See the footer if you would like to unsubscribe from the newsletter
Dear Subscriber,
Dear Subscriber,
Maruti Suzuki India Ltd vs. CIT (Supreme Court)
U/s 43B(a), deduction is allowed on "any sum payable by the assessee by way of tax, duty, cess or fee." The scheme of s. 43B is to allow deduction when the sum is actually paid. (i) The credit of Excise Duty earned under MODVAT scheme is not sum payable by the assessee by way of tax, duty, cess. It is merely the incident of Excise Duty that has shifted from the manufacturer to the purchaser and not the liability to the same. Consequently, the unutilised credit under MODVAT scheme does not qualify for deduction u/s 43B. (ii) The sales tax paid by the appellant was debited to a separate account titled 'Sales Tax recoverable account' and is liable for disallowance u/s 43B. Deductions under Section 43B is allowable only when sum is actually paid by the assessee. In the present case, the Excise Duty leviable on appellant on manufacture of vehicles was already adjusted in the concerned assessment year from the credit of Excise Duty under the MODVAT scheme. The unutilised credit in the MODVAT scheme cannot be treated as sum actually paid by the appellant. The assessee when pays the cost of raw materials where the duty is embedded, it does not ipso facto mean that assessee is the one who is liable to pay Excise Duty on such raw material/inputs. It is merely the incident of Excise Duty that has shifted from the manufacturer to the purchaser and not the liability to the same
PCIT vs. Rishabhdev Tachnocable Ltd (Bombay High Court)
S. 68 Bogus Purchases: Though the assessee has not proved the genuineness of the purchases and sales, yet if the AO has accepted the sales, the entire purchases cannot be disallowed. Only the profit element embedded in purchases would be subjected to tax and not the entire amount (Bholanath Polyfab 355 ITR 290 (Guj) followed, Kaveri Rice Mills 157 Taxman 376 (All) & La Medica 250 ITR 575 (Del) referred) Having found that the purchases corresponded to sales which were reflected in the returns of the assessee in sales tax proceedings and in addition, were also recorded in the books of accounts with payments made through account payee cheques, the purchases were accepted by the two appellate authorities and following judicial dictum decided to add the profit percentage on such purchases to the income of the assessee. While the CIT (A) had assessed profit at 2% which was added to the income of the assessee, Tribunal made further addition of 3% profit, thereby protecting the interest of the Revenue
Celltick Technologies Ltd vs. DCIT (ITAT Mumbai)
Transfer Pricing: (i) If the "arms length‟ principle is satisfied qua the relevant transaction between the assessee and its Indian subsidiary, no further profits can be attributed to the assessee in India even if it was to be held that the latter had a PE in India (ii) If the subsidiary has subsequently entered into an "APA‟ with the CBDT & the FAR analysis and overall functions remain unchanged, the "APA‟ would have a bearing on the ALP of the earlier years The Indian subsidiary of the assessee had for A.Y. 2015-16 to A.Y 2019-20 entered into an "APA‟ with the CBDT. As is discernible from the "APA‟, the functions of the subsidiary company inter alia included "marketing and sale of various software solutions" of the assessee company. As per the "APA‟ the operating profit margin up to its revenue of Rs. 50 crore was to be taken at 7% of its "Operating revenue‟. Admittedly, the FAR analysis and overall functions of the subsidiary company had remained the same during the period covered by the "APA‟ and that for the year under consideration i.e A.Y 2014-15. Though, the APA in the case of the assessee had been entered into for the period spread over A.Y. 2015- 16 to A.Y 2019-20, however, as held by the ITAT, Mumbai in the case of 3i India Pvt. Ltd. Vs. DCIT (ITA No. 581/Mum/2015, dated 16.09.2016), a subsequent "APA‟ would also have a bearing on the earlier years
CBDT Cracks Whip. Warns PCsIT Their Future Prospects Depend On Success Of 'Vivad Se Vishwas Scheme'
The CBDT has sent a clear message to the Principal Commissioners and their subordinates that the "Vivad se Vishwas" scheme should not be treated in a casual manner by them but that they have to make efforts in the right earnest. It is stated that the performance of officers in respect of the scheme will be specifically commented upon and shall be an important factor in determining their future postingsFinance Bill, 2020: Stay of Demand – Curtailment Of Powers Of The ITAT?
Advocate Shashi Bekal has studied the provisions of clause 97 of the Finance Bill 2020 which seeks to regulate the power of the Tribunal to grant stay on recovery of demand. He has considered whether the said provision is directory in nature and not mandatory. He has also opined on whether the provision can be said to be arbitrary and therefore ultra vires the Constitution. The author has argued that the provision will compel taxpayers to file Writ Petitions in the High Courts for stay of demand and thereby lead to unnecessary burden on the CourtsTax Bar Upset At Abrupt Resignation Of Tax Judge During Elevation As Chief Justice
The Tax Bar expressed regret at the fact that a forthright and popular judge in the Bombay High Court resigned after being transferred during the process of elevation as Chief Justice of another Court
See Also: Digest of case laws (updated regularly) containing latest judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
E-Assessments – Paving Way For Pioneering Tax Reforms!
One of the subjects for discussion at the 22nd National Convention of the AIFTP which was held at Mumbai on 14th December 2019 was "e-assessments – paving way for pioneering tax reforms". Dr. K. Shivaram, Sr.Advocate chaired the session and Mr. Mukesh Patel, Advocate, Ahmadabad, addressed on the subject. The subject, being new, involved a number of issues. For the benefits of tax professionals, a detailed article is published and video of the session is also hosted. Authors have also included the amendments proposed in the Finance Bill, 2020 regarding e-assessment and e-appeal before CIT(A). The authors have also made various suggestions__._,_.___
Posted by: "editor@itatonline.org" <itatonline.org@gmail.com>
| Reply via web post | • | Reply to sender | • | Reply to group | • | Start a New Topic | • | Messages in this topic (1) |
.
__,_._,___
0 comments:
Post a Comment