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09/07/2017

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30/07/2016

CBDT vide order u/s 119 dated 29/07/2016 has extended the 'due date' for submission of Returns of Income from 31/07/2016 to 05/08/2016 (and to 31/08/2016 for the State of J&K) in the case of income tax assessees throughout India who are liable to file their Income tax returns by 31/07/2016.

17/05/2016

16/05/2016

rendering service from Domestic Territory to SEZ
is deemed export and not chargeable to tax (exempt)
subject to compliance with notification 12/2013

but

Receiving service from SEZ is taxable as deemed import

22/01/2016

:
In case an assessee being manufacturer cm service provider, credit of input services may be taken directly in ER-1 return, instead of taking it first in ST-3 and then, transferring to ER-3 return

15/01/2016

Stamp duty or fees paid to Ministry of Corporate Affairs towards increase in authorised capital of company would be considered as capital expenditure

06/01/2016

As per amendment in Bonus Act

The payment of Bonus Act provides for the annual payment of bonus to employees of certain establishments (including factories and establishments employing 20 or more persons)

Earlier payment of bonus is required to be made to employees whose salary or wage is up to Rs 10000/- per month. As per new amendment eligible employee limit has been increased to Rs 21000/- per month.

Earlier the Act provides that the bonus payable to an employee will be in proportion to his or her salary or wage. However, if an employee’s salary is more than Rs 3,500 per month, for the purposes of calculation of bonus, the salary will be assumed to be Rs 3,500 per month.

However after the new amendment the limit has been raised and to Rs 7,000 per month or the minimum wage notified for the employment under the Minimum Wages Act, 1948 (whichever is higher).

: Cabinet has approved the effective date on bill as 01.04.2015 , the bill was presented in lok sabha with effective date proposed as 01.04.2015 but as per lok sabha website, effective date passed by Lok sabha is 01.04.2014 and same (effective date 01.04.2014) was also shown in gazette notification.

However in our view the date is wrongly published as 01.04.2014 while lok sabha has released the minutes of their proceedings and the same mistake is also carried forwarded in bill assented by the president.So in our view effective date is 01.04.2015 and not 01.04.2014

06/01/2016

Where assessee's branch office, which was considered as assessee's Permanent Establishment (PE) in India, was compensated at arm's length for performing services in respect of direct sales made by assessee in India, no part of assessee's profit could be taxed in India as profit attributable to Indian PE

25/09/2015

Section 19
Co. Act 2013
Subsidry Co. not to hold shares in Holding Co.

(1) No company shall, either by itself or through its nominees, hold any shares in
its holding company and no holding company shall allot or transfer its shares to any of its
subsidiary companies and any such allotment or transfer of shares of a company to its
subsidiary company shall be void:
Provided that nothing in this sub-section shall apply to a case—
(a) where the subsidiary company holds such shares as the legal representative
of a deceased member of the holding company; or
(b) where the subsidiary company holds such shares as a trustee; or
(c) where the subsidiary company is a shareholder even before it became a
subsidiary company of the holding company:
Provided further that the subsidiary company referred to in the preceding proviso
shall have a right to vote at a meeting of the holding company only in respect of the shares
held by it as a legal representative or as a trustee, as referred to in clause (a) or clause (b) of
the said proviso.
(2) The reference in this section to the shares of a holding company which is a company
limited by guarantee or an unlimited company, not having a share capital, shall be construed
as a reference to the interest of its members, whatever be the form of interest.

11/09/2015

:

Section 14A will not apply if no exempt income is received or receivable during the relevant previous year.

:

(1)The disputed issue in the instant case was:Whether disallowance under Section 14A can be made in a year in which no exempt income has been earned or received by assessee?

(2)The Special bench in [2009] 121 ITD 318 (DELHI)(SB) held that Section 14A disallowance can be made in year in which no exempt income has been earned or received by assessee. It referred to the decision of Apex Court in case of CIT v. Rajendra Prasad Moody [1978] 115 ITR 519 to settle this controversy.

The High Court held in favour of assessee as under:

(1)The Special Bench has relied upon the decision of the Supreme Court in Rajendra (Supra). In such case the Supreme Court held that Section 57(iii) does not say that expenditure shall be deductible only if any income is made or earned. The decision of Supreme Court was rendered in context of allowability of deduction under Section 57(iii). Thus, such decision could not be used in reverse to content that even if no income has been received, the expenditure incurred can be disallowed under Section 14A.

(2)The expression 'does not form part of total income in Section 14A envisages that there should be an actual receipt of income, which is not includible in the total income, for the purpose of disallowing any expenditure in relation to said income.

(3)In other words, Section 14A will not apply if no exempt income is received or receivable during the relevant previous year.

:

• Section 14A provides for disallowance of expenditure in relation to income not "includible" in total income. The legislative intent is to allow deduction of only that expenditure which is relatable to earning of income and it therefore follows that the expenses which are relatable to earning of exempt income have to be considered for disallowance, irrespective of the fact whether any such income has been earned during the financial year or not.

• The above position is further clarified by the usage of term 'includible' in the Heading to section 14A which indicates that it is not necessary that exempt income should necessarily be included in a particular year's income, for disallowance to be triggered.

• Thus, in light of above, CBDT, vide Circular No. 5/2014 dated 11-2-2014 had clarified that Rule 8D read with section 14A provides for disallowance of the expenditure even where taxpayer in a particular year has not earned any exempt income.

• The Delhi High Court had not referred to this Circular in its verdict.

09/09/2015

: AO can't rely on contrary view of other high courts if Jurisdictional High Court has different opinion

Where issue whether petitioner educational trust was entitled to corpus donation and, resultantly, to depreciation, had been decided by jurisdictional High Court, Assessing Officer was bound by said order without taking any stand that High Courts of other States were taking different view