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13.06.2013 - Voice of CA Presents - Updates
Thursday, June 13, 2013

 I.  Today's Headlines:   

  1. ICAI clarification regarding Bank Branch Audit Limit - still 20 crore and not 50 crore  (Click for detail) 
  2. IT Noti. No. 41: IT (Sixth Amendment) Rules, 2013 - Amendment in Rule 10A, 10AB, 10B, 10C, 10D & 10E and Substitution of Form No. 3CEB  (Click for detail)
  3. IT Noti. No. 42: IT (Seventh Amendment) Rules, 2013 - Amendment in Rule 12 & Substitution of Forms ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 AND ITR-7  (Click for detail)
  4. Clarification regarding Submission of Form DP-1  (Click for detail)
  5. Clarification on SEBI's Circular providing for the Manner of dealing with Audit Reports filed by listed companies  (Click for detail)
  6. FM: FDI, FII reforms on the anvil  (Click for detail)
  7. FM to meet PSU bank chiefs, will persuade them to cut interest rates  (Click for detail)
  8. Cabinet defers Food Bill Ordinance; eyes special session of Parliament  (Click for detail)

II.  Direct Tax Case laws:

1.    Dynatron Private Limited Vs. Dy. CIT, I.T.A. No. 2415/Mum/2011, Date of pronouncement: 29.05.2013, ITAT - Mumbai

Decision: In favor of assessee
Section: 40(a)(ia) r.w. 271(1)(c) of Income Tax Act, 1961
Assessment Year: 2003- 04

Whether late payment of TDS on payment made to non- residents would amount to disallowance of such payment u/s 40(a)(ia) of the Act and thereby attracts penalty u/s 271(1)(c) of the Act?

Held No

Penalty u/s 271(1)(c) of the Act cannot be levied merely on the basis of late payment of TDS, only the payment may be allowed in the succeeding year. The assessee unintentionally did not deduct TDS on payment made to a non- resident. Later, during tax audit it came to knowledge of the assessee that TDS was to be deducted and paid to Govt., which was later paid accordingly before the due date of filing of return. Also correct particulars were disclosed in the ROI.

(Please click here for judgment)

2.   M/s Vijai Electricals Ltd. Vs. Addl. CIT, ITA No. 842/HYD/2012, Date of pronouncement:  31.05.2013, ITAT - Hyderabad

Decision: In favor of assessee
Section: 92A & 92B of Income Tax Act, 1961
Assessment Year: 2007- 08

Whether investment made in share capital of subsidiaries outside India are in the nature of international transaction u/s 92B of the Act?

Held No

The assessee during a year made an investment in share capital in its subsidiaries outside India, which CIT, considered as International transaction as per section 92B and AO was asked to refer to TPO, to examine whether the transactions took place the arm’s length price. The Appellate Tribunal allowing the appeal and setting aside the order of CIT u/s 263 held that investment in share capital of the subsidiaries outside India are not in the nature of transactions referred to section 92-B of the IT Act and the transfer pricing provisions are not applicable as there is no income.

(Please click here for judgment)  

III. Useful Articles:

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

"Best Practices - Reply to Show  Cause Notice - Service Tax" 

(Please click here)


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

Reverse Charge With Relevant POPS Rules 

(Please click here)


 Golden Rules:

"Always take risks in your life.
If you win you can lead and
if you lose you can guide - Vivekananda


  Thanks & Regards


Voice of CA




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