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10.09.2015 - Voice of CA presents - Updates
Thursday, September 10, 2015

  I. Headlines Today:    

  1. Finance Ministry: No Extension of Date for Filing of Returns due by 30th September for Assessment Year 2015-16 for Certain Categories of Assessees  (Click for detail)
  2. CBDT: Black money - No compounding of cases falling under new Act  (Click for detail)
  3. FM: Tax exemptions for India Inc to be phased out  (Click for detail)
  4. Introduction of Sovereign Gold Bonds Scheme  (Click for detail)
  5. Introduction of Gold Monetization Schemes  (Click for detail)
  6. SEBI: Continuous Disclosure Requirements for Listed Entities - Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015  (Click for detail)

II.  Series of Synopsis on SA:

1.  In continuation of our mail of September 4, 2015 [Click for 07.09.2015 - Updates], with which Synopsis on SA 250, among others, was sent, attached now – 8th in the captioned Series - is the Synopsis on SA 260 Communication With Those Charged with Governance.  
[source :]


III.  A Useful Presentation:

1.   Documentation and Management Representation on Tax Audit

(Please click here for presentation)

[Contribution by CA. Prakash Agarwal; contributor is available at eMail:  )


IV.  Direct Taxes Case Laws:

1.   Cheminvest  Limited Vs. CIT, I.T.A. No. 749/2014, Date of Order: 02.09.2015,  High Court of Delhi

Whether disallowance under Section 14A of the Act can be made in a year in which no exempt income has been earned or received by the Assessee?

Held No.

In light of the clear exposition of the law in Holcim India (P) Ltd. and in view of the admitted factual position in this case that the Assessee has made strategic investment in shares of Max India Ltd.; that no exempted income was earned by the Assessee in the relevant AY and since the genuineness of the expenditure incurred by the Assessee is not in doubt, the question framed is required to be answered in favour of the Assessee and against the Revenue. In the context of the facts enumerated hereinbefore the Court answers the question framed by holding that the expression „does not form part of the total income‟ in Section 14A of the envisages that there should be an actual receipt of income, which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income. In other words, Section 14A will not apply if no exempt income is received or receivable during the relevant previous year.

(Please click here for judgment)


2.  Fast Booking (I) Pvt. Ltd. Vs DCIT, I.T.A. No. 334/2015, Date of Order: 02.09.2015,  High Court of Delhi

Whether the ITAT was correct in law in not examining the Assessee's cross objections?

Held No.

The Appellant Assessee herein filed its cross objection before the ITAT in the two pending appeals of the Revenue against the order of the CIT(A) for AYs 2008-09 and 2009-10. While taking up the cross-objections, although the delay in filing was condoned, the ITAT declined to permit the Assessee to maintain the cross objections by following the decision of the Coordinate Bench of the ITAT in ITO v. Neetee Clothing (P)Ltd. [2010] 129 TTJ 342 (ITAT [Del]), on the ground that since the Assessee had not urged the plea of being entitled to the benefit under Section 10 A of the Act before the CIT (A), it could not be permitted to urge such plea for the first time before the ITAT. The basis of this Court remanding the matters in Valiant Communications Ltd. cases to the ITAT was precisely to consider whether the benefit under Section 10A could be granted to those Assessees notwithstanding that they may not be entitled to the benefit under Section 10B.

It was, therefore, open to the Appellant Assessee herein to seek support of the order of the CIT (A) on the ground which was not urged before the CIT (A) as long as it was not going to be adverse to the case of the Appellant i.e. the Revenue before the ITAT. The ITAT in considering such plea was not going to be persuaded to come to a different conclusion as far as the appeal of the Revenue pertaining to the benefit under Section 10B of the Act was concerned. Particularly in the light of the order passed by this Court on 4th January 2013 in the applications filed by Valiant Communications Ltd., there should have been no difficulty for the ITAT to have examined the Appellant Assessee‟s cross objections.

(Please click here for judgment)   

V.  A Useful Article:

1.   Cash discounts deductible while determining Transaction value of excisable goods

(Please click here for detail)

[Contribution by CA. Bimal Jain; contributor is available at eMail:  )


VI.  Company Law & Other Matters:

1.  MCX Stock Exchange Ltd. Vs. National Stock Exchange of India Ltd., Case No. 13/2009, Date of Order: 23.06.2011, Competition Commission of India

As per the fact the fact that there was a clear intention on the part of NSE to eliminate competitors in the relevant market and also considering the fact that Competition Act is a new Act, it would suffice if penalty at the rate of 5% of the average turnover is levied within 30 days of the date of receipt of the order.

(Please click here for judgment)


2.  Ms. Sharmila Shetty Vs. M/s. B & A LIMITED & ORS., CA No. 477 of 2014, Date of Order: 30.09.2014, Company Law Board - Kolkata

In the matter of Companies Act, 1956, 235, 237, 247, 397, 398, 402,403 and 406, 30/09/2014.

As per opinion the applicant constitutes necessary party for the effective adjudication of the pending company petition and as a result, the prayer for inclusion of the applicant as a party respondent in the petition is hereby allowed.

(Please click here for judgment)


VII.  Reported Cases:

Direct Taxes Segment:

1.  Disallowance under section 43B can be made in respect of statutory liabilities even though assessee's income was assessed under section 44AF.
2.  No penalty u/s 272B in a case where assessee failed to mention correct PAN of few deductees in quarterly e-TDS return which in fact were not available with it at relevant time but on later on it obtained correct PANs and filed revised return.  
(Please click here for detail)


 Golden Rules:

  "To reach a successful destination you need
a vehicle assembled with wheels of ideas,
the fuel of action,
a driver with patience and hard work"


  Thanks & Regards


Voice of CA

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