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10.01.2013 - Voice of CA Presents - Updates
Thursday, January 10, 2013

I.  Headlines Today: 


IITender Info.:

  • South Asian University (SAU)
    CA Firms of Global/Regional Repute to Conduct the Statutory Audit
    New Delhi
    (Click for detail)


III.  Useful Contrubitions:

[ Contribution by CA Manoj Kumar Gupta and contributor is available at ] 

1.  An article - "Quassi Capital Scheme by Government Of India To Flourish Agri-business"

(Click here for detail)  


 IV.  Useful Case Laws: 

1.   CIT Vs. Gulshan Mercantile Urban Co-Operative Bank Ltd., IT Appeal No. 429 of 2009, Dated: 07-11-2012, High Court of Allahabad

Deduction u/s. 80P available on Interest earned on deposits of non-statutory liquid ratio funds.

The question as to whether the business is derived from or attributable to SLR or non-SLR funds would not make any difference for the purposes of qualifying the interest earned by the cooperative bank under Section 80P(2)(a)(i) as the deposits of surplus idle money available from working capital, including reserves, excess collection of interest tax and other incomes are all attributable to the business of banking. The interest from such deposits cannot be said to be beyond the legitimate business activities of the bank.

For the aforesaid reasons, we do not find that the Income Tax Appellate Tribunal committed any error in arriving at findings that the interest are not deposits of non-SLR funds and the cooperative bank will qualify for exemption under Section 80P(2)(a)(i) of the Act.

(Please click here for judgment)

2. M/s Synopsys International Vs. Dy. CIT, ITA No. 549/Bang/2011, Date of Pronouncement: 10.12.2012, ITAT- Bangalore

Sec. 147 Supply of recorded reasons after passing reassessment order renders the reopening void

The undisputable facts on record establish beyond doubt that the reasons recorded for initiation of proceedings under section 147/148 of the Act were never furnished to the assessee by the Assessing Officer before completion of the assessment proceedings. Recorded reasons  furnished   to the assessee by the learned CIT(A) after assessment proceedings does not achieve any purpose or mitigate the illegality of the action of depriving the assessee its right to raise objections against the initiation of proceedings under section 147/148 of the Act. In this view of the matter, we hold that the order of assessment passed under section 143(3) rws 148 of the Act, without  furnishing the recorded reasons for initiation of proceedings under section 147/148 of the Act to the assessee within reasonable time and prior to the completion of the assessment proceedings, renders this order of assessment invalid and unsustainable in law.

(Please click here for judgment)


 Golden Rules:

"What is Easy & Difficult in Life?
Easy is to Judge the Mistakes of Others.
Difficult is to Recognize & Accept our Own Mistake


  Thanks & Regards

  Team - Voice of CA 





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