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07.06.2013 - Voice of CA Presents - Updates
Friday, June 7, 2013

 I.  Today's Headlines:   

  1. Notification No. 40: Cost Inflation Index-2013-14  (Click for detail)
  2. Custom Noti. No. 59: Containing rates of exchange applicable from 07.06.2013  (Click for detail)
  3. New FDI rules a setback for foreign, local retailers  (Click for detail)
  4. P Chidambaram unhappy with Pranab Mukherjee's Direct Tax Code bill  (Click for detail)
  5. FinMin for independent CDR oversight body  (Click for detail)
  6. Finance Ministry: Rotate customs, central excise officers every 2 years  (Click for detail)
  7. Ambani brothers strike Rs 120 billion telecom tower pact  (Click for detail)
  8. LIC planning to invest Rs 2.25 lakh crore this year  (Click for detail)

II.  Direct Tax Case laws:

1. Asstt. CIT Vs. Dr. S. Balasundaram, ITA No. 1832/Mds/2012, Date of pronouncement: 27.05.2013, ITAT - Chennai

Section: 54B of Income Tax Act, 1961
Assessment Year: 2009-10

Issue 1:

Whether benefit u/s 54B of the Act can be claimed where new agricultural land is purchased prior to transfer of previously owned agricultural land?

Held Yes,

The assessee cannot be deprived of benefit u/s 54B of the Act where other conditions are fulfilled and sale & purchase of agricultural land is not disputed by the AO even though the land has been purchased prior to execution of sales deed. In the instant case, substantial amount of consideration and possession were transferred before executing sale deed and the new land was purchased with such amount.

The intention of the Legislature is that the assessee has to use the sale consideration for the purpose of buying agricultural land and the contention of AO that benefit is only available for subsequent purchase within a period of two years from sale of land was held to be only a hyper technical objection.

Issue 2:

Whether granting relief to assessee on account of additional evidences produced by him without giving an opportunity to the Assessing Officer amounts to violation of Rule 46A of the Income Tax Rules.

Held Yes,

Rule 46A of the Income Tax Rules elucidates that before any additional evidence is accepted, the other party has to be given an opportunity of hearing. Since, in this case, opportunity of being heard was not provided to AO for development expenses, order of CIT (A) was set aside and remitted back the matter for re- examination. 

(Please click here for judgment)

2.  CIT Vs. M/s Delhi Press Patra Prakashan, ITA No. 1732/ 2006, Date of judgment 31.05.2013, Delhi High Court

Decision: In favor of assessee
Section: 80IA & 80IB of Income Tax Act, 1961
Assessment Year: 1997- 98 to 1999- 00, 2003- 04 & 2004- 05

Whether the expenditure incurred by a unit can be reallocated to another unit engaged in job work and claiming deduction u/s 80IA and 80IB, as the case may be, merely because the profits were significantly higher than profits earned by the assessee from other units.

Held : No,

In the instant case, the assessee being an industrial undertaking engaged in the business of publication and printing of newspapers and periodicals. The AO has reallocated the expenses incurred by a unit engaged in publishing to a unit engaged in printing work merely on the contention that the profits were inflated and the printing unit charged a lower amount for the work assigned. The Hon’ble High Court held that, since there is no material to support the view that the job work charges charged by printing Unit were not at market rates. Thus, expenses related to the printing work carried on by the printing unit are liable to be deducted from the job charges to arrive at the profits eligible for deduction under Section 80-IA or 80-IB of the Act, as the case may be.

(Please click here for judgment)      

III. Useful Article:

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

"Reverse- Joint Charge Under Service Tax- Possible Way Out" 

(Please click here)  


IV.  Tenders Info.:

  1. Panel of CA for Auditing Funds of HQs/Units of Delhi Area
    Office Of The Commandant Central Vehicle Depot
    New Delhi
    (Click for detail)
  2. CA Firm for Conducting Internal Audit
    Security Printing & Minting Corporation of India Ltd.
    New Delhi
    (Click for detail)   
  3. CA firms eligible for PSU audits for 2012-13/2013-14
    Department of AYUSH
    New Delhi
    (Click for detail)


 Golden Rules:

"Man made money,
but money made the man mad.
Brilliants do not make mistakes,
but mistakes make brilliants..


  Thanks & Regards


Voice of CA



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