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18.02.2011 - A Useful PPT and Recent Updates as on 18.02.2011
Friday, February 18, 2011

1.   A Presentation on "FOREIGN CONTRIBUTION (REGULATION) ACT, 2010"

(Please click here for PPT)

  

2.   DEPUTY DIRECTOR OF INCOME TAX VS. SHANTI DEVI PROGRESSIVE EDUCATION SOCIETY, DATE OF DECISION: 10.02.2011, ITA NO. 93 / 1999, DELHI HIGH COURT

A question came to be raised in the Parliament regarding taking money from parents of wards of the school on one pretext or the other which in turn led to an investigation in the case relating to the assessment year. This is apparent from the assessment order for the relevant year dated 29.03.1996.  The assessment order makes strong observations about the factum of the Society no doubt carrying on education activity, but public good being lost sight of on account of funds being raised making it a „money making machinery rather than a charitable institution. Therefore the question of law framed  

“Whether the claim of the respondent for exemption under Section 10(22) of the Income Tax Act, 1961 was allowable?”    

Judgment

What is pertinent to be taken note of is that there is no finding or allegation of any diversion of these funds for the purpose other than carrying on educational activity. There is no diversion of funds to the individual members or taking away of profits for some other activity. It does appear to us that the Assessing Authority appears to have been weighed down by the factum of some questions being raised in the Parliament about the manner of collection of funds by the institutions. That alone, would not suffice to deny the exemption under Section 10(22) of the IT Act. There is in fact no material to show or a complaint that there has even been any coercive process to recover amounts.  

It cannot be lost sight of that if an institution has to expand, additional infrastructure has to be created, quality education has to be imparted, all these activities require funds. There may be an original corpus of the Society but thereafter the corpus for such activity can be created only through voluntary donations either from any philanthropist or through collection of funds in the process of admission. We are not concerned with the morality of the issue while deciding whether exemption has to be granted under Section 10(22) of the IT Act as all that is required is the absence of profit motive. There is nothing brought on record to show such a profit motive.  

(Please click here for judgment)

   

3.   ERICSSON AB versus ADDITIONAL DIRECTOR OF INCOME TAX RANGE 1, INTERNATIONAL TAXATION NEW DELHI, Date of Order : 04.02.2011, W.P.(C) 689/2011, DELHI HIGH COURT 

The assessee filed a writ petition to challenge a s. 144C draft assessment order on the ground that though the TPO had directed that no transfer pricing adjustment was required to be done and this was binding on the AO u/s 92CA (4), the AO had still made a transfer pricing adjustment without giving the assessee an opportunity. HELD declining to interfere in the writ and directing the assessee to approach the DRP: 

(i) S. 144C which empowers the Dispute Resolution Panel (DRP) to issue directions to the AO cannot be treated as totally redundant or absolutely inefficacious remedy to the assessee. The assessee is obliged to take the statutory remedy; 

(ii) The DRP, being an authority created under a statute and conferred with the powers, has the obligation to act as a body living to the expectations which the law mandates. The DRP has to afford adequate opportunity for personal hearing and deal with the issues urged by a speaking order which would reflect cogent reasons. This is apt to say so that no assessee can have any kind of apprehension that the approach to the DRP is perfunctory.  

(Please click here for judgment)

      

What's New
  • RBI/2010-11/408 - All Deposit Taking NBFCs - CRAR Fifteen percent w.e.f March 31, 2012  (Click for detail)

  • Notification No. 01/2011 Central Excise - Government exempts goods manufactured at the site of construction for use in construction work at such site for the period 1st March 2006  to 6th July 2009 vide 11C  (Click for detail)

  • PUBLIC NOTICE NO. 33 – Amendments in the Reward/Incentive Schemes of Chapter 3 of FTP 2009-14:- Appendix 37A and Appendix 37D of Handbook of Procedure Vol. 1  (Click for detail)

  • PUBLIC NOTICE NO. 32 - Amendment in Paragraph 2.63 of Handbook of Procedures, Vol.I, 2009-2014(RE 2010) regarding issue of RCMC by Director, Handicrafts, Government of Jammu & Kashmir  (Click for detail)

  • Circular No. 941/02/2011-CX - Clarification regarding excisability of Bagasse prior to the budget of 2008  (Click for detail)

  • PUBLIC NOTICE NO. 28 - Amendment/modification of SION Nos. H-206 and A-1687  (Click for detail)

  • Policy Circular No. 19 – Guidelines for availment of input combination for pharmaceutical products manufactured through Non Infringing (NI) process  (Click for detail)

  • Policy Circular No. 21 - Prohibition on export of onion – Exemption for export of Bangalore Rose onions and Krishnapuram onions  (Click for detail)

  • Notification No. 12 - Tariff Value for import of Brass Scrap is 4372 and for Poppy seeds 3313  (Click for detail)

  • Notification No.11 - Joint Secretary, Department of Commerce, appointed as designated authority for the purpose of Customs  Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of injury) Rules, 1995  (Click for detail)

  • Notification No. 9  - In notification no.13/2010, in the TABLE, in the column (3), for the words “within three months” wherever they occur, the words “within six months” substituted  (Click for detail)

  • Notification No. 8  - Exempts, Jute products falling under heading 6305 , when imported from Bangladesh,  from the whole of the additional duty of customs  (Click for detail)

  •          
"The weak can never forgive. Forgiveness is the attribute of the strong ........ Mahatma Gandhi" 
  

Thanks for your valuable time
 
"Voice of CA"
  
CA. Sanjay Kumar Agarwal, Founder - Voice of CA
Member  Central Council - ICAI
Former Chairman - NIRC
Mob : 9811080342,
agarwal.s.ca@gmail.com 
   
   
CA. Sidharth Jain, Co-Moderator
sidhjasso@yahoo.com 
  
CA. Mukesh K Bansal, Co-Moderator-FEMA
Mob:9540022533,
mukbansal80@gmail.com 
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