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23.02.2011 - Some Useful Updates as on 23.02.2011
Wednesday, February 23, 2011

1.      M/S HYDERABAD CHEMICALS SUPPLIES LTD. VS. THE ACIT, HYDERABAD, ITA NO. 352/HYD/2005

Despite absorption in earlier year, s. 80-IA unit loss to be set-off against s. 80-IA profits.

The assessee set up a windmill unit in AY 1999-2000 which was eligible for deduction u/s 80IA. The unit suffered losses in AY 1999-2000 & 2000-01 which, together with the depreciation thereon, was absorbed by the other income of the assessee. In AY 2001-02, the assessee claimed s. 80IA deduction on the profits of the unit without setting off the loss/depreciation of the unit of earlier years and this was allowed by the AO. Later, the CIT revised the assessment u/s 263 and held that pursuant to s. 80-IA(5), the loss and depreciation of the unit had to be notionally set off against the profits of the unit. On appeal by the assessee, HELD dismissing the appeal: 

(i) That s. 80-IA deduction has to be computed after deduction of the notional brought forward losses and depreciation of business even though they have been allowed set off against other income in earlier years is concluded by the ITAT Special Bench judgement in ACIT vs. Gold Mine Shares & Finance (P) Ltd 113 ITD 209 (SB) (Ahd) against the assessee;

(ii) As regards the High Court judgements in Mewar Oil & General Mills 271 ITR 311 (Raj) (not followed by the Special Bench) & Velayudhaswamy Spinning Mills vs. ACIT 38 DTR 57 (Mad) (delivered after referring to the Special Bench),though a judgement of a non-jurisdictional High Court prevails over a judgement of the Special Bench, the former cannot be followed, even though it is the only High Court judgement on the point, if “rendered without having been informed about certain statutory provisions that are directly relevant“.

(Please click here for judgment)

  

2.   [Contribution by  P.K. Bansal, Advocate (Mobile - 9810288440) & CA. Akhil Bansal, and contributors are available on email-id: balwantraibansal@yahoo.co.in ]

A Presentation - "VAT implications on sale od accesories as part of composite package - Punjab & Haryana high court's decision in Nokia India Private Limited"

The sale of accessories with the main product as part of composite package always attract litigation from department where applicable rate for former is more then the latter. However, if certain guiding principles are duly considered, then the extent of litigation can be reduced to some extent. The Author had tried to summarise the implication of decisions.

(Please click here for PPT)

  

3.  [Contribution by  CA. Vijay Kumar Gupta, author is available at Mobile : 9999328958 / email-id: vijayguptaca104@yahoo.com ]

A Latest Circular for extn of DVAT-51

(Please click here)

  

What's New

  • RBI/2010-11/411 - Guidelines on Base Rate  (Click for detail)
  • Circular No. 9 - Customs duty exemption benefit to BCCI  (Click for detail)
  • Policy Circular No. 22 - Online Payment to the beneficiaries (firms) for their DBK/TED refund claims, by RAs of DGFT  (Click for detail)
  • Policy Circular No. 23 - Eligibility of tufted cotton bathmats/cotton tufted bathrugs covered under ITC (HS) Codes 5703 or 5705 for grant of duty credit scrip under VKGUY/FPS of FTP  (Click for detail)
  • CO. LAW CIR-03-11 - Clarification in respect of Circular No. 2/2011 dated 8th February, 2011 regarding direction under Section 212(8) of the Companies Act, 1956  (Click for detail)
  • Notification No. 10 - Anti dumping duty imposed on imports of Circular Weaving Machines having six or more shuttles for weaving PP/HDPE Fabrics of a width exceeding 30 cms, originating in or exported from China PR falling under heading 8426 of the Customs Tariff Act, 1975  (Click for detail)
  • Notification No. 11 - Anti-dumping duty on imports of Sodium Nitrate falling under sub-heading 2834 1010 of the First Schedule to the Customs Tariff Act, originating in, or exported from China till 30th June 2011  (Click for detail)
  • RBI releases Minutes of TAC on Monetary Policy  (Click for detail)
  • RBI Advisory on Overseas Forex Trading through Electronic / Internet Trading Portals  (Click for detail)

"Life is BEST 4 those who r enjoying it,
DIFFICULT 4 those who r analysing it
& WORST 4 those who r critising it.
Our attitude defines our life" 

    

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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