Business Tax alerts - 2011Stay updated. Always. |
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| 2011 | |
| BTX/46/2011 | Where return of income (ROI) filed electronically and ITR-V form submitted by ordinary post, the ROI could not be treated as invalid on ground that ITR-V form had not been received by CPC, Bangalore |
| BTX/44/2011 | Business loss and unabsorbed depreciation of the same year or brought forward from earlier years could not be set off against the income of the unit eligible for tax holiday benefit under section 10A/10B |
| BTX/43/2011 | Transaction charges paid by the members of stock exchange for using the facility of online trading provide by the Stock Exchange would constitute fee for technical services |
| BTX/42/2011 | Expenses excluded from „export turnover‟ should also be excluded from „total turnover‟ for computing deduction under section 10A of the Income-tax Act, 1961 (“the Act”). |
| BTX/41/2011 | A provision created towards estimated losses is not to be allowed as a deduction under the ITA and it is not binding on the AO to accept the Accounting Standards which are not notified for tax purposes |
| BTX/40/2011 | Interest paid on late payment of income-tax cannot be set off against interest received on refund of taxes in computing the taxable income. |
| BTX/39/2011 | Books of accounts cannot be rejected under section 145(3) of the Income Tax Act, 1961 (“the Act”) merely on the basis of certain observations made in the Auditor’s report |
| BTX/38/2011 | Benefit of deduction under Section 10A is not available in respect of sales made to a unit in Special Economic Zone even though such sales are considered as ‘deemed exports’ under the provisions of the Special Economic Zones Act, 2005. |
| BTX/37/2011 | DRP cannot issue any directions which are at variance from the proposed draft order. Further, any provision made towards foreseeable losses is an allowable expenditure. |
| BTX/36/2011 | Payment made under Franchise & Management Agreement for availing technical know-how, coupled with technical consultancy services, for setting-up new and distinct business is capital expenditure |
| BTX/35/2011 | Inter-corporate deposits written off in the books are allowable as business expenditure where the incomes from such deposits were taxed as business income in earlier years |
| BTX/34/2011 | The amendment to section 40(a)(ia) by the Finance Act, 2010 extending the time limit for deposit of tax deducted at source, is applicable from the Assessment Year (“AY”) 2010-11 and is not applicable retrospectively |
| BTX/33/2011 | Loss arising on year-end valuation of an interest rate swap allowable as a deduction |
| BTX/32/2011 | In respect of the excisable goods manufactured, the excise duty liability gets crystallized only on the date of clearance of the goods from factory. Accordingly, the manufacturer does not incur any liability to pay excise duty on the excisable goods lying in stock and excise duty element cannot be added to the value of unsold stock under Section 145A |
| BTX/31/2011 | Assessments could be reopened for disallowances of expenses under section 14A in respect of assessments concluded after introduction of the said provision |
| BTX/30/2011 | Income arising from activities which are only incidental to the business of developing, operating and maintaining infrastructure facility will not qualify for deduction under section 80IA |
| BTX/29/2011 | Deduction u/s 10A is allowable where HR Services were provided in the process of providing customized electronic data was exported to USA. |
| BTX/28/2011 | CBDT issues FAQ’s on “Exemption from filing of Income-Tax Returns” by salaried taxpayers |
| BTX/27/2011 | A contractor is an eligible developer for tax holiday under section 80IA(4)(i) and the condition of operating and maintaining an infrastructure facility is not required to be fulfilled. |
| BTX/26/2011 | Loss from a 10A unit is to be adjusted against taxable profit of other units after allowing deduction under section 10A in respect of such eligible unit. |
| BTX/25/2011 | Business losses would be allowed to carried forward and set off by a private company which has become a public company by virtue of Section 3(iv)(c) of the Companies Act, 1956. |
| BTX/24/2011 | Payment made under non-compete agreement is capital expenditure. The same does not result into acquisition of any intangible asset and could not be eligible for depreciation allowance and could not be claimed as deferred revenue expenditure. |
| BTX/23/2011 | Transfer of a “specific sale contract with a client” is covered under the expression “right to manufacture, produce or process any article or thing” under Section 55(2)(a) of the Income-tax Act, 1961 and hence taxable as capital gains |
| BTX/22/2011 | Commission paid in lieu of dividend to the directors who are the shareholders of the company will not be allowed under section 36(1)(ii) of the Income tax Act, 1961. |
| BTX/21/2011 | Business losses carried forward beyond a period of eight years could be deducted in computing the book profit |
| BTX/20/2011 | Loan securitization income can be considered as interest income and hence eligible for deduction under section 36(1)(viii) |
| BTX/19/2011 | Procedure for TDS refund |
| BTX/18/2011 | Orders issued under sections 195 and 197 are tentative or provisional or interim in nature and it does not debar the Assessing Officer from initiating reassessment proceedings |
| BTX/17/2011 | The provisions of section 50C would be applicable to the transfer of depreciable capital assets covered by section 50 and in computing the capital gain arising from the said transfer by adopting the stamp duty valuation |
| BTX/16/2011 | Prior to the assessment year 2006-07, transactions in exchange traded financial derivatives are speculative transactions as the amendment to section 43(5) of the Income-tax Act is prospective |
| BTX/15/2011 | Set off of indexed long term capital loss permissible against non-indexed long term capital gains |
| BTX/14/2011 | Payment of out-of-pocket expenses does not partake of the character of royalty or fees for technical services and accordingly no requirement to deduct tax at source |
| BTX/13/2011 | Carry forward of unabsorbed depreciation not hit by provisions of section 80 |
| BTX/12/2011 | Amendments to Finance Bill, 2011 |
| BTX/11/2011 | Supreme Court holds that prior to the assessment year 2003-04, payment towards non-compete fees was in the nature of a capital receipt |
| BTX/10/2011 | Approved ‘Housing project’ eligible for deduction under section 80IB of the Act |
| BTX/09/2011 | The branch office of a foreign based subsidiary of a parent company cannot be said to be rendering any service if it is merely considered for the purpose of remunerating employees seconded by the parent to work for the Indian subsidiary |
| BTX/08/2011 | Supreme Court recalls the law requiring the PSUs to obtain COD approval |
| BTX/07/2011 | Brought forward business losses can be set off against the gains arising from any business or profession, though chargeable to tax under any other head of income |
| BTX/06/2011 | Market rate’ for the purpose of inter divisional notional transfer price cannot be based on the rate determined by the Regulator |
| BTX/05/2011 | Contributions to a superannuation fund, not being in the nature of initial or ordinary annual contribution is an allowable deduction |
| BTX/04/2011 | Depreciation admissible on Assets forming part of Block of Assets even if same not used during the year |
| BTX/03/2011 | Deduction claimed under section 80-IA not to be reduced from the profits of business while computing deduction under section 80HHC |
| BTX/02/2011 | Advance tax is payable in case of companies liable to pay tax on book profits |
| BTX/01/2011 | Amount withdrawn from revaluation reserve and credited to the Profit & Loss account cannot be reduced from the book profit if such amount had not increased the book profit at the time of creation of reserve |
