I.  Today's News:   

1. Government tables White Paper on Black Money in Parliament  (Click for detail)

2. Circular No. 8 - Filing of Cost Audit Report & Compliance Report in XBRL  (Click for detail) 

3. No escape for Vodafone as government puts its name in report on black money  (Click for detail) 

4. CBDT move puts tax reforms in peril  (Click for detail) 

5. Tax Department detects concealed income of Rs 19,938 crore in last 2 years  (Click for detail) 

6. FDI routed through Mauritius, Singapore to avoid taxes: Government  (Click for detail) 

II.  Useful Case laws:

1.   M/S  AUCHTEL PRODUCTS LTD. Vs. ASST. COMMR. OF INCOME-TAX, ITA NO. 3183 /MUM/2011, DATE: 30/04/2012,  ITAT – MUMBAI

S. 14A(2) empowers the AO to determine the amount of expenditure incurred in relation to tax-free income if, “having regard to the accounts of the assessee, he is not satisfied with the correctness of the claim of the assessee“. The satisfaction of the AO as to the incorrect claim made by the assessee is sine qua non for invoking the applicability of Rule 8D.

The satisfaction can be reached only when the claim of the assessee is verified. If the assessee proves before the AO that it incurred a particular expenditure in respect of earning the exempt income and the AO is satisfied, then there is no requirement to proceed with the computation under Rule 8D. The AO wrongly proceeded on the premise that Rule 8D is automatic irrespective of the genuineness of the assessee’s claim in respect of expenses incurred in relation to exempt income.

(Please click here for judgment)

2.  AZEEM INVESTMENT PVT. LTD. Vs. COMMISSIONER OF INCOME TAX, ITA NO. 252/2012, DATED: 24/04/2012, HIGH COURT OF DELHI

Whether the share application money received is a genuine transaction when there is only reference to the bank account entries - Held No.

The Tribunal felt that the matter cannot be decided in a superficial manner, by only making reference to the bank account entries and whether or not the alleged shareholders were incorporated companies;  an order of the remit has been passed, with a direction to conduct in depth inquiry, reach and record correct and true finding, which depending upon the material may eventually even go in favour of the assessee. Certain aspect and questions have been noticed and referred. No substantial question of law arises in the present appeals.

(Please click here for judgment)

Key of Success :

"Relations should be like two zeroes,
when we try to add they are same,
when we subtract they are again same.
But when try to divide its just impossible"

Thanks for your valuable time

"Voice of CA"