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05.06.2013 - Voice of CA Presents - Updates
Wednesday, June 5, 2013

 I.  Today's Headlines:   

  1. Income Tax Noti. No. 39: Income-tax (Fifth Amendment) Rules, 2013-Amends Rule 30 & 31 of Income Tax Rules-Form 16 B notified  (Click for detail)
  2. Income Tax Noti. No. 38: Income-tax (Fourth Amendment) Rules, 2013-6AAD. Guidelines for approval of agricultural extension project under section 35CCC  (Click for detail)
  3. Technical Guide on Internal/Concurrent Audit of Investment Functions of Insurance Companies (2013)  (Click for detail)
  4. Technical Guide on Review & Certification of Investment Risk Management Systems and Processes of Insurance Companies (2013) (Click for detail)
  5. Cabinet okays peace talks with Vodafone under Indian laws to break deadlock over Rs 20,000 crore tax dispute  (Click for detail)
  6. RBI: Circular No.107 - Import of Gold by Nominated Banks /Agencies  (Click for detail)
  7. Realty regulation Bill gets go-ahead  (Click for detail)
  8. Press Note No. 2: Foreign Direct investment Policy - definition of ‘group company’  (Click for detail)
  9. Govt considering raising FDI cap in defence  (Click for detail)
  10. SBI chief hopes for 0.5% rate cut in RBI policy review on June 17  (Click for detail)
  11. Cos. failing to meet public holding norm face stiff Sebi action  (Click for detail)

II.  Direct Tax Case laws:

1.   CIT Vs. Jain Esports Pvt. Ltd., ITA No. 235/2013, Date of decision: 24.05.2013, Delhi High Court

Decision: In favour of Assessee
Section: 41(1) of Income Tax Act, 1961
Assessment Year: 2008- 09

Cases referred:

1.    CIT v. Sugauli Sugar Works (P). Ltd.: [1999] 236 ITR 518 (SC)
2.    Bombay Dyeing and Manufacturing Co. Ltd.’ v. State of Bombay: AIR 1958 SC 328

Whether liability outstanding for several years amounts to cessation of liabilities on account of efflux of time?

Held No.

In order to attract the provisions of Section 41(1) of the Act, there should have been an irrevocable cession of liability without any possibility of the same being revived. As the assessee continued to acknowledge the credit balances in the subsequent period, there could be no cessation of its liability to pay the creditors.

(Please click here for judgment)

2.   CIT Vs. Sh. Rajnish Ahuja, ITA No. 27 of 2013 (O&M), Date of decision: 02.04.2013, Punjab & Haryana High Court

Decision: In favour of assessee
Section: 40A of Income Tax Act, 1961
Assessment Year: 2006-07

Whether sales made to sister concerns at lesser rate amounts to violation of any provision of law where such sister concern is paying tax in higher bracket.

Held No.

The provisions of Section 40-A of the Act could not have been invoked as no payment has been made to the sister concerns for any item of expenditure, which the assessee might have claimed as revenue expenditure. Further, a tax payer can manage his affairs to reduce tax liability within the frame work of law and that the sale of goods at a lesser price to the sister concerns than to the non-sister concerns, does not violate any provision of law.

(Please click here for judgment)       

III. Useful Article:

[ Contribution by CA Nitin Gupta and contributor is available at ]

Work Contract Service 

(Please click here)  



IV.  Tenders Info.:

  1. CAs for the Branch Audit for Financial Year 2013-14
    Housing & Urban Development Corp. Ltd. (HUDCO)
    Jaipur, Rajasthan
    (Click for detail)
  2. EOI for providing Tax Attorney & Chartered Accountant Services
    Department of Forest
    Dehradun, Uttrakhand
    (Click for detail)
  3. ETDS Returns, IT Return, Form 16, Form 16A, Service Tax detail etc.
    Gwalior Municipal Corporation
    Gwalior, M.P.
    (Click for detail)


 Golden Rules:

"A blind person asked God:
Can there be anything worse than losing eye sight?
God replied: yes, losing  vision


  Thanks & Regards


Voice of CA    



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