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26.06.2012 - Voice of CA Presents - Updates
Tuesday, June 26, 2012


< Some useful publications by one of our  innovative member CA Ashok Batra,  email-id:>

Latest DVAT publications, duly amended for Delhi budget 2012, “DVAT – Law, Practice & Procedure with Ready Reckoner” and “DVAT Ready Reckoner", published by CCH.

Service Tax Books, thoroughly revised and updated - “Service Tax – Law & Procedure (2Vol)” and “Service Tax Ready Reckoner”, published by CCH, now available.


I.  Today's News:   

  1. IT : Setting up of Tax Kiosks and use of Mobile Vans in CCIT (CCA) Region - Press Release  (Click for detail)

  2. Changes in service tax structure will have great impact on GST  (Click for detail)

  3. FEMA : Review of Policy Relating to Fll Investments in G-Sec, Corporate Bonds, Long-term Infra Bonds and ECB of Indian Companies and QFI  (Click for detail)

  4. RBI : External Commercial Borrowings (ECB) – Repayment of Rupee loans  (Click for detail)

  5. RBI : Foreign investment in India by SEBI registered FIIs in Government securities and SEBI registered FIIs and QFIs in infrastructure debt  (Click for detail)


II.  Useful Case laws:

1.   CIT Vs. M/s. Triumph International Finance (I) Ltd., ITA No. 5746 OF 2010, Judgment Pronounced on: 12/06/2012, High court of Bombay


Whether transactions effected through journal entries in the books of the assessee would not amount to repayment of any loan or deposit otherwise than by account payee cheque or account payee bank draft within the meaning of Section 269T & penalty under Section 271E of the Income Tax Act can be levied.


Held that repayment of loan / deposit through journal entries did not violate the provisions of Section 269T of the Act. However, in the absence of any finding recorded in the assessment order or in the penalty order to the effect that the repayment of loan / deposit was not a bonafide transaction and was made with a view to evade tax, we hold that the cause shown by the assessee was a reasonable cause and, therefore, in view of Section 273B of the Act, no penalty under Section 271E could be imposed for contravening the provisions of Section 269T of the Act.

(Please click here for judgment)


2.  KPMG India Pvt. Ltd. Vs. DCIT, ITA No. 8824/Mum/2004, Date of pronouncement: 08/06/2012, ITAT- Mumbai

Whether the ad hoc disallowance could be made u/s 37(1) read with section 40A (2) (b) out of professional fees paid for services paid to KPMG Consulting Private Limited (KCPL) and KPMG firm. 

The professional service rendered does not fall in the definition of “royalty” in Article 12 of the DTAA. It was purely a professional service for consultancy which were rendered outside India and not for supply of scientific, technical, industrial or commercial knowledge or information. Thus, there was no liability to deduct TDS and consequently no disallowance u/s 40(ia) can be made.

(Please click here for  judgment)


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Thanks for your valuable time


"Voice of CA"  

CA. Sanjay 'Voice of CA' Agarwal
Mob: 9811080342,      
CA. Sidharth Jain, Co-Moderator  
CA. Mukesh K Bansal, Co-Moderator-FEMA 

CA. Avinash Gupta, Co-Moderator-International Taxation 


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