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15.11.2014 - Voice of CA presents - Updates
Saturday, November 15, 2014

I.  Today's Headlines:    

  1. IT Noti. No. 70: Sec. 120(1) & (2) of the Icome Tax Act, 1961 - CBDT directs DGIT, Principal CITs, Chief CITs and CITs to exercise powers in respect of notified  (Click for detail)
  2. IT Noti. No. 69: Sec. 120(1) & (2) of the Icome Tax Act, 1961 - CBDT reconstitutes jurisdictions of Director General, Principal Directors and DITs (Investigations)  (Click for detail)
  3. IT Noti. No. 68: Sec. 118 of the Icome Tax Act, 1961 - Principal Directors General, CITs, Directors General and Chief CITs shall be subordinate to CBDT: FinMin  (Click for detail)
  4. IT Noti. No. 67: Sec. 120(1) & (2) of the Icome Tax Act, 1961 - CBDT empowers Principal Chief CIT, Chief CIT and CIT of International Taxation to distribute work amongst TPOs  (Click for detail)
  5. IT Noti. No. 65: Sec. 120(1) & (2) of the Icome Tax Act, 1961 - CBDT revises cases or classes of cases in respect of which CIT (Exemptions) can exercise powers  (Click for detail)
  6. IT Noti. No. 64: Sec. 120(1) & (2) of the Icome Tax Act, 1961 - CBDT directs ACITs and JCITs to exercise powers and perform functions of AOs in respect of notified jurisdictions  (Click for detail)
  7. IT Noti. No. 63: Bank Term Deposit (Amendment) Scheme, 2014 - Amendment in Para 3  (Click for detail)
  8. Ministry of Corporate Affairs has extended Company Law Settlement Scheme, 2014  till 31st Dec, 2014   (Click for detail)
  9. Ministry of Corporate Affairs provides clarity on foreign currency bond issuance  (Click for detail)
  10. Reporting on Internal Financial Control by auditors u/s 143 (3) (i) of the Companies Act, 2013 has been deferred for one year i.e., upto 31.03.2015  (Click for detail)
  11. Exemption from preparation of Consolidated Financial Statement by an Intermediate wholly owned subsidiary, other than a wholly owned subsidiary whose immediate parent is incorporated outside India and also to companies having only associates and joint ventures for one year  (Click for detail)
  12. HC quashes RBI communication on NBFC interest rate  (Click for detail)
  13. GST, insurance bill on the way, says Arun Jaitley  (Click for detail)
  14. Reforms on fast track, deal on GST close: Jaitley  (Click for detail)
II.  Direct Tax Case Law:

Asstt. CIT Vs. M/s The Upper India Chamber of Commerce, ITA No. 601/LKW/2011, Assessment Year 2008-09, Date of Pronouncement: 05.11.2014, ITAT - Lucknow

Whether the deeming fiction created by virtue of section 50C in determining capital gain can be extended to section 11(1A).


In brief, the assessee trust register u/s 12A of the Income Tax Act, 1961 and invested net consideration form transfer of capital asset in acquisition of new capital asset. However, the AO has made the addition by applying provisions of section 50C of the Act. The Hon’ble ITAT confirmed the order of CIT(A) wherein it was held that Section 11(1A) is a complete code which lays down a complete system of taxability of Capital Gains in respect of an institution registered u/s 12A. Furthermore the section 11(1A) has specifically defined the meaning of "net consideration" for the purposes of capital gains and so the same shall prevail over the deemed sale consideration as provided u/s 50C.

The provisions of section 50C create a limited fiction to the effect that the full Value of consideration shall be substituted in the provisions of section 48 by the amount taken by the sub-registrar for registration purposes. The fiction contained in section 50C cannot be applied for the purpose of section 11(1A). In view of this, what is relevant for the purpose of section 11(1A) is the reinvestment of the net amount actually realized and not any notional amount as may be adopted by virtue of sec. 50C.Therefore, the appeal of revenue is dismissed.

Refer case:  ACIT vs. Shri. Dwarikadhish Temple Trust, Kanpur in I.T.A. No. 256 & 257/LKW/2011

(Please click here for Judgment)


 Golden Rules:

  "Be Honest when in Poverty
Be Simple when in Wealth
Be Silent when in Anger
Be Polite when in Authority!"


  Thanks & Regards


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