Connect us       New User?     Subscribe Now
Confirm your Email ID for Updates
21.09.2012 - Voice of CA Presents - Updates
Friday, September 21, 2012


 I.  Whats New:

  1. IT Noti. No. 38 - Section 48, Explanation (v) of the IT Act, 1961 - Capital Gains - Computation of - Notified Cost Inflation Index for F.Y. 2012-13  (Click for detail) 
  2. RBI Circular No. 29 - Overseas Direct Investments by Indian Party – Rationalisation  (Click for detail) 
  3. FDI : Permitting of foreign investment in power exchanges in India  (Click for detail) 
  4. FDI : Revised cap for foreign investment in broadcasting sector announced  (Click for detail) 
  5. FDI up to 51% permitted in multi-brand retail trading under Governmental route  (Click for detail) 
  6. FDI : Amendment to existing policy on FDI in single brand product retail trading  (Click for detail) 
  7. Government to handle selection of auditors for public sector banks  (Click for detail) 
  8. Revised Prospectus and Syllabus of the Master in Business Finance Certificate Course (MBFCC)  (Click for detail) 

   II.  Useful Case Laws: 

1.  Qualcomm Incorporated Vs. ADIT, W.P.(C) 7959/2010, Judgment delivered on: 29.08.2012, High court of Delhi


Whether the notice issued u/s 148 on the ground that the assessee had not fully and truly disclosed the facts that assessee has a permanent establishment (PE) in India was valid?


We find that not only is there a change of opinion but also the re-opening is barred by limitation in as much as the condition that the escapement of income must have resulted from the failure on the part of the petitioner to fully and truly disclose all material facts, has not been satisfied. The impugned order dated 27.10.2010 merely glosses over the objections raised by the petitioner with regard to limitation. As we have already observed above, there is no finding in the order dated 27.10.2010 that there was a failure on the part of the petitioner to fully and truly disclose all material facts particularly in connection with the issue of the petitioner having a permanent establishment in India. Consequently the condition stipulated in the proviso to Section 147 is not satisfied and, therefore, the notice dated 30.03.2010, being admittedly beyond four years from the end of the relevant assessment year (i.e., 2003-04), is barred by limitation.

(Please click here for judgment)


2.  Ashok Syal Vs. CIT, ITA No. 566 of 2005, Date of decision: 04.05.2012, High court of Punjab & Haryana


Whether the benefit of Section 54 available on the ground that the residential house of the assessee was not residential in nature due to lack of amenities when the rental income of the residential unit has been taxed as income from house property in the preceding years?


The term “house” has not been given any statutory definition and, thus, has to be assigned meaning as understood in common parlance. As per dictionary, it means abode, a dwelling place or building for human habitation. A building, in order to be habitable by a human being, is ordinarily required to have minimum facilities of washroom, kitchen, electricity, sewerage etc. The authorities had come to the conclusion that only one room had been built with bricks and mud. There were no amenities like boundary wall, kitchen, toilet, electricity, water and sewerage connection etc. Further, the residential plot was situated in Janta Enclave, a colony approved by PUDA. As per Bye-laws of PUDA, no construction could be made without getting the map and drawings approved from PUDA which had not been done. Still further no source of investment had been established. Accordingly, it is held that the property was not a house and the assessee was not entitled to the benefit under Section 54 of the Act.

(Please click here for judgment) 

 III.  Tenders Info.: 

  • Punjab State Aids Control Society
    CA Firms for Statutory Audit & Internal Audit
    (Click for detail)
  • Himachal Pradesh General Industries Corp. Ltd.
    CAs to appoint Internal Auditors for its units
    (Click for detail) 


  Golden Rules:

"When river overflows, the fish eats ants.
But when water dries, the ants eat fish.
Life gives chances to everyone 
just we have to wait for turn"


  Thanks & Regards

  Team - Voice of CA 




« Back
Online Poll
Connect Us       New User?     Subscribe Now