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19.09.2015 - Voice of CA presents - Updates
Saturday, September 19, 2015

I. Headlines Today:    

  1. CBDT Inst.: Reference to Transfer Pricing Officer in Specified Domestic transaction cases  (Click for detail)
  2. Gold deposits over 500gm without known income sources will attract tax  (Click for detail)
  3. Revised Disclosure Formats under SEBI (Prohibition of Insider Trading) Regulations, 2015  (Click for detail)
  4. ICAI: To get your Fee Remittance Details in the record of the Institute (Click for detail)
II.  A Helpful Presentation:


Procedure to tackle Non-Deduction / Collection of Tax at Source before Filing Tax Audit Report

(Please click here for presentation)


III.  Series of Synopsis on SA:

1.  In continuation of our mail of September 16, 2015 [Click for 16.09.2015 - Updates], with which Synopsis on SA 265, among others, was sent, attached now – 10th in the captioned Series - is the Synopsis on SA 299 Responsibility of Joint Auditors.


IV.  Direct Taxes Case Laws:

1.  CIT Vs. Sri Vijay Singh Kadan, I.T.A. No. 714/2015, Date of Order: 14.09.2015, High Court of Delhi

Whether the distance of agricultural land, in terms of Section 2(14)(iii)(b) has to be measured along the road and not as per crow's flight/ aerial distance. And Whether distance up to the land should be considered or up to the village within which such land is situated?

It is held that for the purposes of Section 2 (14) (iii) (b) of the Act, the distance had to be measured from the agricultural land in question to the outer limit of the municipality by road and not by the straight line or the aerial route. The distance has to be measured from the land in question itself and not from the village in which the land is situated.

(Please click here for judgment)


2.  CIT Vs. Pritam Das Narang, I.T.A. No. 203/2014, Date of Order: 16.09.2015, High Court of Delhi

Whether the payment made by the prospective employer as compensation towards breach of promise and not for any services rendered or to be rendered could not be taxed under Section 17(3)(iii) of the Act.

Held Yes

Section 17 (3) (iii) (A) pre-supposes the existence of an employment, i.e., a relationship of employee and employer between the Assessee and the person who makes the payment of "any amount" in terms of Section 17 (3) (iii) of the Act. Likewise, Section 17 (3) (iii) (B) also pre-supposes the existence of the relationship of employer and employee between the person who makes the payment of the amount and the Assessee. It envisages the amount being received by the Assessee "after cessation of his employment". Therefore, the words in Section 17 (3) (iii) cannot be read disjunctively to overlook the essential facet of the provision, viz., the existence of ‘employment’ i.e. a relationship of employer and employee between the person who makes the payment of the amount and the Assessee. The Court accordingly concurs with the concurrent view of the CIT (A) and the ITAT that this was a case where there was no commencement of the
employment and that the offer by ACEE to the Assessee was withdrawn even prior to the commencement of such employment. The amount received by the Assessee was a capital receipt and could not be taxed under the head 'profits in lieu of salary'.

(Please click here for judgment)   

V.  Company Law & Other Matters:

1.  Uniglobe Mod Travels Pvt. Ltd. Vs. Travel Agents Federation of India, Case No. 03/2009, Date of Decision: 04.10.2011, Competition Commission of India

Under Section 27 of the Competition Act, 2002

As per the above fact when most of the airlines shifted to “transaction fees model to Commission based model this new model was less remunerative resisted to move of airlines. Many airlines revert back but Singapore airlines doesn’t revert and it was injustice for the travel agents as per facts and opinion to end of justice penalty of Rs. 100,000/- (Rs. One Lacs Only) will be imposed and paid within one month of date of order.

(Please click here for judgment)

2.  Mangalesh Jalan Vs. Subarnarekha Trade & Tea Industries Ltd., C P No. 17/2009, Date: 21.11.2014, Company Law Board - Kolkata

Under Section 397/398 of the Competition Act, 1956

As per Board it cannot be said that the allotment was oppressive, harsh, and burdensome to the petitioner even though the allotment might not be strictly accordance with Law.

(Please click here for judgment)    


VI.  Reported Cases:

Direct Taxes Segment:

1.  In view of amendment effective from 11-2-1994 to DTAA between India and UK, managerial services are not covered in definition of 'FTS', moreover The Treaty was amended with effect from 11-2-1994 and 'managerial services' was taken out from the ambit of FTS and a clause relating to 'make available' was inserted saying that in order to qualify as FTS such services and as such technical or consultancy service, if they do not meet criterion of 'make available', cannot be treated as FTS.
2.  A low risk captive software service provider cannot compared to high risk bearing companies. 
(Please click here for detail)


3rd Global Tax Summit:

1.   The Confederation of Indian Industry (CII) is organizing its day long 3rd Global Tax Summit.  This is on Thursday, 8 October 2015 at Shangri-La’s, Eros Hotel, New Delhi. The topics to be deliberated at the Summit are as follows:


·       Spillovers of the Global Tax changes-How is India keeping pace

·       Global controversy trends and emerging ADR mechanisms-The road ahead

·       Tax reforms for a competitive India Inc.-The need of the hour

·       The Indirect Tax reforms agenda-Challenges and way forward

 You may click the link given below for the detail:



 Golden Rules:

  "The happiest of people don't necessarily have the best of everything,
they just make the most of everything that comes along their way


  Thanks & Regards


Voice of CA

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