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14.07.2011 - Recent Updates as on 14.07.2011
Friday, July 15, 2011


1.  M/S. SIVA INDUSTRIES & HOLDINGS LTD. Vs. ACIT, I.T.A. NO. 2148/MDS/2010, ASSESSMENT YEAR : 2006-07, DATE OF ORDER : 20TH MAY 2011, ITAT – CHENNAI

For the applicability of s. 14A there must be (a) taxable income and (b) tax-free income. If either one is absent, s. 14A has no applicability. If it is assumed that s. 14A would apply even when the assessee does not have tax-free income, the expenditure would get disallowed year after year so long as the assessee held the shares and if he sold them and made a capital gain that would be taxed as well. This is not contemplated by s. 14A. If there is no claim for tax-free income, there cannot be any disallowance u/s 14A.

(ii) If the transaction of lending monies between the assessee and the AE is in foreign currency and the transaction is an international transaction, it has to be evaluated by applying the commercial principles applicable to international transaction. So, the PLR would have no applicability and the international rate being LIBOR has to be considered while determining the arm’s length interest rate in respect of the transaction between the assessee and the AE.

(Please click here for judgment)

  

2.  COMMISSIONER OF INCOME TAX, BHOPAL Vs. KEWALCHAND PRATAPCHAND, ITR No.38/98, Dated: 24th February, 2011, HIGH COURT OF MADHYA PRADESH

Whether Board Circular fixing tax effect limit for filing appeals in High Court applies even to old references made.

The Board Circular dt.27.3.2000 was applicable even to the old references which are still pending and are undecided. By circular dated 27.3.2000 financial limit to the extent of tax liability of Rs.2 lakh was fixed, which is applicable in this case. In view of the aforesaid settled position of the law by the Division Bench, the question need not be answered in the light of the aforesaid circular of the CBDT and the judgment of this Court in Ashok Kumar Manibhai Patel & Co.

(Please click here for judgment)

 

What's New
  1. International Tax Review's India Tax Forum 2011 in Delhi on 6th & 7th Sep  (Click for detail)

  2. The Cost of implementing GST by Indirect Tax Experts  (Click for detail)

  3. Co. Law-Draft Public Companies (Terms of Issue of debenture and of raising of loans with option to convert such debentures or loans in to shares) Rules, 2011  (Click for detail)

  4. Co Law-(Central Govt's) General Rules & Forms (Amend) Rules, 2011  (Click for detail)

  5. RBI/2011-12/110 - Lending to Priority Sector-Reporting Data on Priority Sector Advances  (Click for detail)

  6. RBI/2010-11/111 - Retail Electronic Payment Systems –NEFT / NECS / RECS / ECS – Levy of Processing Charges- Collection & Settlement of Inter-bank Charges  (Click for detail)

  7. Public Notice No. 63 – Modification of SION C-1058 under Engineering Product Group  (Click for detail)

     

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