Connect us       New User?     Subscribe Now
Confirm your Email ID for Updates
30.10.2015 - Voice of CA presents - Updates
Friday, October 30, 2015

I. Headlines Today:    

  1. Extended due date of Oct 31, 2015 is also applicable for e-filing of audit reports: CBDT clarifies  (Click for detail)
  2. Taxation reforms: CBDT to hire a private consultant for recast  (Click for detail)
  3. Govt. notifies old tolerance limit of 1% and 3% under new TP Rule  (Click for detail)
  4. Govt. clarifies tax treatment of offshore rupee-denominated bonds  (Click for detail)
  5. National Pension System opened up for NRIs  (Click for detail)
  6. RBI: No fresh permission to foreign law firms for liaison office  (Click for detail)
II.  Direct Taxes Case Laws:


1.  PR. Commissioner of Income Tax Vs. E-funds International India Pvt. Ltd., I.T.A. No. 607/2015, Date of Order: 06.10.2015, High Court of Delhi

Whether AO is correct while not allowing deduction under Section 10A to the Assessee either for the same or any subsequent assessment year where assessee had claimed deduction under Section 80HHE of the Act in AY 2000-01.

Held No.

The decisions of this Court in Commissioner of Income Tax v. Interra Software India (P) Ltd. (2011) 238 CTR (Del) 23, Commissioner of Income-tax v. Damco Solutions (P) Ltd. [2011] 11 365 (Del) and Commissioner of Income Tax v. EDS Electronics Data Systems (India) (P) Ltd. (2013)89 DTR (Del) 182 answer the question in favour of the Assessee and against the Revenue. These decisions explain that the making of a claim under Section 80HHE of the Act in one assessment year will not preclude an Assessee from claiming the benefit under Section 10A of the Act in respect of the same unit in a succeeding assessment year. It was explained that the purpose of the Section 80HHE(5) of the Act was to avoid double benefit but that would not mean that if for a particular assessment year the Assessee wants to claim a benefit only under Section 10A of the Act and not Section 80HHE, that would be denied to the Assessee.

(Please click here for judgment)


2.  PR. Commissioner of Income Tax Vs.  Shri Jai Shiv Shankar Traders Pvt. Ltd., I.T.A. No. 519/2015, Date of Order: 14.10.2015, High Court of Delhi

Whether it is mandatory to issue notice u/s 143(2) subsequently to return filed u/s 148 of the Income Tax Act, 1961?

Held Yes

The decision of this Court in CIT v. Vision Inc. proceeded on a different set of facts. In that case, there was a clear finding of the Court that service of the notice had been effected on the Assessee under Section 143 (2) of the Act. As already further noticed, the legal position regarding Section 292BB has already been made explicit in the aforementioned decisions of the Allahabad High Court. That provision would apply insofar as failure of “service” of notice was concerned and not with regard to failure to “issue” notice. In other words, the failure of the AO, in re-assessment proceedings, to issue notice under Section 143(2) of the Act, prior to finalising the re-assessment order, cannot be condoned by referring to Section 292BB of the Act. The resultant position is that as far as the present case is concerned the failure by the AO to issue a notice to the Assessee under Section 143(2) of the Act subsequent to 16th December 2010 when the Assessee made a statement before the AO to the effect that the original return filed should be treated as a return pursuant to a notice under Section 148 of the Act, is fatal to the order of re-assessment.

(Please click here for judgment)

III.  Reported Cases:

Direct Taxes Segment:

1.  Advances paid for purpose of purchase and/or acquisition of plant/machinery, and land/building amount to utilization by assessee of capital gains under section 54G.
2.  No addition can be made in respect of sundry creditors while making assessment under section 44AF.
(Please click here for detail)


 Golden Rules:

  "What is forgiveness?
It is the wonderful fruit that a tree gives
when it is being hurt by a stone"



  Thanks & Regards


Voice of CA

« Back
Online Poll
Connect Us       New User?     Subscribe Now