Connect us       New User?     Subscribe Now
Confirm your Email ID for Updates
09.02.2016 - Voice of CA presents - Updates
Tuesday, February 9, 2016

  Dear Member  

I. Headlines Today    

  1. Infrastructure firms may get to consolidate tax payments  (Click for detail)
  2. CBDT asks Income Tax department to speed up overseas requests  (Click for detail)
  3. FM's fiscal deficit math turns more difficult  (Click for detail)
  4. Writing off bad loans a ploy to siphon off taxpayers' money: AAP  (Click for detail)
II.  Direct Taxes Case Laws: 

1.  Prakash & Ors. Vs. Phulavati & Ors., Civil Appeal No. 7217/2013, Date of Judgment: 16.10.2015, Supreme Court of India

Whether the benefit provided under Section 6 of the Hindu Succession (Amendment) Act, 2005 have retrospective effect so as to give daughters an equal share in coparcenary property?

Held_ No

In brief a daughter of coparcener claimed the right in ancestral property of her late father in view of the Hindu Succession (Amendment) Act, 2005 where the father died before the date of commencement of the Amendment Act i.e. 9th September, 2005. At the time of first appeal filed before the hon’ble High Court, it was held that she would be entitled to the benefit to the provisions of the Amendment Act. The hon’ble High Court relied on the decision of Supreme Court in G. Sekhar Vs. Geetha 6 SCC 99 (2009).

The hon’ble Supreme Court held that the legislature has expressly made the Amendment applicable on and from its commencement of the Act i.e. 9th September, 2005 and only for the situations where death of the coparcener in question is after the Amendment. Thus the rights under the amendment are applicable to living daughters of living coparceners as on 9th September, 2005 irrespective of when such daughters are born.

It was further held that an amendment of a substantive provision is always prospective unless either expressly or by necessary intendment it has been made retrospective. The proviso to Section 6(1) and 6(5) clearly exclude the transactions which may have taken place prior to 20th December, 2004 with the object of giving finality to transactions prior to that date and not to make the main provision retrospective in any manner.
The appeal is allowed.

(Please click here for judgment)

2.  M/s Shivalik Prints Limited Vs. Addl. CIT, I.T.A. No. 4698/Del./2011, Date of Decision: 05.02.2016, ITAT - New Delhi

Whether the subsidy received from Ministry of Textile, Government of India under the Technology Upgradation Fund Scheme (TUF Scheme) against the purchase of new machinery is capital receipt?


The assessee company was engaged in the business of dying, printing and processing of fabric. The assessee received subsidy from Ministry of Textiles for purchase of machinery and the same was claimed as Capital Subsidy. The AO contended that it is revenue receipt being only profit supplement to be considered as income. TUF scheme of Textile Ministry is for modernization of textile industries under which the Government gives the funds straightway to the designated bank and the bank has to give a certificate to the effect that the Plant & Machinery was purchased.

The Hon’ble ITAT placed reliance on judgement of Supreme Court in CIT vs. Ponni Sugars and Chemicals Ltd. 306 ITR 392 (SC) wherein it was held that the character of subsidy received under a scheme has to be determined with respect to the purpose for which the subsidy is granted. The hon’ble ITAT allowed the appeal and held that since the intention of subsidy was to enhance the technology apparatus of the assessee by assisting in acquiring machinery under TUF Scheme, the same cannot be considered as profit substitute of the assessee.

(Please click here for judgment)   

III. Useful Update on VAT & Customs: 

1.  Some important Judgments of VAT

(Please click here for detail)  

2.  Some important Judgments of Customs

(Please click here for detail)  

[Contribution by CA. Bimal Jain; contributor is available at eMail-id:]


IV. A Useful Article: 

Ease of Doing business – Payment Process GST 

(Please click here for detail)

[Contribution by CA. Madhukar N. Hiregange and contributor is available at eMail-id:]


 Golden Rules:

  "Good friends care for each other;
close friends understand each other and
true friends stay forever -
beyond words beyond time"


  Thanks & Regards


Voice of CA 

« Back
Online Poll
Connect Us       New User?     Subscribe Now