Goel Nipun & Associates

18/03/2016

1.No service tax on transfer of non-exclusive right to use goods. [Re. M/s SICPA India Pvt. Ltd. [The Authority For Advance Rulings (Central Excise, Customs & Service Tax)]

2.CBDT amends procedure for dealing with revenue audit objections. [Circular No. 8/2016- Income Tax]

3.The expenditure recorded by the developer being business expenditure having no direct nexus with construction cannot be adopted as cost of construction for the purpose of capital gains in the hands of the assessee.[M/s. Essae Teraoka Ltd. vs Dy. Commissioner of Income Tax, Circle 11 (3) , Bangalore. - 2016 (3) TMI 579 - ITAT BANGALORE]

4.SEBI includes commodity derivatives as eligible security for trade. CIR/MRD/DSA/41/2016. Dated: March 17, 2016

5.Rate of exchange of foreign currency conversion with effect from 18.03.2016 Notification No. 41/2016

24/02/2016

1.No disallowance of penalty paid for procedural non-compliances. [Mangal Keshav Securities Limited vs. ACIT (ITAT Mumbai)]

2.No charity in initial years cannot be sole basis for trust registration denial.[M/s Prabhat (A House of Hope for Special Children) vs CIT (Exemptions), (ITAT Chandigarh)].

3.Expenses can be allowed once business is setup despite it's non-commencement. [M/s. Multi Act Realty Enterprises Pvt. Ltd. vs. ITO (ITAT Mumbai)]

4.Section 54EC deduction allowed if cheques presented within 6 months. [Neela S. Karyakarte vs ITO (ITAT Mumbai)].

5.CENVAT credit on foreign commission to foreign agent allowed. [Monarch Catalyst Pvt. Ltd. vs. Commissioner of Central Excise (CESTAT-Mumbai)]

6.CENVAT of Inputs & Input services for producing electricity captively consumed allowed. [M/s JSW Steel Coated Products Ltd. vs. CCE (CESTAT Mumbai)].

09/02/2016

09/02/2016

1.Allowance of interest on bank loan is case of advance to subsidiary and loan to directors out of reserves. [Hero Cycles Private Limited vs CIT (Central), Supreme Court of India].

2.Reassessment u/s 147 not permissible merely on change of opinion – ITAT. [ACIT vs. Reliance Industrial Infrastructure Ltd. (ITAT Mumbai) I.T.A. No. 5872/M/2012].

3.Addition in already assessed income is not sustainable, in absence of any incriminating material found during search. [ Shri Vimal Kumar Rathi vs DCIT Mumbai].

4.Reopen proceedings not valid in absence of any tangible material to substantiate escaped income. [M/s Amit Engineers vs ACIT(ITAT Chandigarh). ITA No. 828/Chd/2014].

5.Partner's remuneration u/s 40b- once the additional income offered for taxation during the survey is accepted and it has been explained to be as a business income as a source then there is no bar in the act for claiming partner’s remuneration from such additional business income – Tribunal [The DCIT , Circle-6, Suart vs M/s Radhekrishna Developers C/o Dipak Naginbhai Chauhan and vice-versa – 2016 (2) TMI 192 – ITAT Ahmedabad]

6.The income-tax department has cautioned taxpayers not to share their PIN or password of emails. The department does not seek confidential or financial information from taxpayers.

7.FEMA Notification No. 9(R)/2015-RB dated Dec 29, 2015, c.f. G.S.R. No.1005(E) which supersedes the Foreign Exchange Management (Realisation, repatriation and surrender of foreign exchange) Regulations, 2000 and all amendments thereto.

8.ICAI asks CAs to include Name of Firm, FRN, Name, Designation & Membership No. of CA (besides other requirements) with Signature in Certificates issued.

09/02/2016

1.Penalty under Section 271(1)(c) ,bogus transaction of sale and purchase of asset, it is a clear case of furnishing inaccurate particulars in the form of forged invoices and thereby concealed the particulars of income of the assessee. Levy of penalty confirmed by Tribunal. [M/s ICICI Bank Ltd., (erstwhile Bank of Madura Ltd.) Versus The Assistant Commissioner of Income Tax, Company Circle I (2) , Chennai - 2016 (2) TMI 167 - ITAT CHENNAI].

2.Rule 26 of CE Rules, 2002 , Penalty is not sustainable where actual involvement of parties in clandestine removal of goods is not established – HC. [Rakesh Kumar Garg & others vs. CCR (Delhi High Court), CEAC1/2011 & CEAC 2/2011 & CEAC 3/2011].

3.Under no circumstances, the Director can be allowed to compete the business of the company, in which he/she is already a director, to exploit the mark in order to give the impression to the public at large that he/she has any association or affiliation of the company in which he/she is still a director. – HC. [RAJEEV SAUMITRA vs NEETU SINGH AND ORS - 2016 (2) TMI 134 - DELHI HIGH COURT].

4.Procedure, Formats and Standards for ensuring secured transmission of electronic communication to taxpayer. Notification No. 2/2016 DGIT(S)/DIT(S)-3/AST/Paperless Proceedings/96/2015-1

5.Demand of duty is a charge of suppression, as the sale invoice of the chassis manufacturer was not in possession of the appellant, therefore, the appellant was not in a position to provide the same to the department. The extended period of limitation is not invokable at all. – Tribunal. [M/s. HMM Coaches Limited vs CCE, Panchkula - 2016 (2) TMI 143 - CESTAT NEW DELHI]

09/02/2016

1.Income from temporary letting of property taxable as income from house property if letting is not the main object. [G.R. Commercial Pvt. Ltd. vs. ITO (Individual) (ITAT Delhi), Income Tax (Appeal) Nos. ITA No.273/Del/2013 and ITA No.1134/Del/2013, AY 2005-2006 and 2006-2007]

2.Revenue expenses u/s 37 allowed in same year, AO not authorized to treat as deferred revenue expenditure.[ ACIT vs. M/s Citi Financial Consumer Finance India Ltd. (ITAT Delhi), ITA No. 2848/Del/2012 & ITA No. 6305/Del/2012].

3.No addition for change in valuation of stock, where method is changed in compliance of ICAI Accounting Standard.[ACIT vs. M/s J. K. Synthetics Ltd. (ITAT Lucknow), ITA No.563/LKW/2010 & ITA No.506/LKW/2010 and others]

4.Today (05.02.16) is last date for filing DVAT return in form DVAT-16,DVAT-17,& DVAT-48 for Q3 of 2015-16.Circular no. 36 of 2015-16.

5.Department Of Trade and taxes directs expeditious disposal of refund cases of amt upto Rs 10000 pending upto 31.03.15.Circular no. 37 of 2015-16 dt. 29.1.16.

04/02/2016

1.Treatment of property lease income that is any income earned by the assessee by the operation of mall has to be taxed under the head of Profits and Gains of business OS Profession. [ Chennai Properties & Investments Ltd. Vs CIT 2015 (8) TMI 481 –SC]

2.The assessee is required to incur expenditure every year to maintain the road of huge stretch, it shows that the assessee is not enjoying enduring benefit and thus claim allowed as revenue expenditure. [MMRDA vs Department of income tax]

3.Amendment in notification No. 41/2012-ST dated the 29th june, 2012 so as to allow refund of service tax on services used beyond the factory or any other place or premises of production or manufacture of the said goods for the export of the said goods and to increase the refund amount commensurate to the increased service tax, published in the Gazette of India, Extraordinary, vide number G.S.R. 519(E), dated the 29th June, 2012.

4.Amendment on Notification No. 39/2012-ST dated the 20th June,2012 so as to provide for debate of Swachh Bharat Cess paid on all services used in providing services exported in terms of India, Extraordinary, vide number G.S.R. 481(E) , dated the 20th June, 2012.

5.Penalty under custom can be imposed simultaneously on firm and its partners: Larger bench of HC. [Textoplast Industries vs Additional Commissioner of Customs 2011 (272) ELT 513 (Bom).

04/02/2016

1.Levy of simultaneous penalties on both the partner and partnership firm in adjudication proceedings under the Customs Act, simultaneous penalties can be imposed on the firm and the partners under the Act and more particularly under Section 112(a) of the Act. – HC. [M/s Amritlakshmi Machines Work, Mr. N.K. Bramchari, Managing Partner, M/s. Amritlakshmi Machine Works vs Commissioner of Customs (Import) - 2016 (2) TMI 57 – Bombay High Court]

2.Provision for accounting and auditing expenses, if the assessee is following this practice consistently then it is revenue neutral because every year this expenditure is required to be allowed. [M/s. New Mangalore Port Trust vs Asst. Commissioner of Income-tax, Circle 1 (1), Mangalore. - 2016(2)TMI 76 - ITAT Bangalore.]

3.MRP based value or transaction value of goods i.e. lubricating oil 50 litres package should be valued in terms of Section 4A and not u/s 4 of the Central Excise Act 1944-Tri-Central Excise. [Commissioner Of Central Excise & Customs, Mumbai vs M/s LSR Speciality Oils Pvt Ltd. And vice-versa-2016(2) TMI 62 - CESTAT Mumbai].

4.Cenvat credit and refund claim thereof for the period prior to registration, export of IT enabled services, nexus of input services with output services, are allowed for refund- Tribunal, Service Tax. [Prudential Process Management Services India Private Limited vs Commissioner of Service Tax, Mumbai Zone-II-2016(2) TMI 28 - CESTAT Mumba]i.

5.Amendment in CENVAT Credit Rules, 2004, the provision restricting CENVAT credit to 85 under proviso to rule 3(i)(vii) of Cenvat Credit Rule, 2004 deleted. Consequently ship breaking units would be entitled to avail 100 credit of the CVD paid with effect from 01.03.2015 - 01/2016 - Dated 01.02.2016 - Central Excise - Non Tariff

02/02/2016

1.Order of SetCom could not be challenged just because taxpayer hadn't made true disclosure of income before AO

2.Shares couldn't be said to be held for trading purposes just because they were sold in 7 days to diversify portfolio

3.A woman can become Karta of HUF if she is eldest member of a family, rules Delhi HC

4.Due date of filing DVAT return in form DVAT-16, DVAT-17 & DVAT-48 for Q3 of 2015-2016 extended to 05.02.2016. Circular no. 36 of dated. 28.01.2016.

5.Draft Bank Branch Auditors' Panel 2015-2016 has been again hosted at http://www.meficai.org

6.Certificate Course on Concurrent Audit of Banks batch at Delhi has been postponed. now it will be held on 6 February, 2016 instead of 30 January, 2016.

Multipurpose Empanelment Form for the year 2015-16 is an on line application. Members can fill up the application form directly on the site itself and Submit it.

02/02/2016

1.Assessee would be liable to deduct tax at source under section 194C on payments made as transportation charges to intermediate parties who arranged actual transporters from open market for carriage of goods by transport for assessee, even if there was no written contract between assessee and intermediary party

2.HC denied to order valuation of goodwill as it arises on acquisition of business in slump sales

3.Penalty order is illegal and without jurisdiction if it was passed during pendency of assessment proceeding: HC

4.Commission agent's services are ineligible for credit as he isn't not 'sales promotion agent'

5.Off-shore under-construction installations or incomplete structures do not form part of 'India'/ 'taxable territory'; hence, services imported by them are not liable to service tax under reverse charge

29/01/2016

1.Commitment charges paid towards foreclosure of business agreement are allowable u/s 37 [D.C.I.T. vs Autoline Industries Ltd (ITAT Pune), ITA No.1711/PN/2012].

2.Assessment in the name of non-existent entity is void ab initio, legal objection can be raised at any time before higher authorities [Sapient Consulting Limited vs. DCIT (ITAT Delhi), ITA No.1728/DEL/2014 & 1306/DEL/2015].

3.Expenditure on research is revenue nature if no new product develops, irrespective of treatment in books [D.C.I.T. vs Autoline Industries Ltd (ITAT Pune), ITA No.1711/PN/2012].

4.Voluntary contributions received by assessee towards corpus cannot be brought to tax, even if Trust is not registered u/s 12AA [Income Tax Officer -Vs- M/s. Vokkaligara Sangha (ITAT Bangalore), I.T.A. Nos.281 to 285/Bang/2014].

5.Demand not sustainable when show cause notice issued is time barred [Spectra Fashions (2016)(41) STR 184 Calcutta High Court].

6.Custom valuation Rule 4 will not apply if import is without monetary consideration [M/s GMR Energy Ltd vs. Commissioner of Customs (Supreme Court of India); Civil Appeal No.4920 of 2007 and Civil Appeal No.3594 of 2008].

7.Due date of DVAT Return of third quarter extended to 05.02.2016 [No.F.7(420)/VAT /Policy/ 2011/PF/1380-85, Circular No. 36 of 2015-16].

29/01/2016

FM to be the Chief Guest on 57th National Cost Convention of the Institute of Cost Accountants of India on Jan 30 in Delhi.
The theme of the function is “Building Cost Competitiveness – Mission ‘Make in India’.