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26.02.2013 - Voice of CA Presents - Updates
Tuesday, February 26, 2013

 I.  Today's Headlines:

  1. Rail Budget 2013: Highlights  (Click for detail)
  2. Service Tax Noti. No. 1 - ST- 3 for the period between the 1st day of July 2012 to the 30th day of September 2012, to be submitted by the 25th day of March, 2013  (Click for detail)
  3. Central Excise Noti. No. 2 - Exempts the goods when cleared against a Post Export EPCG duty credit scrip  (Click for detail)
  4. Central Excise Noti. No. 3 - Exempts the goods when cleared against a Post Export EPCG duty credit scrip (3% EPCG variant)  (Click for detail)
  5. Fact box: Expectations from 2013-14 Union Budget  (Click here for details)
  6. More corporate gloom for FY13 in CII survey  (Click here for details)
  7. Start-up units likely to get complete tax exemption  (Click here for details)
  8. Indian banking sector to see revival in FY15, says S&P  (Click here for details)

  II.  Useful Case Laws: 

1.   Smt. Asha George Vs. ITO, IT Appeal No. 114 OF 2012, Date of Pronouncement: 16.01.2013, High Court of Kerala

S. 54F Value of entire land apartment to building purchased cannot be considered for exemption

Section 54F is intended to encourage construction of or acquisition of residential house with the aid of the proceeds from the transfer of any long term capital asset, which is not a residential house. The provision contemplates computing the cost of the residential building, but the value of the plot on which the farm house stands and the land appurtenant could also be considered.

We are unable to accept the contention of the appellant that the value of the entire land must be considered in arriving at the value of the residential building. We find no illegality committed by the tribunal. It is not open to the appellant to invoke Section 54B of the Act in regard to the rest of the land at Koothattukulam. This is for the reason that the appellant has not been able to satisfy the requirements of Section 54B as already noted by us in regard to the land at Ayyanthole. Therefore, at any rate, there can be no basis for invoking Section 54B of the Act for deducting the value of the land purchased at Koothattukulam.

(Please click here for judgment)


2.  Manjit Singh Vs. Dy. CIT, IT Appeal No. 1037 (CHD.) OF 2011, Date of order: 28-09-2012, ITAT Chandigarh

Value recorded in registered sale deed cannot be sole basis for determining FMV

The ITAT, Chandigarh ‘B’ Bench in the case of Smt. Baljinder Kaur (supra) held that it is well settled that the concept of ‘Fair Market Value’ envisages existence of a hypothetical seller and a hypothetical buyer in a hypothetical market. Therefore, intrinsically speaking, the determination of ‘Fair Market Value’ of a capital asset as on 1st April, 1981 would involve an element of estimation based on relevant factors. An ‘Agreement to Sell’ is a relevant factor in determination of ‘Fair Market Value’, as on 1.4.1981, in the present appeal.

(Please click here for judgment)


 Golden Rules:

"Life is a song - sing it.
Life is a game - play it.
Life is a challenge - meet it.
Life is a dream - realize it.
Life is a sacrifice - offer it.
Life is love - enjoy it


  Thanks & Regards


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