I.  Whats New: 

• SCHEDULE VI (REVISED) CHECKLIST  (Click for detail)

• IT Press Release : Corrective measures will be taken to bring clarity in tax laws, FM says  (Click for detail)

• Exposure Draft of Amendments to Indian Accounting Standard (Ind AS) 32 Financial Instruments: Presentation (Comments to be received by 31 August 2012)  (Click for detail)

• Exposure Draft of Amendments to Indian Accounting Standard (Ind AS) 107 Financial Instruments: Disclosures (Comments to be received by 31 August 2012)  (Click for detail)

• Constitution of Groups on Centres of Excellence and pieces of land acquired in Rohini-Delhi and I.P. Marg-Delhi  (Click for detail)

 II.  Useful Case laws:

1.    CIT Vs Sri Devesh Singh, ITA No. 99 of 2010, Dated: 23.07.2012, High court of Allahabad

Issue:

“Whether the warrant of authorization could have been issued jointly and if so, assessment could have been made against AOP or individually?”

Held:

In the present case we find that the warrant of authorization under Section 132 of the Act has been issued on 10th November, 2006 in the joint name of three persons. We are, therefore, of the considered opinion that in view of the provisions of Section 292CC, as inserted by Finance Act, 2012 in the Statute Book i.e. the Income-tax Act, 1961, the assessments made in the individual capacity of each persons named in the warrant of authorisation was perfectly within the jurisdiction of the Assessing Authority and the Commissioner of Income Tax (Appeals) as also the Tribunal were not justified in annulling the assessment on the ground that if the warrant of authorization was issued jointly in the name of more than one person, the assessment could not have been made in the capacity of an individual. We, therefore, set aside both the orders passed by the Commissioner of Income Tax (Appeals) and the Tribunal and remand the matter to the Commissioner of Income Tax Appeals to decide the appeals on merits.

(Please click here for judgment)

2.  CIT Vs. M/s Delhi State Industrial & Infrastructure Development Corporation Ltd., ITA 1208/2011, Decided on: 27.07.2012, High court of Delhi

Issue:

“Whether interest paid on income-tax refund bears the character of income and is, therefore exigible to tax”.

Held:

Unless there is an exact indication in the Income Tax Act itself, that interest payable on income tax refund amounts fulfill the basic character as income (defined under Section 2(24) of the Income Tax Act) cannot be ignored. It is no doubt true that this amount cannot be treated as interest income since the assessee did not earn it through conscious choice or voluntarily, nor was it engaged in the activity of investing its amount and earning interest. However, the basic characteristic of income being what it is, the amount received towards statutory interest has to be subject to tax under the head income from other sources.

(Please click here for judgment)

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"Never explain!
Your friends don't need it and 
your enemies will never believe you anyway" 

  "Team - Voice of CA"