I.  What's New Today : 

1. Last date for submission of hard copy of the Declaration of MEF2011-12 has been extended upto 15th September, 2011

2. Due date for submission of ITR-V for A.Y. 2010-11 extended upto 31.10.2011 or 120 days from the date of upload whichever is later

3. Income Tax Notification No. 47 – Section 90 of The IT Act, 1961 – Regarding Double Taxation Agreement  (CLICK HERE)

4. Gen. Cir. No. 62/2011–Co. Law - Clarification on Notification No S.O. 447 (E) dated 28.02.2011 on Revised Schedule VI (shall be effective from 01.04.2011)  (CLICK HERE)

5. Gen. Cir. No. 61/2011–Co. Law - Online incorporation of companies within 24 hours  (CLICK HERE)

6. Customs Circular No. 39 - Self-Assessment in Customs  (CLICK HERE)

7. Customs Circular No. 38 - Issue of Customs House Agent License  (CLICK HERE)

8. RBI/2011-12/165 - Submission of Credit Information to Credit Information Companies – Dissemination of Credit Information of suit-filed accounts  (CLICK HERE)
   
    

II.  Today's Tenders Info. :       

1. CHIEF OFFICER
   RAIPUR - CHHATTISGARH
   (CLICK FOR DETAIL)

2. CHIEF OFFICER
   SINGRAULI - MADHYA PRADESH
   (CLICK FOR DETAIL)
       

III.  Judicial Pronouncements :

1.  DCIT, Kolkata Vs M/s Haldiram Bhujiawala Limited (Dated: 28th July 2011), ITA Nos. 554 & 555/Kol/2011, ITAT - Kolkatta Bench

Held:  that  when the books of account of the assessee are rejected and assessee has not appealed against the same, the GP rate is to be estimated only on reasonable basis.

Whether the foreign travelling expenses incurred on director of the company for setting up a subsidiary abroad is allowable as it has a direct nexus with business – 

Held : that the visit of the director to U.K. cannot be called a visit for non business purposes merely on the suspicion that a visit after two years of conception of the plan to start a subsidiary company may not be for the same purpose. Therefore, the visit of the director of appellant company to London is for business purpose in absence of any evidence contrary to the claim of appellant.

Whether the commission paid to 'K' can be disallowed u/s 40A(2)(a) without considering whether it was excessive or unreasonable having regard to the fair market value of the services rendered by the person.

Held : AO has wrongly referred to Section 40A(2)(a) because u/s. 40A(2)(a), disallowance can be made if the expenditure is considered to be excessive and unreasonable  having regard to the fair market value of the services rendered by the person. Thus,  the order of CIT (A) is confirmed.

(Please click here for judgment)

  

2.  CIT Vs M/s Bonanza Portfolio Ltd. (Dated: 10th August 2011), ITA No. 833 of 2011, Delhi High Court

That the appellant being engaged in the business of stock broking and share transactions, the expenditure incurred on ad films by way of advertisements for promotion and marketing of its products, being on the ongoing business, would be of revenue in nature and thus allowable as revenue expenditure.

In the similar way, the expenditure incurred on website & advertisement would also be of revenue in nature and thus allowable as revenue expenditure. If, however, and if it is in respect of business which is yet to commence then the same cannot be treated as revenue expenditure as expenditure is on a product yet to be marketed.

Further, the computer peripherals like printers, scanners etc are entitled to depreciation @ 60%.- Revenue’s appeal dismissed.

(Please click here for judgment)

 

  

"River cuts the rock not because of its power
but because of its consistency.
So never loose your hope and
keep walking towards target"

  

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