Friday, 25 September 2015
CBEC has issued a circular on 21-09-2015, directing field officers not to follow the CBEC circulars contrary to the judgement of supreme court. The Board has quoted Supreme Court Judgement in Rattan Meltings which says that circular only represent department's understanding of the law, while power to declare the law is vested with Supreme Court only under Article 141. Board has also urged to start the process of referring such circulars to Board so that they may be declared non est. The board may suo moto also take such action.
Compensation of Rs. 1.95 crores received by prospective employee for not joining the employment held not taxable. Also held not covered by Section 17(3)(iii) "profits in lieu of salary" which includes any amount due to or received, whether in lump sum or otherwise, by any assessee from any person before his joining any employment with that person or after cessation of his employment with that person. Further not held taxable as income from other sources- Pritam Dass Narang [2015] 61 taxmann.com 322 (Delhi) SEPTEMBER 16, 2015
1. Depreciation of business and administrative expense to be allowed for business suspended due to govt orders but not discontinued. 2. Interest income from margin money and bank guarantee deposits to be set off against expenses and not to be treated under Income from other sources- .MS. ASSOCIATES vs.ASSISTANT COMMISSIONER OF INCOME TAXSep 21, 2015(2015) 45 CCH 0069 DelTrib
Notice u/148 issued to address in PAN data base which is no longer occupied by assessee. Assessee not precluded from pleading that notice served to wrong address. Also even if assessee participates in reassessment proceedings , the Jurisdictional defect does not get cured.IN THE HIGH COURT OF DELHI AT NEW DELHI 2. + ITA 665/2015 ATLANTA CAPITAL PVT. LTD.
Matters which are not covered by notified standards u/s 145(2) and are also not covered by provisions of income tax law can be interpreted as per non notified standards or guidance notes of ICAI although not mandatory in nature- Held by AP High Court in Pact Securities on 05-02-2015 ITA 252/2003. The Court allowed deduction of lease equalization charges as per Guidance Note issued by ICAI applicable before 01-04-2001
Refund of excess salary which was granted in earlier years is deductible because the assessee is under legal obligation to repay the amount. Ahmadabad Trib. lays down that salary “due” and not salary “accrued” or “arising” is sought to be taxed u/s 15. The legislature has intentionally used the words “due” and not “accrued”. -Vrajeshwari B. Parikh 15-09-2015 ITA 1512/2014
Section 40(a)(ia) 2nd Proviso Inserted by Finance Act wef AY 2013-14 abating TDS disallowance on production of CA certificate attesting payment of tax and filing of return by deductee which was held applicable with retrospective effect by Agra Bench in Rajiv Kumar Agarwal ITA PGB/2013 and confirmed by ITAT Delhi in Ansal Land Mark Township P Ltd also upheld by Delhi High court in ITA 161/2015 dated 26-08-2015. High Court praised ITAT for thorough analysis on the subject
TAT withdraws adverse remark against ICAI and its members in Vijay V. Meghani [2015] 61 taxmann.com 114 (Mumbai - Trib.) 04-09-2015
Para 9.6 of the order amended to substitute following remarks: However, if it is considered for a moment that the above said C.A. firm has really given such advice to the assessee herein and accordingly it has furnished the letter and affidavit, then it is a cause of concern to one and all. We have already noticed that the self study model coupled with "on-site articled clerk training" embedded in the Chartered Accountancy course aims to achieve high quality education and training .
CBDT Instructions no. 1916 dated 11-05-1994, requiring non seizure of jewellery to the extent of 500 gms for married lady, 250 gms for unmarried lady and 100 gms for male to be extended to assessment proceedings also and to be treated as explained income . The circular also explained by Hon'ble Ahmedabad I.T.A.T. in case of Kishorbhai V Sakaria, Rameshchandra R Patel 89 ITD 203 and Manila S Dave 117 Taxman 23- Ahemdabad Tribunal in RASIK GOPALDAS PATEL (2015) 45 CCH 0032 AhdTrib on 04-09-2015
Held by Calcutta High Court in Smt. Mina Deogun "We can imagine a situation where a person can be the owner of the land and another can be the owner of the structure. This is permissible in law because in joint ownership unity of title is not required. In the case before us the land admittedly belonged to the husband. He has raised the building with the joint funds belonging to himself and his wife. Therefore, one inference which can be drawn is that the land belonging to the husband has been thrown into the common stock of joint property between the husband and the wife. Both of them thus became the joint owners by operation of the doctrine of blending. They admittedly have borne the cost of construction in the ratio of 1/3rd and 2/3rd. Therefore, the income arising out of the property is in fact an income arising out of house property which has to be taxed under Section 22 rather than as an income arising out of other sources under Section 56. [2015] 60 taxmann.com 430 (Calcutta)
Due date extension from 31st Aug to 7th Sep is applicable to only those who were required to file return electronically. However as per Rule 12(3) Ind and HUF neither having income above 5 lacs nor having any refund claim and super senior citizens ( 80 yrs or above) can file return in paper form also. Hence there is no date extension for such categories of assesses
Sale of Shares held taxable under Short term capital gain and not profits and gains of business for following reasons: 1. No borrowings for purchase of Shares 2. Shares held for more than 30 days.( Shri Sugam Chand C. Shah Ahd Trib relied upon) 3. Had shares been held for business, stock would be been valued at cost or market price , whichever is less while in present case stock of Shares valued at cost only. 4. Shares reflected in Investment account. 5. Separate account maintained for F&O BHUPENDRA SHANTILAL SHAHITA No. 1496/Ahd/2011 (28-08-2015)(Ahd Trib)
Where land given for development, the capital gain shall arise in the year in which constructed flats handed over to land owner and not when Construction completed and accordingly exemption u/S 54/54F allowable in the year of taking flats.DR. S. VENKATESWARE PRASAD2015) 44 CCH 0563 HydTrib 28-08-2015
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