I. Today's Headlines:    

1.    The CBDT has decided to keep in abeyance the decision to change the procedure for PAN allotment till further orders. (Click here to view details).

2.    Cbdt exempts tax on rewards by govt to olympic games / common wealth games /  asian games winners.( Click here to view details).

3.    India Offers Stable and Non-adversarial Tax Regime. ( Click here to view details).

4.    First-time Investors Can Bet on RGESS for Additional Tax Break. (Click here to view details).

II.  Direct Tax Case laws:

1. Commissioner of Income-tax v. Ram Kishan Gupta, IT APPEAL NO. 143 OF 2003, Date of Order : 20.01.2014, Allahabad High Court.

Share trading business on own behalf is "jobbing"; Jobbing is not speculative in view of proviso(c) to section 43(5).

Held that in normal terminology, share trading business on behalf of oneself is known as jobbing. A transaction carried on by the assessee for sale and purchase of the shares was fully covered by the term 'jobbing' and assessee is entitled for the extension of the benefit of proviso (c) to Section 43(5) of the Act.

(Please click here to view the Judgment)

2. Brown & Sharpe Inc. v. Assistant/Deputy Commissioner of Income-tax, Circle, IT Appeal Nos. 2015 (Delhi) of 2008, 2435 (Delhi) of 2010 and 5026 (Delhi) of 2011, Date of Order : 17.01.2014, ITAT – Delhi.

Liaison Office of a foreign company is taxable when such foreign company is registered with ROC.

That apart from getting permission from RBI for opening the liaison office, the assessee company is registered with the Registrar of Companies for establishment of place of business in India. Certificate issued by the Registrar of Companies, NCT of Delhi and Haryana in this regard. The assessee itself had filed the return of income not only for this year but also for all subsequent years claiming the loss under the head 'income from business or profession'.  The liaison office, apart from having Chief Representative Officer and other staff, is also having a Technical Expert. The employees of the assessee company are promoting the sales of the goods of the assessee company as per service conditions. There is a sales incentive plan by which employees are provided the incentive for achieving the sales target and the performance of the employees is being judged by the orders secured by the assessee company. All these activities clearly establish that the liaison office of the assessee was promoting the sales of the assessee company in India and, therefore, the Assessing Officer was fully justified in holding that the income attributable to liaison office is taxable in India.

(Please click here to view the Judgment)

 

 Golden Rule:

"The best revenge is massive success."

  Thanks & Regards

Team

Voice of CA