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14.05.2014 - Voice of CA presents - Updates
Wednesday, May 14, 2014

  I. Today's Headlines:    

  1. FinMin: Budget will address Shome panel's tax concerns  (Click for detail)
  2. FM urges Switzerland to ratify signed Multilateral Convention on Mutual Administrative Assistance in Tax Matters  (Click for detail)
  3. FinMin gets Tough on Loan Defaulters  (Click for detail)
  4. Sebi notice to Delhi resident for buying over Rs 2,000 crore shares  (Click for detail) 
  5. Filing tax returns? Ways to avoid errors or invite a tax notice  (Click for detail)

II.  Direct Tax Case laws:

Assistant Commissioner of Income Tax Vs. South West Port Ltd., ITA No. 84 of 2013, Date of Order: 07.02.2014, Panaji – Trib

Once it is held that the assessee had set up the business during the year, the profit and loss account had to be prepared in accordance with Part II & III of Schedule VI of the Companies Act and has to be certified by the auditor.

Both the terms 'commencement of business' and 'set-up of business' are different. Under the Act, once business is set-up, the income earned by the assessee is chargeable to tax and it cannot be regarded that no business profit is earned. Thus, the company must prepare its Profit and Loss account for the impugned assessment year in accordance with the provisions of Part II and III of Schedule VI to the Companies Act and whatever profit is arrived at in the profit & loss account, the said profit will be their book profit subject to the adjustment to be made under Explanation 1 to section 115JB.

(Please click here for judgment)

 Golden Rules:

  ""Truth" is like surgery,
It hurts but it cures and
"Lie" Is like a pain killer,
It gives relief but has
its side effects later"


  Thanks & Regards


Voice of CA 

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