Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

Dy. Director of Income Tax (Exemptions) , Circle 17 (2) , Bangalore Versus Ohio University Christ College, Academy for Management Education

Disallowance of faculty teaching charges payable to Ohio University - CIT(A) deleted the addition - Held that:- The services have been rendered by the faculty members from Ohio University as the classes were taken in Bangalore. The services have been utilized for the purposes of the Trust’s objectives in India, viz. of imparting higher education in India. Ohio University has also offered the income earned by it from the assessee trust to tax in India. In the light of the above mentioned facts, i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion of income. This requirement has been specified only for those trusts that have as its objects, the promotion of international welfare. In the case of the assessee in the case on hand, the objects of charitable activities for imparting higher education in India, has already been approved by the Department while granting the assessee trust registration. Also unable to concur with the view of the Assessing Officer that mere credit entries in favour of Ohio University in the assessee’s books of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e.

Set off of brought forward excess application income/loss of earlier years - CIT(A) allowed claim - Held that:- The assessee had incurred certain preliminary expenditure in the year of setting up of the trust. The same is amortised by the assessee trust over a period of 5 years from the year of incurring of expenditure. The fact of amortization was not disputed by the Assessing Officer in the assessment proceedings for Assessment Year 2007-08 where the entire amount was added back .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bove referred case of Sisters of St. Anne (1983 (8) TMI 44 - KARNATAKA High Court) applies to trusts as well. In view of the factual and legal matrix of this issue in the case on hand as discussed above, we concur with the decision of the learned CIT (Appeals) in cancelling the disallowance made by the Assessing Officer and in allowing the amortization of expenses - Decided in favour of assessee.

Loss on account of foreign exchange fluctuation - CIT(A) allowed claim - Held that:- The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the case of Woodward Governor India (P) Ltd. (2009 (4) TMI 4 - SUPREME COURT ). In this view of the matter, we uphold the decision of the learned CIT (Appeals) - Decided in favour of assessee.

Disallowance of Accumulation of Income - Held that:- The purposes mentioned by the assessee trust in Form No.10 were ‘for use in purchase of fixed assets’ and for use in other purposes, ‘for fulfillment of the objects of the trust.’ The Assessing Officer disallowed the assessee’s claim for accu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee by observing that there is no decision of the jurisdictional High Court in the matter, the decision favourable to the assessee should be followed. As decided in Director of Income Tax, Exemptions And Others Versus Envisions [2015 (6) TMI 38 - KARNATAKA HIGH COURT ] as long as the objects of the trust are charitable in character and as long as the purpose or purposes mentioned in Form 10 are for achieving the objects of the trust, merely because of non-furnishing of the details, as how the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

evenue are directed against the order of the Commissioner of Income Tax (Appeals), Mysore dt.20.09.2013 for Assessment Years 2008-09 and 2009-10. These appeals being heard together and having certain common issues are disposed off by way of this common order. 2. The facts of the case, briefly, are as under :- 2.1 The assessee, is a public charitable trust registered under Section 12A of the Income Tax Act, 1961 (in short the Act ), established for the purpose of promoting education without any p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t Year 2008-09 and dt.15.12.2011 for Assessment Year 2009-10, wherein additions/disallowances under various heads were made. 2.2 Aggrieved by the orders of assessment for Assessment Years 2008-09 and 2009-10, the assessee preferred appeals before the CIT (Appeals), Mysore. The learned CIT (Appeals) disposed off the appeals by way of a common order dt.20.9.2013 allowing the assessee s appeals. 3. Revenue is aggrieved by the orders of the CIT (Appeals), Mysore for Assessment Years 2008-09 and 2009 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ndia, but without observing the fact that the assessee has not utilized or spent any amount during the year under consideration and only made a book entry crediting the amount to Ohio University s account by following mercantile method of accounting and the actual payment of the same has happened in the subsequent asst. year implying that there was no real application of income within the meaning of section l1{l){a) during the F.Y. 2007-08 relevant to A.Y. 2008-09. 2) The CIT (A) has failed to a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dy incurred the expenditure and liability to pay the amounthas accrued, but also it has already paid/remitted the amount to the party concerned towards the discharge of such accrued liability. 4) The CIT (Al has failed to appreciate the fact that the method of accounting followed by the assessee has no relevance for the purpose of arriving at the income applied towards the objects u/s l1{l)(a) and such application of income is with reference to actual utilisation or expending of the Income in re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eligious Endowment Trust v. CIT {1996} 59 ITR 582 (SCj was overruled in the case of Nachimuttu Industrial Association. 6) The CIT (A) has failed to appreciate the fact that in view of nonutilisation/ non- application of income to the extent of ₹ 2,66J2,407/-, being faculty teaching charges payable to Ohio University, Athens, USA, in the year under consideration, it is not relevant to discuss the second ground i.e., whether such amount is allowable as deduction on the ground that the same h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

charitable and religious trust/institution as codified u/s 11, 12 and 13, there is no provision for computing loss from property held under trust/institution on account of excess application of income/funds of the trust. 2) The CIT (A) has failed to appreciate the fact that the normal computation of income under respective heads as envisaged u/s 14 r.w.S. 15 to 59 are not applicable to the computation of income in respect of charitable and religious trust/institution for the purpose of claiming .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n the statute u/s 11 only to ensure that the income earned by the assessee by way of voluntary contributions as well as conducting some income generating activities such as running hospitals/ educational institutions is applied/utilized/expended towards the objects in order to allow exemption of such income from tax. 4) The CIT (A) has failed to appreciate the fact that application/ utilization towards the charitable or religious purposes is with reference to income quantified by applying the co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/ utilization over and above the income of the assessee and such application/ utilization is beyond the purview of Section 11 and 12. In each assessment year, the assessee is required to prove that it has applied or utilized the entire amount of income towards charitable or religious purposes so as to avail the benefit of tax exemption on such income and, therefore, excess application of income would not come Into picture and the same shall be treated as Nil. 5) The CIT (A) has failed to appreci .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rd and set off against the income of subsequent assessment years. Similarly, any capital expenditure incurred over and above the net surplus eligible for application, cannot be carried forward and set off against the income of subsequent assessment years. 6) The CIT (A) has failed to follow the decision of the Hon ble ITAT, Bombay in the case of Income-tax Officer vs. Trustees of Sri Sathya Sai Trust (33 ITO 320) wherein it was held that the deficit arising on account of application of funds/sum .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he decision of Hon ble Jurisdictional High Court in the case of CIT v. SOCiety of the Sisters of St. Anne (146 ITR 28) which is totally misplaced inasmuch as the issue involved in that case was relating to allowability of depreciation as deduction while computing the income of the assessee for the purpose of section l1(l)(a). A.Y.2009-10: A) Disallowance of faculty teaching charges payable to Ohio University amounting to ₹ 2,OS,58,120/-:- Please refer to the grounds of appeal on the same i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

evailing value of rupee in terms of USdollar. 2) The CIT (A) has failed to appreciate the fact that the assessee did not pay the faculty teaching charges to Ohio University to the extent of ₹ 2,OS,58,120/- during the year under consideration and the same is reflected under current liabilities as on 31.03.2009, but created provision towards loss on account of exchange fluctuation as on 30.03.2009 based on the difference between dollar rate as on the date of billing and as on 31.03.2009 and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion loss cannot be allowed as expenditure or application of income. Further, any expenditure or application of income shall be allowed by following real income method of accounting and accordingly, there should be real application/ expenditure by way of actual payment to the parties concerned. C) Disallowance of preliminary expenses of Rs.l,08,292/-: Please refer to the grounds of appeal for the A.Y. 2008-09 on the issue of setoff of brought forward excess application of income/loss of earlier y .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d assets and equipments and used as per the objectives of the trust and such general purposes cannot be construed as specific purposes as envisaged u/s 11(2). 2) The CIT (A) has failed to appreciate the fact that the assessee has not identified the specific amount with purpose meant for accumulation u/s 11(2) giving the particulars of mode of investment/deposit of the same such as, amount of Income invested in fixed deposits with FD No., name and address of the bank & branch etc., and amount .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

m No.10 filed along with the return of income. In this regard, the assessee should furnish the specific details of amount of income accumulated, the purpose for which the specified amount is accumulated and the period of accumulation or the year (s) in which the accumulated income will be utilized for the intended purposes. Also, the assessee is required to Invest or deposit such accumulated income in the forms or modes specified in section 11(5). 4) The CIT(A) has failed to appreciate that ther .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the course of assessment proceedings, the Assessing Officer observed that the assessee had claimed application of income under Section 11 of the Act which included the faculty teaching charges to Ohio University towards academic expenses. The Assessing Officer disallowed the assessee s claim for the following reasons :- (i) Merely making an entry in the books of accounts cannot be considered as application of income for charitable purposes as contemplated in section 11 of the Act. The word appli .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

id not prove that the payments made to Ohio University resulted in charitable purposes in India. 4.2 On appeal by the assessee, the learned CIT (Appeals) upheld the assessee s claim and deleted the disallowances made by the Assessing Officer by relying on the decision rendered by the CIT (Appeals) in the assessee s own case for Assessment Year 2007-08. The learned CIT (Appeals), while allowing the assessee s claim, observed that the application should be for charitable purposes in India and if t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ficer. It was submitted that the assessee has only made entries in the books of accounts in the relevant periods and had not utilized or spent the amount during the year and the actual payment of the same had happened in the subsequent year only and as such there was no application of income during the relevant year under consideration. It was submitted that the phrase such income is applied to such purposes in India appearing in Section 11(1)(a) of the Act connoted actual payment and since it h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ulty teaching charges payable to Ohio University, USA and therefore it should be considered as having been applied under Section 11(1)(a) of the Act. In support of its contention, reliance was placed on the decision in the case of CIT Vs. Trustees of HEH Nizam s Charitable Trust (1981) 131 ITR 497 (A.P.) wherein it was held that the term applied does not mean spent . It was also submitted that the decision rendered in the case of CIT V Trustees of HEH Nizam s Religious Endowment Trust (1977) 108 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tention, the learned Authorised Representative for the assessee placed reliance on the decisions in the case of CIT V. Radhaswami Satsang Sabha (1954) 25 ITR 472 (All) and CIT V. Thanthi Trust (1999) 239 ITR 502 (SC). 4.4.3 The learned Authorised Representative further submitted that merely because the payment was made outside India, this does not mean that the charitabale purpose was outside India. It was submitted that the charitable activities were rendered in India and just because the payme .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rused and carefully considered the material on record; including the judicial pronouncements relied upon by both parties. The basic facts, not in dispute, are that the assessee has entered into an agreement with Ohio University, USA, whereby Ohio University sends its faculty to the assessee s premises in India for teaching purposes, for which the assessee makes payment to Ohio University for providing the faculty and other support services. In terms of the agreement, the assessee is required to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a. Further Ohio University had filed returns of income in India offering this income to tax and paid taxes accordingly. 4.5.2 It is also not disputed that the services have been rendered by the faculty members from Ohio University as the classes were taken in Bangalore. The services have been utilized for the purposes of the Trust s objectives in India, viz. of imparting higher education in India. Ohio University has also offered the income earned by it from the assessee trust to tax in India. I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee, squarely apply to the case on hand. In the case of Gem and Jewellery Export Promotion Council V. ITO, reported in 68 ITD 95 (Mum), the Mumbai Bench of the Tribunal at para 33 thereof held as under :- 33. A bare reading of the sub-s. 11(1)(a) does not leave us in doubt that the requirement under s. 11 is for application of income for purposes in India and it does not restrict the application of income within the territory of India. The charitable purpose for which the income should be app .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ot disqualify the expenditure from exemption under s. 11(1)(a). In the case of NASSCOM V DDIT in 130 TTJ 377 (Del), the Delhi Bench of the Tribunal at para 11 thereof has held as under :- 11. We have considered the rival submissions. A perusal of the provisions of s. 11(1)(a) of the Act clearly shows that the words used are is applied to such purpose in India . The words are not is applied in India . The fact that the legislature has put the words to such purpose between is applied and in India .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rcumstances, it cannot be said that the expenditure incurred by the assessee in Hanover, Germany, which resulted in and which was for the purpose of attaining the charitable object in India, is not application of income. This view is also supported by the decision of a Co-ordinate Bench of this Tribunal in the case of Gem & Jewellery Export Promotion Council (supra), wherein, it has been held as follows : A bare reading of the sub-s. 11(1)(a) does not leave us in doubt that the requirement u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s of exports out of India. We accordingly hold that since the assessee has applied the income for charitable purposes in India, the mere fact that the expenditure has been incurred out of India, does not disqualify the expenditure from exemption under s. 11(1)(a). In the case of NASSCOM V DDIT in 130 TTJ 377 (Del), the Delhi Bench of the Tribunal at para 11 thereof has held as under :- 11. ……. A perusal of the provisions of s. 11(1)(a) of the Act clearly shows that the words used a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ble. It is also not the case of the Revenue that the expenditure incurred by the assessee in Hanover, Germany has not resulted in the benefit being derived in India. In these circumstances, it cannot be said that the expenditure incurred by the assessee in Hanover, Germany, which resulted in and which was for the purpose of attaining the charitable object in India, is not application of income. This view is also supported by the decision of a Co-ordinate Bench of this Tribunal in the case of Gem .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on had been sent abroad for the benefit of the entire trade in India. The exports are made from India and the purpose for sending the delegation was to increase the possibilities of exports out of India. We accordingly hold that since the assessee has applied the income for charitable purposes in India, the mere fact that the expenditure has been incurred out of India, does not disqualify the expenditure from exemption under s. 11(1)(a). 4.5.4 We also do not concur with the Assessing Officer s v .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing Officer that mere credit entries in favour of Ohio University in the assessee s books of account cannot be taken by the assessee as being for charitable purposes as contemplated in Section 11 of the Act. In this regard, the decision in the case of Trustees of HEH Nizam s Charitable Trust (supra) cited by the assessee squarely applies to the assessee s case. In the cited case, the trust had debited certain amounts to the income and expenditure account and claimed the same as application of in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to equate the word applied with the word spent . If the legislature intended that the amounts should actually be spent, there was nothing preventing it from using that word. There cannot be any doubt that the money which was sanctioned was applied for a specific purpose as there was nothing else to be done except the actual payment. The Tribunal was right in holding that the actual payment is irrelevant for purposes of finding out whether there has been an application of the funds…. 4.5. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the addition/disallowance made in respect of faculty teaching charges. Consequently, the grounds raised by Revenue at A (1 to 5) for both A.Ys 2008-09 and 2009-10 are dismissed. 5. B & C : Set off of brought forward excess application of income/loss of income/loss of earlier years ( B for A.Y. 2008-09 and C for A.Y. 2009-10). 5.1 In the course of assessment proceedings, the Assessing Officer observed that the assessee had claimed application of income on account of expenditure of earlier yea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oes not arise and also the trust is required to utilize 85% of the income of the previous year for charitable purposes during the year. In this view of the matter and for the above reasons, the Assessing Officer disallowed the assessee s claim of expenditure of earlier years being brought forward and set off during the year. 5.2 On appeal, the learned CIT (Appeals) allowed the amortization of the expenditure as claimed by the assessee and deleted the disallowance made by the Assessing Officer by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s that the assessee had incurred certain preliminary expenditure in the year of setting up of the trust. The same is amortised by the assessee trust over a period of 5 years from the year of incurring of expenditure. The fact of amortization was not disputed by the Assessing Officer in the assessment proceedings for Assessment Year 2007-08 where the entire amount was added back claiming 1/5 th of the expenditure. The un-amortised expenditure has been brought forward and set off as application of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(expenditure ?) cannot be allowed to be debited to the expenditure account of the trust. This contention appears to proceed on the assumption that the expenditure should necessarily involve actual delivery of or parting with the money. It seems to us that it need not necessarily be so. The expenditure should be understood as necessary outgoings. The depreciation is nothing but decrease in value of property through wear, deterioration or obsolescence and allowance is made for this purpose in boo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e; the amount of the provision, made in respect of an accounting period is intended to represent the proportion of such expenditure, which has expired during that period. At the end of its effective life, the assets ceases to earn revenue, i.e., the capital value has expired and the asset will have to be replaced or a substitute found. Provision for depreciation is the setting aside, out of the Revenue of an accounting period, the estimated amount by which the capital invested in the asset has e .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

it cannot be ascertained until a suitable charge for the use of the asset has been made. Moreover, unless provision is made for depreciation, the balance sheet will not present a true and the fair view of the state of affairs; assets should be shown at a figure which represents that part of their value on acquisition, which has not yet expired. 9. In CIT vs. Indian Jute Mills Association (1982) 134 ITR 68 (Cal), the Calcutta High Court, while construing the expression expenditure incurred in s. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

m of accounting or what is otherwise known as the double entry system is opposed to the cash system of book-keeping under which a record is kept of actual cash receipts and actual cash payments, entries being made only when money is actually collected or disbursed. That system brings into credit what is due, immediately it becomes legally due and before it is actually received and it brings into debit expenditure the amount for which a legal liability has been incurred before it is actually disb .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

In view of the factual and legal matrix of this issue in the case on hand as discussed above, we concur with the decision of the learned CIT (Appeals) in cancelling the disallowance made by the Assessing Officer and in allowing the amortization of expenses. Consequently, Ground No. B (1 to 6) of the Revenue s appeal for Assessment Year 2008-09 and Ground No.C for Assessment Year 2009-10 are dismissed. 6. B. Loss on account of foreign exchange fluctuation - A.Y. 2009-10. 6.1 This issue is relate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l, the learned CIT (Appeals) held that since programme fee payments by the assessee to Ohio University, USA has been allowed as application of income, the connected exchange fluctuations are also to be allowed and consequently deleted the disallowance made by the Assessing Officer. 6.3 Before us, the learned Departmental Representative was heard in respect of the Grounds raised, assailed the impugned order of the learned CIT (Appeals). The learned Departmental Representative supported the order .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Governor India (P) Ltd. reported in 312 ITR 254 (2009) (SC). 6.5 We have heard the rival contentions and perused and carefully considered the material on record. The basic facts of the matter on this issue are not in dispute. In the year under consideration, the assessee had incurred expenditure towards programme fees payable to Ohio University, USA We have already held at paras 4 to 4.5.6 of this order (supra) that these payments come under the purview of application of income for charitable p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(for A.Y. 2009-10) 7.1 In the course of assessment proceedings, the Assessing Officer observed that the assessee has shown accumulation of income under Section 11(2) of the Act. According to the Assessing Officer, the purpose of accumulation of income as declared in Form No.10 is not specific since the assessee has only stated that these were for fulfillment of the objectives of the Trust. The Assessing Officer disallowed the said accumulation on the ground that the assessee did not mention the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g the impugned order of the learned CIT (Appeals), placed reliance on finding in the order of the Assessing Officer on this issue. 7.4 Per contra, the learned Authorised Representative for the assessee submitted that the assessee had disclosed the purpose of accumulation of income in Form No.10, as purchase of fixed assets and fulfillment of the objects of the trust. It was also submitted that the Hon ble High Court of Karnataka in the case of DIT V Envisions (2015) 58 taxmann.com 184 (Kar) has .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ase on hand. 7.5.1 We have heard the rival contentions and perused and carefully considered the material on record, including the judicial pronouncements cited. The purposes mentioned by the assessee trust in Form No.10 were for use in purchase of fixed assets and for use in other purposes, for fulfillment of the objects of the trust. The Assessing Officer disallowed the assessee s claim for accumulation of income on the grounds that the purposes mentioned in Form NO.10 was not specific. As poin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Forum: import purchase

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

Forum: Cess paid instead of SGST

News: RBI Reference Rate for US $

Forum: 3B mistake

Forum: Input credit of gst paid on urd

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

Forum: transfer of shares

Forum: Input tax credit

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

Forum: GST return filing software online | Easy GST compliance management

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version