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29.03.2013 - Voice of CA Presents - Updates
Friday, March 29, 2013

 I.  Today's Headlines:

  1. Govt clears pending MNC tax issue  (Click for detail) 
  2. CBDT streamlines taxation rules for IT sector  (Click for detail)
  3. Taxman to get faster with refunds this fiscal  (Click for detail)
  4. India signs tax info exchange pact with Liechtenstein  (Click for detail)
  5. Sebi slaps Rs. 36 lakh fine on 4 entities for insider trading  (Click for detail)
  6. RBI defers Basel-III norms for forex derivatives  (Click for detail)

II.  Useful Contrubitions:

[Contribution by CA Bimal Jain and contributor is available at bimaljain@hotmail.com] 

1.  An Article - "Service tax implication on AC Restaurants vide the Finance Bill, 2013"

(Please click here)

 

III.  Direct Tax Caselaw: 

1.  Venus Records & Tapes (P.) Ltd. Vs. Assistant Commissioner of Wealth-Tax, Mumbai, WT No. 72 (Mum.) of 2011, Dated: 23.01.2013, In the ITAT Mumbai Bench ‘WT’

Issue:

Whether notional depreciation i.e., neither claimed or allowed, could be taken into account or consideration for the purpose of computing the WDV of the relevant asset as at the year-end?

Summary:

As per rule 14 of schedule III to the Wealth Tax Act, 1957, states that if, asset is depreciable asset then written-down value of each individual asset not the entire block of assets is to be considered for the value of such assets. Whereas, WDV of an asset is actual cost less depreciation actually allowed as per section 46(6)(b) of I.T Act, 1961. Therefore notional depreciation not allowable while computing value of assets for wealth tax.

(Please click here for judgment)  

  

2.  [ Contribution by CA Sanjeev Singhal and contributor is available at sanjeev.singhal@skaca.in ]

North Eastern Electric Power Corpn. Employees Provident Fund Trust Vs. Union of India, W.P. (C) No. 85 of 2011, Dated: 16.12.2011, High Court of Gauhati

Where revenue authorities rejected assessee's claim for refund of TDS merely on the ground that return raising said claim was filed after expiry of prescribed time period, view taken by authorities below was hyper technical and, thus, matter was to be remanded back for disposal in accordance with law.

In the instant case, assessee a recognized trust invested its funds as per instructions of Government of India in various financial institutions and those institutions deducted tax at source from interest earned on fixed deposits. In order to claim refund of TDS erroneously deducted by the financial institutions, the assessee filed returns for relevant assessment years. The AO held that since said returns had been filed beyond the prescribed time-limit, they were to be treated as invalid returns and, thus, application for the TDS refunds was to be rejected. The CIT, however, refused to condone the delay in filing the returns on the ground that it was not a case of genuine hardship as envisaged under section 119(2)(b). Contending that the stance taken by the respondent authorities is contrary to law, the petitioner-trust filed this instant writ petition for appropriate relief.

The HC held in favour of assessee as under:

1) The assessee-trust was being deprived of a sum for which it could not be blamed at all. It had no liability whatsoever to pay this amount to the revenue. Yet, the revenue had refused to refund the same by taking some hyper technical view of the matter;

2) No specific or express provision is engrafted in this section to deal with refund of TDS erroneously deducted when there is admittedly no due from the assessee, but then, this is precisely the reason, for enacting section 119(1)(b). This is in the nature of an inherent power granted to the CBDT to entrust any income-tax authority other than a Commissioner (Appeals) to admit an application or claim for refund even belatedly and dispose of the same in accordance with law;

3) Section 119(1)(b) is the appropriate provision to deal with cases of this nature. The assessee is entitled to condonation of the delay in filing the claim for refund. Resultantly, the respondent authorities are directed to process the application of the assessee trust for refund in accordance with law.

(Please click here for judgment)

  

 Golden Rules:

"Time is the most elastic element of world.
Bcoz it increases when we are waiting
and decreases when we are enjoying
"
 

 

  Thanks & Regards

Team

Voice of CA    

 

 


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