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04.01.2012 - Recent Updates as on 04.01.2012
Wednesday, January 4, 2012

 

I.  Today's Topline News : 
  1. HC rejects DLF plea against SEBI probe, imposes Rs 2 lakh cost  (Click for detail)

  2. Weigh DTC Provisions while Choosing Tax Saving Instruments  (Click for detail)

  3. ST Notification Nos. 49, 50 & 51/2011 - Exemption to Railways extended till 1.4.2012.  (Click for detail)

  4. Online service tax refund of tax on 18 services  (Click for detail)

  5. Money Seized in I-T Searches can be Set off Against Advance Tax  (Click for Detail)

  6. Companies Bill may be cleared in Budget session: Veerappa Moily  (Click for detail)

  7. File validation Utility (FVU) version 3.3 for FY 2010-11 onwards and version 2.131 for upto FY 2009-10 released  (Click for detail)
     

II.  Recent Updates:

1.   CIT  Vs. WIMCO SEEDLINGS LTD.,  ITA No. 1367, 1368 & 1391/2008 DATE OF DECISION : 12 DECEMBER  2011, HIGH COURT OF DELHI

Whether common expenses incurred by an assessee can be allocated towards taxable and non-taxable income under the provisions of Section 14A of the Income Tax Act, 1961.

It was held that unless and until there was actual expenditure for earning the exempted income, there could not be any disallowance under section 14A. While we agree that the expression ‘expenditure incurred’ refers to actual expenditure and not to some imagined expenditure, we would like to make it clear that the ‘actual’ expenditure that is in contemplation under section 14A(1) of the said Act is the ‘actual’ expenditure in relation to or in connection with or pertaining to exempt income. The corollary to this is that if no expenditure is incurred in relation to the exempt income, no disallowance can be made under section 14A of the said Act.

(Please click here for judgment)

 

2.  CIT Vs. MONTO MOTORS LTD., ITA NO. 978/2011, DATE OF DECISION : 12 DECEMBER  2011, HIGH COURT OF DELHI

Advertisements and sales promotion are conducted to increase sale and their impact is limited and felt for a short duration. No permanent character or advantage is achieved and is palpable, unless special or specific factors are brought on record. Expenses for advertising consumer products generally are a part of the process of profit earning and not in the nature of capital outlay. The expenses in the present case were not incurred once and for all, but were periodical expenses which had to be incurred continuously in view of the nature of the business. It was an on-going expense.

(Please click here for judgment)

 

III.  Today's Tenders Info. :

  1. NATIONAL RURAL HEALTH MISSION
    MUMBAI
    (Click for detail)

     

Key of Success :

"Sword and words have the same letters.
Strange fact is that they have the same effect, too.
Depends how we use them...
"

  

Thanks for your valuable time

   

"Voice of CA"  

  
CA. Sanjay Kumar Agarwal
Founder - Voice of CA 
Mob : 9811080342,
agarwal.s.ca@gmail.com      
   
CA. Sidharth Jain, Co-Moderator
sidhjasso@yahoo.com 
  
CA. Mukesh K Bansal, Co-Moderator-FEMA 
mukbansal80@gmail.com    

 

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