I.  RBI Master Circulars:    

II. A Useful Book:

[ Contribution by CA Madhukar Hiregange, Former CC Member and contributor is available at mhiregange@hotmail.com ]

A concise Handbook on Service Tax 

(Please click here)  

III.  Direct Tax Case laws:

1. ACIT Vs. Shri Dharam Pal Gulati, ITA No. 671/Del/2012, Date of Pronouncement: 20.06.2013, A.Y. 2007-08, ITAT- Delhi

Section: 132(4) of the Income Tax act, 1961

Whether the addition made by AO merely on the basis of statement recorded u/s 132(4) of the Act which was retracted immediately thereafter and no supporting evidences are found during search operation, is justified.  

Held_No

There was no incriminating document or supporting document found or seized during the search operation carried out at the premises of the assessee which could suggest that assessee was doing the business of speculation in commodities during the relevant period stated in statement. Therefore, such additions made only on the basis of a statement which has been retracted immediately thereafter are not sustainable. Further, there was sufficient time with the Investigation Wing to carry on the investigation and to collect the evidence against the retraction but records show that nothing has been done in this regard. In such a situation, the retraction of the assessee can not be said to be invalid in absence of any incriminating documents.

(Please click here for judgment)

2.  ACIT Vs. Tirupati Udyog Ltd., ITA No. 2610/Del/2012, Date of Pronouncement: 20.06.2013, A.Y.  2008-09, ITAT-Delhi

Whether the amount of compensation received for termination of Memorandum of Understanding (MoU) which enables the assessee to carry on the business of mining is a capital receipt on account of loss of “source of income”.

Held_Yes

The assessee was not in this line of business and was in the business of manufacturing and trading. The assessee chose to enter into a new line of business by way of this MOU. The essence of the MOU is to enable the assessee to carry on the business of mining and cancellation of the agreement in question deprives the assessee of what is a substantive source of income from mining. Since, it is a loss of source of income from mining, thus the amount received as compensation by the assessee is a capital receipt.

(Please click here for judgment)

IV. Useful Update:

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

No Cenvat credit reversal required where service tax is not paid due to non-recovery of consideration in case assessee pays service tax on receipt/ collection basis 

(Please click here)  

V.  Tenders Info.:

1. CA Firms for the services of Concurrent Audit
   National Rural Health Mission
   Srinagar, J&K
   (Click for detail)    

2. CA Firms for doing Internal Audit/Pre-Audit of Payments
   West Bengal Essential Commodities Supply Corp. Ltd.
   Kolkata
   (Click for detail)
   

 Golden Rules:

"Fragrances always cling to the hands of those
who distribute roses" 

  Thanks & Regards

Team

Voice of CA