Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Seshasayee Paper and Boards Ltd. Versus The Deputy Commissioner of Income Tax, Central Circle-II (1) , Chennai

Interest received u/s.244A in regard to interest on refunds due - treated as the income of the assessee - Held that:- In the case of the assessee there are no directions by the State Govt., for staying its income. The fact remains that by virtue of order of the Tribunal, the income has crystallized to the assessee in accordance with mercantile system of accounting. Merely an appeal filed by the Revenue before the Hon’ble High Court will not result in staying of such income/receipt unless an orde .....

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 link this expenditure with the benefit obtained by the assessee company for the balance period of term loan considering the matching principle of accountancy and the mercantile system of accounting in arriving at the correct income for the relevant assessment years. Moreover it is pertinent to mention that the balance period of the term loan and the income attributable to the savings in interest is ascertainable unlike in the case of deferred revenue expenditures where such period and the ben .....

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 assessee company in order to comply with the matching concept and mercantile system of accountancy which is stipulated in Accounting Standard-I and mandatory in the case of the assessee as it is a limited company and there by allow the deductions in the relevant assessment year and the relevant succeeding assessment years - Decided against assessee

Disallowance of dividend tax paid u/s.115-O - Held that:- It is pertinent to mention that tax paid on dividend declared is nothing but .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

5-O of the Act specifically provides that dividend tax is payable in addition to the income tax chargeable in respect of the total income of a domestic company. For the aforesaid reasons, we do not find it necessary to interfere with the orders of the Revenue.- Decided against assessee - I.T.A.No.614/Mds/2014 - Dated:- 24-2-2016 - SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The Appellant : Dr.Anitha Sumanth, Advocate For The Respondent : Mr. A.V.Sreekan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Assessing Officer had treated the amount of ₹ 6,31,047/- (being the interest received under section 244A in regard to interest on refunds due from the Revenue) as the income of the assessee though the Department was on appeal before the Hon ble High Court against granting such interest by the Tribunal to the assessee. ii) The learned Commissioner of Income Tax (Appeals) has erred in confirming the order of the learned Assessing Officer, wherein the learned Assessing Officer had made additi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng of paper and boards filed its return of income for the assessment year 2005-06 on 28.05.2009 returning Nil income. Subsequently, the case was taken up for scrutiny and assessment was completed under section 143(3) of the Act on 31.12.2007 wherein the learned Assessing Officer made several additions. Ground No.1- Interest received u/s.244A of the Act for ₹ 6,31,047/-:- 4. During the course of assessment proceedings, it was observed by the learned Assessing Officer that the assessee has c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

this income has not crystallized and therefore not considered while computing the taxable income of the assessee following the mercantile system of accounting. The learned Assessing Officer did not accept the contentions of the assessee and brought the same under the ambit of tax. The learned Commissioner of Income Tax (Appeals) also confirmed the order of the learned Assessing Officer. 5. The learned Authorized Representative cited several decisions and argued stating that the interest receive .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as following mercantile system of accounting, no real income had occurred due to the directions of the State Govt., and therefore such income cannot be taxed in the relevant assessment year. However, in the case of the assessee there are no directions by the State Govt., for staying its income. The fact remains that by virtue of order of the Tribunal, the income has crystallized to the assessee in accordance with mercantile system of accounting. Merely an appeal filed by the Revenue before the 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

ome Tax (Appeals) on this issue. Ground No.2 - Addition of ₹ 1,77,43,075/- towards disallowance of pre-payment of premium made to IDBI pertaining to succeeding years:- 7. During the course of assessment proceedings, it was observed by the learned Assessing Officer that the assessee had debited in its profit and loss account an amount of ₹ 3,80,56,306/- as deferred revenue expenditure. It was explained by the assessee that it had obtained loan from IDBI, IFCI limited and UTI for its 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

bmitted that the expense of ₹ 3,80,56,306/- has crystallized during the relevant assessment year and therefore it should be allowed as deduction. However, the learned Assessing Officer disallowed an amount of ₹ 1,77,45,075/- on proportionate basis being the premium attributable to the benefit of reduction in interest for the balance period of term loan. On appeal the learned Commissioner of Income Tax (Appeals) taking into consideration of the mercantile principles of accounting conf .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

10. We have heard both the parties and carefully perused the materials available on record. From the facts of the case, it is evident that the assessee had paid premium of Rs. ₹ 3,80,56,306/- in order to reduce its interest liability from the relevant assessment years till the balance period of term loan. Therefore, it is necessary to link this expenditure with the benefit obtained by the assessee company for the balance period of term loan considering the matching principle of accountancy .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rmed by the learned Commissioner of Income Tax (Appeals). However, we hereby modify the orders of the Revenue, by directing the learned Assessing Officer, to ensure that the entire amount of ₹ 3,80,56,306/- be proportionately apportioned to the relevant period for which the benefit in quantum of reduction of interest is enjoyed by the assessee company in order to comply with the matching concept and mercantile system of accountancy which is stipulated in Accounting Standard-I and mandatory .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: REGISTRETION

Highlight: IGST Rate Schedule u/s 5(1) - notifying rates of IGST @ 5%, 12%, 18%, 28%, 3% and 0.25% on supply of goods. - Notification no. 1/2017 as amended vide notification dated 22-9-2017

Notification: IGST Rate Schedule u/s 5(1) - notifying rates of IGST @ 5%, 12%, 18%, 28%, 3% and 0.25% on supply of goods.

Highlight: National Advisory Committee on Accounting Standards - Tenure of the NACAS extended from one year to two years

Notification: National Advisory Committee on Accounting Standards

Forum: Duty Drawback- Urgent

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force - "subsidiary company" or "subsidiary"

Highlight: Restriction on number of layers for certain classes of holding companies - More than two layers of subsidiaries not allowed subject to certain exceptions.

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM – Applicability to persons not liable to get registered us 23(1)

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

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities – Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act



|| 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