ITR(Trib) Volume 8 Part 3 dt 21.03.2011
ITR'S TRIBUNAL TAX REPORTS (ITR (Trib)) HIGHLIGHTS
ISSUE DATED 21-3-2011 Volume 8 Part 3
APPELLATE TRIBUNAL ORDERS
>> Where interest earned in FDRs, income of venture capital company entitled to exemption u/s. 10(23FB) : India Value Fund v. Asst. CIT (Mumbai) p. 246
>> Interest amount earned on infrastructure development fund not income of assessee : Saharanpur Development Authority v. Asst. CIT (Delhi) p. 263
>> Validity of assessment u/s. 143(3) without issuing notice u/s. 143(2) void : H. Gouthamchand v. Addl. CIT (Bangalore) p. 269
>> Where no purchase of assets depreciation not allowable u/s. 32 : BDPS Software Ltd. v. Dy. CIT (Mumbai) p. 280
>> Where no expenditure incurred on advertising disallowance of deduction justified : BDPS Software Ltd. v. Dy. CIT (Mumbai) p. 280
>> Interest on demand under assessment order leviable up to date of admission of settlement application u/s. 245D(1) : Asst. CIT v. Smt. Leonie M. Almeida (Mumbai) p. 293
>> Appeal against chargeablity of interest maintainable : Asst. CIT v. Smt. Leonie M. Almeida (Mumbai) p. 293
>> Where interest earned on amount advanced directly correlated to interest spent on amount borrowed, assessee entitled to deduction u/s. 57(iii) : ITO v. Beam Estates P. Ltd. (Delhi) p. 300
>> Maintenance charges for facilities of generator, lift, lighting, common area sweeping allowable for deduction u/s. 24 : Asst. CIT v. Sunil Kumar Agarwal (Lucknow) p. 304
>> Computation of capital gain prescribed u/s. 48 cannot be confused with rate of tax u/ss. 111A and 115D : First State Investments (Hongkong) Ltd. v. Asst. DIT (International Taxation) (Mumbai) p. 315
>> Income from purchase and sale of shares to be treated as capital gains : Dy. CIT v. Bharat Kunverji Kenia (Mumbai) p. 325
>> Payment to non-resident agent of artistes in foreign countries in connection with Indian tour not taxable in India : Asst. DIT (International Taxation) v. Wizcraft International Entertainment P. Ltd. (Mumbai) p. 334
>> Where international artistes coming to perform in India, reimbursement of expenses not chargeable to tax : Asst. DIT (International Taxation) v. Wizcraft International Entertainment P. Ltd. (Mumbai) p. 334
>> Union Budget 2011 : Finance Minister proposes new simplified tax return form "Sugam"
To reduce compliance burden of small taxpayers, the Finance Minister proposed to introduce a new simplified income-tax return form "Sugam" to reduce the compliance burden of small taxpayers who fall within the scope of presumptive taxation.
The Income-tax Department will launch 58 more Aaykar Seva Kendra (ASK) or the Sevottam Centre Scheme for serving taxpayers more efficiently. ASK is a pilot project initiated by the Income-tax Department to set up a one-stop service centre for enquiries.
"The three pilot projects of Aaykar Seva Kendras (ASKs) under CBDT have come of age. CBDT will commission eight more such centres this year. In 2011-12, another fifty ASKs will be set up across the country", the Minister said in his Budget Speech. Currently, these pilot projects are at Pune, Cochin and Chandigarh. Besides, the Centralised Processing Centre (CPC) at Bengaluru has increased its daily processing capacity from 20,000 to 1.5 lakh returns in 2010-11. He added CBDT will provide a separate web-based facility to enable a direct, stand-alone interface for taxpayers with the I-T Department, so that they can report and track the resolution of their refunds and credit for prepaid taxes.
The Finance Minister also proposed to launch a new scheme with an outlay of Rs. 300 crore to provide assistance to States to modernise their stamp and registration administration and roll out e-stamping in all the districts in the next three years. "With the development of the economy, the need to review the provisions of the Indian Stamp Act, 1899, has been felt over the years. I propose to introduce a Bill shortly to amend the Indian Stamp Act", he added. [Source : www.economictimes.com dated February 28, 2011]
>> Union Budget 2011 : Finance Minister gives more relief to taxpayers, and enhance senior citizens category
In some relief to general taxpayers, the Finance Minister enhanced the tax exemption limit by Rs. 20,000 to Rs. 1.80 lakh, gave additional benefits to senior citizens but excluded women from additional sops. The Minister in his Budget proposals for 2011-12 has lowered the age for senior citizens to 60 years from 65 years now. Besides, a new category of "very senior" citizens of 80 years and above has been introduced with no tax on their income up to Rs. 5 lakh.
Senior citizens will get tax exemption for income up to Rs. 2.5 lakh, higher from Rs. 2.4 lakh now, and very senior citizens (80 years and above), will not have to pay any tax for annual income up to Rs. 5 lakh. However, income of very senior citizens between Rs. 5 lakh and Rs. 8 lakh will attract a tax of 20 per cent. and above Rs. 8 lakh 30 per cent. The general taxpayers will have to pay 10 per cent. tax on income between Rs. 1.8 lakh and Rs. 5 lakh ; 20 per cent. between Rs. 5 lakh and Rs. 8 lakh ; and 30 per cent. on income above Rs. 8 lakh. The exemption limit for women taxpayers will be Rs. 1.9 lakh. They will have to pay 10 per cent. tax on income between Rs. 1.9 lakh and Rs. 5 lakh ; 20 per cent. between Rs. 5 lakh and Rs. 8 lakh ; and 30 per cent. for income above Rs. 8 lakh. In case of senior citizens (between 60 and 80 years), the exemption limit has been raised to Rs. 2.5 lakh from Rs. 2.4 lakh. They will have to pay 10 per cent. on income between Rs. 2.5 lakh and Rs. 5 lakh ; 20 per cent. between Rs. 5 lakh and Rs. 8 lakh ; and 30 per cent. on income above Rs. 8 lakh.
For very senior citizens (80 years and above), there will be no tax on income up to Rs. 5 lakh. They will have to pay 20 per cent. on income between Rs. 5 lakh and Rs. 8 lakh and 30 per cent. above Rs. 8. lakh. [Source : www.economictimes.com dated February 28, 2011]
>> Union Budget 2011 : No filing of tax returns if salary is the only source of income
In a big relief from cumbersome tax filing process for the salaried taxpayer class, the Finance Minister proposed to exempt them from filing tax returns unless they have other sources of income, as filing of a return is duplication.
Salaried taxpayers who do not have other sources of income and whose incomes are subject to Tax Deduction at Source (TDS) will be excluded from filing returns. The Government will be issuing a notification exempting "classes of persons" from the requirement of furnishing income-tax returns, said the Memorandum to the Finance Bill, 2011. The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it added.
Every person whose income exceeds the taxable limit is required to file return of income. [Source : www.economictimes.com dated March 1, 2011]
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