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11.10.2018 - Voice of CA presents - Latest Updates
Thursday, October 11, 2018

I. Play on Search, Survey & Seizure:

Pl. click below link to see Lecture & Play on Search, Survey & Seizure presented by Team of Voice of CA  


  II. Headlines Today:   

  1. Examination for Confirmation of Enrollment of GST Practitioners; Last date of registration now extended up to 15th October 2018  (Click for detail)
  2. IL&FS will be new audit watchdog NFRA's first test case  (Click for detail)
  3. Tax-terrorism must not resurface  (Click for detail)
  4. Pay tax, get rewards from the government  (Click for detail)
  5. SEBI has started process of remitting refunds to investors of PACL  (Click for detail)
  6. SEBI allows eligible foreign entities to hedge exposure in commodity derivative market  (Click for detail)

III. A Useful Presentation:

1.  Penalties under the Income Tax Act, 1961

     (Please click here)

(Contribution by CA. Sanjay K. Agarwal, Founder - Voice of CA; and contributor is available at Email-id: )

  IV. Direct Taxes Case Law: 

1.  ACIT Vs. M/s. True Developers Pvt. Ltd., I.T.A. No. 5318/Del./2015, Date of Pronouncement: 03.10.2018, ITAT - Delhi

Whether AO can complete the assessment merely on conjectures and surmises and completes the assessment by sitting on the arm chair of assessee?


Brief Facts:
The Assessing Officer noticed that during the year under assessment, the assessee has debited an amount of Rs.1,41,29,993/- on account of General Management Fees paid to Ascendas Services (India) Pvt. Ltd.for providing overall management leadership and advice to the owner. During assessment, AO disallowed 50% of the management Fees amounting to Rs.70,65,000/-declining the contentions raised by the assessee and concluded that since no business activities have been carried out by the assessee as per P&L account during the year, and was having only interest income, there was no need for any skilled manpower and thereby added the same back to the income of the assessee. Assessee filed an appeal before the Ld.CIT (A) who has deleted the addition made by the AO by allowing the appeal.

Feeling aggrieved, the Revenue has come up before theTribunal by way of filing the present appeal.

The Tribunal held that the assessee is developing a Special Economic Zone (SEZ) project at Coimbatore for which it has claimed to have availed the services of Ascendas Services (India) Pvt. Ltd.From the perusal of impugned order passed by the ld. CIT(A), it goes to prove that the evidence was there on record to prove that 8 skilled personnel were at the disposal of the assessee to look after the work of the assessee’s company for SEZ in Coimbatore. Also, the CIT(A) scrutinized the tenders invited by the Ascendas Services (India) Pvt. Ltd. It is held that Revenue authorities are not permitted to complete the assessment by sitting on the arm chair of businessman/assessee and it is for the assessee to decide which ofthe services are necessary for carrying out its business activities and thus, disallow the appeal.
The appeal is in favour of the assessee and against the revenue.

(Please click here for judgment)

Golden Rules:

  "One of the basic differences between God and human is,
God gives, gives and forgives.
But human gets, gets, gets and forgets.
Be thankful in life" 


Thanks & Regards


Voice of CA 

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