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06.04.2013 - Voice of CA Presents - Updates
Saturday, April 6, 2013

 I.  Today's Headlines:

  1. Russian financial scheme for rural India  (Click for detail) 
  2. US would dominate the 21st century economies  (Click for detail)
  3. Increasing foreign equity cap deciding factor for Free Trade Agreement with EU  (Click for detail)
  4. FDI boosters on cards  (Click for detail)
  5. CCI gives cos more room to change internal setup  (Click for detail)
  6. How banks and funds are gaming money markets in India  (Click for detail)
  7. Four key events to watch out next week  (Click for detail)

II.  Useful Contrubitions:

[Contribution by CA Bimal Jain and contributor is available at] 

1.  An Analysis - "CBEC should withdraw draconian circular ‐ Recovery proceedings during pendency of stay application"

(Please click here)


2.  FAQ on Service Tax Voluntary Compliance Encouragement Scheme, 2013 (“VCES”)

(Please click here)


III.  Direct Tax Caselaws: 

1.   The CIT, Dehradun Vs. Uttarakhand Voluntary Health Association, Dehradun, Income Tax Appeal No. 92 of 2007, Date of decision 12.03.2013, Uttarakhand High Court

Whether the application for registration of trust or institution can be rejected by examining the application of income at the time of registration.

In the present case, the application for registration was cancelled as a result of examination of application of income which were found to be non- charitable in nature by the CIT. Later Appellate tribunal heard the appeal and reached the decision that CIT has no power to examine the application of income apart from the prescribed manner for application and the objects of such trust or institution which must be charitable in nature only. The examination of application of income can be made by a AO only and thus the decision got in favour of the assessee. The arguments were later supported by the High Court and thus the appeal was dismissed.

(Please click here for judgment)

2.  The CIT, Patiala Vs. Consumer Health Care Ltd., ITC No. 41 of 1999, Date of decision 18.03.2013, Punjab & Haryana High Court

Whether the deduction u/s 80M be worked out after reducing the interest incurred for earning of dividend by Appellate tribunal is right in law.

In the present case, the Appellate tribunal directed that the interest paid for the loan availed only for generating the dividend income should be deducted alone for reaching the correct (net) dividend income and not the entire interest paid during the year by the assessee should be deducted. The High Court reached to the same conclusion and thus the case rests dismissed.

(Please click here for judgment)   


 Golden Rules:

"Truth is always like oil in water, 
no matter how much of water you add. 
It always floats on top....


  Thanks & Regards


Voice of CA    




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