vasai branch of wirc newsletter vasai branch of wirc ... - vasai-icai.org
vasai branch of wirc newsletter vasai branch of wirc ... - vasai-icai.org
vasai branch of wirc newsletter vasai branch of wirc ... - vasai-icai.org
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
10<br />
March, 2012<br />
DIRECT TAXES– RECENT DECISION March, 2012 by Haresh P. Kenia<br />
INCOME TAX DECISION<br />
Section 194 H – TDS - SRL Ranbaxy Ltd. vs. ACIT (2012) 65 DTR<br />
185 (Del.)<br />
Assessee engaged in conducting various medical diagnostic<br />
tests having entered into non-exclusive agreements with collection<br />
centres who collect samples from patients / customers for laboratory<br />
testing services and forward the same to the assessee and collect<br />
fees on its own bills / invoices to the patients / customers at the rates<br />
decided by themselves and make payment to the assessee, net <strong>of</strong><br />
discount, after deducting TDS u/s. 194J, there is no principal – agent<br />
relationship between the assessee and the collection centres so as to<br />
attract provisions <strong>of</strong> section 194 H and, therefore, discount <strong>of</strong>fered by<br />
the assessee to the collection centres could not be disallowed by<br />
invoking provisions <strong>of</strong> section 40(a)(ia).<br />
Section 2(24) – Capital vs. Revenue Receipt – Kushal K. Bangia<br />
vs. ITO – ITA No. 2349/Mum/2011<br />
Redevelopment <strong>of</strong> housing society – Compensation received from<br />
builder – is a capital receipt – however would reduce cost <strong>of</strong><br />
acquisition as and when the flat in redeveloped society is sold.<br />
Section 72 – Set<strong>of</strong>f <strong>of</strong> Loss – M/s. Nandi Steels Ltd. vs. ACIT – ITA<br />
No. 546/(Bang.)/2008<br />
The assessee sold land and building used for business<br />
purposes. Though the gain was <strong>of</strong>fered as capital gains, the<br />
assessee claimed, relying on Cocanada Radhaswami Bank Ltd.<br />
57 ITR 306 (SC) and other judgments, that as the assets were<br />
"business assets", the gains therefrom were eligible for set-<strong>of</strong>f<br />
against the brought forward business loss u/s 72. The issue was<br />
referred to a Special Bench. The Special Bench held against the<br />
assessee.<br />
BL D DONATION<br />
OO<br />
CAMP<br />
Section 54 – Capital Gain deduction – CIT vs. Jagriti Aggarwal 64<br />
DTR 333 (P&H)<br />
The time limit for making deposit or making <strong>of</strong> a house referred to in<br />
section 54 would mean time limit <strong>of</strong> filling <strong>of</strong> return u/s 139(4). The<br />
deduction was allowed where house was purchased in extended<br />
time period.<br />
Section 11(1)(a) – Charitable Trust – CIT vs. Shri Gujrati Samaj 64<br />
DTR 76 (MP.)<br />
The assessee is a Charitable Trust formed with the main object to run<br />
Educational Institution for the benefit <strong>of</strong> the public. The assessee had<br />
incurred excessive expenditure towards charitable purposes over<br />
income and the assessee had carried forward this deficit to be<br />
adjusted against subsequent years income which was allowed by the<br />
appellate authority and where held to be applied for charitable or<br />
religious purposes.<br />
Section 195 – Payment <strong>of</strong> Commission to Non-Resident – TDS –<br />
CIT vs. EON Technology Pvt. Ltd. 64 DTR 257 (Del)<br />
It was held that when a non-resident agent operates outside the<br />
country no part <strong>of</strong> his income arises in India, and since payment is<br />
remitted directly abroad and merely because an entry in books <strong>of</strong><br />
account is made, it does not mean that non-resident had received<br />
any payment in India.<br />
Section 54 F – Cost <strong>of</strong> Acquisition <strong>of</strong> Residential House – Smt. S.<br />
Sudha vs. ACIT 48 SOT 335 (Mad.)<br />
The expenses related to laying <strong>of</strong> tiles, white – washing, electrical<br />
rewiring and wood work were incurred after purchasing the property<br />
and the expenses was to improve the inhabitability in the property.<br />
This expense does not form part <strong>of</strong> the cost <strong>of</strong> acquisition. Advocate<br />
fees and brokerage are part <strong>of</strong> cost <strong>of</strong> acquisition and property.<br />
The Institute <strong>of</strong> Chartered Accountants <strong>of</strong> India Vasai Branch <strong>of</strong> WIRC Newsletter<br />
Photographs taken at<br />
Blood Donation Camp<br />
on 25th March, 2012.