Section 68-Assessee's AO cannot question his creditor's return of income-Calcutta HC0 comments Saturday, November 5, 2011Calcutta High Court in an important case has held that AO of an assessee cannot himself examine the return of income of his creditor instead he should ask creditor's AO and if creditor's AO has accepted claim of assessee in creditor's return of income then he is bound to accept the same.
Brought forward losses can be set off even if subsequent year's returns not filed within time u/s 139(1)-Mumbai ITAT0 commentsMumbai ITAT has held that assessee can set off brought forward loss in the subsequent years even if subsequent year's return of income is not filed within time as prescribed u/s 139(1). It is being held that Once loss is determined in the return file u/s.139(3), the assessee becomes eligible for set off against the income of the subsequent years irrespective of the fact whether the returns of such later years are filed u/s.139(1) or not. Sec. 80 read with sec. 139(3) requires the submission of return for loss before the due date. There is no such requirement that the subsequent years, in which the set off is claimed, must also fulfill the requirement of furnishing the returns within the time required u/s.139(1). Service Tax- Penalty u/s 76 and 78 mutually exclusive, cannot be imposed simultaneously0 commentsPunjab & Haryana High Court in CCE vs Cool Tech Corporation has upheld that penalty u/s 76 and 76 of Finance Act, 1994 cannot be imposed simultaneously after the amendment of 16-05-2008 whereby both the sections became mutually exclusive. In this case the matter was of before the said amendment. The appellate authority deleted the penalty u/s 76. Penalty u/s 271(1)(c) on voluntry Surrunder of Income in the absense of any detection by revenue is not sustainable0 comments Thursday, November 3, 2011Delhi High Court has held in CIT Vs Harnarain that surrender of the amount by the Assessee after receipt of the questionnaire could not lead to an inference that it was not voluntary, in the absence of any material on record to suggest that it was bogus or untrue. It is further evident that there was neither any detection nor any information in the possession of the Revenue which might lead to a conclusion that there was a detection by the Revenue of concealment. Facility of self E-updation of profile to all the dealers in Punjab is provided till 25th November, 20110 comments Wednesday, November 2, 2011Excise and Taxation Department in Punjab has given an opportunity to all the dealers in Punjab to update/validiate/amend the data relating to their profiles on the website of Department till 25th of November 2011. If any information relating to a dealer is not being updated then such dealer can update information by loging to the e-Updation/Validation of Dealer Profile with the same login credentials (i.e username and password) as are being used in Efiling of VAT Returns.
No sales tax on SIM cards, Recharge coupans, mobile rental on pre-paid connections, VAS -A.P High Court0 commentsAndhra Pradesh High Court has held that no sales tax is leviable on the SIM cards, recharge coupon vouchers, mobile telephone rentals on post paid connections, value added services such as ring tones, music down loads, wall papers etc. The following conclusions have been drawn by the High Court in its verdict in the said judgment: SA/GPA/WILL transfers do not convey title to immovable properties- An important judgment by SC0 comments Monday, October 31, 2011Supreme Court of India in an important case namely Suraj Lamp & Industries Pvt. Ltd. Versus State of Haryana & Anr. has held that immovable property can be legally and lawfully transferred/conveyed only by a registered deed of conveyance. Transactions of the nature of ‘GPA sales’ or ‘SA/GPA/WILL transfers’ do not convey title and do not amount to transfer, nor can they be recognized or valid mode of transfer of immoveable property. They cannot be recognized as deeds of title, except to the limited extent of section 53A of the TP Act. No disallowance u/s 40(a)(ia) for short deduction of TDS-Kolkata ITAT0 commentsKolkata ITAT in Deputy Commissioner of Income-tax Vs. M/s. S. K. Tekriwal has given a very important decision wherein it has settled that disallowance of u/s 40(a)(ia) if for non deduction of the requisite Tax. However no disallowance can be made u/s 40(a)(ia) for short deduction of tax or for deduction of tax under any other section. In this case the assessee deducted tax u/s 194C @ 1% whereas as per department he was required to deduct tax u/s 194I @ 10% hence there was shortfall of TDS, on this ground the disallowance was made. But the ITAT decided the matter in favour of assessee with following observations: Court should not decide a criminal case against the accused in the absence of his counsel -SC0 comments Monday, October 24, 2011
CBDT notifies new PAN Form and incorporates new conditions0 commentsIncome Tax Department has issued new PAN application form 49A AND 49AA. New PAN application Form No. 49AA is for Individuals not being a citizen of India, LLP registered outside India, Company registered outside India, Firm formed or registered outside India, Association of persons(Trusts) formed outside India, Association of persons (other than Trusts) or body of individuals or local authority or artificial juridical person formed or any other entity (by whatever name called) registered outside India Clarification of CBEC in relation to taxability of sub-contractors in exempt works contract services0 comments Saturday, October 22, 2011Works contracts relating to construction of roads, airports, railways, transport terminals, bridges, tunnels, dams etc.is exempt from service tax. However there was confusion as regard to whether the services provided by sub-contractors to the main contractors of such exempt works contracts are taxable or not. CBEC has issued a circular clarifying when sub-contracts in works contracts of construction of roads, airports, railways, transport terminals, bridges, tunnels, dams etc.will not be taxable. It has been clarified that just because the main contractor is providing the WCS service in respect of projects involving construction of roads, airports, railways, transport terminals, bridges, tunnels, dams etc., it would not automatically lead to the classification of services being provided by the sub-contractor to the contractor as WCS. Rather, the classification would have to be independently done as per the rules and the taxability would get decided accordingly. Due date of filing service tax return for period ending 30-09-2011, extended to 26-12-20110 comments Thursday, October 20, 2011F. No. 137/99/2011 – Service Tax, New Delhi dated the 20th October 2011
ORDER NO. 1 /2011 – Service Tax In exercise of the powers conferred by Rule 7(4) of the Service Tax Rules 1994 read with notification No. 48/2011-Service Tax dated 19th October 2011, Central Board of Excise and Customs hereby extends the date of submission of half yearly return for the period April 2011 to September 2011 from 25th October 2011 to 26th December 2011. Download Landmark Judgment in Gheru Lal Bal Chand vs State of Haryana0 comments Monday, October 17, 2011The all important judgment of Punjab & Haryana High Court in case of Gheru Lal Bal Chand Vs State of Haryana and Another on the issue of disallowance of Input Tax Credit to an innocent purchaser on the ground that seller has not deposited tax into treasury as collected by him from the purchaser, can be downloaded herebelow:
Taxation of works contract services under Service Tax.0 comments Sunday, October 16, 2011Works contract services were brought into service tax net by the Finance Act, 2007, w.e.f 01-06-2007 vide notification No. 23/2007-ST, dated 22-05-2007. Works contract in general terms can be understood as a contract which involves transfer of property and also element of service or work rendered. Definition of works contract service: Service tax under works contract services has been imposed on the service element involved in the works contracts. It should be noted that unlike VAT laws in various States service tax is applicable only on a fewer kinds of works contract as defined in section 65(105)(zzzza). Works contracts relating to Roads, Airports, railways, transport terminals, bridges, tunnels and dams are outside the purview of service tax. Know the Instructions given by RBI to Banks on customer services0 commentsReserve Bank of India issued a master circular no RBI/2011-12/56 DBOD No.Leg.BC.18/09.07.006/2011-12 on 1st July, 2011 giving instructions to banks on customer services. Many a times common man faces difficulties while operating their bank accounts like paying minimum balance charges, not issuing of cheque books at counters etc. Coustomers should be aware of instructions issued by RBI to banks. I am sharing the some extracts of the master circular herebelow:
VAT on pre-owned cars under PVAT is on a dealer of pre-owned cars only and not on every person17 comments Saturday, October 15, 2011Recently Punjab Govt has imposed VAT on sale of pre owned cars by a dealer vide notification No. S.O. /P.A. 8/2005/S.8/2011 . the relevant extract of the notification is being produced herebelow:
In the said schedule ‘E’, after serial No.9, and the entries relating thereto the following shall be added, namely:- VAT to be levied on Sugar and textiles from April, 2012-News0 commentsCome April, and you may have to pay more for sugar and textiles. All the States have arrived at a consensus to levy the Value Added Tax (VAT) on these two items from April 1, 2012. The Centre had allowed them to levy it from April 1, 2006 in lieu of additional excise duty (AED) on sugar and textiles. But some States withdrew the tax after opposition by the traders. At present only Andhra Pradesh imposes the local tax on both sugar and textiles, while Delhi levies on textiles only. In works contract of constructing national highway purchase of consumables like Diesel, LDO, Furnace oil against C form can be made3 comments Friday, October 14, 2011Rajsthan High court has held in Commercial Tax Officer, Sirohi Vs. Agarwal J.V that a works contractor, for construction of national highway, can purchase diesel., LDO, Furnace oil and other materials against C form. In this case it was argued on behalf of the Department that the pre-condition for availing the benefit under C- Form is that the purchaser must use the goods inter alia for manufacturing or processing; but, this is not the case of the respondent. More so, the respondent is work contractor. Mobile Phones are taxable @ 5.5% in Punjab-Order u/s 85 of PVAT Act, 20050 commentsBefore Sh. A. Venu Prasad IAS, Excise & Taxation Commissioner, Punjab. Name of the Applicant M/s Ingram Micro India Ltd., B-XX-1275, Krishna Nagar, Ghumar Mandi, Ludhiana. Subject: Application U/s 85 of the PVAT Act. Govt planning to allow reopening of income tax returns of past 16 years0 comments Sunday, October 9, 2011Government plans to allow reopening of income tax returns of past 16 years of suspected assessees, as against 6 years at present. The move is aimed at strengthening the mechanism to investigate black money cases.
A Finance Ministry official said in New Delhi that extending the period of reopening returns is to unearth undisclosed income and to empower tax officials to go deeper into the income and expenditure details of suspected persons and business firms. The government is likely to amend the Income Tax Act of 1961 which allows tax officials to reassess tax returns only upto the past six years now. As per the above news if the amendment is carried in the Income Tax Act so as to increase the period of reassessment from 6 Years to 16 years then the assessees will have to keep the record of last 16 years and they could be questioned about the income they have earned upto 16 years ago.
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