I.  Recent Updates:

1.   CIT Vs. SAMSUNG ELECTRONICS CO. LTD., ITA NO. 2808/2005, DATE OF ORDER : 15/10/2011, HIGH COURT OF KARNATAKA

U/s 9(1)(vi) of the Act & Article 12 of the DTAA, “payments of any kind in consideration for the use of, or the right to use, any copyright of a literary, artistic or scientific work” is deemed to be “royalty“. Under the Copyright Act, 1957, a software programme constitutes a “copyright”. A right to make a copy of the software and use it for internal business by making copy of the same and storing it on the hard disk amounts to a use of the copyright u/s 14 (1) of that Act because in the absence of such a licence, there would have been an infringement of the copyright. Accordingly, the argument that there is no transfer of any part of the copyright and the transaction involves only a sale of a copyrighted article is not acceptable. The amount paid to the supplier for supply of the “shrink-wrapped” software is not the price of the CD alone nor software alone nor the price of licence granted. It is a combination of all. In substance unless a licence was granted permitting the end user to copy and download the software, the CD would not be helpful to the end user.

(Please click here to for judgment)

  

2.   THE COMMISSIONER OF INCOME TAX DELHI IV Vs. I P INDIA PVT. LTD., ITA NO. 1192/2011  DATE OF DECISION : 21/11/2011, HIGH COURT OF DELHI

 In this decision, it was held that a loan grants temporary use of money, or temporary accommodation, and that the essence of a deposit is that there must be a liability to return it to the party by whom or on whose behalf it has been made, on fulfillment of certain conditions. If these tests are applied to the facts of the case before us, it may be seen that the receipt of share application monies from the three private limited companies for allotment of shares in the assessee-company cannot be treated as receipt of loan or deposit. In any case, the Tribunal has rightly noticed the cleavage of judicial opinion on the point and held that in that situation there was reasonable cause u/S.273B, therefore no substantial question of law arises from the order of the Tribunal.

(Please click here to for judgment)

 

II.  What's New Today : 

1. FEMA Circular No. 56 - Foreign Investment in Pharmaceuticals Sector - Amendment to the FDI Scheme  (Click for detail)

2. FEMA Circular No. 55 - Issue of equity shares under the FDI scheme allowed under the Government route  (Click for detail)

3. Updating of Income Tax PAN details in MCA21 DIN DATA  (Click for detail)

4. Central Board of Direct Taxes raises questions on CAG’s 2G scandal loss estimates  (Click for detail)

5. Section 19 of the Banking Regulation Act, 1949- Investments in subsidiaries and other companies – Guidelines  (Click for detail)

6. Bankers See Stable Lending in Near Term  (Click for detail)

7. CWAs rechristened Cost Accountants  (Click for detail)
    

III.  Today's Tenders Info. :

1. Dedicated Freight Corridor Corporation of India Ltd.
   New Delhi
   (Click for detail)
    

2. Directorate of Agriculture
   Panchkula - Haryana
   (Click for detail)
   
   
    

Key of Success :

"Luck decides whom you meet in life.
Your heart decides whom you want in life.
But time decides who gets to stay in your life"

  

Thanks for your valuable time

   

"Voice of CA"  

  
CA. Sanjay Kumar Agarwal
Founder - Voice of CA 
Mob : 9811080342, agarwal.s.ca@gmail.com      
   
CA. Sidharth Jain, Co-Moderator
sidhjasso@yahoo.com 
  
CA. Mukesh K Bansal, Co-Moderator-FEMA 
mukbansal80@gmail.com