Standardizing the process of filing application under section 10(46)

Ministry of Finance, Central Board of Direct Tax issued [Notification no. F.NO. 196/6/2013- ITA.1 by dated 24-06-2013], regarding standardizing the process of filing application under section 10(46) of the Income Tax Act, 1961.

Remuneration for branch audit work of the bank

Remuneration for branch audit work of the bank. Category of bank branch on the basis of quantum of advances. Rates of audit fees:-
Up to 10 crore-Rs. 40,250/-
Above 10 crore up to 20 crore- Rs. 57,500/-
Above 20 crore up to 30 crore- Rs. 79,350/-
Above 30 crore up to 50 crore- Rs. 1,20,750/-
Above 50 crore up to 75 crore- Rs. 1,38,000/-.

The soft ITR 5 for the assessment

The soft ITR 5 for the assessment year 2013-14 is now available at Income Tax department website.

RBI has increased the bank audit fees

RBI has increased the bank audit fees payable form financial year 2012-13 as per [RBI Notification no. DBS.ARS.No.BC. 08/ 08.92.001/ 2012-13 dated 25-06- 2013].

Lower Deduction Certificate

Lower Deduction Certificate to a unit enough to cover other units of assessee even if separate TANs. [CIT Chandigarh Vs Parle Biscuits. High Court of Punjab & Haryana].

Right to collect toll is an intangible asset

Right to collect toll is an intangible asset within the purview of sec. 32(1)(ii) of the Income Tax Act and is eligible for depreciation. [ACIT Vs. Ashoka Infraways (P.) Limited, 2013] 33 taxmann.com 499 (Pune - Tribunal)].

demerger abundant

Resultant Company can file appeal after demerger abundant caution appeal by demerged Company dismissed to avoid duplicity. [Cairn Energy Gujarat BV Vs. ADIT [2013] 34 taxmann.com 281 (Ahmedabad - Tribunal)]

No violation of Sec 269SS

No violation of Sec 269SS for cash loan from relative if assessee unable to get it in cheque or DD for some valid reason. [CIT-I Vs M.Yesodha, Chennai High Court].

Stridhan of a lady

Stridhan of a lady seized from her ex-husband’s premises during search of Income Tax must be handed over to her. [High Court Of Gujarat at Ahmedabad Renuka R Modi].

Commodity Transaction Tax

Chapter VII of Finance Act, 2013 on Commodity Transaction Tax effective from July 1, 2013

SECTION 115 OF THE FINANCE ACT, 2013 - COMMODITIES TRANSACTION TAX – NOTIFIED DATE FOR ENFORCEMENT OF CHAPTER VII OF FINANCE ACT, 2013

NOTIFICATION NO. 45/2013 [F.NO.142/09/2013-TPL]/SO 1768(E), DATED 19-6-2013

In exercise of the powers conferred by sub-section (2) of section 115 of the Finance Act, 2013 (17 of 2013), the Central Government hereby appoints the 1st day of July, 2013 as the date on which Chapter VII of the said Act shall come into force.

Valuation loss is allowable

Valuation loss is allowable even if stock-in-trade shown as investment in compliance of RBI guidelines. [Karnataka Bank Ltd. Vs. ACIT [2013] 34 taxmann.com 150 (Karnataka).]

Addition on the basis of seized material

Addition on the basis of seized material was unjustified if assessee was able to show that the admissions made during survey were incorrect. [Acit V. Maya Trading Co.( 2013) 34 taxmann.com 144 (Agra – Trib)].

No disallowance of expenditure u/s. 40(a)(ia)

No disallowance of expenditure u/s. 40(a)(ia) for default of short-deduction of TDS under Income Tax Act.[Income Tax Appellate Tribunal Mumbai].

Rejection of Books of account

• Mere rejection of Books of account and estimation of profit cannot be ground for concealment penalty under Income Tax Act. [High Court of Gujarat Whitelene Chemicals].

SC on S. 194C TDS does not apply to contract manufacturing agreements

CIT vs. Silver Oak Laboratories P. Ltd (Supreme Court) S. 194C TDS does not apply to contract manufacturing agreements  The assessee, a manufacturer of pharmaceutical products, entered into agreements with various manufacturers who manufactured the said items according to the specifications provided by the assessee. The AO held that the transaction between the assessee and the manufacturer was in the nature of a "works contract" and fell within the purview of s. 194C and that the assessee ought to have deducted TDS thereon. The assessee was held to be in default and liable to pay the tax and interest u/s 201(1) & 201(1A). On appeal by the assessee, the Tribunal held that the transaction was one of sale simplicitor and was not in the nature of a work contract and that the assessee was not liable to deduct TDS u/s 194C. The department's appeal to the High Court was dismissed by following Reebok India 306 ITR 124 (Del). On appeal by the department to the Supreme Court, HELD dismissing the SLP:  On examining the terms and conditions, invoices, purchase orders and challans indicating payment of excise duty, there is no material on record to indicate that the transaction in question is a "contract for carrying out works". Hence, s. 194C is not attracted. S. 194C has been amended by the Finance (No.2) Act, 2009, w.e.f. 1.10.2009 to provide that "work" includes manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer. It is clarified that the definition of the word "work" will not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person other than such customer.  This impliedly approves the view taken in Glenmark Pharmaceuticals 324 ITR 199 (Bom)

Double taxation agreement with Monaco

Double taxation agreement with Monaco [Notification no. 43/2013 dated 12/06/2013 SO 924(E)].

Conversion of company into LLP

On conversion of company into LLP, Auditor of the company deemed to be auditor of LLP. [Circular of Ministry of Corporate Affairs].

E-filing of form 3CEB

E-filing of form 3CEB for specified domestic transactions mandatory besides for foreign transactions. [New Rules and Revised Form. Income Tax 6th Amendment Rules, 2013] .

Statement of the assessee in survey operations

Statement of the assessee in survey operations not conclusive piece of evidence under Section 133A of the Income Tax Act. [CIT Vs P. Bala Subramanian, 2013, 354ITR 116 (Madras)].

Periodic legal audit and reverification of title deeds

Periodic legal audit and reverification of title deeds by banks for credit exposures of 5 crore and above till the loan stands fully repaid.[ RBI Circular of 07-06-2013].