam, or which host content linked to spam, such as sites selling pills touted in junk email. Use of the service is optional, but thousands of organisations use it millions of times a day in deciding whether to accept incoming email from the internet. Cyberbunker offers hosting for any sort of content as long, it says, as it is not child pornography or linked to terrorism. But in mid-March Spamhaus added its internet addresses to its blacklist.
In retaliation, the hosting company and a number of eastern European gangs apparently enlisted hackers who have in turn put together huge "botnets" of computers, and also exploited home and business broadband routers, to try to knock out the Spamhaus system.
"Spamhaus has made plenty of enemies over the years. Spammers aren't always the most lovable of individuals, and Spamhaus has been threatened, sued and [attacked] regularly," noted Matthew Prince of Cloudflare, a hosting company that helped the London business survive the attack by diverting the traffic.
Rather than aiming floods of traffic directly at Spamhaus's servers – a familiar tactic that is easily averted – the hackers exploited the internet's domain name system (DNS) servers, which accept a human-readable address for a website (such as guardian.co.uk) and spit back a machine-readable one (77.91.248.30). The hackers "spoofed" requests for lookups to the DNS servers so they seemed to come from Spamhaus; the servers responded with huge floods of responses, all aimed back at Spamhaus.
Some of those requests will have been coming from UK users without their knowledge, said Blessing. "If somebody has a badly configured broadband modem or router, anybody in the outside world can use it to redirect traffic and attack the target – in this case, Spamhaus."
Many routers in the UK provided by ISPs have settings enabled which let them be controlled remotely for servicing. That, together with so-called "open DNS" systems online which are known to be insecure helped the hackers to create a flood of traffic.
"British modems are certainly being used for this," said Blessing, who said that the London Internet Exchange — which routes traffic in and out of the UK — had been helping to block nuisance traffic aimed at Spamhaus.
The use of the DNS attacks has experts worried. "The No 1 rule of the internet is that it has to work," Dan Kaminsky, a security researcher who pointed out the inherent vulnerabilities of the DNS years ago, told AP.
"You can't stop a DNS flood by shutting down those [DNS] servers because those machines have to be open and public by default. The only way to deal with this problem is to find the people doing it and arrest them."
Spamhaus, which operates a filtering service used to weed out spam emails, has been under attack since 18 March after adding a Dutch hosting organisation called Cyberbunker to its list of unwelcome internet sites. The service has "made plenty of enemies", said one expert, and the cyber-attack appeared to be retaliation. A collateral effect of the attack is that internet users accustomed to high-speed connections may have seen those slow down, said James Blessing, a member of the UK Internet Service Providers' Association (ISPA) council. "It varies depending on where you are and what site you're trying to get to," he said. "Those who are used to it being really quick will notice." Some people accessing the online streaming site Netflix reported a slowdown.
Spamhaus offers a checking service for companies and organisations, listing internet addresses it thinks generate spam, or which host content linked to spam, such as sites selling pills touted in junk email. Use of the service is optional, but thousands of organisations use it millions of times a day in deciding whether to accept incoming email from the internet. Cyberbunker offers hosting for any sort of content as long, it says, as it is not child pornography or linked to terrorism. But in mid-March Spamhaus added its internet addresses to its blacklist.
In retaliation, the hosting company and a number of eastern European gangs apparently enlisted hackers who have in turn put together huge "botnets" of computers, and also exploited home and business broadband routers, to try to knock out the Spamhaus system.
"Spamhaus has made plenty of enemies over the years. Spammers aren't always the most lovable of individuals, and Spamhaus has been threatened, sued and [attacked] regularly," noted Matthew Prince of Cloudflare, a hosting company that helped the London business survive the attack by diverting the traffic.
Rather than aiming floods of traffic directly at Spamhaus's servers – a familiar tactic that is easily averted – the hackers exploited the internet's domain name system (DNS) servers, which accept a human-readable address for a website (such as guardian.co.uk) and spit back a machine-readable one (77.91.248.30). The hackers "spoofed" requests for lookups to the DNS servers so they seemed to come from Spamhaus; the servers responded with huge floods of responses, all aimed back at Spamhaus.
Some of those requests will have been coming from UK users without their knowledge, said Blessing. "If somebody has a badly configured broadband modem or router, anybody in the outside world can use it to redirect traffic and attack the target – in this case, Spamhaus."
Many routers in the UK provided by ISPs have settings enabled which let them be controlled remotely for servicing. That, together with so-called "open DNS" systems online which are known to be insecure helped the hackers to create a flood of traffic.
"British modems are certainly being used for this," said Blessing, who said that the London Internet Exchange — which routes traffic in and out of the UK — had been helping to block nuisance traffic aimed at Spamhaus.
The use of the DNS attacks has experts worried. "The No 1 rule of the internet is that it has to work," Dan Kaminsky, a security researcher who pointed out the inherent vulnerabilities of the DNS years ago, told AP.
"You can't stop a DNS flood by shutting down those [DNS] servers because those machines have to be open and public by default. The only way to deal with this problem is to find the people doing it and arrest them."
IT : Speculation losses carried forward from previous years are first to be adju
IT : Speculation losses carried forward from previous years are first to be adjusted against speculation profit of current year before allowing any other loss to be adjusted
[2013] 31 taxmann.com 240 (Delhi)
HIGH COURT OF DELHI
Commissioner of Income-tax, Delhi-VIII
v.
Ashok Mittal
[2013] 31 taxmann.com 240 (Delhi)
HIGH COURT OF DELHI
Commissioner of Income-tax, Delhi-VIII
v.
Ashok Mittal
IT : Questions of identity and creditworthiness of donors are questions of facts
IT : Questions of identity and creditworthiness of donors are questions of facts and Tribunal having accepted same, no addition can be made on account of unexplained gift
[2013] 31 taxmann.com 258 (Rajasthan)
HIGH COURT OF RAJASTHAN
Commissioner of Income-tax,Jaipur-II
v.
Arun Kumar Kothari
[2013] 31 taxmann.com 258 (Rajasthan)
HIGH COURT OF RAJASTHAN
Commissioner of Income-tax,Jaipur-II
v.
Arun Kumar Kothari
2000 CRORE IT DEMAND ON NOKIA
The Income Tax department has served a Rs2,000 crore demand notice on
Finnish mobile firm maker Nokia for alleged evasion of taxes in its
business transactions in the country.
The department had on March 21 asked the firm to submit the amount of Rs
2,000 crore in about a week's time, IT department sources said.
The Delhi High court has granted an interim stay of the demand after the
mobilephone manufacturing company filed a petition challenging the order.
Nokia confirmed receiving the notice and said it is in "full compliance"
with laws related to its business operations.
"Nokia confirms it has received an order from Indian tax officials. Nokia
reiterates its position that it is in full compliance with local laws as
well as the bilaterally negotiated tax treaty between the governments of
India and Finland, and will defend itself vigorously.
"In this regard, Nokia filed a writ before the Delhi High Court last week
and on Friday, March 22 the Court has issued notice to the Income Tax
department to file its counter affidavit and has granted interim stay of
the entire tax demand raised against Nokia till further orders," a Nokia
spokesperson said in a statement.
The IT department will soon file its reply in the Delhi High Court stating
the provisions that "enable and authorise" it to issue such a time-bound
notice, department sources said.
The notice has been issued by the IT department after it completed its
probe and had conducted a 'survey' operation on the premises of the Chennai
in January this year.
The tax evasion, according to IT department sources, pertains to royalty
payment made against supply of software by the compamy's parent company
which attracts a 10% tax deduction under the Tax Deducted at Source (TDS)
category.
The department has analysed the company's business statements since 2006,
they said.
"Since establishing the Chennai factory in 2006, indeed since starting
business operations in India in the mid-1990s, Nokia has been scrutinized
by the authorities regularly and its policies have been validated by the
Indian and Finnish Tax authorities in the normal course of tax proceedings.
"Nokia arrived in India 18 years ago and has grown to become a market
leader, contributing to the rapid growth of the Indian economy. Nokia has
invested over $330 million in Chennai since setting up the factory," the
Nokia spokesperson said
Finnish mobile firm maker Nokia for alleged evasion of taxes in its
business transactions in the country.
The department had on March 21 asked the firm to submit the amount of Rs
2,000 crore in about a week's time, IT department sources said.
The Delhi High court has granted an interim stay of the demand after the
mobilephone manufacturing company filed a petition challenging the order.
Nokia confirmed receiving the notice and said it is in "full compliance"
with laws related to its business operations.
"Nokia confirms it has received an order from Indian tax officials. Nokia
reiterates its position that it is in full compliance with local laws as
well as the bilaterally negotiated tax treaty between the governments of
India and Finland, and will defend itself vigorously.
"In this regard, Nokia filed a writ before the Delhi High Court last week
and on Friday, March 22 the Court has issued notice to the Income Tax
department to file its counter affidavit and has granted interim stay of
the entire tax demand raised against Nokia till further orders," a Nokia
spokesperson said in a statement.
The IT department will soon file its reply in the Delhi High Court stating
the provisions that "enable and authorise" it to issue such a time-bound
notice, department sources said.
The notice has been issued by the IT department after it completed its
probe and had conducted a 'survey' operation on the premises of the Chennai
in January this year.
The tax evasion, according to IT department sources, pertains to royalty
payment made against supply of software by the compamy's parent company
which attracts a 10% tax deduction under the Tax Deducted at Source (TDS)
category.
The department has analysed the company's business statements since 2006,
they said.
"Since establishing the Chennai factory in 2006, indeed since starting
business operations in India in the mid-1990s, Nokia has been scrutinized
by the authorities regularly and its policies have been validated by the
Indian and Finnish Tax authorities in the normal course of tax proceedings.
"Nokia arrived in India 18 years ago and has grown to become a market
leader, contributing to the rapid growth of the Indian economy. Nokia has
invested over $330 million in Chennai since setting up the factory," the
Nokia spokesperson said
Wednesday, March 27, 2013
IT : No infirmity in the action of the TPO in using contemporaneous data at the
IT : No infirmity in the action of the TPO in using contemporaneous data at the time of transfer pricing audit, though the same may not have been available to the assessee at the time of preparation of statutory transfer pricing study/documentation
• It is clear, after going through the relevant provisions of law, that the Act has not provided for any cutoff date up to which only the information in the public domain has to be taken into consideration by the TPO while arriving at the ALP or making TP adjustments.
• Both the assessee and Revenue being bound by the provision of the Act and Rules are required to take into consideration contemporaneous data relevant to the previous year in which the international transaction has taken place.
• The assessee is obliged to maintain the information and documentation as required relating to international transactions as per the specified date so that it can be made available to the TPO or the Assessing Officer or any other authority in any proceedings under the Act.
• Therefore, there is no infirmity in the action of the TPO in using contemporaneous data at the time of transfer pricing audit, though the same may not have been available to the assessee at the time of preparation of statutory transfer pricing study/documentation.
[2013] 31 taxmann.com 230 (Bangalore - Trib.)
IN THE ITAT BANGALORE BENCH 'B'
Yodlee Infotech (P.) Ltd.
• It is clear, after going through the relevant provisions of law, that the Act has not provided for any cutoff date up to which only the information in the public domain has to be taken into consideration by the TPO while arriving at the ALP or making TP adjustments.
• Both the assessee and Revenue being bound by the provision of the Act and Rules are required to take into consideration contemporaneous data relevant to the previous year in which the international transaction has taken place.
• The assessee is obliged to maintain the information and documentation as required relating to international transactions as per the specified date so that it can be made available to the TPO or the Assessing Officer or any other authority in any proceedings under the Act.
• Therefore, there is no infirmity in the action of the TPO in using contemporaneous data at the time of transfer pricing audit, though the same may not have been available to the assessee at the time of preparation of statutory transfer pricing study/documentation.
[2013] 31 taxmann.com 230 (Bangalore - Trib.)
IN THE ITAT BANGALORE BENCH 'B'
Yodlee Infotech (P.) Ltd.
DEBTS RECOVERY TRIBUNAL (PROCEDURE FOR INVESTIGATION OF MISBEHAVIOUR OR INCAPACI
DEBTS RECOVERY TRIBUNAL (PROCEDURE FOR INVESTIGATION OF MISBEHAVIOUR OR INCAPACITY OF PRESIDING OFFICER) AMENDMENT RULES, 2013 - SUBSTITUTION OF RULE 8
NOTIFICATION NO.GSR 118(E)[F.NO.14/2/2010-DRT] DATED 21-2-2013
In exercise of the powers conferred by sub-section (3) of section 15, read with clause (b) of sub-section (2) of section 36 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993), the Central Government hereby makes the following rules, further to amend the Debts Recovery Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Presiding Officer) Rules, 2010, namely :—
1. (1) These rules may be called the Debts Recovery Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Presiding Officer) Amendment Rules, 2013.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Debts Recovery Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Presiding Officer) Rules, 2010, for rule 8, the following rule shall be substituted, namely :—
"8. Suspension of Presiding Officer.—Notwithstanding anything contained in rule 4 and without prejudice to any action being taken in accordance with the said rule, the Central Government, during pendency of the inquiry against Presiding Officer may, after consulting the Chairperson of the Selection Committee constituted for selection of Presiding Officer, pass an order suspending the Presiding Officer, if it is satisfied that he should cease to discharge his functions as a Presiding Officer.".
-
NOTIFICATION NO.GSR 118(E)[F.NO.14/2/2010-DRT] DATED 21-2-2013
In exercise of the powers conferred by sub-section (3) of section 15, read with clause (b) of sub-section (2) of section 36 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993), the Central Government hereby makes the following rules, further to amend the Debts Recovery Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Presiding Officer) Rules, 2010, namely :—
1. (1) These rules may be called the Debts Recovery Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Presiding Officer) Amendment Rules, 2013.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Debts Recovery Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Presiding Officer) Rules, 2010, for rule 8, the following rule shall be substituted, namely :—
"8. Suspension of Presiding Officer.—Notwithstanding anything contained in rule 4 and without prejudice to any action being taken in accordance with the said rule, the Central Government, during pendency of the inquiry against Presiding Officer may, after consulting the Chairperson of the Selection Committee constituted for selection of Presiding Officer, pass an order suspending the Presiding Officer, if it is satisfied that he should cease to discharge his functions as a Presiding Officer.".
-
Another wake-up call - No place for India in IASB's Accounting Standards Advisory Forum
Please do go through the attached press release of International
Accounting Standards Board, announcing the names of the 12 countries
that will be members of their new technical group - Accounting Standards
Advisory Forum (ASAF).
The list includes all the usual suspects ( accounting bodies of ...read more
Vacancy for CA/ ICWA in HSBC
Company: HSBC
Industry: Accounting/Banking/Financial Services/Stock broking
Job Function: Finance & Accounting
Company Details: HSBC takes pride in a diverse and inclusive working
environment that sees our people benefit from mentoring, flexible
working and the support of Employee Re...read more
Tuesday, March 26, 2013
Un-necessary litigation by revenue to disallow electricity charges under section 43B
Electricity charges:
Electricity charges are payable by a customer for purchasing/
withdrawing or consuming electricity or as a minimum contractual charges
as the case may be . Such charges are generally payable to the
distributor of electricity from whom electrical connection and
electricity...read more
Vacancy for CA/ ICWA in Gujarat Energy Transmission Corporation Ltd.
Company: Gujarat Energy Transmission Corporation Ltd.
Industry: Engineering/Projects/Infrastructure/Power/Energy
Job Function: Finance & Accounting
Company Details: (Erstwhile GEB) ISO 9001-2008 certified.
Job Description:
Qualifications - CA / ICWA, Age Limit - 30 years, Pay S...read more
Seminar on Bank Audit on 28th March 2013
Statutory Bank Audits and Seminar on the same is usually eagerly awaited
event every Year, but due to certain events it has lost its Sheen a
little bit of late.
Lekin Phir Bhi Dosto………….
“Sitaaron se Aagey Jahaan Aur bhi hai……..
Abhi is Profession ke Imtihaan Aur Bhi Hai”
...read more
Vacancy for CA in Aditya Birla Nuvo Ltd
Introduction
US $35 billion corporation, the Aditya Birla Group is in the League of
Fortune 500. It is anchored by an extraordinary force of over 133,000
employees, belonging to 42 different nationalities. This year the Group
was declared among the top best employers in India by the Aon-...read more
Extension of Banking Hours on Saturday, 30th March, 2013 and Opening of All Agency Banks Collecting Direct Taxes on Friday, 29th March and on Sunday, 31st March, 2013
Ministry of Finance26-March, 2013 14:27 IST
Extension of Banking Hours on Saturday, 30th March, 2013 and Opening of
All Agency Banks Collecting Direct Taxes on Friday, 29th March and on
Sunday, 31st March, 2013
In view of the ensuing holidays in several parts of the country and
keeping in view...read more
For those who want Bank Branch Audit
Anyone in any kind of requirement in Bank Branch Audit may contact Mr. Mantreshwar Karna on 09654465579.
- BJP CA CELL
Vacancy for CA in Essel Mining and Industries Limited
Introduction
US $35 billion corporation, the Aditya Birla Group is in the League of
Fortune 500. It is anchored by an extraordinary force of over 133,000
employees, belonging to 42 different nationalities. This year the Group
was declared among the top best employers in India by the Aon...read more
Exposure Draft Financial Instruments: Expected Credit Losses (Last date for sending comments: April 30, 2013). - (26-03-2013)
The main objective in developing this proposal is to provide users of
financial statements with more useful information about the expected
credit losses on financial assets and on commitments to extend credit.
This objective is addressed through the proposed model, which provides
information abo...read more
SECTION 143 OF THE INCOME-TAX ACT, 1961 - ASSESSMENT - PROCESSING OF RETURNS FOR A.Ys. 2010-11 & 2011-12 GETTING TIME-BARRED ON 31-3-2013 ON ONLINE TMS IN ITD APPLICATION AST INSTRUCTION NO.114 [F.NO.AST/DIT(S)-III/INST.NO.114/32/2012-13], DATED 26-3-2013
SECTION 143 OF THE INCOME-TAX ACT, 1961 - ASSESSMENT - PROCESSING OF
RETURNS FOR A.Ys. 2010-11 & 2011-12 GETTING TIME-BARRED ON 31-3-2013
ON ONLINE TMS IN ITD APPLICATION
AST INSTRUCTION NO.114 [F.NO.AST/DIT(S)-III/INST.NO.114/32/2012-13],
DATED 26-3-2013
Kindly refer to the above.
2. R...read more
Looking for Associates- Equity Research (2-3Yrs)- Leading KPO at Mumbai,Qua:CA/M
Job Title: Associates- Equity Research - Leading KPO
Sector :-Finance -Equity Research
Job Responsibilities: - Collecting financial data using on-line and
other data sources such as Bloomberg and Reuters - Historical model
building and developing forecasts - Developing company's operating
metrics in conjunction with their relevance in different sectors/
companies - Extensive company valuation involving approaches such as
DCF, DDM, Trading and transaction multiples, EVA etc - Extensive
report-writing including company profiles, earning notes, quarterly
updates, initiating coverage reports, sector reports, newsletters
technology primers, Flash notes, Theme-based reports etc - Developing
road-show presentations - Handling adhoc research requests as per client
requirements
Qualification: CA/MBA
Yrs. Of Exp.:2 - 3 yrs.
Experience Desired: : - MBA/CA with some progress towards clearing the
various levels of CFA (AIMR) - Min. 2-3 yrs of investment research
experience - Strong Accounting and financial skills - Basic knowledge of
macroeconomics aggregates, regression analysis - Knowledge of database
tools – Bloomberg, Reuters and other financial data systems -
Excellent Communication and interpersonal skills
Location: Mumbai
Job Details & Apply: http://www.careersdesk.com/job-details/2085
<http://www.careersdesk.com/job-details/2085>
<http://www.careersdesk.com/job-details/2085>
Sector :-Finance -Equity Research
Job Responsibilities: - Collecting financial data using on-line and
other data sources such as Bloomberg and Reuters - Historical model
building and developing forecasts - Developing company's operating
metrics in conjunction with their relevance in different sectors/
companies - Extensive company valuation involving approaches such as
DCF, DDM, Trading and transaction multiples, EVA etc - Extensive
report-writing including company profiles, earning notes, quarterly
updates, initiating coverage reports, sector reports, newsletters
technology primers, Flash notes, Theme-based reports etc - Developing
road-show presentations - Handling adhoc research requests as per client
requirements
Qualification: CA/MBA
Yrs. Of Exp.:2 - 3 yrs.
Experience Desired: : - MBA/CA with some progress towards clearing the
various levels of CFA (AIMR) - Min. 2-3 yrs of investment research
experience - Strong Accounting and financial skills - Basic knowledge of
macroeconomics aggregates, regression analysis - Knowledge of database
tools – Bloomberg, Reuters and other financial data systems -
Excellent Communication and interpersonal skills
Location: Mumbai
Job Details & Apply: http://www.careersdesk.com/job-details/2085
<http://www.careersdesk.com/job-details/2085>
<http://www.careersdesk.com/job-details/2085>
Monday, March 25, 2013
COMPANIES DIRECTORS IDENTIFICATION NUMBER (AMENDMENT) RULES, 2013 - INSERTION OF RULE 8
-
NOTIFICATION [F. NO. 5/80/2012-CL.V], DATED 15-3-2013
In exercise of the powers conferred by clauses (a) and (b) of sub-section (1) of sections 642 read with section 266A, 266B, 266D and 266E of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Directors Identification Number) Rules, 2006 namely: -
1. Short title and commencement
(1) These rules may be called the Companies Directors Identification Number (Amendment) Rules, 2013.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Directors Identification Number) Rules, 2006, after rule 7, the following rule shall be inserted, namely : -
8. Cancellation or Deactivation of DIN.- The Central Government or Regional Director (Northern Region), Noida or any officer authorised by the Regional Director, upon being satisfied on verification of particulars of proof attached with the application received from any person seeking cancellation or deactivation of DIN, in case -
(a) the DIN is found to be duplicate;
(b) the DIN was obtained by wrongful manner or fraudulent means;
(c) of the death of the concerned individual;
(d) the concerned individual has been declared as lunatic by the competent Court;
(e) if the concerned individual has been adjudicated an insolvent;
then the allotted DIN shall be cancelled or deactivated by the Central Government or Regional Director (NR), Noida or any other officer authorised by the Regional Director (NR):
Provided that before cancellation or deactivation of DIN under clause (b), an opportunity of being heard shall be given to the concerned individual.
Explanation.- For the purposes of clause (b), (i) the term "wrongful manner" means if the DIN obtained without legally established documents.
(ii) the term "fraudulent means" means if the DIN obtained unlawfully to deceive any other person or any authority including the Central Government.
Regards
Prarthana Jalan
NOTIFICATION [F. NO. 5/80/2012-CL.V], DATED 15-3-2013
In exercise of the powers conferred by clauses (a) and (b) of sub-section (1) of sections 642 read with section 266A, 266B, 266D and 266E of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Directors Identification Number) Rules, 2006 namely: -
1. Short title and commencement
(1) These rules may be called the Companies Directors Identification Number (Amendment) Rules, 2013.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Directors Identification Number) Rules, 2006, after rule 7, the following rule shall be inserted, namely : -
8. Cancellation or Deactivation of DIN.- The Central Government or Regional Director (Northern Region), Noida or any officer authorised by the Regional Director, upon being satisfied on verification of particulars of proof attached with the application received from any person seeking cancellation or deactivation of DIN, in case -
(a) the DIN is found to be duplicate;
(b) the DIN was obtained by wrongful manner or fraudulent means;
(c) of the death of the concerned individual;
(d) the concerned individual has been declared as lunatic by the competent Court;
(e) if the concerned individual has been adjudicated an insolvent;
then the allotted DIN shall be cancelled or deactivated by the Central Government or Regional Director (NR), Noida or any other officer authorised by the Regional Director (NR):
Provided that before cancellation or deactivation of DIN under clause (b), an opportunity of being heard shall be given to the concerned individual.
Explanation.- For the purposes of clause (b), (i) the term "wrongful manner" means if the DIN obtained without legally established documents.
(ii) the term "fraudulent means" means if the DIN obtained unlawfully to deceive any other person or any authority including the Central Government.
Regards
Prarthana Jalan
Public Notice regarding Launching of E-Payment facility by Punjab VAT
Public Notice regarding Launching of E-Payment facility by Punjab VAT
PFA Public Notice regarding Launching of E-Payment facility by Punjab VAT
Regards
*CA. Mohit Gaba*
FCA, DISA(ICAI)
*N.K.Gaba & Co.*
Chartered Accountants
Mob. +91-9872473334
Web: www.nkgaba.com
PFA Public Notice regarding Launching of E-Payment facility by Punjab VAT
Regards
*CA. Mohit Gaba*
FCA, DISA(ICAI)
*N.K.Gaba & Co.*
Chartered Accountants
Mob. +91-9872473334
Web: www.nkgaba.com
Amnesty Scheme - Settle your ST issues without any Cash Outflow
Amnesty Scheme - Settle your ST issues without any Cash Outflow
By Gajendra Maheshwari & Rajat Bose
ONE announcement in the Union Budget that is attracting interest of one and all is introduction of an amnesty scheme in service tax called "SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME".
Under the scheme you can get a complete waiver or immunity from interest, penalty and prosecution with respect to the service tax liability declared under the scheme. Further, the matters declared under the scheme cannot be reopened later in any department or court proceedings.
In addition to the above immunities, you can also explore the following possibilities to save on the existing or future cash outflows with respect to the tax required to be deposited under the scheme:
1. Payment of tax declared through existing CENVAT credit balance: Under the scheme documents released currently, there is no bar to making payment of the tax declared by utilizing CENVAT balance. Therefore, you may utilize the CENVAT credit balance for making payment of the tax declared under the scheme instead of depositing the tax through cash.
2. Claiming of CENVAT credit for the amounts deposited: There is no bar to take CENVAT credit for the tax deposited under the scheme. For example, if you have not correctly deposited tax on import of services (under the reverse charge mechanism) then you should declare the same now and take CENVAT credit with respect to the amount deposited. The CENVAT so claimed may be utilized by you in future for discharging any service tax or excise duty liability.
3. Issuance of a supplementary invoice: Depending on the terms and conditions of the agreement with your client, you can explore the possibility of recovering the amount payable under the scheme from him by issuance of a supplementary invoice. If your client is a service provider or manufacture of goods, it may be possible for him to take CENVAT credit for the amount paid to you. This is for the reason that the tax deposited under the scheme cannot be treated to be recoverable on account of any fraud, evasion etc. This mechanism would not involve any additional cash outflow for both the parties - i.e. you and your client.
Although the above benefits would be subject to evaluation of other relevant factors such as eligibility to take CENVAT credit, agreement between the parties, provisions in the rules to be framed under the scheme etc., but the opportunity to get the contentious service tax matters resolved by without any additional cash outlay should be evaluated by you along with other benefits offered.
By Gajendra Maheshwari & Rajat Bose
ONE announcement in the Union Budget that is attracting interest of one and all is introduction of an amnesty scheme in service tax called "SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME".
Under the scheme you can get a complete waiver or immunity from interest, penalty and prosecution with respect to the service tax liability declared under the scheme. Further, the matters declared under the scheme cannot be reopened later in any department or court proceedings.
In addition to the above immunities, you can also explore the following possibilities to save on the existing or future cash outflows with respect to the tax required to be deposited under the scheme:
1. Payment of tax declared through existing CENVAT credit balance: Under the scheme documents released currently, there is no bar to making payment of the tax declared by utilizing CENVAT balance. Therefore, you may utilize the CENVAT credit balance for making payment of the tax declared under the scheme instead of depositing the tax through cash.
2. Claiming of CENVAT credit for the amounts deposited: There is no bar to take CENVAT credit for the tax deposited under the scheme. For example, if you have not correctly deposited tax on import of services (under the reverse charge mechanism) then you should declare the same now and take CENVAT credit with respect to the amount deposited. The CENVAT so claimed may be utilized by you in future for discharging any service tax or excise duty liability.
3. Issuance of a supplementary invoice: Depending on the terms and conditions of the agreement with your client, you can explore the possibility of recovering the amount payable under the scheme from him by issuance of a supplementary invoice. If your client is a service provider or manufacture of goods, it may be possible for him to take CENVAT credit for the amount paid to you. This is for the reason that the tax deposited under the scheme cannot be treated to be recoverable on account of any fraud, evasion etc. This mechanism would not involve any additional cash outflow for both the parties - i.e. you and your client.
Although the above benefits would be subject to evaluation of other relevant factors such as eligibility to take CENVAT credit, agreement between the parties, provisions in the rules to be framed under the scheme etc., but the opportunity to get the contentious service tax matters resolved by without any additional cash outlay should be evaluated by you along with other benefits offered.
CBI court sentences additional income tax commissioner to three years jail in bribery case
CBI court sentences additional income tax commissioner to three years jail in bribery case
MUMBAI: The Special CBI Court has sentenced R.K. Gupta, the then Commissioner of Income Tax, Mumbai to under go 03 years rigorous imprisonment with fine of Rs.10,000/- for offences punishable under section 7 and 13(2) r/w 13(1)(d) of PC Act 1988.
The case was registered by CBI, ACB, Mumbai on 15.12.2008 on the allegation that Shri R.K. Gupta the then Addl. Commissioner of Income Tax demanded and accepted bribe of Rs. 4 lacs from complainant who is tax consultant.
The said bribe amount was demanded and accepted by accused for settlement of assessment of Income Tax of the client of the complaint. On the completion of investigation, charge sheet under section 7 and 13(2) r/w IPC 13 (1) (d) of PC Act was filed in the designated court of Mumbai. The trial court found the accused Shri R.K. Gupta guilty and convicted him.
MUMBAI: The Special CBI Court has sentenced R.K. Gupta, the then Commissioner of Income Tax, Mumbai to under go 03 years rigorous imprisonment with fine of Rs.10,000/- for offences punishable under section 7 and 13(2) r/w 13(1)(d) of PC Act 1988.
The case was registered by CBI, ACB, Mumbai on 15.12.2008 on the allegation that Shri R.K. Gupta the then Addl. Commissioner of Income Tax demanded and accepted bribe of Rs. 4 lacs from complainant who is tax consultant.
The said bribe amount was demanded and accepted by accused for settlement of assessment of Income Tax of the client of the complaint. On the completion of investigation, charge sheet under section 7 and 13(2) r/w IPC 13 (1) (d) of PC Act was filed in the designated court of Mumbai. The trial court found the accused Shri R.K. Gupta guilty and convicted him.
Guj I-T official in CBI net for graft New Delhi:
Guj I-T official in CBI net for graft
New Delhi: The CBI on Monday trapped an additional commissioner of income tax in Gandhinagar for allegedly demanding and accepting a bribe of Rs 30 lakh from a construction firm for favouring it in scrutiny of tax returns. Sources said he would be arrested soon.
Sources said that CS Bharti, a 1994 batch Indian Revenue Service official, had allegedly demanded Rs 30 lakh from Drishti Constructions to help it in scrutiny and assessment of its income tax returns. TNN
New Delhi: The CBI on Monday trapped an additional commissioner of income tax in Gandhinagar for allegedly demanding and accepting a bribe of Rs 30 lakh from a construction firm for favouring it in scrutiny of tax returns. Sources said he would be arrested soon.
Sources said that CS Bharti, a 1994 batch Indian Revenue Service official, had allegedly demanded Rs 30 lakh from Drishti Constructions to help it in scrutiny and assessment of its income tax returns. TNN
S. 269SS not violated if Assessee borrows in cash from Relatives to meet urgent needs
S. 269SS not violated if Assessee borrows in cash from Relatives to meet
urgent needs<http://taxguru.in/income-tax-case-laws/269ss-violated-assessee-borrows-cash-relatives-meet-urgent.html>
In our considered view, in the light of therelationship between the
assessee and her father-in-law, the Tribunal has rightly held that the
genuineness of the transaction is not disputed, in which, the amount has
been paid by the father-in-law for purchase of property and the source had
also been disclosed during the assessment proceedings. If there was a
genuine and bonafide transaction and the tax payer could not get a loan or
deposit by account payee cheque or demand draft for some bona fide reason,
the authority vested with the power to impose penalty has a discretion not
to levy penalty.
The contention of the Revenue is that the amount received by the assessee
from her father-in- has to be treated only as a loan and if is a loan, then
the assessee is liable to pay penalty under Section 271D of the Income Tax Act.
Whether it is a loan or other transaction, still the other provision,
namely, Section 273B of the Income Tax Act, comes to the rescue of the
assessee, if she ables to show reasonable cause for avoiding penalty under
Section 271D of the Income TaxAct. The Tribunal has rightly found that the
transaction between the daughter-in-law and father-in-law is a reasonable
transaction and a genuine one owing to the urgent necessity of money to be
paid to the seller. We find that this would amount to reasonable cause
shown by the assessee to avoid penalty under Section 271D of the Income
Tax Act.
The Tribunal, referring to the decision of this Court reported in *Lakshmi
Trust Co.* (*supra*), has rightly allowed the appeal.*
*
*HIGH COURT OF MADRAS*
*Commissioner of Income-tax – I*
*v.*
*Smt. M.Yesodha*
TAX CASE (APPEAL) NO. 320 OF 2010
Date of pronouncement – 05.02.2013
*JUDGMENT*
*R. Banumathi, J.* – The Revenue has come forward with this appeal and the
same was admitted on the following substantial question of law:
"Whether on the facts and in the circumstances of the case, the Income
Tax Appellate Tribunal was right in deleting the penalty of Rs. 20,99,393/-
levied under Section 271D of the Income Tax Act for violation of Section
269SS on the ground that the assessee had taken the loan only from her
father-in-law and the transaction was genuine?"
*2.* The assessee, for the assessment year 2005-2006, claimed loan of Rs.
20,99,393/- taken from her father-in-law for purchasing the property. The
Assessing Officer initiated penalty proceedings under Section 271D of
the Income Tax Act, 1961 on the ground that the assessee had obtained a
loan of Rs. 20,99,393/- in cash from her father-in-law, which is in
contravention of the provision of Section 269SS of the Income Tax Act.
During the penalty proceedings, the assessee claimed that the amount
received in cash from her father-in-law – M. Kathirvel, was a gift and not
a loan. The Assessing Officer held that the assessee received the amount as
a loan and not as a gift, because the same was shown as a loan in the
balance sheet of the assessee, which was filed along with the return of
income. Hence, the Assessing Officer levied penalty of Rs. 20,99,393/-.
*3.* The assessee challenged the penalty levied by the
Assessing Officer before the Commissioner ofIncome Tax (Appeals). The
Commissioner of Income Tax (Appeals) dismissed the appeal holding that the
Assessing Officer has rightly levied penalty under Section 271D of
the Income Tax Act after giving opportunity to the assessee and on being
fully satisfied that the amount in cash taken by the assessee from her
father-in-law was not a gift but only a loan.
*4.* In the appeal preferred before the Tribunal by the assessee, the
Tribunal referred to the decision of the Tribunal in the case of *Shri M.
Raju* v. *Addl. CIT* [I.T.A. No. 899/Mds/2006] and the decision of the
Tribunal, Pune Bench in the case of *ITO* v. *Sunil M. Kasliwal *[2005] 94
ITD 281 (Pune)(TM). The Tribunal also referred to the judgment of this
Court *CIT* v. *Lakshmi Trust Co. *[2008] 303 ITR 99 (Mad.) and held that
in the facts and circumstances of the case, levy of penalty is not
warranted. The Tribunal further held that the transaction of receiving
amount of Rs. 20,99,393/- is between the father-in-law and daughter-in-law
and the genuineness of the transaction is not disputed, in which, the
amount has been paid by the father-in-law for the purchase of property. On
those findings, the Tribunal allowed the appeal.
*5.* Mr. J. Narayanasamy, learned standing counsel appearing for
the Revenue submitted that the Tribunal has not appreciated the nature of
transaction and that the assessee had taken only loan of Rs. 20,99,393/-
from her father-in-law. He further submitted that the assessee had no where
pleaded any 'reasonable cause' as contemplated under Section 273B of
the Income Tax Act and while so, the Tribunal was not right in saying that
the genuineness of the transaction is not disputed. He also submitted that
the Tribunal was not right in re-appreciating the factual findings recorded
by the Assessing Officer and the Commissioner of Income Tax (Appeals) that
the cash taken by the assessee from her father-in-law was only a loan
transaction.
*6.* Per contra, learned counsel appearing for the assessee submitted that
as evident from the stand of the assessee before the Assessing Officer, the
amount taken by the assessee from her father-in-law was a cash gift and no
loan was taken by the assessee.
*7.* We have carefully considered the submissions of learned standing
counsel appearing for the appellant and the learned counsel appearing for
the assessee.
*8.* Under Section 273B of the Income Tax Act, on 'reasonable cause' being
shown, no penalty shall be imposable. As rightly pointed out by the learned
counsel appearing for the assessee, in the reply furnished before the
Assessing Officer, the assessee clearly mentioned that her father-in-law –
M. Kathirvel sent the amount of Rs. 20,99,393/- directly to the seller of
the house bought in the name of the assessee at Chennai and that necessary
funds were provided by the assessee's father-in-law as a cash gift and the
said cash gift was taken urgently by the assessee to get the purchase deed
executed and no loan was taken from her father-in-law. Even though the
assessee had not taken a specific plea of reasonable cause, it must be
considered as applied to human action. Where the transactions are bonafide,
penalty cannot be imposed.
*9.* To substantiate the plea that her father-in-law had advanced the
amount as cash gift, the assessee's father-in-law had filed an affidavit
before the Commissioner of Income Tax (Appeals). Regarding the affidavit,
remand report was called for from the Assessing Officer. In the remand
report, the Assessing Officer has doubted the nature of transaction. In our
considered view, in the light of the relationship between the assessee and
her father-in-law, the Tribunal has rightly held that the genuineness of
the transaction is not disputed, in which, the amount has been paid by the
father-in-law for purchase of property and the source had also been
disclosed during the assessment proceedings. If there was a genuine and
bonafide transaction and the tax payer could not get a loan or deposit by
account payee cheque or demand draft for some bona fide reason, the
authority vested with the power to impose penalty has a discretion not to
levy penalty.
*10.* The contention of the Revenue is that the amount received by the
assessee from her father-in- has to be treated only as a loan and if is a
loan, then the assessee is liable to pay penalty under Section 271D of
the Income Tax Act. Whether it is a loan or other transaction, still the
other provision, namely, Section 273B of the Income Tax Act, comes to the
rescue of the assessee, if she ables to show reasonable cause for avoiding
penalty under Section 271D of the Income TaxAct. The Tribunal has rightly
found that the transaction between the daughter-in-law and father-in-law is
a reasonable transaction and a genuine one owing to the urgent necessity
of money to be paid to the seller. We find that this would amount to
reasonable cause shown by the assessee to avoid penalty under Section 271D
of the Income Tax Act.
*11.* Referring to the decision reported in *CIT* v. *Kundrathur Finance
and Chit Co. *[2006] 283 ITR 329 (Mad.), this Court in the decision
reported in *Lakshmi Trust Co.* (*supra*), held as follows:
"In the instant case, the Commissioner of Income-tax (Appeals) and the
Appellate Tribunal found on the facts that the transactions were genuine
and the identity of the lenders was also satisfied. The Appellate Tribunal
also upheld the order of the Commissioner of Income-tax (Appeals) that
there was no intention on the part of the assessee to evade the tax.
Once the said finding as to the genuineness of the transactions is arrived
at by the Tribunal on the facts, following the decision of this Court in *
CIT* v. *Ratna Agencies *[2006] 284 ITR 609, wherein it was held that the
finding recorded by the Tribunal in this regard is a finding of fact and no
question of law much less a substantial question of law would arise, we do
not have any hesitation to hold that it may not be proper for this court to
interfere with such a finding of fact."
*12.* The Tribunal, referring to the decision of this Court reported
in *Lakshmi
Trust Co.* (*supra*), has rightly allowed the appeal. We do not find any
error or infirmity in the order of the Tribunal to warrant interference.
Accordingly, the substantial question of law is answered in favour of the
assessee and this Tax Case (Appeal) stands dismissed. No costs.
urgent needs<http://taxguru.in/income-tax-case-laws/269ss-violated-assessee-borrows-cash-relatives-meet-urgent.html>
In our considered view, in the light of therelationship between the
assessee and her father-in-law, the Tribunal has rightly held that the
genuineness of the transaction is not disputed, in which, the amount has
been paid by the father-in-law for purchase of property and the source had
also been disclosed during the assessment proceedings. If there was a
genuine and bonafide transaction and the tax payer could not get a loan or
deposit by account payee cheque or demand draft for some bona fide reason,
the authority vested with the power to impose penalty has a discretion not
to levy penalty.
The contention of the Revenue is that the amount received by the assessee
from her father-in- has to be treated only as a loan and if is a loan, then
the assessee is liable to pay penalty under Section 271D of the Income Tax Act.
Whether it is a loan or other transaction, still the other provision,
namely, Section 273B of the Income Tax Act, comes to the rescue of the
assessee, if she ables to show reasonable cause for avoiding penalty under
Section 271D of the Income TaxAct. The Tribunal has rightly found that the
transaction between the daughter-in-law and father-in-law is a reasonable
transaction and a genuine one owing to the urgent necessity of money to be
paid to the seller. We find that this would amount to reasonable cause
shown by the assessee to avoid penalty under Section 271D of the Income
Tax Act.
The Tribunal, referring to the decision of this Court reported in *Lakshmi
Trust Co.* (*supra*), has rightly allowed the appeal.*
*
*HIGH COURT OF MADRAS*
*Commissioner of Income-tax – I*
*v.*
*Smt. M.Yesodha*
TAX CASE (APPEAL) NO. 320 OF 2010
Date of pronouncement – 05.02.2013
*JUDGMENT*
*R. Banumathi, J.* – The Revenue has come forward with this appeal and the
same was admitted on the following substantial question of law:
"Whether on the facts and in the circumstances of the case, the Income
Tax Appellate Tribunal was right in deleting the penalty of Rs. 20,99,393/-
levied under Section 271D of the Income Tax Act for violation of Section
269SS on the ground that the assessee had taken the loan only from her
father-in-law and the transaction was genuine?"
*2.* The assessee, for the assessment year 2005-2006, claimed loan of Rs.
20,99,393/- taken from her father-in-law for purchasing the property. The
Assessing Officer initiated penalty proceedings under Section 271D of
the Income Tax Act, 1961 on the ground that the assessee had obtained a
loan of Rs. 20,99,393/- in cash from her father-in-law, which is in
contravention of the provision of Section 269SS of the Income Tax Act.
During the penalty proceedings, the assessee claimed that the amount
received in cash from her father-in-law – M. Kathirvel, was a gift and not
a loan. The Assessing Officer held that the assessee received the amount as
a loan and not as a gift, because the same was shown as a loan in the
balance sheet of the assessee, which was filed along with the return of
income. Hence, the Assessing Officer levied penalty of Rs. 20,99,393/-.
*3.* The assessee challenged the penalty levied by the
Assessing Officer before the Commissioner ofIncome Tax (Appeals). The
Commissioner of Income Tax (Appeals) dismissed the appeal holding that the
Assessing Officer has rightly levied penalty under Section 271D of
the Income Tax Act after giving opportunity to the assessee and on being
fully satisfied that the amount in cash taken by the assessee from her
father-in-law was not a gift but only a loan.
*4.* In the appeal preferred before the Tribunal by the assessee, the
Tribunal referred to the decision of the Tribunal in the case of *Shri M.
Raju* v. *Addl. CIT* [I.T.A. No. 899/Mds/2006] and the decision of the
Tribunal, Pune Bench in the case of *ITO* v. *Sunil M. Kasliwal *[2005] 94
ITD 281 (Pune)(TM). The Tribunal also referred to the judgment of this
Court *CIT* v. *Lakshmi Trust Co. *[2008] 303 ITR 99 (Mad.) and held that
in the facts and circumstances of the case, levy of penalty is not
warranted. The Tribunal further held that the transaction of receiving
amount of Rs. 20,99,393/- is between the father-in-law and daughter-in-law
and the genuineness of the transaction is not disputed, in which, the
amount has been paid by the father-in-law for the purchase of property. On
those findings, the Tribunal allowed the appeal.
*5.* Mr. J. Narayanasamy, learned standing counsel appearing for
the Revenue submitted that the Tribunal has not appreciated the nature of
transaction and that the assessee had taken only loan of Rs. 20,99,393/-
from her father-in-law. He further submitted that the assessee had no where
pleaded any 'reasonable cause' as contemplated under Section 273B of
the Income Tax Act and while so, the Tribunal was not right in saying that
the genuineness of the transaction is not disputed. He also submitted that
the Tribunal was not right in re-appreciating the factual findings recorded
by the Assessing Officer and the Commissioner of Income Tax (Appeals) that
the cash taken by the assessee from her father-in-law was only a loan
transaction.
*6.* Per contra, learned counsel appearing for the assessee submitted that
as evident from the stand of the assessee before the Assessing Officer, the
amount taken by the assessee from her father-in-law was a cash gift and no
loan was taken by the assessee.
*7.* We have carefully considered the submissions of learned standing
counsel appearing for the appellant and the learned counsel appearing for
the assessee.
*8.* Under Section 273B of the Income Tax Act, on 'reasonable cause' being
shown, no penalty shall be imposable. As rightly pointed out by the learned
counsel appearing for the assessee, in the reply furnished before the
Assessing Officer, the assessee clearly mentioned that her father-in-law –
M. Kathirvel sent the amount of Rs. 20,99,393/- directly to the seller of
the house bought in the name of the assessee at Chennai and that necessary
funds were provided by the assessee's father-in-law as a cash gift and the
said cash gift was taken urgently by the assessee to get the purchase deed
executed and no loan was taken from her father-in-law. Even though the
assessee had not taken a specific plea of reasonable cause, it must be
considered as applied to human action. Where the transactions are bonafide,
penalty cannot be imposed.
*9.* To substantiate the plea that her father-in-law had advanced the
amount as cash gift, the assessee's father-in-law had filed an affidavit
before the Commissioner of Income Tax (Appeals). Regarding the affidavit,
remand report was called for from the Assessing Officer. In the remand
report, the Assessing Officer has doubted the nature of transaction. In our
considered view, in the light of the relationship between the assessee and
her father-in-law, the Tribunal has rightly held that the genuineness of
the transaction is not disputed, in which, the amount has been paid by the
father-in-law for purchase of property and the source had also been
disclosed during the assessment proceedings. If there was a genuine and
bonafide transaction and the tax payer could not get a loan or deposit by
account payee cheque or demand draft for some bona fide reason, the
authority vested with the power to impose penalty has a discretion not to
levy penalty.
*10.* The contention of the Revenue is that the amount received by the
assessee from her father-in- has to be treated only as a loan and if is a
loan, then the assessee is liable to pay penalty under Section 271D of
the Income Tax Act. Whether it is a loan or other transaction, still the
other provision, namely, Section 273B of the Income Tax Act, comes to the
rescue of the assessee, if she ables to show reasonable cause for avoiding
penalty under Section 271D of the Income TaxAct. The Tribunal has rightly
found that the transaction between the daughter-in-law and father-in-law is
a reasonable transaction and a genuine one owing to the urgent necessity
of money to be paid to the seller. We find that this would amount to
reasonable cause shown by the assessee to avoid penalty under Section 271D
of the Income Tax Act.
*11.* Referring to the decision reported in *CIT* v. *Kundrathur Finance
and Chit Co. *[2006] 283 ITR 329 (Mad.), this Court in the decision
reported in *Lakshmi Trust Co.* (*supra*), held as follows:
"In the instant case, the Commissioner of Income-tax (Appeals) and the
Appellate Tribunal found on the facts that the transactions were genuine
and the identity of the lenders was also satisfied. The Appellate Tribunal
also upheld the order of the Commissioner of Income-tax (Appeals) that
there was no intention on the part of the assessee to evade the tax.
Once the said finding as to the genuineness of the transactions is arrived
at by the Tribunal on the facts, following the decision of this Court in *
CIT* v. *Ratna Agencies *[2006] 284 ITR 609, wherein it was held that the
finding recorded by the Tribunal in this regard is a finding of fact and no
question of law much less a substantial question of law would arise, we do
not have any hesitation to hold that it may not be proper for this court to
interfere with such a finding of fact."
*12.* The Tribunal, referring to the decision of this Court reported
in *Lakshmi
Trust Co.* (*supra*), has rightly allowed the appeal. We do not find any
error or infirmity in the order of the Tribunal to warrant interference.
Accordingly, the substantial question of law is answered in favour of the
assessee and this Tax Case (Appeal) stands dismissed. No costs.
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