AMIT BAJAJ ADVOCATE

I have found the order of Delhi ITAT in the case namely DCIT Vs Nalwa Investments Ltd. very important one wherein it  has been held that mere faliure to disallow expenses u/s 14A will not amount to levy of penalty u/s 271(1)(c) unless malafide is proved. In this case even the auditors did not suggest disallowance u/s 14A in respect of expenses relating to tax free income. Hence no malafide intention for not attributing expenses to tax free income was proved consequently no penalty u/s 271(1)(c) could be levied.

An accused can escape conviction for murder if he proves that there was no premeditation for the act, occurred in a heat of passion, no cruelty involved and undue advantage taken, the Supreme Court has ruled.
A bench of justices Asok Kumar Ganguly and Deepak Verma in a judgement said that the accused can seek immunity from murder only if all these four above circumstances are established in defence of the crime.

"In order to bring a case under Exception (4) to Section 300 IPC, the evidence must show that the accused acted without any premeditation and in a heat of passion and without having taken undue advantage and he had not acted in a cruel or unusual manner.

As per the new amendment in rule 114B of Income Tax Rules, now PAN will also have to be furnished in respect of payment of LIC premium of aggregating Rs. 50000 or more in a year. PAN will also be required to be furnished while making payment to a dealer of Rs. 5 Lakh or more or against a bill of Rs 5 Lakh or more for purchase of bullion or jewellery. The word Dealer has been mentioned in newly added clause (r) to Rule 114B, but who will be considered as dealer is a question to be asked, since no corresponding explanation defining the word dealer has been added in the rule.

Instructions for filing Sehaj form have been notified. Not only a layman but also every professional must go through these instructions before filing the form as many new things may come to picture which we might not be aware of.

CBDT has issued some instructions for bringing transparency in the Survey Operations carried under Income Tax Act 1961. As per the instructions now the survey party will inform the taxpayer on whom survey operations are carried on, before the start of survey proceedings  the name designation and contact numbers of the CCIT &Additional CIT/JCIT and also will inform the taxpayer that if he has any grivence he can contact the said authorities. The instructions as issued are  produced herebelow for ready reference.

I am sharing hereby various schedules under Punjab VAT Act 2005 prescribing rates of tax(VAT) on various goods in Punjab.  I have made every effort to provide the schedules with latest amendments but as we know the rates of goods are changed by Govt from time to time, hence the list of goods and rate of tax on goods mentioned in the schedules should not be taken as final. I will try to update the schedules with latest amendments from time to time for the sake of my knowledge as well as that of readers of my blog.

WHAT IS HOUSE PROPERTY?
The Income Tax Act classifies 'buildings and/or land appurtenant* thereto as *House Property'. Income derived from vacant plots of land is not charged under this head but under the head Income from other sources' or *business profits'.
ON WHOM IS TAX LEVIED?
The tax under this head is levied upon the owner, legal or beneficial and not upon the occupant. In case the assessee is not the owner but gets rent from sub-letting a property, the income will not be taxed as income from house property, but as income from other sources.
Ownership will also include deemed ownership, i.e. persons who purchase properties on Power-of-Attorney basis or under long-term lease (twenty year or more) are also deemed to be owners.

There is a news that uploading of information relating to certain sale bills which has been made compulsory by Punjab Govt as per a public notice, has been made optional instead of being compulsory. This  was to be made compulsory w.e.f 01-06-2011, but now as per a news in a newspaper it has been made optional. The news is produced herebelow for ready reference

Section 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act.

The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan
Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1

Supreme Court in an important decision in a case namely Bansal Wire Industries Ltd. Versus State of U.P. has held that Stainless Steel wire is not covered under declared goods u/s 14 of CST Act 1956. The Apex court held that stainless steel doesnot fall in the entry of Tools, alloys and special steels under Iron and steels.

Here below I am sharing procedure for downloading Form 16A online. You can download the procedure by clicking at the below link:
PROCEDURE FOR DOWNLOADING FORM 16A ONLINE

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Now TDS certificate in Form No 16A will be downloaded and generated  online from TIN central system by the deductors and the same will be issued to the deductees. A circular to this effect has been issued by CBDT. This online downloading of form 16A has been made compulsory for the banking and other companies for tax deducted on or after 1-04-2011 and optional for other deductors. Ussualy there is difference between the form 16A issued to deductees and form 26AS available online to every assessee. This ussualy happens due to wrong entries made in the TDS returns.

According to section 68 of Income Tax Act 1961, where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source of the same or the explanation offered by him is not satisfactory in the opinion of A.O., the sum so credited may be charged to income tax as the income of the assessee of that previous year. An attempt here is made to understand the provisions of section 68 of Income Tax Act,1961 herebelow:

 

There must exist books of accounts before making addition u/s 68: The addition under u/s 68 can be made on the basis of unexplained cash credit found in the books of the asseessee, hence existence of books of an assessee is a condition precedent before an addition u/s 68 can be made.

 

Commissioner of Income Tax, Karnal Versus Deepak Kumar

Crux of the Judgment: Bonafide mistake or belief is more or less a question of fact. No litigant should suffer on account of the mistake committed by the councel because the advise tendered by the councel is accepted by the litigant, which is based on bonafide belief of being correct.

State of Punjab & another.Vs.M/s Morinda Cooperative Sugar Mills Ltd.   

Crux of the Judgment: Charging provisions under the Punjab VAT act provides for levy of VAT on turnover. If the assessee had received any further amount in addition to sale proceeds(Subsidy by State in this case), which is not part of the sale price, such amount could not be added to the turnover, consequently no VAT can be levied on the subsidy given by State.

The Union government has allowed the states to impose tax on sugar and textiles for the first time in 54 years.

I have found the following Judgment of Mumbai ITAT in the case namely Tivoli Investment & Trading Co. vs ACIT as a good one on determination of Annual Rental value u/s 23(1)(a) of Income Tax Act, 1961. As we know for determining annual value of a house property standard rent or municipal value, actual rent, Fair market rent all factors have to be considered. Where rent is reduced due to high security deposit by the tenant, then AO is not bound by standard rent or the municipal value.

 

The Bombay High Court in a very important judgment namely Joseph Vilangadan v. Phenomenal Health Care Services Ltd. & Anr. has given the verdict that if a cheque issued as security deposit gets  dishonoured with remarks “insufficient funds” or “stop payment” as happened in the said case then no offence will be deemed to have been committed u/s 138 of Negotiable Instrument Act, 1881. 

Fabrication of Truck and Bus Body has been included in the schedule B of Punjab VAT Act whereby the said transaction has been made taxable @ 5%(after surcharge it will be 5.5%) under the Punjab VAT Act 2005. The relevant notification is produed herebelow for ready reference of all concerneds:

Punjab Govt has issued a public notice to the effect making it compulsory to upload the data of invoices to be issued on the official website of the Department even in case of intra state transactions(i.e transactions within the state) in the prescribed format, where the amount of bill is in excess of Rs 200000 except in case of Iron and Steel, Cotton bales and yarn, Edible oils, Timber, Marble, Tiles of all kinds, in which case the amount is in excess of Rs 20000.

The all important order of the Punjab & Haryana High court providing interim stay on entry tax in Punjab can be downloaded by clicking at the below link: