I.  Today's Topline News : 

1. Service Tax Draft Circular - Revised Concept Paper on Taxation of Services based on Negative List November, 2011  (Click for detail)

2. FEMA Circular No. 47 - "SET-OFF" of Export Receivables against Import Payables – Liberalization of Procedure  (Click for detail)

3. FEMA Circular No. 46 – Overseas Forex Trading through Electronics / Internet Trading Portals  (Click for detail)

4. CIR/IMD/FIIC/ 20 /2011 - Increase in FII Debt Limit in Government & Corporate Debt Category  (Click for detail)

II.  Recent Updates:

1.  C.I.T. Vs. M/S BHARI INFORMATION TECH. SYS. P. LTD., SPECIAL LEAVE TO APPEAL (CIVIL) NO(S). 33750/2009, DATE OF ORDER : 20/10/2011, SUPREME COURT OF INDIA

S. 115JA/JB s. 80HHC deduction to be computed as per book profits where 115JA/115JB is applicable & not normal provisions.

The deduction is to be worked out not on the basis of regular income tax profits but it has to be worked out on the basis of the adjusted book profits in a case where s. 115JA is applicable. The dichotomy between regular income tax profits and adjusted book profits u/s 115JA is clear, in s. 115JA relief has to be computed u/s 80HHC(3)/(3A). Once the law itself declares that the adjusted book profit is amenable for further deductions on specified grounds, in a case where s. 80HHC (80HHE in the present case) is operational, it becomes clear that computation for the deduction under those sections needs to be worked out on the basis of the adjusted book profit. Accordingly, the deduction claimed by the assessee u/s 80HHC & 80HHE has to be worked out on the basis of adjusted book profit u/s 115JA and not on the basis of the profits computed under regular provisions of law applicable to computation of profits and gains of business.

(Please click here for judgment)

  

2.  C.I.T. Vs. M/S DATAWARE PRIVATE LIMITED, ITAT NO. 263 OF 2011 & GA NO. 2856 OF 2011, DATE: 21/09/2011, THE HIGH COURT AT CALCUTTA

If the creditor discloses his PAN and claims to be an assessee, the AO cannot himself examine the return and P&L A/c of the creditor and brand the same as unworthy of credence. Instead, he should enquire from the creditor’s AO as to the genuineness of the transaction and whether such transaction has been accepted by the creditor’s AO. So long it is not established that the return submitted by the creditor has been rejected by the creditor’s AO, the assessee’s AO is bound to accept the same as genuine when the identity of the creditor and the genuineness of transaction through account payee cheque has been established.

(Please click here for judgment)

 

III.  Today's Bottomline News : 

1. Income Tax strike hits survey operations  (Click for detail)

2. Income tax department doubting authenticity of Swiss Bank account holders list  (Click for detail)

3. Administrative Measures to Aid Legislation on Insolvency (Click for detail)

4. PwC and KPMG criticised over audits  (Click for detail)

5. RBI allows Banks, NBFCs to set up Infra Debt Funds  (Click for detail)
    

IV.  Today's Tenders Info. :

1. CENTRAL WAREHOUSING CORPORATION
   NEW DELHI
   (Click here for detail)

2. FOOD CORPORATION OF INIDIA
   MUMBAI
   (Click here for detail)
   

Key of Success :

"If you stand for a reason, be prepared to stand like a tree.
If you fall on the ground, fall like a seed that grows back to fight again"

  

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