Daily Tax Update - July 18, 2013 Income Tax: -------------- >Capital gain: AO has interfered without any evidence that possession of factory land was given to assessee in the subject assessment year on the basis that construction activity had started - HC >Notice of re-assessment: If a claim is scrutinized by the Assessing Officer during assessment, it means he was convinced about the validity of the claim. His formation of opinion is thus complete. - HC >Deduction u/s 80G: Exemption also granted u/s 10A - Double deduction - the debiting of donation in the first instance and adding it back subsequently makes no difference - assessee is entitled to the said benefit - HC >Installation of traffic signal: A.O. held deduction can only claimed u/s 80G - in order to discharge their CSR which also facilitates their business if the employees were to reach the place early, they thought of incurring the expenditure for installing the traffic signal - Deduction u/s 37 allowed - HC >Donations for scientific research or rural development: Loss under the head income from business or profession - in view of the specific bar created u/s 80GGA, assessee is not entitled to avail deduction u/s 80GGA - Tri >Addition on account of forfeiture of shares application money: Since the amount is capital in nature the same cannot be brought to tax. - Tri >Rectification u/s 154: Issue of grant of interest on interest is a highly debatable and rather allowable claim in favour of the assessee - debatable issue cannot be rectified u/s 154 - Tri >Export promotion expenses: Foreign visits for the purpose of meeting with the buyers have no direct nexus with the manufacturing activity of the assessee - expenses disallowed - Tri >Exemption u/s 10(23C)(iv): Even though the aims and objects of the society may contain several objects but if it has been proved by material on record that the society is not perusing any other activity apart from reduction then in such case, the society will qualify for grant of approval u/s. 10(23C)(vi) - HC >Once the transaction is genuine merely because it has been entered into with a motive to avoid tax, it would not become a colourable devise and consequently earn any disqualification. - HC Service Tax: -------------- >Constitutional validity of levy of service tax on sale of food and drinks (restaurants): Legislative competency of Parliament - only state govt. are empowered to levy tax - levy of service tax is not valid - HC Central Excise: ----------------- >Alteration in MRP: There cannot be different Retail Price for the purpose of CVD and for the purpose of Excise duty in respect of the same goods - prima facie case is against the assessee. - Tri >Refund claim of education cess and S&H education cess of exempted goods: Refund claim of education cess and S&H education cess was not entertainable - Tri >Application for restoration of appeal filed after almost 16 years: Application for restoration is to be made within three months from the dismissal of the appeal - Tri >Levy of AED (T&TA) in addition of Compounded levy of duty on fabrics: An assessee need not discharge any further duty under AED (T&TA) - Tri >Any information sought not having the backing of the law and if not given: Cannot be the ground for seeking vacation of the stay - Tri Source: dailytaxupdates.blogspot.in/2013/07/dailytaxupdate18072013.html
Posted on: Thu, 18 Jul 2013 06:26:18 +0000
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