Thursday, January 20, 2011

ITR(Trib) Vol 7 Part 4 dated 24-01-2011


ISSUE DATED 24-1-2011

Volume 7 Part 4




>>> Assessee failing to prove source of investment in flat addition of amount u/s. 69 proper : Kanjibhai Naranbhai Waghela v. Asst. CIT (Ahmedabad) p. 331

>>> Initiation and dropping of proceedings u/s. 154 cannot be equated with passing of assessment order, reassessment valid : Raj Woolen Industries v. Asst. CIT (Delhi) p. 339

>>> Where sale of depreciable assets, amount adjusted against WDV of concerned block of asset : Raj Woolen Industries v. Asst. CIT (Delhi) p. 339

>>> Where export proceeds retained outside India in accordance with RBI guidelines and utilised on computer software development on-site at client's place outside India and on expenses of branch not to be excluded from export turnover : Zylog Systems Ltd. v. ITO (Chennai) [SB] p. 348

>>> Expenditure incurred during period intervening between grant of approval to set up project office in India and commencement of actual work, deduction allowable u/s. 37 : Dy. DIT v. Stork Engineers and Contractors B.V. (Mumbai) p. 365

>>> AO not justified in attributing non-filing of return for earlier year as reason for not allowing the opening work-in-progress by characterising it as "prior period expenditure" : Dy. DIT v. Stork Engineers and Contractors B.V. (Mumbai) p. 365

>>> ITO (HQ) has no jurisdiction to issue notice u/s. 142(1), assessment u/s. 144 in absence of statutory notice u/s. 143(2) null and void : Pravin Balubhai Zala v. ITO (Mumbai) p. 375

>>> Where termination of trade mark licence agreement not affecting profits of assessee, consideration received on transfer of marketing network of pharmaceutical products to company revenue receipt : Dy. CIT v. Bayer (India) Ltd. (Mumbai) p. 381

>>> Provision for leave encashment of employees for entire period on account of statutory provisions, incremental liability pertaining to AY alone allowable : Dy. CIT v. Bayer (India) Ltd. (Mumbai) p. 381

>>> Amount received on export of VSF outside India eligible for deduction u/s. 80HHC(3)(a) : Grasim Industries Ltd. v. Asst. CIT (Mumbai) p. 407





>>> Income-tax Department to process more than 40 lakh cases to avoid refund chaos

The Income-tax Department will process more than 40 lakh refund cases before April this year. The Department has streamlined the process as the statutory time limit to process the return and issue refund in the financial year 2009-10 is March 31 and almost 49 lakh such cases worth crores of rupees are pending with the Department. However, a number of such refunds have been processed already.

"The Department is hopeful of dispatching all these returns by March this year. Cases where the addresses are recorded incorrect, Permanent Account Number (PAN) is wrong and incorrect particulars of bank accounts result in backlogs", a senior Income-tax Officer said.

Many refunds will be sent back to the taxpayers through the Refund Banker Scheme, which is operational in a number of cities with the help of State Bank of India (SBI), they said.

An Income-tax Officer said the Finance Ministry has asked the Central Board of Direct Taxes (CBDT) to expedite the process and the Board has subsequently instructed the Department to process the refunds on a "prompt" basis. [Source : dated January 13, 2011]

>>> Prospects look good to raise the exemption limit on savings

To give some relief to common man battling rising prices, the Finance Minister is expected to raise the exemption limit on annual savings of an individual in the upcoming Budget. The savings exemptions may be raised in the Union Budget 2011-12 from the present Rs. 1 lakh. In 2010-11, the Finance Ministry allowed an additional exemption of Rs. 20,000 for investment in long-term infrastructure bonds.

The Minister is expected to raise the Rs. 1 lakh exemption limit by another Rs. 20,000 in the Union Budget in February, a Cabinet Minister told. Besides pushing up the savings rate, this would align the current income-tax regime towards the proposed Direct Taxes Code (DTC).

"This year is going to be an year of consolidation towards DTC", a top official in the Finance Ministry had said recently. In the DTC, the Government has proposed tax exemption on annual savings of up to Rs. 1.5 lakh. The tax exemptions for savings is received under section 80C of the Income-tax Act while the special window of Rs. 20,000 investment in infrastructure bonds is available under section 80CCF. The tax exemption for savings limit of Rs. 1 lakh when increased, will give an additional cushion to the common man who is grappling with price rise already.

"The deduction under section 80CC of Rs. 1 lakh was prescribed long back keeping in view the fact that there are very limited exemptions to deductions available to a common taxpayer. It makes a strong case to increase the level under section 80C to provide some tax relief and also increase potential for long term retiral savings", said a partner from a tax consultancy firm.

The savings of Indian households was Rs. 7,34,653 crore in 2007-08, of which over 55%, or Rs. 4,06,630 crore, is in bank deposits, according to the latest RBI figures. Bank deposits as defined by RBI, includes co-operative and non-credit societies. There has been a consistent shift in household savings away from physical assets towards financial assets. [Source : dated January 14, 2011]

>>> Income-tax Department searches triggering alarm over food prices

The Income-tax Department surveyed business premises of big onion and vegetable traders in U. P., Maharashtra and few other States to detect hoarding and illegal profiteering.

IT sources said the officials of the Income-tax Department began an early morning operation of checking and obtaining the account books and ledgers of large wholesale onion traders based in Delhi and NCR. Meanwhile, traders in Maharashtra's Nashik and adjoining onion-growing areas went on two-day strike against income-tax raids and disrupted supply to traders from other States who are being forced to sell the vegetable at "below the cost price".

The Finance Minister had earlier said income-tax raids in the premises of different traders have also helped in reducing onion prices. There has been a "dip in onion prices in some States after income-tax search", he had said. Food inflation has crossed over 18 per cent. for the week ended December 25 due to high rates of onion and other items. Due to crop damage in key growing States, the country's total onion production is expected to decline by 12.5 per cent. to 10.5 million tonnes this year against 12 million tonnes in 2009-10, according to research body National Horticultural Research and Development Foundation (NHRDF). [Source : dated January 10, 2011]


Me on net :
> >>>>>>>>>>>>>>>>>>>>>

Virus Warning: Although the I have taken reasonable precautions to ensure no viruses are present in his email, sender (I) cannot accept responsibility for any loss or damage arising from the use of this email or attachment."

No comments:

Post a Comment