IPCC Nov,11 Result Date Declared

The date for the IPCC Nov,12 has been declared by ICAI :
9th Feb 2012
Estimated Time : 4 PM

Officially by BOS CA Madukar Hiregange at the National Convention , Bangalore

Check results on : caresults.nic.in

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Difference Between Agreement and Sales Deed of Property

[2012] 17 taxmann.com 210 (Karnataka)

HIGH COURT OF KARNATAKA

Savitha S. Pai

v.

Income-tax Officer, Ward-2(1)*

N. KUMAR AND RAVI MALIMATH, JJ.

IT APPEAL NO. 223 OF 2010†

OCTOBER 24, 2011

Section 143 of the Income-tax Act, 1961 - Assessment - Additions to income - Assessee entered into an agreement to sell a property for a consideration of Rs. 58.50 lakhs - However, consideration mentioned in sale deed was Rs. 27 lakhs - Difference of Rs. 31.50 lakhs was added in a scrutiny assessment and tax was levied - On appeal, Commissioner and Tribunal upheld additions - Whether when once there was an agreement of sale which gave correct valuation to which assessee was a party and said valuation was approved by an approved valuer, nothing more was required to come to conclusion that consideration for sale was Rs. 58.50 lakhs - Held, yes - Whether, therefore, impugned addition made by authorities below was to be upheld - Held, yes [In favour of revenue]

Analyzed Article on Vodafone Case

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Dear Students / Member
Vodafone Case is one of the case held in SC with IT Dept ( Union of India ) which involve a huge amount on stake and with that economic factors like FDI,
Taxmann.com had Analysed the Whole Case and Wrote an article on the Judgment.

Link

Vodafone Case Available For Download

Dear Students / Members
Here is a  link to download the Whole Case of Vodafone International Holding vs Union of India.

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Short Notes of Finance Act,2011 For May,2012

Dear Student

Follow the following Link to Get the Short Notes by CA B. Vinay Gandhi on Finance Act,2011 as required in May,2012 Exam.

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No Appeal By Revenue Below 3 Lakh to be Accepted ITAT

The CBDT's instructions has clearly laid down that the revenue should not prefer appeals against assessees before ITAT if the tax effect involved in the appeal, excluding interest, is less than Rs. 3 lacs. The tax payable in the present appeal being below Rs. 3 lacs, the revenue’s appeal is dismissed as not maintainable in view of CBDT Instruction.


The Same is Seen in Following Case : 
Dy.Commissioner of Income Tax, Circle-22(1),New Delhi. (Appellant) Vs Shri Hridey Vikram,F-38/2, Okhla Indl.Area,Phase-II, New Delhi.(Respondent)


Refer :- Detailed Document

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Register for Final / CPT Result Nov,2012

Register yourself at

caresults.nic.in

To even get a copy saved with you for any further requirement.
After than you can't get that in your mailbox.

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BEST OF LUCK

Estimated Date of Result IPCC Nov,11

Dear Students
It was Estimated by Our Experienced Members that the Result of IPCE, NOV,2011 Must be Released by following period :

From
25/01/2012 ( Wednesday )
To
31/01/2012 ( Tuesday )

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We Wish You Best of Luck
Enjoy Holidays Before the Results.
Disclaimer : This is only an opinion don't referred as any evidence.

Timing of Result Nov,11 Result

As You all must know the result is coming by tomorrow by 2 PM Official Timing.
BUT
We had a news that once again the Result is Going to be Out in Morning.
We Got a news that it Would come by

11:00 AM Tomorrow (18/01/2012)

SO COME ONLINE BY MORNING.

BEST OF LUCK

Without Owner of Land Can Claim Deduction u/s 80-IB(10)

Developer Need Not Be Owner of land to claim deduction U/s. 80-IB(10); Can Claim deduction even if development permissions obtained in the name of original land owners


CIT Vs. Radhe Developers (HC of Gujrat at Ahemdabad)

In the present case, we find that the assessee had, in part performance of the agreement to sell the land in question, was given possession thereof and had also carried out the construction work for development of the housing project. Combined reading of Section 2(47)(v) and Section 53A of the Transfer of Property Act would lead to a situation where the land would be for the purpose of Income Tax Act deemed to have been transferred to the assessee. In that view of the matter, for the purpose of income derived from such property, the assessee would be the owner of the land for the purpose of the said Act. It is true that the title in the land had not yet passed on to the assessee. It is equally true that such title would pass only upon execution of a duly registered sale deed. However, we are, for the limited purpose of these proceedings, not concerned with the question of passing of the title of the property, but are only examining whether for the purpose of benefit under Section 80IB (10) of the Act, the assessee could be considered as the owner of the land in question. As held by the Apex Court in the case of Mysore Minerals Ltd. vs. Commissioner of Income Tax (supra), and in the case of Commissioner of Income-Tax vs. Podar Cement Pvt. Ltd. and others (supra), the ownership has been understood differently in different context. For the limited purpose of deduction under Section 80IB(10) of the Act, the assessee had satisfied the condition of ownership also; even if it was necessary.

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How PAN is Build ? or Consist Of

The PAN under the new series is allotted centrally by a customized application system (IPAN / AIS) for all-India uniqueness. The system automatically generates a 10 character PAN using the information in above five core fields. PAN has the following structure:-

Structure of PAN- AAA - S - A  - 1234 - A

First Three Digit	Alphabetic series from AAA to ZZZ
Fourth Digit	Status (I.e. P For Personal, C for Corporate, F for Firm,H for Hindu Undivided Family Etc.)
Fifth Digit	First character of assessee’s Last Name/ Surname
Next Digit	Sequential Number running from 0001 to 9999
Last Digit	Alphabetic Check digit

FACTS YOU CAN'T DENY ! 

ICSI Foundation Now OMR Based

1. 1.    Effective date for New Syllabus  

(i)   The new syllabus of Foundation Programme will be effective from                   1^st February, 2012.

(ii)          There are four Subjects under the new syllabus viz.

• §  Business Environment and Entrepreneurship;
• §  Business Management, Ethics and Communication;
• §  Economics and Statistics;
• §  Fundamentals of Accounting and Auditing. 

2.         New Pattern of Examination  

Keeping in view the tech-savvy new generation and with a view to leverage the information technology, the Council of the Institute has decided to conduct Optical Mark Recognition ( OMR ) based Examination ( Objective Type Multiple Choice Questions ) for the Foundation Programme under the new syllabus.  

1. 3.    First Examination  

First examination under this new syllabus will be held from December 2012 session of CS examinations.  

1. 4.    Option to students under existing syllabus  

(i)            Students who have registered prior to 1^st February, 2012 (subject to the validity of their Registration) will have option to continue with the existing syllabus till June, 2013 Session. 

(ii)          From December, 2013 session, all students will be automatically switched over to the new syllabus.

(iii)         In other words, from December,  2012 to June,  2013 session of examination both syllabi (existingsyllabus as well as new syllabus) will run parallel.  

1. 5.    Switchover to new syllabus  

(i)         Students under the existing syllabus may switch over to the new syllabus.  They may exercise their option to switch over to the new syllabus while filling up the examination form for December, 2012 session and no other formal request is required to be sent to the Institute for the purpose.

(ii)        Students switching over to new syllabus will not have to pay any charges other than the cost of Study Materials under new syllabus, if any,  to be purchased by them.

 (iii)      Students of existing syllabus are NOT eligible for any paper-wise exemptions on switching over to the new syllabus  and they will have to appear in all the papers under the new syllabus irrespective of their performance in previous sessions of examinations or any other qualifications.  

Points To Remember for New Schedule VI

BALANCE SHEET


1) Share Capital  - Shares By Holding / Ultimate Holding / and those with 5% holding should be Disclose Specifically.

2) Reserve & Surplus - Allocation and Appropriation of the Income should be Shown Here. All +/- from Profit / Loss A/c - NEGATIVE RESULT TO BE SHOWN AT LIABILITY SIDE ONLY.

3) Share Application - Period in Which to be allotted / amount of Premium / Sufficient Authorized Capital for the same.

4) Current Liability - To Put any item under CL it should come under any of the following : -
i) That Should be Settle within period of Normal operating Cycle ( Default : 12 M) or
ii) Held for the purpose of Trade.
iii) Etc.
These Should be Disclosed in the Following Heads :
i) Short Term Borrowing
ii) Trade Payables
iii) Other Current Liability
iv) Short Term Provision

5) Current Asset - To Put any item under CA it should come under any of the following : -
i) That Should be Sold / Settle within period of Normal operating Cycle ( Default : 12 M) or

ii) Held for the purpose of Trade.

iii) Etc.

Trade Receivables - 

i) Not Exceeding Six Month

ii) Exceeding Six Month 

from Date of Payment get due.

Cash & Cash Equivalent -

i) Balance with Bank

ii) Cash in Hand

iii) Disclose Separately 

- Balance of Unpaid Dividend

- Margin Money / Securities 

- Repatriation Restrictions

6) Fixed Asset / Capital Work in Progress - 

CWIP Should have only Construction Work 

i) Capital Advance Should be Included under Long Term Loan & Advances

ii) Intangible Asset Ready for Capitalization Should be Shown Separately.

7) Investment - Agg. Value for Dimulation of Investment - Disclose. 

8) Misc. Expenses - No Specific Discloser Requirement. 

9) Format - Only Vertical Format is Available. 

PROFIT & LOSS

1)  Format - Specified in New Sch. VI

2) End of P&L - Result Would be Profit of CY. in old one it was remaining Profit/loss after appropriation

3) Item need to be shown Separately - Which are :- 1% of Revenue from Operation or 1,00,000 (Which Higher) - In old Sch. VI it was 1% of Total Revenue or 5,000 (Which Higher)

4) Managerial Remuneration - No Need to Disclose it, as calc. u/s 350. in earlier discloser is Compulsory 

5) Quantity Details are not Required. only those major one like Raw Material should be disclosed with Quantity. 

6) Interest Income - No Separate TDS should be disclosed.

Compiled By : Udit M. Mathur

09930590284

This is As per the opinion / summarized form of New Sch. VI. Author has tried as possible to avoid errors.

all rights reserved.

Granting Film Distribution Right by Foreign Company Does not Mean "Royalty"

ADIT (IT) Vs. Warner Brother Pictures Inc (ITAT Mumbai)-even if income arises to the Non-Resident due to the business connection in India, the income accruing or arising out of such business connection can only be taxed to the extent of the activities attributed to permanent establishment. In this case, the assessee does not have any permanent establishment in India. Since the Indian companywho obtained the rights is acting independently, Agency PE provisions are not applicable to the assessee company. The assessee relied on the decision of Ishikawajma-Harima Heavy Industries Ltd vs. Director of Income Tax 2007-(158)-TAXMAN 0259-SC that incomes arising to a Non-Resident cannot be taxed as business income in India, without a PE. As the assessee does not have any permanent establishment in India, the incomes arising outside Indian Territories cannot be brought to tax. Therefore, there is no need to differ from the findings of the CIT (A) and accordingly the Revenue Appeal is dismissed.
In the cross objection, the assessee is contesting about the findings of the CIT (A) that the general principles of section 9(1)(i) will apply in the absence of inclusion under section 9(1)(vi) and relied on the two decisions of the Gujarat and Madras High Courts referred (supra). Even though the cross objection was raised on findings of CIT(A), in view of the observations given above, we are of the opinionthat the issue is only academic and does not require any specific adjudication.


Refer : - Link

20% Tax Rate on Transfer of Depreciable Asset As LTCG Not Allowed - ACIT Vs. SKF Bearings India Ltd. (ITAT Mumbai)

ACIT Vs. SKF Bearings India Ltd. (ITAT Mumbai) -  Sections 54EC and 74 refer to capital gain arising from the transfer of a long term capital asset and not with respect to a short term capital asset. Further, section 112(1 )(b)(i) and (ii) specifically refers to only long term capital gains. Hence, where section 50 by a legal fiction, deems the income earned from a depreciable asset as short term capital gain, applying the tax rate specified for long term capital gains in section 112(1) would not arise. On a plain reading of section 50, the excess shall be deemed to be the capital gains arising from the transfer of a short term capital asset. The beneficial rate of tax @ 20% would not be applicable to capital gains arising on transfer of depreciable asset even though the asset was held for more than thirty-six months.


Refer :-  Document

Result CA Final Nov,2011 & CPT Dec,2011 Announced

Dear Student
ICAI has Announced the Date of Results of CA Final / CPT of November,11 & Dec,11

As : 18th Jan ,2012 ( Wed ) around 2 PM

Register Yourself here caresults.nic.in

refer : http://icai.org/new_post.html?post_id=8025&c_id=219

Thank You

Best of Luck

Airport Authority of India vs. CIT (Delhi High Court)

" The aim and object of the expenditure would determine the character of the expenditure whether it is a capital expenditure or a revenue expenditure "


If the expenditure is made for acquiring or bringing into existence an asset or advantage for the enduring benefit of the business it is properly attributable to capital and is of the nature of capital expenditure If on the other hand it is made not for the purpose of bringing into existence any such asset or advantage but for running the business or working it with a view to produce the profits it is a revenue expenditure. If any such asset or advantage for the enduring benefit of the business s is thus acquired or brought into existence it would be immaterial whether the source of the payment was the capital or the income of the concern or whether the payment was made once and for all or was made periodically. The aim and object of the expenditure would determine the character of the expenditure whether it is a capital expenditure or a revenue expenditure.

Read more: Expenditure incurred for running the business or working it, with a view to produce profits is in the nature of revenue expenditure http://taxguru.in/income-tax-case-laws/expenditure-incurred-running-business-working-view-produce-profits-nature-revenue-expenditure.html#ixzz1iTMukDqz