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24.01.2013 - Voice of CA Presents - Updates
Thursday, January 24, 2013

I.  Headlines Today: 

  • Budget 2013: Five challenges for Finance minister  (Click for detail)
  • Budget 2013: Govt mulls higher tax exemption on savings schemes & tax savers to wean away investors from gold  (Click for detail)
  • Financial institutions battle royalty squeeze of HUL, others  (Click for detail)
  • More policy reforms in next couple of months: Kamal Nath  (Click for detail )
  • Aadhaar now must for new PF accounts  (Click for detail)
  • Deutsche Bank, Morgan Stanley offering 1-crore-plus salary at IIMs, e-comm firms stay lukewarm  (Click for detail)


II.  Useful Contrubitions:

1.  [Contribution by Respected Central Council Member CA Rajkumar S. Adukia Ji ]

A Useful Presentation on "Knowledge Reservoir on Agriculture & Allied Sectors and Role of Chartered Accountants"

(Please click here)


 III.  Useful Case Laws: 

1.  M/s I.C.D.S. Ltd. Vs. CIT, Civil Appeal No. 3282/2008, Date of Order: 14-01-2013, Supreme Court of India

Vehicle financier eligible for depreciation on vehicle not registered it its name.

Moto Vehicle Act mandates that during the period of lease, the vehicle be registered, in the certificate of registration, in the name of the lessee and, on conclusion of the lease period, the vehicle be registered in the name of lessor as owner. The Section leaves no choice to the lessor but to allow the vehicle to be registered in the name of the lessee Thus, no inference can be drawn from the registration certificate as to ownership of the legal title of the vehicle; and (iii) if the lessee was in fact the owner, he would have claimed depreciation on the vehicles, which, as specifically recorded in the order of the Appellate Tribunal, was not done.

It would be a strange situation to have no claim of depreciation in case of a particular depreciable asset due to a vacuum of ownership. As afore-noted, the entire lease rent received by the assessee is assessed as business income in its hands and the entire lease rent paid by the lessee has been treated as deductible revenue expenditure in the hands of the lessee. This reaffirms the position that the assessee is in fact the owner of the vehicle, in so far as Section 32 of the Act is concerned.

(Please click here for judgment)

2.  CIT Vs. Avinash Jain, ITA No.703/2012, Judgment delivered on: 09-01-2013, High court of Delhi

Whether short Term capital gain and long term capital gain can be treated as business income?

In view of on the CBDT circular No.4/2007 dated 15.06.2007 as also upon decisions of the Supreme Court in the cases of CIT Vs. Associated Industrial Development Co. (P) Ltd. 82 ITR 586 (SC) and CIT Vs. H.Holck Larsen : 160 ITR 67 (SC).  Held that if assessee has maintains two types of portfolios in their books of accounts - one on account of investment and the other on account of trading. It is not the case that the assessee started these activities in the year under consideration. The practice is supported by earlier years also which is not disputed. The department has earlier accepted the assessee's practice and treatment under heads of capital gains and business. Assessee's separate activities in share are further supported and endorsed by the fact that separate de mat accounts, bank accounts are being maintained and separate trading account and investment accounts ae(sic) maintained in the books. Under these circumstances it leaves no room for doubt that the assessee was dealing in different activities of trading and investment.

(Please click here for judgment)            

 Golden Rules:

"Never design your character like a garden
where anyone can walk.
Design it like the sky
where everyone aspires to reach


  Thanks & Regards

  Team - Voice of CA    



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