Connect us       New User?     Subscribe Now
Confirm your Email ID for Updates
12.02.2016 - Voice of CA presents - Updates
Friday, February 12, 2016


I. Headlines Today    

  1. Implementation of Indian Accounting Standards (Ind AS)  (Click for detail)
  2. MCA proposes new CARO 2016, Inviting Comments  (Click for detail)
  3. Date for filing of DVAT Form GE-II by Govt. entities extended to 29 Feb.  (Click for detail)
  4. India lightly taxed; help government collect more: Jayant Sinha to CAs  (Click for detail)
  5. RBI's Asset Quality Review May Affect Some Banks  (Click for detail)
  6. RBI: Regulatory relaxations for start-ups- Clarifications relating to acceptance of payments  (Click for detail)
  7. 5 things you need to know about bank write-offs  (Click for detail) 
  8. Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013  (Click for detail)

II.  Direct Taxes Case Laws:

1.  M/s Tirupati LPG Industries Ltd. Vs. Joint CIT, I.T.A. No. 2786/Del/2013, Date of Order: 10.02.2016, ITAT- Delhi

Whether deduction u/s 80-IC of the Income Tax Act, 1961 can be claimed more than once where the assessee undertakes ‘substantial expansion’ of installed capacity of the unit again?

Held_ Yes

The company is engaged in manufacturing and selling of new LPG cylinders and conductor wires. The assessee completed substantial expansion of installed capacity of the unit during the A.Y. 2004-05 and claimed deduction u/s 80 IC of the Act at 100% of profits for first 5 years from A.Y. 2004-05 to A.Y. 2008-09. Thereafter assessee undertook substantial expansion for the second time which was completed in A.Y. 2009-10. The assessee again claimed 100% deduction considering A.Y. 2009-10 as the initial Assessment year. The AO contended that assessee is eligible for only 30% deduction for the period from A.Y. 2009-10 to A.Y. 2013-14 being sixth to tenth assessment year in respect of substantial expansion undertaken in A.Y. 2004-05.

The hon’ble ITAT in assessee’s own case for A.Y. 2009-10, held that a unit can undertake any number of substantial expansions, in the absence of any specific restriction in the Section. There is no suggestion in the language of the section that incentive u/s 80IC of the Act is not available if the assessee substantially expands for a second or third time. Substantial expansion requires additional investment and results in higher production, employment etc. Industrialists have to be encouraged to undertake substantial expansion. The section recognizes this fact and provides for an incentive, if an assessee undertakes “substantial expansion”.

The Hon’ble ITAT following the same view held that assessee is again eligible for 100% deduction for the period from A.Y. 2009-10 to A.Y. 2013-14 being first five years of second substantial expansion, beginning from A.Y. 2009-10 i.e. the initial assessment year.
Thus, the appeal is allowed.

(Please click here for judgment)


2.  DCIT Vs. M/s. Sam India Abhimanyu Housing, I.T.A. No. 1257/Del/2015, Date of order: 05.02.2016, ITAT- Delhi

Whether penalty u/s 271AAA of the Income Tax Act, 1961 can be imposed on an assessee in the absence of Search & Seizure proceedings u/s 132 of the Act in the assessee’s own case and where only Survey proceedings u/s 133A of the Act has been conducted on the assessee?


In brief, the assessee was engaged in the business of developing the housing projects. Search u/s 132 of the Act was conducted on Sam India Builtwell Private Limited & Others wherein some documents relating to the assessee were found. Assessee offered lump-sum amount in respect of cash notings appearing on such documents/loose papers with a view to buy peace of mind and to avoid litigation. The AO imposed the penalty u/s 271AAA of the Act in respect of such amount.

The Hon’ble ITAT held that the provision of section 271AAA of the Act can be only attracted only where search has been conducted u/s 132 of the Act. In the instant case the assessee is covered only by survey u/s 133A of the Act and as such initiation of penalty proceeding u/s 271AAA will not attracted.
The appeal of the revenue is dismissed..

(Please click here for judgment)  


III. Useful Update on Indirect Taxes: 

1.  Some important Judgments of Service Tax

(Please click here for detail)  

2.  Some important Judgments of Central Excise

(Please click here for detail)  

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


 Golden Rules:

  "If god wants you to do something bigger,
he creates obstacles in your way and
he knows your true potential.
So trust and believe his judgment"


  Thanks & Regards


Voice of CA 

« Back
Online Poll
Connect Us       New User?     Subscribe Now