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13.02.2013 - Voice of CA Presents - Updates
Wednesday, February 13, 2013

 I.  Today's Headlines:

  1. DELHI VAT Notification - Regarding procedure and form for filing Audit Report  (Click for detail)
  2. Circular No. 5 - Last date for filing financial statements in XBRL mode further extended to 28-2-2013  (Click for detail)
  3. MCA Circular No. 3 - Relaxation of additional fees and extension of last date in filing of various forms  (Click for detail)
  4. Finmeccanica chopper deal to be scrapped if charges proven: AK Antony  (Click for detail)
  5. Budget 2013: UPA's fiscal mismanagement has weakened India's economy  (Click for detail)
  6. Budget 2013: FICCI proposes income tax exemptions for education sector  (Click for detail)
  7. Budget 2013: Exempt import of X-ray baggage inspection system from custom duty  (Click for detail)
  8. I-T officials violated the law: Nokia  (Click for detail)
  9. ICAI, RBI to soon discuss accounting standards for banking cos  (Click for detail)


II.  Useful Contrubitions:

[Contribution by CA Sandeep Garg and contributor is available at Mobile No. 9971133229 & Email-id: ] 

1.  A Useful Presentation - "HOW A BUDGET IS BORN"

(Click here for detail)  


  III.  Useful Case Laws: 

1.  CIT Vs. Mohmed Juned Dadani, Tax Appeal No. 964/967 of 2011, Date of Order: 29-01-2013, High Court of Gujarat

AO cannot assess other escaped income if original reason dropped u/s 147 of the Act.

Prior to the insertion of Explanation 3 to sec. 147 by the Finance Act 2009 w.r.e.f. 1.4.1989, it was clear that if the reason for which the assessment is reopened fails, the AO could not proceed to assess other income which had escaped assessment. For assuming jurisdiction to frame an assessment u/s 147 what is essential is a valid reopening. If the very foundation of the reopening is knocked out, any further proceeding in respect to such assessment naturally would not survive. Explanation 3 to sec. 147 does not change this position. Explanation 3 to sec. 147 was inserted to counter the view taken by some courts (Atlas Cycle Industries 180 ITR 319 (P&H) & Travancore Cements 305 ITR 170 (Ker)) that even if the jurisdiction was validly exercised, the AO could not assess the other escaped income that was not referred to in the reasons. It merely clarifies the existing law and does not expand the powers of the AO u/s 147. If the AO drops the ground for which the notice for reopening was issued, it means he had no “reason to believe” that income had escaped assessment and so he has no jurisdiction to assess the other escaped income.

(Please click here for judgment)

2.  CIT Vs. Ashok Mittal, ITA No. 26/2013, Judgment delivered on: 07.02.2013, High Court of Delhi

First to setting-off the carry forward speculative losses against the speculative profit and then set-off the business losses to the extent of the balance speculation profit and other income.

As per the Boart Circular No.23D of 1960 dated 12.9.1960 issued by the Central Board of Direct Taxes which conceded that speculation losses carried forward from previous years may be first set off against the speculation profits before being set off against any other current profits, if that procedure is more beneficial to the assesses and decision of Hon’ble Calcutta High Court in the case of CIT vs. New India Investment Corporation Ltd. (1994) 205 ITR 618, referred by the Ld. Commissioner of Income Tax (Appeals), it is evident that carried forward speculation losses have to be adjusted against the speculation profit before allowing any other loss to be adjusted against those profits and other incomes.

(Please click here for judgment)


 Golden Rules:

"Bath purifies body,
meditation purifies mind,
prayer purifies soul,
charity purifies wealth,
fast purifies health and
forgiveness purifies relations"


  Thanks & Regards


Voice of CA    




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