Government takes various steps in last two years to curb the menace of Black Money both within and outside the country.

The present Government has taken various decisions and steps to curb the menace of black money both within and outside the country in last two years. Tangas Calvin Klein Baratos Some of the major decisions and actions taken in this regard are given below:

1. Calvin Klein Bañadores Hombre Calvin Klein Underwear Outlet Sustained steps taken for curbing black money:-

(a) A new Black Money Act has been enacted with strict penalty provisions.

(b) Special Investigation Team has been constituted which is chaired by ex-Supreme Court Judge Justice M.B.

Shah vide notification dated 29thMay, 2014.. Boxer Calvin Klein Mujer Many recommendations of SIT have been implemented since then.

(c) A new Income Disclosure Scheme is formulated for domestic black money.

(d) Enhanced enforcement measures have resulted in un-earthing of tax evasion of approximately Rs 50,000 Crore of indirect taxes andundisclosed income of Rs 21,000 Crore (Prov.). Comprar Calzoncillos Calvin Klein Baratos The value of goods seized on account of smuggling activities has increased to Rs 3,963 Crore in the last two years (32% increase over corresponding two previous years).

(e) Prosecution has been launched in 1466 cases as against 1169 cases in the previous two years (25% increase).

2. Calvin Klein Ropa Interior Hombre Boxer Calvin Klein Amendments made in Prevention of Money-laundering Act, 2002, vide Finance Act, 2015 :

  • The definition of proceeds of crime under PMLA has been amended to enable attachment and confiscation of equivalent asset in India where the asset located abroad cannot be forfeited.
  • Section 8(8) has been inserted in PMLA providing for restoring confiscated property or part thereof, on the directions of Special Court to claimants with a legitimate interest in the property, who may have suffered a quantifiable loss as a result of the offences of money laundering.
  • Section 132 of Customs Act which deals with offence relating to false declaration / documents in the transaction of any business relating to Customs has been made predicate offence under PMLA to curb trade based money laundering.
  • The

    offence of willful attempt to evade any tax, penalty or interest referred to in section 51 of the

    Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 has been made a scheduled offence under PMLA.

3. Recent Notification under PMLA

In connection with risk mitigation in DNFBP Sector, Revenue Department has taken some steps, which are described as below:

  • Insurance Broker has been notified on 15.4.2015 under Section 2(1)(sa)(vi) of PMLA as person carrying on designated business or profession.
  • Registrar or Sub-registrar has been notified on 17.4.2015 under Section 2(1)(sa)(ii) of PMLA as person carrying on designated business or profession.

4. Foreign Exchange Management Act (FEMA), 1999 has been amended vide Finance Act, 2015.

Reporting On Internal Financial Controls System And Its Operating Effectiveness

Clause (e) of Section 134(5) of the Companies Act, 2013 requires that The Directors’ Responsibility Statement referred to in clause (c) of sub-section (3) shall state that—

(e) the directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

Section 143(3)(i) of the Act requires that auditor should state in his report that:

“Whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls”

Definition of Internal Control as defined in the Companies Act, 2013

The Companies Act, 2013 has defined internal control in two places. One definition is given under Section 134(5) (e). Another definition is given in Section 134(10) by way of inclusion of Standard on Auditing. Auditing Standards which are now part of the Companies Act, 2013, by virtue of Section 143(10) defines internal control as follows:

Definition as per Section 134(5) of the Companies Act, 2013 Definition as per SA 315
Explanation.–For the purposes of this clause, the term “internal financial controls” means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information; Internal control – The process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of an entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, safeguarding of assets, and compliance with applicable laws and regulations. The term “controls” refers to any aspects of one or more of the components of internal control.

It may be noted that both the definition are not similar at

the same time they have vast coverage.

Further, it may be noted that both Management and the Auditor will need to follow both the definition as given in the charging Section 143 i.e. as per Standard on Auditing and also the definition given in Section 134(5). Standards on Auditing are applicable to all the companies and are mandatorily required to be followed.

Distinction between Internal Financial Control and Operating Control

It may be noted that Internal Controls and policies can be applied by the management for various operational activities of the Company.

A question arises whether auditor is required to comment on all the controls of the Company or only those which are related to Financial Controls. T Shirt Kenzo Homme Soldes A close review of above definitions suggests that only the Financial Controls as required to be reported in SA 315 is the auditor’s responsibility for reporting. This is also termed as ”Internal controls relating to financial reporting’.

Management on the other hand may have more controls relating to various operations of the Company viz. Shop Floor management etc. Unless they impact financial reporting they would not come under preview of above section.

Auditors Duty

Auditor while ascertaining the operating and effectiveness of control will have to comply with all the requirements enumerated in SA 315 and document his findings.

Documentation of Auditor should therefore needs to be robust enough to demonstrate that he has looked into the Internal Controls for each assertion and mapped them to various risks in respect of account balances and each class of transaction.

Management’s Responsibility

The approach of new Companies Act is of self-governance and in case of non-governance, stringent penalties are provided in the Act. Management should therefore, be cautious to take following steps to ensure that there exist a proper internal control system.

  1. Review existing process and map them with risks & controls and ensure that they are adequate.
  2. Improve the process and controls wherever it is observed that process is slack.
  3. Assess Fraud Risk and built processes around the same so that risk is minimised.
  4. Test Internal controls so formed on regular basis and ensure that processes are working effectively.
  5. In-house team may be assigned this task or a consultant may also be appointed in the first year of implementation.

What are the consequences when auditor concludes that internal controls were not effective?

  1. The Auditor report will include a qualified opinion. Bragas de Calvin Klein Not only merely for internal control, but also under section 143(3)(f) of the Act as non-existence of appropriate internal control can also have adverse affect on the functioning of the Company.
  2. It can be safely concluded that non existence of internal control would imply that existence of Fraud cannot be effectively monitored and the financial statements would lack credibility.
  3. Credit rating agencies will take it negatively also it may affect negotiation power of the entity with borrowers.


The requirement of internal control is now legally mandated. Philipp Plein Soldes Homme Calzoncillos Calvin Klein Baratos In respect of the listed companies, it is by virtue of Section 134(5) of the Companies Act, 2013. Private limited companies are covered by inclusion of Standard on Auditing, in the Companies Act and reporting requirement by auditors. Calvin Klein Bragas It is therefore, suggested that all the companies should re-visit the existing internal controls and strengthens them to ensure that whenever they are tested will not fail.


The content of this article is intended to provide a general guide to the subject matter.


Clarification regarding place of removal – reg.

Attention is invited to Circular No. Calvin Klein Boxer Hombre 988/12/2014-CX dated 20.10.2014 issued from F. No.
267/49/2013-CX.8 on the above subject wherein it was clarified that the place of removal needs
to be ascertained in terms of provisions of Central Excise Act, 1944 read with provisions of the
Sale of Goods Act, 1930 and that payment of transport, payment of insurance etc are not the
relevant considerations to ascertain the place of removal. The place where sale takes place or
when the property in goods passes from the seller to the buyer is the relevant consideration to
determine the place of removal.
2. In this regard, a demand has been raised by the trade that it may be clarified that in the
case of exports, for purposes of CENVAT credit of input services, the place of removal is the
port or the airport from where the goods are finally exported.
3. The matter has been examined. Ropa Interior Calvin Klein Mujer It is seen that section 23 of the Sale of Goods Act, 1930
provides that where, in pursuance of the contract, the seller delivers the goods to the buyer or to a
carrier or other bailee (whether named by the buyer or not) for the purpose of transmission to the
buyer, and does not reserve the right of disposal, he is deemed to have unconditionally
appropriated the goods to the contract, and therefore, in view of the provisions of the Section 23
(1) of the Sale of Goods Act, 1930, the property in the goods would thereupon pass to the buyer.
Similarly, section 39 of the Sale of Goods Act, 1930 provides that where, in pursuance of a
contract of sale, the seller is authorized or required to send the goods to the buyer, delivery of the
goods to a carrier, whether named by the buyer or not for the purpose of transmission to the buyer, or delivery of the goods to a wharfinger for safe custody, is prima facie deemed to be a
delivery of the goods to the buyer.

In most of the cases, therefore, it would appear that handing over of the goods to the
carrier/transporter for further delivery of the goods to the buyer, with the seller not reserving the
right of disposal of the goods, would lead to passing on of the property in goods from the seller
to the buyer and it is the factory gate or the warehouse or the depot of the manufacturer which
would be the place of removal since it is here that the goods are handed over to the transporter
for the purpose of transmission to the buyer. T Shirt Kenzo Homme It is in this backdrop that the eligibility to Cenvat
Credit on related input services has to determined.
5. Clearance of goods for exports from a factory can be of two types. The goods may be
exported by the manufacturer directly to his foreign buyer or the goods may be cleared from the
factory for export by a merchant exporter.
6. In the case of clearance of goods for export by manufacturer exporter, shipping bill is
filed by the manufacturer exporter and goods are handed over to the shipping line. Polo Philipp Plein After Let
Export Order is issued, it is the responsibility of the shipping line to ship the goods to the foreign
buyer with the exporter having no control over the goods. Calvin Klein Underwear Outlet In such a situation, transfer of property
can be said to have taken place at the port where the shipping bill is filed by the manufacturer
exporter and place of removal would be this Port/ICD/CFS. Needless to say, eligibility to
CENVAT Credit shall be determined accordingly.
7. In the case of export through merchant exporters, however, two transactions are involved.
First is the transaction between the manufacturer and the merchant exporter. The second
transaction is that between the merchant exporter and the foreign buyer. As far as Central Excise
provisions are concerned, the place of removal shall be the place where the property in the goods
passes from the manufacturer to the merchant exporter. As explained in paragraph 4 supra, in
most of the cases, this place would be the factory gate since it is here that the goods are
unconditionally appropriated to the contract in cases where the goods are sealed in the factory,
either by the Central Excise officer or by way of self-sealing with the manufacturer of export
goods taking the responsibility of sealing and certification, in terms of notification no. Boxer Calvin Klein Al Mayor 19/2004-
Central Excise (N.T.) dated 6.9.2004, etc.
8. Calvin Klein Bañadores However, in isolated cases, it may extend further also depending on the facts of the case,
but in no case, this

place can be beyond the Port/ ICD/CFS where shipping bill is filed by the
merchant exporter.

The government has notified amendments to the Companies Act, Comprar Bikini Calvin Klein which makes it easier to do business and provides for stricter penalties for fraud cases.

The amendments, which were passed by Parliament earlier this month, have been made to the Companies Act, 2013, mainly to deal with board resolutions, Calvin Klein Boxer Baratos utilisation of unclaimed dividends and setting-up of a firm among others as well as to bring the law in tune with the global standards.

– The Act has removed threshold limit for minimum capital required for formation of private or public sector firm.

For setting-up a private company, Calvin Klein Ropa Interior Hombre Comprar Calzoncillos Calvin Klein new Act has done away with the norms of Rs 1 lakh minimum capital requirement and Rs 5 lakh in case of a public sector unit and various other amendments.

Besides, Calzoncillos Boxer Calvin Klein the concept of company seal has also been done away with.

“Provided that in case a company does not have a common seal, the authorisation…shall be made by two directors or by a director and the company Secretary, wherever the company has appointed a company Secretary,” the notification said.

With regard to acceptance of deposits by the companies, in contravention with regulations, the new law said that if a firm fails to repay the deposit or any interest due thereon within the time specified, it will be “punishable with fine which shall not be less than Rs 1 crore but which may extend to Rs 10 crore” in addition to payment of deposits.

“…every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than Rs 25 lakh but which may extend to Rs 2 crore, Calvin Klein Bañadores or with both,” said the notification.

In case of dividend, the amended Act said that no company will declare dividend unless “carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company for the current year.”

The unclaimed dividend will not be transferred to Investor Education and Protection Fund.

With regard to trying fraud cases, the new norms said that all cases under the Companies Act cannot be tried by a special court and that only serious offences will go to such courts, while the others would be tried by normal magisterial court.

The Act has set a threshold limit for auditors to report frauds to central government with rider.

“…if an auditor of a company in course of performance of his duties as auditor, Ropa Interior Calvin Klein Mujer Barata has reason to believe that an offence of fraud involving such amount as may be prescribed, is being or has been committed in the company by its officers or employees, the auditor shall report the matter to the Central Government,” as per notified Act.

“In case of a fraud involving lesser than the specified amount, the auditor shall report the matter to the audit committee, Slip Calvin Klein Calvin Klein Boxer ” it added.


Accounting Standard (AS) 16 Borrowing Costs


The objective of this Standard is to prescribe the accounting treatment for borrowing costs.


This Standard should be applied in accounting for borrowing costs.

This Standard does not deal with the actual or imputed cost of owners’ equity, including preference share capital not classified as a liability.


  1. The following terms are used in this Standard with the meanings specified:

  • Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds.

  • A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.


What constitutes a substantial period of time primarily depends on the facts and circumstances of each case. Adidas Yeezy Boost 750 Pas Cher However, ordinarily, a period of twelve months is considered as substantial period of time unless a shorter or longer period can be justified on the basis of facts and circumstances of the case. In estimating the period, time which an asset takes, technologically and commercially, to get it ready for its intended use or sale is considered.

  1. Borrowing costs may include:

1) Interest and commitment charges on bank borrowings and other short-term and long-term borrowings;

2) Amortisation of discounts or premiums relating to borrowings;

3) Amortisation of ancillary costs incurred in connection with the arrangement of borrowings;

4) Finance charges in respect of assets acquired under finance leases or under other similar arrangements; and

exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.


Exchange differences arising from foreign currency borrowing and considered as borrowing costs are those exchange differences which arise on the amount of principal of the foreign currency borrowings to the extent of the difference between interest on local currency borrowings and interest on foreign currency borrowings. T Shirt Philipp Plein Pas Cher Thus, the amount of exchange difference not exceeding the difference between interest on local currency borrowings and interest on foreign currency borrowings is considered as borrowings cost to be accounted for under this Standard and the remaining exchange difference, if any, is accounted for under AS 11, The Effect of Changes in Foreign Exchange Rates. For this purpose, the interest rate for the local currency borrowings is considered as that rate at which the enterprise would have raised the borrowings locally had the enterprise not decided to raise the foreign currency borrowings.

Examples of qualifying assets are manufacturing plants, power generation facilities, inventories that require a substantial period of time to bring them to a saleable condition, and investment properties. Other investments, and those inventories that are routinely manufactured or otherwise produced in large quantities on a repetitive basis over a short period of time, are not qualifying assets. T Shirt Versace Assets that are ready for their intended use or sale when acquired also are not qualifying assets.


Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset should be capitalised as part of the cost of that asset. T Shirt Balmain The amount of borrowing costs eligible for capitalisation should be determined in accordance with this Standard. Other borrowing costs should be recognised as an expense in the period in which they are incurred.

  1. Borrowing costs are capitalised as part of the cost of a qualifying asset when it is

    probable that they will result in future economic benefits to the enterprise and the costs can be measured reliably. Other borrowing costs are recognised as an expense in the period in which they are incurred.

Borrowing Costs Eligible for Capitalisation

The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are those borrowing costs that would have been avoided if the expenditure on the qualifying asset had not been made. When an enterprise borrows funds specifically for the purpose of obtaining a particular qualifying asset, the borrowing costs that directly relate to that qualifying asset can be readily identified.

  1. It may be difficult to identify a direct relationship between particular borrowings and a qualifying asset and to determine the borrowings that could otherwise have been avoided. Such a difficulty occurs, for example, when the financing activity of an enterprise is co-ordinated centrally or when a range of debt instruments are used to borrow funds at varying rates of interest and such borrowings are not readily identifiable with a specific qualifying asset. As a result, the determination of the amount of borrowing costs that are directly attributable to the acquisition, construction or production of tadalafil nicaragua a qualifying asset is often difficult and the exercise of judgement is required.

  1. To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation on that asset should be determined as the actual borrowing costs incurred on that borrowing during the period less any income on the temporary investment of those borrowings.

  1. The financing arrangements for a qualifying asset may result in an enterprise obtaining borrowed funds and incurring associated borrowing costs before some or all of the funds are used for expenditure on the qualifying asset. In such circumstances, the funds are often temporarily invested pending their expenditure on the qualifying asset. In determining the amount of borrowing costs eligible for capitalisation during nombres de viagras a period, any income earned on the temporary investment of those borrowings is deducted from the borrowing costs incurred.

  1. To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation should be determined by applying a capitalisation rate to the expenditure on that asset. The capitalisation rate should be the weighted average of the borrowing costs applicable to the borrowings of the enterprise that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalised during a period should not exceed the amount of borrowing costs incurred during that period.

Excess of the Carrying Amount of the Qualifying Asset over Recoverable Amount

When the carrying amount or the expected ultimate cost of the qualifying asset exceeds its recoverable amount or net realisable value, the carrying amount is written down or written off in accordance with the requirements of other Accounting Standards. In certain circumstances, the amount of the write-down or write-off is written back in accordance with those other Accounting Standards.

Commencement of Capitalisation

The capitalisation of borrowing costs as part of the cost of a qualifying asset should commence when all the following conditions are satisfied:

1) Expenditure for the acquisition, construction or production of a qualifying asset is being incurred;

2) Borrowing costs are being incurred; and

3) Activities that are necessary to prepare the asset for its intended use or sale are in progress.

Expenditure on a qualifying asset includes only such expenditure that has resulted in payments of cash, transfers of other assets or the assumption of interest-bearing liabilities. Expenditure is reduced by any progress payments received and grants received in connection with the asset (see Accounting Standard 12, Accounting for Government Grants). The average carrying amount of the asset during a period, including borrowing costs previously capitalised, is normally a reasonable approximation of the expenditure to which the capitalisation rate is applied in that period.

  1. The activities necessary to prepare the asset for its intended use or sale encompass more than the physical construction of the asset. Slip Calvin Klein Outlet They include technical and administrative work prior to the commencement of physical construction, such as the activities associated with obtaining permits prior to the commencement of the physical construction. However, such activities exclude the holding of an asset when no production or development that changes the asset’s condition is taking place. Adidas Yeezy 350 Pas Cher For example, borrowing costs incurred while land is under development are capitalised during the period in which activities related to the development are being undertaken. However, borrowing costs incurred while land acquired for building purposes is held without any associated development activity do not qualify for capitalisation.

Suspension of Capitalisation

Capitalisation of borrowing costs should be suspended during extended periods in which active development is interrupted.

Borrowing costs may be incurred during an extended period in which the activities necessary to prepare an asset for its intended use or sale are interrupted. Such costs are costs of holding partially completed assets and do not qualify for capitalisation. However, capitalisation of borrowing costs is not normally suspended during a period when substantial technical and administrative work is being carried out. Capitalisation of borrowing costs is also not suspended when a temporary delay is a necessary part of the process of getting an asset ready for its intended use or sale. For example, capitalisation continues during the extended period needed for inventories to mature or the extended period during which high water levels delay construction of a bridge, if such high water levels are common during the construction period in the geographic region involved.

Cessation of Capitalisation

Capitalisation of borrowing costs should cease when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

  1. An asset is normally ready for its intended use or sale when its physical construction or production is complete even though routine administrative work might still continue. If minor modifications, such as the decoration of a property to the user’s specification, are all that are outstanding, this indicates that substantially all the activities are complete.

When the construction of a qualifying asset is completed in parts and a completed part is capable of being used while construction continues for the other parts, capitalisation of borrowing costs in relation to a part should cease when substantially all the activities necessary to prepare that part for its intended use or sale are complete.

A business park comprising several buildings, each of which can be used individually, is an example of a qualifying asset for which each part is capable of being used while construction continues for the other parts. An example of a qualifying asset that needs to be complete before any part can be used is an industrial plant involving several processes which are carried out in sequence at different parts of the plant within the same site, such as a steel mill.


The financial statements should disclose:

1) the accounting policy adopted for borrowing costs; and

2) the amount of borrowing costs capitalised during the period.


Note: This illustration does not form part of the Accounting Standard. Its purpose is to assist in clarifying the meaning of paragraph 4(e) of the Standard.


XYZ Ltd. has taken a loan of USD 10,000 on April 1, 20X3, for a specific project at an interest rate of 5% p.a., payable annually. On April 1, 20X3, the exchange rate between the currencies was Rs. 45 per USD. The exchange rate, as at March 31, 20X4, is Rs. 48 per USD. The corresponding amount could have been borrowed by XYZ Ltd. in local currency at an interest rate of 11 per cent annum as on April 1, 20X3.

The following computation would be made to determine the amount of borrowing costs for the purposes of paragraph 4(e) of AS 16:

Interest for the period = USD 10,000 × 5% × Rs. 48/USD = Rs. 24,000.

Increase in the liability towards the principal amount = USD 10,000 × (48–45) = Rs. 30,000.

Interest that would have resulted if the loan was taken in Indian currency = USD 10,000 × 45 × 11% = Rs. 49,500.

Difference between interest on local currency borrowing and foreign currency borrowing = Rs. Moda 49,500 – Rs. 24,000 = Rs. 25,500.

Therefore, out of Rs. 30,000 increase in the liability towards principal amount, only Rs. 25,500 will be considered as the borrowing cost. Thus,total borrowing cost would be Rs. Ropa Interior Calvin Klein Barata 49,500 being the aggregate of interest of Rs. 24,000 on foreign currency borrowings [covered by paragraph 4(a) of AS 16] plus the exchange difference to the extent of difference between interest on local currency borrowing and interest on foreign currency borrowing of Rs. 25,500. Thus, Rs. 49,500 would be considered as the borrowing cost to be accounted for as per AS 16 and the remaining Rs. 4,500 would be considered as the exchange difference to be accounted for as per Accounting Standard (AS) 11, The Effects of Changes in Foreign Exchange Rates.

In the above example, if the interest rate on local currency borrowings is assumed to be 13% instead of 11%, the entire exchange difference of Rs. 30,000 would be considered as borrowing costs, since in that case the difference between the interest on local currency borrowings and foreign currency borrowings [i.e. Rs. 34,500 (Rs. 58,500 – Rs. 24,000)] is more than the exchange difference of Rs. 30,000. Therefore, in such a case, the total borrowing cost would be Rs. 54,000 (Rs. 24,000 + Rs.

Supreme Court / High Courts

Ss. Tangas Calvin Klein Baratos 22, 28 Business income from letting of premises to be taxed as business income

The appellant-assessee is a company incorporated under the Indian Companies Act with its main objective, as stated in the Memorandum of Association, is to acquire the properties in the city of Chennai and to let out those properties. The assessee had rented out such properties and the rental income received therefrom was shown as income from business in the return filed by the assessee. It was held that letting of the properties is in fact is the business of the assessee and hence income therefrom rightly disclosed the income under the Head Income from Business and not as ‘income from the house property’ – Chennai Properties & Investments Ltd. vs. CIT [2015] 56 456 (SC)

Ss. 28, 145A(a) write off in value of stores and spares

The assessee claimed write-off was on account of deterioration in the condition of the non-moving stores since the assessee’s plants were located in remote places and near the sea. The non-moving stores and spares were corroded over a period of time due to wear and tear. This method of accounting having been adopted in the earlier years, there was no reason for the Assessing Officer to disallow the same on the ground that the accounting method had changed. Accordingly it was held that value of the closing stock so adopted is not in violation of Section 145A(a) – CIT vs. Indian Rare Earths Ltd. [2015] 57 393 (Bombay)

S. 43B Meaning of expression ‘whatever name called’

The State compulsorily takes from the three mills, a vend fee for the purpose of conferring a special benefit on the said three mills, viz., the repair and replacement of existing machinery and equipment. Adidas Yeezy Boost 350 Acheter Even if the vend fee that is paid by the assessee – Sugar Mill to the State does not directly fall within the expression ‘fee’ contained in Section 43B(a), it would be a ‘fee’ by ‘whatever name called’, that is even if the vend fee is called ‘privilege’ – CIT vs. Travancore Sugars & Chemicals Ltd. Civil Appeal No. 2558 of 2005 Order dated 7/5/2015 (Supreme Court)

S43B is attracted to a case where payment is to be made to the State Government in the capacity of the State as a sovereign and not to a case where payment is to be made to the State Government in its capacity as a principal by an agent. In the instant case, the relationship between the State and the licensee is of a principal and agent/fiduciary and not that of a sovereign and a subject. The licensee does not collect the electricity duty for its own consumption or utilization. If the licensee collects the duty but does not pay the same to the Government, the statute provides mechanism for the Government to recover the same from the licensee. ITA Nos. 82 to 84 of 2004, 110 of 2005 CESC LTD. vs. CIT (Calcutta High Court) Order dated 18/12/2014

S. 45 apportionment of lump sum share purchase consideration towards negative covenants in agreement

Considering various clauses in the Share Purchase Agreement it was held that the lump sum consideration specified in the agreement can be bifurcated and a part thereof i.e. 25% to be apportioned towards the restrictive covenants – ITA No. 557 of 2006 (P & H) Date of Order 15/5/2015

S. 80-IB(10)(d) – Builtup area in housing projects for commercial use not applicable for the projects approved before 1/4/20015

The Assessee claims a deduction under section 80-IB(10), the assessee is required to comply with such a condition only if it is on the statute-book on the date of the approval of the housing project and it has nothing to do with the year in which the profits are brought to tax by the assessee. Calvin Klein Boxer It was also observed that clause (d) of section 80-IB(10) is inextricably linked to the date of the approval of the housing project and the subsequent development/construction of the same, and has nothing to do with the profits derived therefrom – CIT vs. Sarkar Builders [2015] 57 313 (SC)

S. 132 Assessee can peruse reasons recorded for conducting search only during the course of assessment proceedings after completion of search

Supreme Court reiterated following principles –

(i) The authority must have information in its possession on the basis of which a reasonable belief can be founded that –(a) The concerned person has omitted or failed to produce books of account or other documents for production of which summons or notice had been issued

Such person will not produce such books of account or other documents even if summons or notice is issued to him.

(b) Such person is in possession of any money, bullion, jewellery or other valuable article which represents either wholly or partly income or property which has not been or would not be disclosed.

(ii) Such information must be in possession of the authorised official before the opinion is formed.

(iii) There must be application of mind to the material and the formation of opinion must be honest and bona fide. Consideration of any extraneous or irrelevant material will vitiate the belief/satisfaction.

(iv) Though Rule 112(2) of the Income Tax Rules which specifically prescribed the necessity of recording of reasons before issuing a warrant of authorisation had been repealed on and from 1st October, 1975 the reasons for the belief found should be recorded.


(v) The reasons, however, need not be communicated to the person against whom the warrant is issued at that stage. Adidas Ultra Boost Femme Pas Cher (vi) Such reasons, however, may have to be placed before the Court in the event of a challenge to formation of the belief of the authorised official in which event the court (exercising jurisdiction under Article 226) would be entitled to examine the relevance of the reasons for the formation of the belief though not the sufficiency or adequacy thereof.

Supreme Court also disagreed with the High Court’s observations about possibility of manipulation of records and concluded that suspicion cannot be the basis of any judicial order.

The Supreme Court also observed that the remaining findings of the High Court with regard to the satisfaction recorded by the authorities appear to be in the nature of an appellate exercise touching upon the sufficiency and adequacy of the reasons and the authenticity and acceptability of the information on which satisfaction had been reached by the authorities. Such an exercise is alien to the jurisdiction under Article 226 of the Constitution – DG(Inv) vs. Spacewood Furnishers (P.)

Ltd. [2015] 57 292 (SC)

S. 254(2A) ITAT’s power to extend stay beyond 365 days

The expression ‘even if the delay in disposing of the appeal is not attributable to the assessee’ introduced by the Finance Act, 2008 is struck down as being violative of Article 14 of the Constitution of India. Where the delay in disposing of the appeal is not attributable to the assessee, the Tribunal has the power to grant extension of stay beyond 365 days in deserving cases – Pepsi Foods (P.) Ltd. Adidas Yeezy Boost 350 Homme vs. ACIT [2015] 57 337 (Delhi)


S. 2(15) Proviso to section is meant to curb exempt earning from trade and commerce and not to deny exemption to institutions carrying charitable object

The primary object of insertion of proviso to section 2(15) was to curb the practice of earning income by way of carrying on of trade or commerce and claiming the same as exempt in the garb of pursuing the alleged charitable object of general public utility. This proviso never meant to deny the exemption to those institutions, where the predominant object is undeniably a charitable object and in order to achieve the same incidental activities, essential in the given circumstances, are carried on.

The predominant activities of the Centre was not to earn income but to provide facilities for disseminating or exchanging knowledge as per the object of the society. Acheter Adidas Yeezy Boost 550 There is no gainsaying that without creating a proper platform the primary object of dissemination and exchanging of knowledge could not be achieved. Therefore, merely because incidental income was earned by assessee society for achieving its dominant object from providing hostel and catering activities, it cannot be said that the assessee was doing trade or business as contemplated under proviso to section 2(15). The Centre had to necessarily charge for the hostel, catering and use of such facilities from members/ participants since it had to recover cost and at the same time have enough funds to carry out the charitable activities – India International Centre vs. ADIT(E) [2015] 57 265 (Delhi – Trib.)

Ss. 40(a)(ia), 201(1) Assessee in default

The disallowability u/ss. 40(a)(i) & 40(a)(ia), and the liability and sec. 201(1) cannot be different and they arise out of the same default. Once there is a disallowance u/ss. 40(a)(i) & 40(a)(ia), it is not possible to argue that there was no liability under Chapter XVII-B of the Act and therefore the provisions of sec. 201(1) will not be attracted. Assessee followed practice of creating provision of expenses on quarterly basis global group reporting purposes. It was also held that assessee is liable to deduct tax on such provision and assessee cannot take a plea that the payments in question are not chargeable to tax and therefore there was no obligation on its part to deduct tax at source stand – IBM India Private Ltd vs. Boxer Calvin Klein Outlet ITO(TDS) ITA Nos. 749 to 752/Bang/2012 & 1588 to 1591/Bang/2012 (Bang-ITAT) Date of order 14/5/2015

S. 54F Entitlement of exemption for purchase absolute tenancy rights

The assessee earned long term capital gains of on sale of shares. The assessee then has acquired absolute tenancy rights in respect of the flat. These rights includes rights to transfer tenancy to any person, to charge such consideration/premium for such transfer/assignment. The tenant assessee not be required to obtain any permission from the owner and also not required to pay any premium for consideration to the owner for such transfer/assignment of the tenancy rights. On these facts it was held that the assessee is entitled to claim benefit under section 54F of the Act on capital gains earned – Archana Parasrampuria vs. ITO -[2015] 57 23 (Mumbai – Trib.)

S. 54F Gifting of property to spouse before claiming deduction in respect of purchase of another house

Assessee earned long term capital gains on transfer of capital assets. Bañadores Calvin Klein Hombre Baratos Calvin Klein Underwear España Against such capital gains assessee claimed deduction u/ss. 54E & 54F. However before acquiring new residential premises assessee being co-owner of the flat gift it to her spouse. Calvin Klein Bañadores Hombre Revenue challenged such gift and denied deduction u/s 54F. It was held that such gifting cannot be regarded as sham and provision of sections 27(ii) and 64(1)(iv) has no effect. It was also held that exemption u/s. 54F cannot be denied by disregarding the gift of a house property by the assessee to her spouse prior to the transfer date (of the original asset) – Smt. Maya A. Ajwani vs. ITO [2015] 56 255 (Mumbai – Trib.)

S. 254 ITAT order pronounced after 90 days from hearing is not barred by limitation

The objection that order pronounced beyond the period of 60 days from the date of hearing and hence, the same was barred by limitation is not tenable. It was also observed that the function of ‘pronouncement or orders’ is not like of a nature such as an ‘actionable legal claim’ which if not claimed within the period of 60 days or 90 days, can be said to have been barred by limitation. Calvin Klein Bañadores A contention that the order was pronounced beyond the period of 60 days cannot validly be raised in a petition u/s. 254 of the Act, as the same cannot be said to be an error apparent on record – Times Guaranty Ltd. vs.

High Level Committee To Probe MAT Taxation Of Foreign Companies & FIIs Formed

The Ministry of Finance has issued a press release stating that a High Level Committee (HLC) Headed by Justice A.P. Shah on Direct Tax Matters has been constituted. T Shirt Dsquared Pas Cher The Committee consists of leading tax experts. The Committee is required to examine the matter relating to levy of MAT on FIIs for the period prior to 01.04.2015 among others. The Committee has been requested to give its recommendations on the above issue expeditiously

The Union Finance Minister Shri Arun Jaitley, while responding to the discussions on the Finance Bill in Rajya Sabha on 7th May, 2015, had announced the constitution of a Committee headed by Justice A.P. Polo Philipp Plein Pas Cher Shah to look into the issue of Minimum Alternate Tax (MAT) on Foreign Institutional Investors (FIIs) as well as other issues which are referred to it .

Accordingly, a Committee headed by Justice A.P. Shah has been constituted.

Following is the composition of the Committee:-

i) Justice A.P. Shah – Chairman

(Former Chief Justice of Delhi High Court and currently Chairman of Law Commission of India)

ii) Dr. Philipp Plein Soldes Tangas Calvin Klein Para Mujer Girish Ahuja – Member

(Chartered Accountant and formerly Associate Professor of Commerce, Shri Ram College of Commerce, University of Delhi.)

iii) Dr. T Shirt Ralph Lauren Homme T Shirt Givenchy Homme Pas Cher Comprar Calzoncillos Calvin Klein Ashok Lahiri – Member

(Formerly Chief Economic Adviser & Executive Director, ADB and currently Chairman of High Level Committee to interact with Trade and Industry on tax laws.)

To begin with, the Committee will examine the matter relating to levy of MAT on FIIs for the period prior to 01.04.2015.The Committee will also examine all the related legal provisions, judicial / quasi judicial pronouncements and such other relevant aspects as it may consider appropriate. Bragas Calvin Klein The Committee has been requested to give its recommendations on the above issue expeditiously.

As initially the Committee would focus on the issue of MAT on FIIs for giving its report expeditiously, other issues to be referred to the Committee will be notified in due course. Yves Saint laurent Pas Cher The Committee may interact with various stakeholders as it may deem fit. The Committee may also invite officers from Department of Revenue including CBDT for consultations/discussions as may be necessary.

The Committee shall set its own procedure for regulating its work.

Hon’ble Supreme Court confirms the Constitution of NCLT and NCLAT under Companies Act, Boxer Calvin Klein Baratos 2013

Supreme Court decided following issues :
(i) Challenge to the validity of the constitution of NCLT and NCLAT;
(ii) Challenge to the prescription of qualifications including term of their
office and salary allowances etc. Slip Calvin Klein Baratos Calvin Klein Bragas of President and Members of the NCLT
and as well as Chairman and Members of the NCLAT;
(iii) Challenge to the structure of the Selection Committee for
appointment of President/Members of the NCLT and Chairperson/
Members of the NCLAT

The Hon’ble Supreme Court observed that it seems the only step which is left to make NCLT

and NCLAT functional is to appoint President and Members of NCLT and

Chairperson and Members of NCLAT.

Present Structure of Indirect Taxation Vs Goods and Services Tax (GST)

“A Comparative Analysis”



Concerned Areas Present Taxation


1 Structural Difference a)Two separate VAT System

i) State


ii) CST

b) Tax on services is levied by Centre under separate Legislation.

c)No Comprehensive Taxation of services at the state level

d) Imports in India are not subject to state VAT.

1) A tax system with both Central and state GST levied on same base. Thus all the goods and services except Petroleum ,High Speed Diesel, Motor spirit, Natural gas,

Aviation Turbine fuel and Liquor will be brought into the GST base. Moda de otoño T Shirt Givenchy Calvin Klein Ropa Interior Mujer Petroleum , High Speed Diesel, Motor spirit, Natural gas,

Aviation Turbine fuel and Liquor will be brought in GST net on a later date as per the recommendation of the GST Council.

2) It allows seamless Input Tax credit.

2 Excise Duty Taxed by the Centre under Separate Act; Taxed upto Manufacturing Point.


To be subsumed in GST; Taxable Event: Supply of

Goods, To be Taxed up to the Retail Level.

3 Basic Custom Duty Taxed by Centre, Under Separate Act; Taxable Event: Import No Change
4 CVD/SAD By Centre under separate Act,

Taxable event: Import

To be subsumed in GST; Taxable event :Import
5 Service Tax Taxed by centre under finance Act;

Taxable Event :Provision of services

To be Subsumed in GST ;

Taxable event: Supply of services

6 Central Sales Tax Taxed by Centre Under CST Act; Collection assigned to states;

Taxable event :Sale by movement of Goods from one State to another

To be Phased out; To be applicable to goods kept outside the GST.

Additional tax of 1% on interstate supply of goods –Status of the goods/items yet to be confirmed

7 State VAT Taxed by State; Taxable event :Sale within the State To be subsumed in GST ;Taxable event: Supply of Goods
8 Interstate Transactions Services: Taxed By the Centre ;


Goods :CST is collected and apportioned with the Centre

To be subsumed in GST & Subject to IGST(SGST+CGST)
9 Place of taxation Taxable at the place of sale of Goods or rendering of Services It is generally consumption (Destination) based tax.
10 Power to levy Tax on manufacturer Excise Duty (Cenvat): Levied and collected by the centre No such power in GST-Tax on supply of Goods.
11 Power to levy Tax on Sale of Goods Centre-Interstate

Local sale-state

Concurrent powers to centre & States ;however ,Powers to levy tax on interstate supply of goods & services vests with Centre only
12 Power to levy Tax on Provision of Services Centre Concurrent powers to Centre & States ; however ,Powers to levy tax on interstate supply of goods & services vests with Centre only
13 Tax on Import in India -Goods :Under Customs Duty (Comprises Basic Custom duty, CVD & SAD)

-Services: Under Service Tax

-Basic Custom duty on goods: No change

-CVD & SAD on imports of goods and import of services: to be summed in GST-IGST to be levied, Which would be Vatable.

14 Tax on Export of Goods & Services Exempt/Zero Rated No change
15 Tax on Inter State Transfer of Goods to Branch or Agent Exempt against Form F To be taxable
16 Tax on Transfer of Goods to Branch or Agent within State Generally Exempt; Depends Upon State Procedures Might Be taxable , Unless TIN of Transferor and Transferee is same
17 Cross-Levy set Off Excise duty and Service tax: Cross Set-off is allowed.


No cross Set-off between CGST and SGST
18 Cascading effects Allow tax credit between Excise Duty & Service Tax, But not with VAT on Purchase of Goods Allow Seamless tax credit
19 Non Creditable Goods Exist Might exist
20 Credit on Inputs used for exempted Activities Not allowed Might not be allowed
21 Various Exemption-Excise Free Zone or VAT Exemption Exists May Go in a Phased Manner
22 Inter-State Transit sale and High Seas sale Exempt from Sales Tax /VAT, Subject to conditions Might be taxable
23 Transactions against Declaration Forms Exists Under the CST Act. Forms will be abolished, except those goods which are outside GST.
24 Taxation on Govt and Non Profit Public Bodies Partially Taxed Might Not change
25 Stamp Duty on Immovable Property Presently Taxed By states No Change
26 Tax Base Comparatively narrow wider
27 Excise Duty threshold limits Rs. Guía de compras T Shirt Fendi Homme 1.5.Crores To be decided by the GST Council
28 VAT Threshold Limit Varies from State to State from Rs. Emporio Armani Ea7 Calvin Klein Tanga 5lacs to 20 lacs Rs.10 Lacs to 20 Lacs to be decided by the GST Council.
29 Service tax threshold limit Rs.10 Lacs Rs.10 Lacs to 20 Lacs to be decided by the GST Council.
30 Classification of commodities Excise Duty: HSN

VAT: None

Goods: HSN

Services: Existing Classification may be used

31 VAT/GST Registration Simple TIN (Some states :PAN Based) PAN Based GSTIN
32 Procedures for collection of Tax and filing of returns Excise Duty & Service Tax :Uniform

VAT: Varies From State to state

Will be uniform
33 Administration Complex due to no.

DBR. Slip Calvin Klein Baratos AML.BC. Calvin Klein Boxer Baratos Calzoncillos Calvin Klein Baratos No.104/14.01.001/2014-15

The Chairpersons/ CEOs of all Scheduled Commercial Banks/ Regional Rural Banks/ Local Area Banks/ All India Financial Institutions/ all NBFCs/ All Primary (Urban) Co-operative Banks /State and Central Co-operative Banks (StCBs / CCBs) /All Payment System Providers/ System Participants and Prepaid Payment Instrument Issuers/ All authorised persons including those who are agents of Money Transfer Service Scheme

Please refer to Rule 14(i) and proviso to Rule 2(d) at Sr.No.4 of Annex to our circular DBOD.AML.BC.No.26/14.01.001/2014-15 dated July 17, 2014, on the applicability of ‘simplified measures’ to verify the proof of identity of ‘low risk customers’ if they do not have Officially Valid Documents (OVDs) for proof of identity.

2. Boxer Calvin Klein Outlet The Government has since amended the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 providing additional relaxations for the purpose of proof of address in addition to the relaxations in proof of identity under ‘simplified measures’ as contained in paragraph 2(d) of PML Rules. Ropa Interior Masculina Calvin Klein Baratos Thus, for the limited purpose of proof of address the following additional documents are deemed to be OVDs under ‘simplified measures’.

  1. Utility bill which is not more than two months old of any service provider (electricity, telephone, postpaid mobile phone, piped gas, water bill);
  2. Property or Municipal Tax receipt;
  3. Bank account or Post Office savings bank account statement;
  4. Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
  5. Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies. Similarly, leave and license agreements with such employers allotting official accommodation; and
  6. Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India.

3. Calvin Klein Ropa Interior Mujer Barata Comprar Calzoncillos Calvin Klein The additional documents mentioned above shall be deemed to be OVDs under ‘simplified measure’ for the ‘low risk’ customers for the limited purpose of proof of address where customers are unable to produce any OVD for the same.