Income Tax Updates
1.TDS default doesn't invite sec. 40(a)(ia) disallowance if
total income of deductor is exempt
2. High Court unhappy with CBDT for refusing to condone delay of one day in filing return
3. Cultivation of agricultural land by assessee himself isn't necessary to claim sec. 54B relief
Service
tax Updates
4. CBEC - Service Tax
5. Tax Payer Service Vertical to address tax
payers' grievances
Point Of
Discussion
6. Tax free gift
Professional
Updates
Bad News for our profession
7. IBA
allow members of ICMA as Stock Auditor
please
send a mail to PDC ICAI , President ICAI and VP ICAI to raise voice.
In Detailed :-
1.TDS default doesn't invite sec. 40(a)(ia) disallowance if total income of deductor is exempt
IT : Where assessee's total income is exempt under section 10(26), for assessee's lapse of not complying with his tax withholding obligations, there cannot be any occasion to invoke section 40(a)(ia) to treat relevant amount disallowable as an income of assessee on standalone basis
• Disallowance under section 40(a)(ia) does make good of lapses in deduction of tax at source, when such tax deductions are due; this provision is not for purpose of penalizing assessee for failure to deduct tax at source
[2015] 60 taxmann.com 360 (Guwahati - Trib.)
IN THE ITAT GUWAHATI BENCH
Tamchikusuk v. Additional Commissioner of Income-tax, Range, Tezpur, Assam
2. High Court unhappy with CBDT for refusing to condone delay of one day in filing return
IT: Refusal by CBDT to condone one day delay in filing of return of income is a failure to exercise of power vested under section 119(2)(b)
[2015] 60 taxmann.com 233 (Bombay)
HIGH COURT OF BOMBAY
Cosme Matias Menezes (P.) Ltd. v. Commissioner of Income-tax, Goa*
Section 139, read with sections 119 and 239, of the Income-tax Act, 1961 - Return of income (Condonation of delay in filing return) - Assessment year 2006-07 - Petitioner assessee filed its return of income one day late and refund claimed was not granted by department - Assessee filed an application under section 119(2) with CBDT to condone delay but same was dismissed - Whether approach adopted by CBDT in refusing to condone delay was a pedantic resulting great hardship to petitioner assessee - Held, yes [Paras 9 and 11] [In favour of assessee]
3. Cultivation of agricultural land by assessee himself isn't necessary to claim sec. 54B relief
IT : Once it is established that land owned by assessee has been used for agricultural purpose, he becomes entitled for claim under section 54B on sale of land even if he is not a cultivator himself but gets it cultivated under his supervision
IT : An assessee is entitled to benefit of exemption under section 54B with regard to 'on money' declared in course of search but not reflected in sale register
[2015] 60 taxmann.com 219 (Ahmedabad - Trib.)
IN THE ITAT AHMEDABAD BENCH 'B'
Shree Bhagwanbhai Revabhai Prajapati v. Assistant Commissioner of Income-tax, Central Circle 1 (4) *
4. CBEC - Service Tax
CBEC has issued Clarification regarding the provision of Section 73, 76 and 78 of the Finance Act, 1994 and Section 11AC of the Central Excise Act, 1944 after amendments made vide Finance Act. 2015 made with effect from 14.05.2015. An attempt has been made to clarify the doubts on Issuance of a Show Cause Notice (SCN), whether the SCN have to be issued in a case involving the extended period of limitation, where the assessee pays the tax/duty, interest and 15% penalty as prescribed or not and doubts w.r.t the Conclusion of proceedings and who is competent to order conclusion of proceedings if the conditions meriting conclusion of proceedings are fulfilled.
"The
entity will deal with grievances and make sure that services offered to
taxpayers, both individuals and companies, improve," said an
officer.
6. Point Of
Discussion
Tax free gift :-
Can I receive any sum of money or immovable property as gift from
other than relative and need not pay tax on it ?
Yes, you can receive ANY SUM OF MONEY OR IMMOVABLE PROPERTY (without consideration or at consideration which is less than stamp duty value) as gift from anyone (from other than relative also) in the some cases/occasions, out of which three common occasions are as below :-
(1). On the occassion of marriage of the individual, (i.e. gift can be of any sum of money or immovable property)
(2). under a will
(3). In contemplation of death of the payer or donor ( if any person even if not a relative, is about to die or suffering from incurable disease can make gift of movable property, it will not be taxable in hands of donee, Income tax act doesn't restrict gift of immovable property in such cases but Indian Succession Act defines that gift should be of movable property only, in contemplation of death ).
Professional Updates
Especially for the honorable members of the ICAI
Think before we loss
Issue:- Whether an outsider should be allowed to enter in our field of specialization i.e. auditing & assurance services?
Respected
Professional Colleagues,
Greetings of the day!
There are certain questions which have to be answered. When I found myself as helpless in finding out the answer to these questions, I decided to share my concern with you.
What
is the issue?
Whether Inclusion
of members of ICMA
and ICSI as Internal Auditor and Stock Auditor is justified?
Recently, the following advertisement was published on the website of PDC of
ICAI
Jaipur
Vidyut Vitaran Nigam Limited
Last
Date : 06/08/2014
Request for Empanelment for Revenue audit – invites sealed bids from CA professional firms / cost accountants / professional firms / registered forum / society / association formed by the retired personnel of power companies / erstwhile RSEB as well as registered society of retired officials / officers of accountant general (IPAI) for empanelment to conduct revenue audit.
This advertisement has given a space in the room of my concern & the concern is whether we are going to lose the engagement of auditing & assurance services in future. The reason is enhancing the eligibility for applicants. Previously, these types of engagements were only reserved for a Chartered Accountant but now every type of engagement has given an opportunity to the outsiders i.e. member of any other professional body to undertake these type of engagements as well. I am not in against of any other professional but we have to think before it’s too late.
In the same issue, I wrote a mail to the PDC ICAI and others to look after the matter on 26.07.2014 in the following manner:-
Respected Sir
Jaipur Vidyut Vitran Nigam limited has called an application for Revenue Audit from CA. Members and Cost accountants members in an advertisement published on the website of PDC ICAI.
We are observing that every type of engagement such as revenue audit, stock audit has opened the doors for other professionals such as Cost Accountant, Company Secretaries etc.In last time we found that NTPC and Power Grid was inviting application from Cost Accountant's for empanelment as Internal Auditor in the organisation and even the SBI had also invited members of ICMA for empanelment as stock auditor in the bank.
We should strongly oppose for inclusion of members of other professionals in the field stock audit, revenue audit & Internal audit. We humble request you to take an appropriate action on this matter in the interest of our members and profession.
The reply was given by the PDC Committee in such a manner that the matter has already been taken even with the ministry that in any case the audit business is only relevant to CAs since they are only tuned, trained, educated and experienced and also under the control of ICAI standards.
Recently Similar thing was there in the case of Jharkhand Bijli Vitran Nigam Limited, I again opposed the same on 08.07.2015. I got a mail from Ho’ble Seema Gerotra Deputy Director & Secretary, Professional Development Committee ICAI in the following manner that this refers to the trailing mail. In this regard would like to inform that we have already written to Shri Jayant Prasad ,Dy. General Manager (Fin. & Acct) Jharkhand Bijli Vitran Nigam Limited on 9th and have also spoken over phone. The said information is also hosted on our website under the head of initiative of PDC Committee.
I thanked for the reply. But in both the
cases & many more cases alike I am not satisfied with the reply. As simply
saying that we have conveyed our concern, we have talked them is not a solution
to the problem. We need a sound plan that how an outsider’s entry should
be restricted. I requested the same to the committee yesterday on 18.07.2015
that Mam/ Sir, Mere communication is not a permanent solution. We have to get
the permanent solution & and appoint some officers of ICAI to represent
such hot case before appropriate authority. My plea was favoured by many
honourable Chartered Accountants.
At last my humble request to you that please think on this serious matter
otherwise the day is not far where we will be going to lose our monopoly in the
sector which is specially designed for us. Please send a mail to secretary
PDC on p...@icai.in, secret...@icai.in and all respected central council members to raise voice of members before appropriate authority to
find a permanent solution, inspite of that sending individual mail to concerned
department on receiving any mail on that issue from any member to save our CA,
profession.
I hope that you will think on the same.