Sustainability of orders passed by Settlement Commission in violation of section 245D(4) of IT Act, 1961

If Settlement Commission fails to comply with mandate of law, such orders passed in violation of section 245D(4) cannot be said to be legally sustainable.

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The statistics of CA final result in respect of examination held in November 2009

The results of the Chartered Accountants Final Examination held in November-2009 was declared recently.

The details of percentage of candidates passed in the above said examinations are given below:

CHARTERED ACCOUNTANTS FINAL EXAMINATION( Existing Course) HELD IN NOVEMBER-2009

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If AO assume concealment without considering the actual payments made in the subsequent years, such attempt would be premature

SUMMARY OF CASE LAW

On basis of just an individual asstt. year, if one attempts to make out a case of concealment, without considering actual payments made in subsequent years, such attempt would always be premature.

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A public prosecutor need not reveal opinion given to government under the RTI: Madras HC

A public prosecutor representing the state in criminal cases need not divulge details of the legal opinion given to the government as it is privileged communication, the Madras High Court has ruled.  In a similar case Supreme Court said that a judge could not be asked under the Right to Information (RTI) Act as to how and why he came to a particular conclusion in a judgment.

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Appeal to simplify and speedup the procedure for approval u/s. 36A(3) of the Bombay Public Trust Act, 1950 in respect of raising loan or deposit

To,
The President, Mumbai.
Sir,

Kindly consider the following and make an appropriate representation.

As per the Bombay Public Trust Act, 1950, the trust has to apply for approval of Charity Commissioner u/s 36A(3) in respect of raising loan or deposit. Along with application the trust has to furnish the following information.

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Issue of F form for transactions effected prior to date of CST registration and Issue of the same between branches

Q.1 The amended section 6A of CST Act, 1956 requires the transferor branch to obtain ‘F’ form from the transferee branch and on failure to obtain the same the transaction is presumed to be sale. Whether such amendment can be said to be constitutionally valid, as it may amount to levy of tax on Consignment?

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Confirmation of addition by tribunal does not mean concealment of income or inaccurate furnishing of particulars of income

CASE LAW DETAILS

Decided by: ITAT, AHMEDABAD BENCH `B’, In The case of: ADIT (Intl. Taxation) v. Precision Drilling (Cyprus) Ltd.,  Appeal No.: ITA No. 1604/Ahd/2009, Decided on: September 17, 2009

RELEVANT PARAGRAPH
As per the provisions of section 271(1)(c) the penalty under this section is leviable if the AO is satisfied in the course of any proceeding under this Act that any person has concealed the particulars of his income or furnished inaccurate particulars of such income.

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Penalty for concealment can not be imposed automatically for disallowance of deduction

SUMMARY OF CASE LAW

When the assessee has filed all particulars of income, the correct assessment and calculation of total income has to be done by the Assessing Officer; if on such process the AO finds different total income to be assessed than the income offered by the assessee, in such case it is not automatically a case where penalty under section 271(1)(c) is leviable.

CASE LAW DETAILS
Decided by:
ITAT, MUMBAI BENCH `E’ : MUMBAI, In The case of: Twin Star Jupiter Co-op. Hsg. Soc. Ltd. v. ITO , Appeal No. : ITA No. 3210/M/07, Decided on: April 15, 2009 

RELEVENT PARAGRAPH


9. Part A of the Explanation to section 271(1)(c) provides that if assessee fails to offer an explanation or offers and explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the Commissioner to be false. This explanation can therefore, be applied only where the assessee has either not offered any Explanation or where he has offered any Explanation, the same found to be false by the ITO etc. in other words, where the assessee offers some explanation, it is only the proving by the assessee officer of the explanation to be false, that part A of the Explanation may be attracted, Mere non acceptance of explanation offered by the assessee cannot form a basis for the satisfaction of ITO must have some definite evidence to refuse the assessee’s claim or evidence or explanation.

10. The essence of part B of the explanation is that the person must provide an explanation which is bona fide and he should substantiate that explanation by some evidence with him. If he fails to do so, his explanation may be treated as untenable. But when, the assessee is able to offer reasonable explanation based on some evidence, the ITO cannot invoke Part B of the explanation unless he has given finding based on some contradictory evidence to disapprove that explanation offered by the assessee which the assessee is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him.

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Concessional ticket to travel Agents cannot be termed as commission

SUMMARY OF CASE LAW

The relationship between the assessee-airlines and the travel agent is one of principal and agent; the supplementary commission which is the amount retained by the travel agent is commission within the meaning of section 194H read with Explanation (i) to the said section; the difference between the full value of the ticket and the concessional ticket cannot be termed as `commission’ because the concessional ticket may have been given to the travel agent for carrying out his function as an agent; however, the transaction between the two is that of principal to principal.

CASE LAW DETAILS
Decided by:
HIGH COURT OF DELHI, In The case of:  CIT v. Singapore Airlines Ltd. , Appeal No. :  ITA Nos. 306/2005 & 123/2006, Decided on: April 13, 2009

RELEVENT PARAGRAPH

1. In these batch of appeals, which have been preferred by the Revenue, there are three issues which require consideration of this Court.

12. In order to come to a definite conclusion whether section 194H of the Act would be applicable to the assessee-airline in respect of transaction, in issue, we propose to first look at the scope and ambit of section 194H of the Act and then analyse the transaction as to whether it falls within the purview of the said Section. In this context, it would be necessary to extract the relevant portions of Section 194H of the Act.

The said provision reads as under:-

“194H. Any person, not being an individual or a Hindu undivided family, who is responsible for paying, on or after the 1st day of June, 2001, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft of by any other mode, whichever is earlier, deduct income-tax thereon at the rate of ten percent:

Provided xxxx

Provided xxxx

Provided xxxx

Explanation. – For the purposes of this section, -

(i) “Commission or Brokerage ” includes any payment received or receivable, directly or indirectly, by a person acting on behalf of nother person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities;

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Non-compete right’ acquired by an assessee is eligible for depreciation under clause (ii) of section 32(1) of IT Act

CASE LAW DETAILS
Decided by:
. ITAT, BENCH `A’ CHENNAI, In The case of: ITO v Medicorp Technologies India Ltd., Appeal No. : ITA No. 2328/Mds/2007, Decided on: January 16, 2009

SUMMARY OF CASE LAW

Capability to have a market value, assignability, transferability, diminution in value, are no more the touch stones on which the admissibility for depreciation under section 32 has to be tested; consequently, if the business/commercial right of a patent, copy right, trade mark, license and franchise fulfills the conditions of being intangible asset as mentioned in clause (ii) of section 32(1), then surely the business/commercial right by way of non-compete right acquired by the assessee also fulfills that condition, by way of a logical corollary.

RELEVENT PARAGRAPH
12.2 One can see very clearly that the clause (ii), introduced in section 32(1), w.e.f.01-04- 1999, not only extended the benefit of section 32 to the `intangible assets’ but also gave therein an `inclusive’ definition of the `intangible assets’, for this purpose.

15.4 It becomes clear from the above discussion that capability to have a market value, assignability, transferability, diminution in value, are no more the `touch stones’ on which the admissibility for depreciation u/s 32 of the Act has to be tested. We are living in the commercial world of `e-banking’, `e-commerce’ , and `e-governance’ , the old, archaic, traditional concepts have undergone a sea change, and our law-makers have truly kept pace with the change.

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