TDS liability under sec. 194C would attract even on oral contract and more

INCOME TAX ACT

SECTION 10B

EXPORT ORIENTED UNDERTAKING

Computation of deduction : Interest on FDRs which were under lien with Bank for facilitating letter of credit and bank guarantee facilities would qualify for deduction under section 10B - [2016] 65 taxmann.com 287 (Delhi)

SECTION 14A

EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME

Rule 8D : Disallowance made under section 14A, read with rule 8D, towards interest expenditure would not be tenable where Assessing Officer failed to establish a nexus between interest bearing funds and investment made - [2016] 65 taxmann.com 295 (Karnataka)

SECTION 32

DEPRECIATION - ALLOWANCE/RATE OF

Goodwill : Where assessee purchased business as going concern, consideration paid in excess of value of tangible assets was classifiable as goodwill eligible for depreciation and, therefore, further exercise to value goodwill was not warranted - [2016] 65 taxmann.com 288 (Delhi)

SECTION 37(1)

BUSINESS EXPENDITURE - ALLOWABILITY OF

Deferred tax liability : Where deferred tax liability was never an item of expenditure in profit and loss account, its addition was liable to be deleted - [2016] 65 taxmann.com 289 (Kolkata - Trib.)

SECTION 115JB

MINIMUM ALTERNATE TAX

Tea business : 40 per cent of profit of tea business will be book profit of tea company for calculation of minimum alternate tax - [2016] 65 taxmann.com 289 (Kolkata - Trib.)

Provision for gratuity : Where provision of gratuity was based on report of actuarial valuation, its addition was liable to be deleted - [2016] 65 taxmann.com 289 (Kolkata - Trib.)

Section 80HHC deduction : For determining book profits, net profits shown in profit and loss account had to be reduced by amount of profits eligible for deduction under section 80HHC and not by amount of deduction under section 80HHC - [2016] 65 taxmann.com 289 (Kolkata - Trib.)

SECTION 153

ASSESSMENT - TIME-LIMIT FOR COMPLETION OF ASSESSMENT

Limitation for purpose of section 153 would start from end of assessment year in which notice under section 148 is served upon assessee and not from end of assessment year in which such notice is issued - [2016] 65 taxmann.com 293 (Bombay)

SECTION 194C

Deduction of tax at source - Contractor/sub-contractor, payment to

Transport contracts : Assessee would be liable to deduct tax at source under section 194C on payments made as transportation charges to intermediate parties who arranged actual transporters from open market for carriage of goods by transport for assessee, even if there was no written contract between assessee and intermediary party - [2016] 65 taxmann.com 294 (Mumbai - Trib.)

SECTION 275

PENALTY - BAR OF LIMITATION FOR IMPOSITION

Pending assessment : Where appeal of assessee against addition made in assessment was pending before Tribunal, order imposing penalty under section 271(1)(c) was premature - [2016] 65 taxmann.com 293 (Bombay)

CENVAT CREDIT RULES

RULE 2(l)

CENVAT CREDIT - INPUT SERVICE

Advertisement and Sales Promotion : Where principally agreement is to appoint agent/stockist for storing and selling goods of assessee, such stockist would be 'commission agent' and not 'sales promotion agent'; hence, commission so paid to him is ineligible for credit. - [2016] 65 taxmann.com 283 (Gujarat)

RULE 6

CENVAT CREDIT - EXEMPTED AND DUTIABLE GOODS OR EXEMPTED AND TAXABLE SERVICES, OBLIGATION OF ASSESSEE

Where assessee had cleared cenvated packing materials under bond under CT-2 certificates to Export Processing Godown (EPG) for packing of export goods, no credit reversal was warranted thereon under rule 3 or rule 6 - [2016] 65 taxmann.com 286 (Chennai - CESTAT)

STATUTES

CORPORATE LAWS

Revision in Position Limits for Agricultural Commodities - CIRCULAR NO.CDMRD/DMP/ CIR/32/2016, DATED 29-1-2016

INDIRECT TAX LAWS (ST./EX./CUS. & (CST & VAT))

Rajasthan Value Added Tax (Amendment) Rules, 2016 – Amendment in Rules 14, 16, 22A, 33 and Form VAT-01 and Substitution of Rules 12, 13, 25 & 77 - NOTIFICATION NO.F.12(79)FD/TAX/ 2014-111, DATED 8-1-2016