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15.12.2012 - Voice of CA Presents - Updates
Saturday, December 15, 2012



Voice of CA in association with NextGen has started an “XBRL Helpline” to assist our professional friends in XBRL filings, for Detail

(Please click here)


II.  Headlines Today: 

  1. FEMA Cir. No. 60 - Review of ECB Policy - Applicability of all-in-cost ceiling extended till 31-03-2013  (Click for detail)
  2. 'Bitter medicine' necessary to restore health of the economy, warns P Chidambaram (Click for detail) 
  3. ‘Committed to put economy back on high growth path'  (Click for detail) 
  4. IT Dept refunds Rs 51,908 crore till Oct 2012  (Click for detail) 
  5. World Bank may peg India's GDP at 5.5% in 2012, 6% in 2013  (Click for detail) 
  6. Know These Tax Tweaks before You Make Your New Year Plans  (Click for detail) 

 III.  Useful Case Laws: 

1.  CIT Vs. Convertech Equipments Pvt. Ltd., ITA No. 669/2012 & 670/2012, C.M. APPL. 20042/2012, Date of Decision: 03-12-2012, High Court of Delhi

Whether commission paid to directors were allowable expenditure as per Section 36(1)(ii) of the Income Tax Act, 1961?”

It was noticed that while commission was paid as a form of remuneration for actual services rendered, dividend is a return of investment and is paid to all its shareholders equally. It was thus held that if the commission is paid for actual services rendered, section 36(1)(ii) will not apply. This decision was followed by this Court in CIT v. Career Launcher India Ltd. (2012) 250 CTR 240 (Del). These decisions apply to the present case. The substantial question of law in ITA No.669/2012 is answered in favour of the assessee.

(Please Click here for judgment)

2.  CIT Vs. M/S Ganapati Finance Ltd., ITA No. 475/2006, Date of Decision: 05-12-2012, High Court of Delhi

Whether Depreciation u/s 32 was allowable to the assessee on leased out LPG cyclinders and leased out Air Jet Spindle Assembly and Positar Disc?”

Held that, In the case of LPG cylinders, the transaction was only a financing transaction and was not a lease as there is no material to show that the assessee became the owner of the cylinders and leased them to Janta; in the case of airjet spindles and positar disc, the very existence of the assets and the genuineness of the purchase of the assets by the assessee was not proved. In both the cases, therefore, the assessee was not entitled to depreciation.

(Please Click here for judgment)      

 Golden Rules:

"If you learn from your mistake, 
then you are intelligent. 
But if you learn from somebody's mistake
then you are a genius"


  Thanks & Regards

  Team - Voice of CA 





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