Fwd: TaxGuru : “Nature of expenditure does not change due to the treatment of the same in the books of account” plus 23 more

---------- Forwarded message ----------
From: TaxGuru.in - Daily Tax and Corporate Law Update <info@taxguru.in>
Date: Sun, Oct 16, 2011 at 9:38 AM
Subject: TaxGuru : "Nature of expenditure does not change due to the treatment of the same in the books of account" plus 23 more
To: palashbiswaskl@gmail.com

TaxGuru : "Nature of expenditure does not change due to the treatment of the same in the books of account" plus 23 more

---

• Nature of expenditure does not change due to the treatment of the same in the books of account
• Payment of statutory liabilities/miscellaneous expenses, etc made by the assessee to the C & F agency not covered u/s 194C
• HC rules on the meaning of full value when assets attached with liabilities are received by shareholders as proceeds from liquidation
• Section 40 (a) (ia) applies even in respect of amount paid and not merely payable to the contractors and therefore CIT (A) was justified in confirming disallowances under section 40 (a) (ia) as the assessee had failed to deduct tax under section 194C
• Stamp duty paid during the course of amalgamation and compensation paid to employees under VRS scheme is deductible as revenue expense
• Disallowance u/s. 14A cannot exceed exempt income, No S. 14A Disallowance in the absence of nexus between exempt Income and Interest Cost
• Assessee not eligible for deduction u/s. 80RRA if the technical services provided by the assessee are not approved by the Govt.
• Payment made by the assessee to the society as society maintenance expenses are not covered under section 194C
• Assessee not eligible for deduction u/s 80IB on the amount disallowed by AO due to delayed payment of employee's contribution of P.F
• When assessee has given his address in the e-return and the AO has also given TDS credit on the same, AO is not right in serving notice u/s 143(2) by affixting the same on some other address
• Under project completion method entire project as a whole is to be seen and hence transfer of some flats via registration is not conclusive of the year in which the income attributable to the project is to be taxed
• Merely because the said liability is more than 5 years old does not mean that there is a cessation or remission of the liability in view of the provisions of section 41(1) of the Act
• Expenses incurred for maintenance of building structure owned by the assessee and for the safety of the employees is revenue in nature
• Eligibility for exemption under section 54B in respect of amount invested in agricultural land against gain from sale of agricultural land
• Prior scrutiny of accounts before referring them for special audit is sine qua-non and if the same has not been done the direction for special audit is bad in law and hence assessment framed becomes nullity
• Hire charges received on account of hiring of the motor-cars, office equipment, computer, furniture and fixture is business income- ITAT Mumbai
• In view of the provisions of section 112 where there are several transactions of sale and purchase of securities, the discretion to take the benefit of indexation lies with assessee
• When the disputed issue is decided by the Apex Court, the proceeding initiated u/s 263, against the deduction wrongly claimed by the assessee and allowed by the AO, cannot be said to be an invalid stating that there were two opinions available
• Expenses reimbursed to recreation clubs and staff clubs of employees are revenue in nature
• To qualify as agricultural income, it is necessary for an operation to be carried on soil
• MCA advises to file ROC return before Diwali
• MCA releases XBRL Validation Tool with enhancements
• Rate hike looms as Sept inflation stays high at 9.72%
• PM to hold meet over high inflation today

Nature of expenditure does not change due to the treatment of the same in the books of account Posted: 15 Oct 2011 10:16 AM PDT ACIT Vs. Parablic Drugs Ltd. (ITAT Delhi) - It has to be held that all of these expenditure were incurred by the assessee in the course of its business and none of the expenditure can be classified as expenditure in the nature of capital. The case... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Payment of statutory liabilities/miscellaneous expenses, etc made by the assessee to the C & F agency not covered u/s 194C Posted: 15 Oct 2011 09:38 AM PDT ACIT Vs M/s P P Overseas (ITAT Mumbai) - Statutory liabilities such as customs duty, DEPB licence etc. which is actually the liability of the assessee and the receipt for the payment is issued by the concerned authority only in the name of the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

HC rules on the meaning of full value when assets attached with liabilities are received by shareholders as proceeds from liquidation Posted: 15 Oct 2011 08:46 AM PDT CIT vs Shri Nayan Arvind Shah (Bombay High Court) -Whether the value of the assets, for the purpose of computation of capital gains in the hands of the shareholders in respect of assets received from the liquidator of a company, should be taken at... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Section 40 (a) (ia) applies even in respect of amount paid and not merely payable to the contractors and therefore CIT (A) was justified in confirming disallowances under section 40 (a) (ia) as the assessee had failed to deduct tax under section 194C Posted: 15 Oct 2011 08:39 AM PDT Valibhai Khanbhai Mankad vs DCIT (ITAT Ahmedabad) -Whether CIT(A) has erred in confirming the disallowance of Rs.7,93,34,193/- u/s 40(a)(ia) on the ground that the assessee has filed Form No.15J with CIT on 26.02.2009 instead of on or before 30th... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Stamp duty paid during the course of amalgamation and compensation paid to employees under VRS scheme is deductible as revenue expense Posted: 15 Oct 2011 08:31 AM PDT National Organic Chemical Industries Ltd. Vs Addl. CIT ITAT Mumbai I.T.A No.3495/ Mum/2003 (Assessment year: 1998-99) I.T.A No.3677/ Mum/2003 (Assessment year: 1998-99) I.T.A No.5296/ Mum/2003 (Assessment year: 1999-2000) I.T.A No.5176/ Mum/2003... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Disallowance u/s. 14A cannot exceed exempt income, No S. 14A Disallowance in the absence of nexus between exempt Income and Interest Cost Posted: 15 Oct 2011 07:33 AM PDT ACIT vs. Punjab State Coop & Mktg (ITAT Chandigarh)- The assessee has placed on record the details of investment along with the amount of investment in shares in five companies made by the assessee. On perusal of the said details reveal that... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Assessee not eligible for deduction u/s. 80RRA if the technical services provided by the assessee are not approved by the Govt. Posted: 15 Oct 2011 05:54 AM PDT P A Chacko Muthalaly Vs ACIT (ITAT Mumbai)- If the approvals of the technical services have not been granted, obviously then assessee is not entitled for deduction u/s.80RRA. The Tribunal cannot go beyond its scope to hold that CBDT was not correct... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Payment made by the assessee to the society as society maintenance expenses are not covered under section 194C Posted: 15 Oct 2011 05:03 AM PDT Mitsutor Shipping Agency Pvt Ltd Vs DCIT (ITAT Mumbai) - The assessee was owner of the premises in which it was carrying on business. The assessee paid maintenance charges to the society of Apartment Owners. According to the AO the assessee ought to... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Assessee not eligible for deduction u/s 80IB on the amount disallowed by AO due to delayed payment of employee's contribution of P.F Posted: 15 Oct 2011 04:54 AM PDT ITO Vs Millenium Writing Products Pvt Ltd. (ITAT Kolkata) Deduction u/s. 80IB of the Act is available to an assessee whose gross total income includes any profits and gains derived from eligible business as specified in the section. Here the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

When assessee has given his address in the e-return and the AO has also given TDS credit on the same, AO is not right in serving notice u/s 143(2) by affixting the same on some other address Posted: 15 Oct 2011 04:30 AM PDT DCIT Vs.Mascomptel (India) Ltd. (ITAT Delhi) When assessee has given his address in the e-return and the AO has also given TDS credit on the same, AO is not right in serving notice u/s 143(2) by affixting the same on some other address. DCIT... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Under project completion method entire project as a whole is to be seen and hence transfer of some flats via registration is not conclusive of the year in which the income attributable to the project is to be taxed Posted: 15 Oct 2011 04:12 AM PDT M/s Maitri Developers Vs ITO, (ITAT Mumbai) -Project completion method is well recognized method as per AS-7. Under project completion method entire project as a whole is to be seen and hence transfer of some flats via registration is not conclusive... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Merely because the said liability is more than 5 years old does not mean that there is a cessation or remission of the liability in view of the provisions of section 41(1) of the Act Posted: 15 Oct 2011 03:44 AM PDT ITO vs Maharashtra State Co-operative, Consumers Federation Ltd. (ITAT Mumbai) -Whether CIT(A) was not justified in deleting the addition of Rs.10,00,000/ – made by the AO under sect ion 41(1) of the Act . Assessee is an AOP being the Apex... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Expenses incurred for maintenance of building structure owned by the assessee and for the safety of the employees is revenue in nature Posted: 15 Oct 2011 03:31 AM PDT DCIT, Baroda Vs Liberty Phosphate (ITAT Ahemdabad) -It was not in dispute that in respect of an another building at Udaipur, this assessee itself has capitalised the expenditure. However, the impugned repairs were in respect of an another factory... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Eligibility for exemption under section 54B in respect of amount invested in agricultural land against gain from sale of agricultural land Posted: 15 Oct 2011 03:08 AM PDT Krishna Murthy Vallu v ITO (ITAT Visakhapatnam) - If land which is sold is situated in an area which is comprised within the jurisdiction of a municipality, etc, then the said land is squarely covered by clause (a) of section 2(14)(iii) and would... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Prior scrutiny of accounts before referring them for special audit is sine qua-non and if the same has not been done the direction for special audit is bad in law and hence assessment framed becomes nullity Posted: 15 Oct 2011 02:32 AM PDT Jyoti Traders Vs DCIT (ITAT Mumbai )- In our view the conditions precedent for passing an order u/s.142(2A) of the Act directing the Assessee to get its account audited by a special auditor viz., the satisfaction of the AO having regard to the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Hire charges received on account of hiring of the motor-cars, office equipment, computer, furniture and fixture is business income- ITAT Mumbai Posted: 15 Oct 2011 02:11 AM PDT ACIT Vs M/s JPS Associates (ITAT Mumbai)- Revenue has raised a grievance against the finding of the Ld. CIT (A) that hire charges received on account of hiring of the motor-cars, office equipment, computer, furniture and fixture is to be treated as... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

In view of the provisions of section 112 where there are several transactions of sale and purchase of securities, the discretion to take the benefit of indexation lies with assessee Posted: 14 Oct 2011 11:51 PM PDT Jethiben K Patel Discretionary Trust Vs DCIT (ITAT Ahemdabad) - In the case of Mohanlal N. Shah (HUF) –vs- ACIT reported in [2008] 26 SOT 380 (Mum) wherein it was held that as per section 48, option is with the assessee to or not to avail of benefit... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

When the disputed issue is decided by the Apex Court, the proceeding initiated u/s 263, against the deduction wrongly claimed by the assessee and allowed by the AO, cannot be said to be an invalid stating that there were two opinions available Posted: 14 Oct 2011 11:31 PM PDT Jai Mica Supply Co Pvt Ltd Vs CIT (Kolkutta High Court) We do not find any substance in the contention of Mr. Khaitan that there were conflicting views on this point when the notice under Section 263 of the Act was issued. At one  point of time,... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Expenses reimbursed to recreation clubs and staff clubs of employees are revenue in nature Posted: 14 Oct 2011 11:16 PM PDT ITC Limited Vs DCIT (ITAT Kolkata )- We have carefully considered the submissions of the ld. representatives of the parties and the orders of the authorities below. We have also gone through the details of the expenditure aggregating Rs.9,00,111... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

To qualify as agricultural income, it is necessary for an operation to be carried on soil Posted: 14 Oct 2011 10:38 PM PDT Invitro International Pvt Ltd Vs DCIT (ITAT Bangalore) Plant tissue culture is used to reproduce clones of a plant to get multiple plants with the same traits by placing various tissues of the mother plant in containers and required medium, which is... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

MCA advises to file ROC return before Diwali Posted: 14 Oct 2011 09:40 PM PDT Ministry of Corporate Affairs desires that the members of the institute may file Company's Balance Sheet and Annual Return at the earliest preferably before festival time of Diwali to avoid last minute rush and system congestion in MCA21. [[ This is a content summary only. Visit www.taxguru.in for full article ]]

MCA releases XBRL Validation Tool with enhancements Posted: 14 Oct 2011 09:38 PM PDT Updated version of MCA XBRL validation tool (Version 1.1) has been released on 14th October 2011.The list of enhancements to the validation tool has also been provided. [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Rate hike looms as Sept inflation stays high at 9.72% Posted: 14 Oct 2011 09:36 PM PDT India's inflation rate continued to remain close to worrisome double-digit levels bolstering speculation that the Reserve Bank of India (RBI), despite a slowing economy, may increase interest rates yet again to cool prices when it presents the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

PM to hold meet over high inflation today Posted: 14 Oct 2011 09:21 PM PDT Prime Minister Manmohan Singh has called a meeting on Saturday to discuss policy options with regard to slowing economic growth and high inflation. The meeting (with PM) is on the current economic situation. We will have a discussion on growth and... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

You are subscribed to email updates from TaxGuru.in - Daily Tax and Corporate Law Update To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610

--
Palash Biswas
Pl Read:
http://nandigramunited-banga.blogspot.com/