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29.05.2013 - Voice of CA Presents - Updates
Wednesday, May 29, 2013

 I.  Today's Headlines:   

  1. Goods and services tax to be in place by 2014: Prime Minister  (Click for detail)
  2. Tax officials should target those who are not filing returns: P Chidambaram, Finance Minister  (Click for detail)
  3. Total overhaul of existing financial system needed  (Click for detail)
  4. Guidelines on appointment of statutory auditors in public sector banks  (Click for detail)
  5. BSE awaits Sebi nod to start debt trading platform  (Click for detail)
  6. RBI wants stricter norms for gold import firms  (Click for detail)
  7. ICAI invites applications from highly competent candidates for the positions of Secretary, Technical Director, Director (Taxation) and Academic and Technical Resources at all levels  (Click for detail)
II. Useful Article:

[Contribution by CA Madhukar Hiregange, Former CC Member and contributor is available at]

An Article - Impact of Service Tax on different Audits 

(Please click here)  


III. Useful Presentation:

[Contribution by CA Sanjeev Soota and contributor is available at]

e-filing of Income Tax returns - An Overview 

(Please click here)


IV.  Direct Tax Case law:

M/s Bharat Ginning & Pressing Factory Vs. ITO, ITA Nos. 2404-2408/Ahd/2007, Date of Decision: 12.04.2013, ITAT- Ahmedabad


Decision: In favour of revenue

Section: 153C of Income Tax Act, 1961

Case referred: CIT vs. Panchajanyam Management Agencies & Services [2011] 333 ITR 281 (Ker.)

Whether separate satisfaction is required to be recorded in order to intiate proceedings u/s 153C where books of account of firm are found at the premises of partner.

Held No, for initiating proceeding u/s.153C of the Act where books of account of firm are found and seized from the search place of the partner of the firm, it is not necessary that these books of account should be incriminating. The A.O. is fully empowered to initiate proceeding u/s. 153C of the IT Act against the firm i.e. other person. No separate satisfaction is required to be recorded.


Decision: In favour of revenue

Section: 45(4) of Income Tax Act, 1961

Case referred: CIT v A. N. Naik Associates [2004] 265 ITR 346 (Bom.)

Whether section 45(4) of the Act is attracted in case of retirement and admission of some partners even though the same firm continues.

Held Yes, the expression ‘otherwise’ as used in section 45(4) of the Act has to be read with the words transfer of the capital assets. It becomes clear that even when a firm is in existence and there is a transfer of capital assets, it comes within expression ‘otherwise’. The word ‘otherwise’ takes into sweep not only cases of dissolution but also cases of subsisting partners of partnership transferring assets to a retiring partner.

In this case, there was a family settlement and there was a retirement as well as induction on a new partner and assets of the partnership transferred to the retiring partner would amount to the transfer of capital assets in the nature of capital gain and business profit which were chargeable to tax u/s.45(4) of the IT Act.

(Please click here for judgment)   


V.  Tenders Info.:

  1. HUDCO (A Government of India Undertaking)
    Chartered Accountant Firm for certification of accounts
    (Click for detail)
  2. Land Development And Water Resources Department
    Chartered Accountants for Audit work
    (Click for detail)


 Golden Rules:

"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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