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16.04.2013 - Voice of CA Presents - Updates
Tuesday, April 16, 2013

 I.  Today's Headlines:

  1. Service Tax Circular No. 168: Tax on service provided by way of erection of pandal or shamiana  (Click for detail)
  2. IRDA issues Standard proposal form for Life Insurance Regulations  ( Click for detail)
  3. FM: India committed to reducing fiscal deficit  (Click for detail)
  4. FM: Government considering freeing oil, gas price controls  (Click for detail)
  5. Supreme Court orders banks to deposit Rs.400 Crores in BCCI-Nimbus case  (Click for detail)
  6. Can't furnish employee's bank statement in court case  (Click for detail)
  7. Revised Announcement for Empanelment as a Technical Reviewer with the Quality Review Board  (Click for detail)

II.  Useful Contrubitions:

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

1.  A Useful Update - "New Forms for filing appeal under the Customs, Excise and Service tax laws w.e.f 1-6-2013"

(Please click here)


III.  Direct Tax Caselaws:

1.   CIT Vs. MAK Data Ltd.,  ITA No. 415/2012, Date of decision 22.01.2013, Delhi High Court

Whether the voluntary surrender of income for taxation by the assessee without any supporting evidences is liable for penalty u/s 271(1)(c)?

Held Yes:

where the amount is merely offered for taxation with no underlying explanation as to its source, it could not be considered as voluntary and thereby attracts the clause A of Explanation 1 to section 271(1)(c).

(Please click here for judgment)

2.  CIT Vs. Sahu Enterprises Pvt. Ltd., ITA No. 43 OF 2006 Date of decision 20.02.2013, Allahabad High Court

Whether the interest paid on borrowed funds, advanced to the sister concern/ directors and their family members for non-business purposes is eligible for deduction u/s 36(i)(iii) of Income Tax Act, 1961?

Held No, where the borrowed funds were advanced to the sister concerns/ directors of the assessee for personal purposes without any interest, interest on borrowed capital is not allowable u/s 36(1)(iii) of the Act.
In the instant case, the assessee could not produce any evidences with respect to the advances that they were made for business purposes. Neither was any efforts made by the directors for repayment nor was any efforts made by the assessee for recovery of the same. Moreover, since a heavy amount of borrowed funds was advanced for personal use without any interest, it enhanced the loss of the assessee and therefore, the return of income were filed by showing loss. As the intention of the statute in allowing the deduction of interest paid u/s 36(i)(iii) is not met, the same was disallowed by the Hon’ble High Court.

(Please click here for judgment)


IV.  Tender Info.:

  • Uttarakhand Environment Protection & Pollution Control Board
    Chartered Accountant Firm for Internal Audit
    Multi Location - Uttarakhand
    (Click for detail)


 Golden Rules:

"Heated gold becomes ornament, 
Beaten copper becomes wires,
Depleted stone becomes statue,
So, more pain get in life
Become more valuable & experienced


  Thanks & Regards


Voice of CA    




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