I.  Recent Updates:

1.   CIT Vs. M/S COMPAQ ELECTRIC LTD., ITA NO. 172 OF 2011, DATE OF ORDER : 18/10/2011, HIGH COURT OF KARNATAKA

Held waiver of unsecured loan is a capital receipt non chargeable to tax u/s 41(1) of the Act since there is no prior deduction/allowance of the same to assessee.

The condition precedent is that there should be an allowance or deduction in the assessment for any year in respect of loss, expenditure or trading liability incurred by the assessee. then, subsequently, during any previous year, if the creditor remits or waives any such liability, then the assessee is liable to pay tax under section 41. The whole object is to avoid double benefit to the assessee. In the instant case, the amount claimed as capital receipt is in respect to which there was no allowance or deduction claimed by the assessee for the previous year. therefore when his creditor has waived the repayment of the said amount, it amounts to a capital recipt and not a revenue receipt as the assessee did not have the benefit of any allowance or deduction in respect of the said amount section 41 is not attracted.

(Please click here for judgment)

 

2.  CIT Vs. M/S HORIZON CAPITAL LTD., ITA NO. 434 OF 2010, DATE OF ORDER : 24/10/2011, HIGH COURT OF KARNATAKA

Held in MAT Assessment on book profits u/s 115JB the benefit of rebate u/s 88E is available to assessee as same is in nature of assurance and promise given to tax payer.

The contention that this benefit is not available to assessee whose total income is assessed u/s 115JB has no substance. In other words, when the total income is assessed u/s 115JB has no substance. In other words when the total income is assessed and the tax chargeable is computed, it is from that tax which is chargeable, the tax paid under section 88 is given deduction, by way of rebate, under section 87 of the Act. This is the legislative intent. That is a promise to give deduction of the tax already paid. This is the mode in which tax already paid is handed back at the time of final computation.

(Please click here for judgment)

 

II.  Today's Bottomline News : 

1. I-T dept to reopen returns of 'Suspects'  (Click for detail)

2. No Increase in Income Tax Raid and Survey in Current Financial Year  (Click for detail)

3. ICAI for branch-level audit of private sector banks  (Click for detail)

4. Online Public Search of Trade Marks Before Incorporation of Company  (Click for detail)

5. SEBI : Guidelines in pursuance of the SEBI KYC Registration Agency (KRA) Regulations, 2011 and for In-Person Verification (IPV)  (Click for detail)

6. RBI - Implementation of the Internal Rating Based (IRB) Approaches for Calculation of Capital Charge for Credit Risk  (Click for detail)
    

III.  Today's Tenders Info. :

1. Department of Information Technology
   Chandigarh
   (Click for detail)
    

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if we have any problem that means...
we definitely have the capability of solving it"

  

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