The Bombay Chartered Accountants Journal
Curiosity to Creativity
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Accountancy and Audit
Accounting Standards (GAPS IN GAAP):
Goodwill In Common Control Transactions Under Ind AS Whether Capital Reserve Can Be Negative?
From Published Accounts:
From Published Accounts
Corporate and Other Laws
Ingredients for Crafting a Model Policy On Dealing With Related Party Transactions
Insolvency and Bankruptcy Code 2016 – Challenges and Opportunities
Threats to RTI
Corporate Law Corner:
Corporate Law Corner
Laws And Business:
RERA: Some Issues
Right To Information:
Right to Information (R2I)
Insider Trading - A Recent Comprehensive Case
Applicability of Section 14A – Interest To Partners
Glimpses Of Supreme Court Rulings:
Glimpses of Supreme Court Rulings
In the High Courts: Part A - Reported Decisions:
32. ALP – Computation- Sections 92 and 92C – A. Y. 2011-12 – Determination of operating costs- Agreement between parties - Reimbursement of costs received from AEs - Finding that reimbursement of cost of infrastructure was without a mark up- Claim of assessee to exclude cost of infrastructure to be allowed
33. Business expenditure - Exempt income- Disallowance u/s. 14A- A. Y. 2011-12 - If no exempt income is earned in the assessment year in question, there can be no disallowance of expenditure in terms of section 14A read with Rule 8D even if tax auditor has indicated in his tax audit report that there ought to be such a disallowance
34. Capital gains- Exemption u/s. 54F - A. Y. 2012-13 – Assessee getting more than one residential house in several blocks - All flats product of one development agreement on same piece of land - Flats located in same address - Assessee is entitled to benefit of exemption u/s. 54F
35. Charitable purpose - Exemption u/s. 11 - A. Ys. 2006-07 and 2009-10 - Education main activity of assessee - Publishing and printing books and selling them at subsidised rates or distributing them at free of cost - Profit earned thereby utilised for education - Denial of exemption erroneous-
36. Income- Exempt income - A. Y. 1991-92 - When the royalty and interest income were claimed as exempt on accrual basis in earlier years, forex fluctuation gain or loss arising on receipt of such income in subsequent period could not also be considered as exempt. Such gain or loss could not be considered as part of royalty or interest income and it should be taxed on basis of AS-11
37. Penalty - Block assessment - Sections 132(4), 158BC and 158BFA(2) - On mutual understanding with department, director of assessee - company filed return showing undisclosed income and assessee filed Nil return - Undisclosed income assessed finally partly in hands of director and partly in hands of assessee - Penalty not leviable on assessee
38. Revision – Scope of power of Commissioner - Section 264 1 - A. Y. 2006-07 - Record includes all records relating to any proceedings - Not confined to return of income and assessment order in case of assessee - Order passed on other party treating lease rent received by it from assessee as its income - Application by assessee for revision on basis of order - Order can be considered and applied to allow deduction in assessee’s hands - Remedy u/s. 264 appropriate
39. Search and seizure - Assessment u/s. 153A - A. Ys. 2003-04, 2006-07 to 2008-09 - Assessee can claim deduction in return u/s. 153A or first time before appellate authorities
40. TDS - Rent - Section 194-I - A. Y. 2010-11 - Meaning of “rent”- Passenger service fees collected by airline operators - Use of land and building incidental - Tax not deductible at source on such fees
41. Revision- Section 264 - A. Y. 2013-14- Power of Commissioner - Intimation u/s. 143(1) whether can be considered in revision - Assessee filing revised return and seeking interference by Commissioner - Commissioner to consider revision application
In The High Courts: Part B -Unreported Decisions:
8. Advance received for exports – shown in the accounts as a liability for a period of more than 10 years - no addition of the amount shown as a liability u/s. 41(1)
9. TDS - Payments made for hiring of cranes - the crane owner responsible for day-to-day maintenance and operating costs - liable for TDS u/s. 194C of the Act - not u/s. 194I of the Act.
10. Capital Gain - purchase and sale of shares and mutual funds – Whether chargeable to tax under the head 'capital gains' or as business income
Tribunal News : PART A - Reported Decision:
Sections 23, 198, 199 – Credit has to be granted even in respect of TDS on the part of annual value which has been claimed as unrealised rent.
Section 5: Where foreign employer directly credited the salary, for services rendered outside India, into the NRE bank account of the non-resident seafarer in India, same cannot be brought to tax in India u/s. 5.
Sections 43(5), 271(1)(c) – Penalty cannot be levied in a case where set off of loss against normal business income was not allowed because the AO assessed the loss to be speculative loss as against normal business loss claimed by the assessee in its return of income. Such a change amounts to change in sub-head of loss and not furnishing of inaccurate particulars of income invoking penal provisions.
Tribunal News : PART B - Unreported Decisions:
Sections 45, 48 – The cost of construction incurred by the Builder cannot be the consideration for exchange of land in the scheme of Joint Development. It is the FMV, based on the value of the Sub-Registrar, on the date of JDA, which needs to be taken as full value of consideration
Section 2 (22)(e) – Amount contributed by a company, in which assessee is substantially interested, towards capital contribution in a firm in which such company and the assessee is a partner, cannot be regarded as dividend in the hands of the assessee, though the capital contribution by the company was disproportionate to its profit sharing ratio.
September 2017: Like-No-Other
From The President
From The President:
From The President
Is Schedule Ii To The Central GST Act, 2017 & Other State GST Acts Unconstitutional As Regards Certain Services?
Input Tax Credit – Some Emerging Issues
Recent Decisions: Part A: Service Tax:
Recent Decisions: Part B: VAT:
Construction Contract Vis-À-Vis Repair Contract
Foreign Tax Credit Rules
Tribunal News : PART C -:
Section 92C, the Act – Location savings and advantages are very much relevant in cross-border transaction but only for limited purpose of examination and investigation of transaction and not as a basis for determination of ALP and consequential adjustment.
Section 92C, the Act – No royalty could be said to have accrued to the Taxpayer since there was no agreement between AEs and the Taxpayer to charge royalty during the year and since the Taxpayer had not provided any technical or other support to the AEs.
Sections 9, 44BB of the Act; Article 5(5) of India-Singapore DTAA – Where drilling rig was brought into India for fabrication and upgradation to make it ready for drilling activities, the number of days for which such fabrication and upgradation was being carried out was to be included to determine whether aggregate days exceeded the threshold.
News and Views
Furnishing of Form GSTR-3B