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10.05.2013 - Voice of CA Presents - Updates
Friday, May 10, 2013

 I.  Today's Headlines:

  1. DVAT- Extention of Time for Furnishing of Reconciliation Return in Form DVAT - 51  (Click for detail)
  2. Service Tax Noti. No. 9: Service Tax to be paid on 25 per cent of value of residential properties in all other cases  (Click for detail)
  3. Pay more service tax on house costing over Rs 1 crore  (Click for detail)
  4. Central Excise Tariff Noti. No. 16: Jaggery Powder, Flattened Bamboo Boards, Bamboo flooring tiles subject to 2 per cent excise duty-roofing tiles, particle/fibre boards exempted from Excise  (Click for detail)
  5. State finance ministers to solve GST riddle from today  (Click for detail)
  6. Government reviews target of doubling exports by 2014  (Click for detail)
  7. China issues new rules targeting wealth management fund pools - sources  (Click for detail)

II.  Direct Tax Case laws:

1.   Bhagirath Aggarwal Vs.  CIT, ITA No. 28 of 2012, Judgment delivered on: 22.01.2013, Delhi High Court

Decision: In favor of Revenue

Section: 132 of Income Tax Act 1961

Cases Referred: 

1)    Ester Industries Ltd. v. CIT [2009] 316 ITR 260
2)     Pullangode Rubber Produce Co. Ltd. v. State of Kerala [1973] 91 ITR 18
Whether the ITAT was justified in law in reversing the decision of CIT(A) and sustaining the addition of `1,75,00,000 made solely on the basis of statements recorded at the time of search and as modified vide subsequent letter dated 09.01.2006 in the absence of any evidence including corroborative evidence discovered during the course of search ?

In the present case, the assessee had surrendered a sum of Rs 1 crores on 11.11.2005 for buying peace of mind and to avoid litigation and requested income tax department not to initiate any penalty proceedings against him. Subsequently after ten days during the further search operation the assessee made another statement where he surrendered an additional sum of Rs 75 lakh on 21.11.2005 on behalf of himself and family members and reiterated that no penal proceedings be initiated against him. On 09.01.2006 the assessee sent a letter to the department and contended that Rs 1.75 crores be bifurcated into sums 1.5 crores and 25 lakh, the former was according to assessee be treated as undisclosed income and latter be attributed in hands of family members and used the words “pending verification of such seized material”. The Tribunal held that it is not a case of retracted confession as his letter confirmed the earlier statements and also there was no allegation of threat or coercion.

The High Court held the decision in favor of Revenue and thus the case got dismissed.

(Please click here for judgment)

2.   Centre for Development of Telematics Vs. UOI AND ORS., W.P.(C) No. 9016 of 2011, Judgment delivered on: 19.03.2013, Delhi High Court

Decision: Writ Petition is disposed and handed over to Central Govt

Section: 35 of Income Tax Act 1961

Whether the petitioner Centre for Development of Telematics is a ‘scientific research association for the purposes of clause (ii) of sub section (1) of section 35 of the Income Tax Act, 1961 and if the petitioner is regarded as such a research association, any income of the petitioner would be not included in the total income by virtue of section 10(21) of the said Act?

In the present case, the assessee is aggrieved by the fact that it has been placed in second category of other institutions partly engaged in scientific research. According to petitioner it should be placed in former category of scientific research association as its sole object is to undertake research and said that it receives royalty and other fees which are ancillary to its sole object of undertaking research and ought to be in category of sec 35(1)(ii) of Act.

The HC observed that there is no clear cut position for determining this has been prescribed by the Central Government. The HC set aside the notification no. 12.04.2007 and directed the Central Government to decide this question within 3 months.

(Please click here for judgment)


III.  Tenders Info.:

  1. District Central Cooperative Bank Ltd.
    Expression of Interest for Chartered Accountant for Audit
    Katihar, Bihar
    (Click for detail)
  2. Housing And Urban Development Corporation Ltd.
    Appointment Of Chartered Accountants
    Bangalore, Karnataka
    (Click for detail)


 Golden Rules:

"Audience see a Joker as a comedian,
but the Joker see himself as a performer.
Life is also like a circus,
the way we see ourself,
may not be the way others see"


  Thanks & Regards


Voice of CA    



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