Connect us       New User?     Subscribe Now
Confirm your Email ID for Updates
24.12.2012 - Voice of CA Presents - Updates
Monday, December 24, 2012

I.  Headlines Today: 

  • FDI, Wal-Mart & controversies: An eventful year for retail  (Click for detail)
  • Advance tax receipts up 10.4 pc YoY for Dec 1-20: Govt.  (Click for detail)
  • 'Cannot tax unpaid fee for tech services'  (Click for detail)
  • Review meeting this week on Multi Level Marketing activities: Sachin Pilot  (Click for detail)
  • Extension of last date “for complying with the CPE hours requirement for the calendar year 2012” - from 31st December, 2012 to 31st January, 2013  (Click for detail)


IITender Info.:

  • Delhi Metro Rail Corporation Ltd.
    Consultancy Services Contract In Connection with Taxes and Duties Against Rolling Stock Contracts of DMRC on Account of Various Concessions Granted by Govt. of India
    New Delhi
    (Click for detail)
  • National Projects Construction Corporation Limited
    CA Firms for preparation of accounting policies
    Faridabad (Haryana)
    (Click for detail)


III.  Useful Contrubitions:

1.  [Contribution by CA Sanjeev Singhal, and contributor is available at ] 

An article - "Point of Taxation in Service Tax"

(Click here for detail)


 IV.  Useful Case Laws: 

1.  Shri Vivek Jairazbhoy Vs. Dy. CIT, ITA No. 236/Bang/2012, Date of Pronouncement: 14.12.2012, ITAT – Bangalore

Section 54EC limit of Rs. 50 Lakh applies to financial year not to transaction

It is clear from the Circular no.3/2008 of CBDT (supra) that the Government only intended to restrict the investment in a particular financial year and thus has fixed a limit of Rs.50 lakhs as permissible investment in a particular financial year.

We are of the considered view that it would be in the fitness of things, to follow the decision of the ITAT, Ahmedabad Bench in the case of Aspi Ginwala & Others (supra) relied on by the assessee and hold that the assessee is entitled to total deduction under section 54EC of the Act spread over a period of two financial years @ Rs.50 lakhs each on investments made in specified instruments within a period of six months from the date of sale of the property.

(Please click here for judgment)

2.    Gujarat Mineral Dev. Corpn. Ltd., Vs. ACIT, ITA Nos. 128, 186/ Ahd/2005, Date of order: 25. 05.2012, ITAT -  Ahmedabad

Expenditure to set-up a new line of business is capital expenditure 

Interest expenditure under section 36(1)(iii) will be allowable if it is found that borrowed funds were used for the purpose of setting up of a new unit of the existing running business. In the instant case, the borrowed funds were not used for setting up of a new unit of an existing running business, but it was setting up of a new unit for production of an altogether new product, i.e., power; whereas the existing business of the assessee was production of lignite. Since this aspect is not fulfilled, even interest expenditure is not allowable under section 36(1)(iii).

(Please click here for judgment)     

 Golden Rules:

"One has to take care of his actions
because they will become his habits.
One has to take care of his habits
because they will form his character


  Thanks & Regards

  Team - Voice of CA 





« Back
Online Poll
Connect Us       New User?     Subscribe Now