I.  Today's Topline News: 

1. CBDT Releases Discussion Paper on Tax Accounting Standards  (Click for detail)

2. Circular No. 08/2011 - TDS on the deposits in banks in the name of the Registrar/ Prothonotary and Senior Master attached to the Supreme Court/ High Court etc. during the pendency of litigation of claim/ compensation  (Click for detail)

3. Cos need not maintain 2 account books: FinMin proposal  (Click for detail)

4. FinMin meets Sebi, market players for Securities Transaction Tax (STT) consultation  (Click for detail)

5. Transferring Shares? Gift Deed Can Ease The Process (Click for detail)

II.  A Useful Article: 

[ Contribution by  CA Puneet Goyal, and contributor is available at email-id: capuneetgoyal.delhi@gmail.com ] 

ANALYSIS OF POINT OF TAXATION RULES, 2011 ALONGWITH SUITABLE EXAMPLES

(Please click here for detail)
 

III.  Recent Updates:

1.     THE DY. COMMISSIONER OF INCOME TAX Vs. M/S. JINDAL PHOTO LIMITED, ITA NO. 814(DEL)2011, ASSESSMENT YEAR: 2008-09, DATED: 23.09.2011, ITAT DELHI

It is a pre-requisite that before invoking Rule 8D, the AO must record his satisfaction on how the assessee’s calculation is incorrect. The AO cannot apply Rule 8D without pointing out any inaccuracy in the method of apportionment or allocation of expenses. Further, the onus is on the AO to show that expenditure has been incurred by the assessee for earning tax-free income. Without discharging the onus, the AO is not entitled to make an ad hoc disallowance. A clear finding of incurring of expenditure is necessary. No disallowance can be made on the basis of presumptions.

(Please click here for judgment)

 

2.   GROWTH AVENUES LTD Vs. JOINT COMMISSIONER OF INCOME TAX, DATED: 19.05.2011, ITA NO. 1939-1940/AHD/2009, ASSESSMENT YEAR: 2003-2004, ITAT – AHEMDABAD

Whether the penalty can be levied u/s 271D / 271E for the amount received and repaid in cash in the hands of the assessee company though as per the statement of the lender the amount was given to and repaid by the directors in their individual capacity

KKS’ has categorically stated in the cross examination proceedings that he had given loan to the directors of the company for which promissory notes were obtained. The promissory notes were in the name of individuals and not in the name of assessee-company. The loan was also repaid by the directors. It is clear from this that assessee-company neither took any loan from ‘KKS’ nor repaid any amount to him in cash. Penalty u/s. 271D / 271E can be levied against the person who has received / repaid any loan or deposit referred to in Section 269SS / 269T otherwise than in accordance with the provisions of that Section. Since in this case there is no such violation on the part of assessee-company the penalty cannot be levied against it. If at all there is any violation of the provisions of Section 269SS / 269T, it was on the part of the directors.

(Please click here for judgment)

  

IV.  Today's Bottomline News: 

1. Legal Heat on Profitable Firms Likely Over CSR Gap (Click for detail)

2. CIR. NO. MRD/DP/11/2011 - SEBI ESTABLISHMENT OF CONNECTIVITY WITH BOTH DEPOSITORIES NSDL  (Click for detail)

3. RBI/2011-12/223 - KYC Norms – Letter issued by Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number  (Click for detail)

4. RBI/2011-12/217 - Prudential Guidelines on Capital Adequacy and Market Discipline - New Capital Adequacy Framework (NCAF) - Revision of Rating Symbols and Definitions of Credit Rating Agencies  (Click for detail)

5. RBI/2011-12/219 - Inclusion of Credit under KCC under direct financing for Agriculture  (Click for detail)
    

V.  Today's Tenders Info.:

1. CHIEF OFFICER
   BHOPAL
   (CLICK FOR DETAIL)

Key of Success:

"A normal person prays, don't give me problems.
But a great person prays give me power to face problems"

  

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