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08.06.2015 - Voice of CA presents - Updates
Monday, June 8, 2015

I. Headlines Today:    

  1. MCA Notification issued providing exemptions to S. 8 (Non Profit) companies u/s 462 of Companies Act  2013  (Click for detail)
  2. MCA Notification issued providing exemptions to private companies u/s 462 of Companies Act  2013  (Click for detail)
  3. CBDT to field officials: Check bank, property details during assessment  (Click for detail)
  4. CBDT: Instil fear of jail and social censure in tax evaders  (Click for detail)
  5. Govt relaxes norms pertaining to related party transactions for private companies  (Click for detail)
  6. Rajya Sabha panel to hear GST concerns on 16 June  (Click for detail)


II.  Useful Article:

1.  Changes in Cenvat Credit Rule 4(1) and Rule 4(7) from  01.03.2015 and its applicability  with respect to Point of Taxation- Rule 7

(Please click here for detail)

[ Contribution by CA. Sanjeev Singhal; and contributor is available at ]


III.  Direct Taxes Case Laws:

1.  DCIT Vs. Page Point Service (India) Pvt. Ltd., I.T.A. No. 3984/Del/2013, Date of Order: 22.05.2015, ITAT - Delhi

Whether the CIT(A) has erred in deleting the additions  made by the Assessing Officer on account of late deposit of employee's contribution towards provident fund in view of the provisions of section 2(24)(x) read with section 36(1)(va) of the Income tax Act, 1961.

Held No.

The disallowance is not made by the AO on the ground that there is no proof of making such payment but disallowance is made only on the ground that these payments have been made beyond the due dates of making these payments as stipulated under the respective statute. Thus, it was not an issue that the payments were not made by the assessee on the dates which have been stated to be the dates of deposits in the assessment order. In such a scenario, according law clarified by Hon'ble Supreme Court in the case of CIT Vs Vinay Cement Ltd, that no disallowance could be made if the payments are made before the due date of filing the return of income.

(Please click here for judgment)

2.  M/s Marvel Chemicals (I) Ltd. Vs. DCIT, I.T.A. No. 1324/Del/2013, , Date of Order: 22.05.2015, ITAT - Delhi

Whether the provisions of section 271(1)© shall apply under circumstances where S. 271AAA prevails.

Held No.

It was submitted that section 271AAA of the Act has been inserted w.e.f 01.04.2007 and Sub-section (3) of the said section provides that no penalty under the provisions of clause (c) of Sub-section (1) of section 271 of the Act shall be imposed upon the assessee in respect of undisclosed income where search has been initiated u/s 132 of the Act on or after the 1st day of June, 2007. It was further submitted that the penalty was not leviable u/s 271(1)(c) of the Act because the search took place on 04.09.2008 and that the penalty, if any was to be levied, it was leviable u/s 271AAA of the Act. It was contended that in the instant case no penalty was leviable as per the provisions of Sub-section (2) of section 271AAA of the Act because the assessee substantiated the manner in which the amount on account of share capital was received and gave all the information during the course of assessment proceedings, therefore, the penalty u/s 271(1)(c) of the Act levied by the AO and sustained by the ld. CIT(A) was not justified.

(Please click here for judgment)     

IV.  Company Law Matters:

1.   M/s. K Sera Sera Digital Cinema (P.) Ltd. Vs. Digital Cinema Initiatives, Case No. 30 of 2015, 22.04.2015, Competition Commission of India

Section 4, read with section 3, of the Competition Act, 2002 - Prohibition of abuse of dominant position OPs had not contravened sections 3 and 4 Where informant filed complaint against OP for releasing their movies in India only through Digital Cinema Initiatives (DCI) compliant servers and projectors and DCI compliant was found to be better than non-DCI compliant format.  

(Please click here for judgment)


V.  Reported Cases:

Direct Taxes Segment:

1.   Where the entire amount of expense was paid by the assessee during the relevant financial year and nothing remained payable/outstanding on the last day of the relevant previous year, the provisions of section 40(a)(ia) will have no application. 

2.  TDS on payments made to non-residents can be deducted as per rate prescribed in DTAA and provisions of section 206AA cannot be invoked,  who did not furnish their PAN.
(Please click here for detail)


 Golden Rules:

  "A paper is flying in the air due to luck.
But a kite flying in the air is due to efforts.
So don't worry, if luck doesn't support efforts are always yours


  Thanks & Regards


Voice of CA

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