dadibattini
16 May 2013 at 13:40
Kindly help in solving the following Questions as my colleague is appearing for exam the coming Sunday i.e.20.5.2013:
Discussion provisions relating to principles underlying capital
expenditure and revenue expenditure citing decisions.
Explain in brief the provisions of Section 50 C of the Act
relating the consideration for transfer of the Property
lower than stamp duly valuation and its effect and the
remedies provided in the said Section.
Explain in brief provisions relating to bad debts in Section 36 of the
Act.
Explain in brief the concept of slump sale and the provisions
regarding computation of the capital gains.
Explain in brief -
• Under what circumstances certain transfers are regarded as void under Section 281 of the Act.
• What are the exceptions to the said provisions?
• What are the safeguards to be adopted to avoid tax liability?
Write Short Notes on any five of the following.
i. Permanent Account Number
ii. Self Assessment
iii. Best Judgment Assessment
iv. Deduction at Source and Advance Payment
v. Advance Tax
vi. Agricultural Income
vii. Income deemed to be received in previous year
viii. Income from other sources.
ix. Tax planning versus Tax Avoidance.
Answer the following with reasons:-
a. The assesse received a sum of Rs. 41.58 lakhs from
Union Bank of Switzerland (UBS) towards loss of
reputation and goodwill and claimed the same as -capital
receipt not chargeable to tax. The Assesse Officer desires
to tax the said amount as Revenue Receipt? Please
advise the Assesse.
b. In the A.Y 2003 - 04, the assesse had entered into certain
transactions in exchange - traded derivatives which
resulted in loss amounting to Rs. 28,37,7071-. The assesse
claimed the loss as business loss. The Assessing Officer
held that the loss is speculation loss covered Uls. 43 (5).
Please advise the assesse.
c. The assesse the respondent herein-filed its return for the
asst. yr. 1996-97 declaring an income of Rs. 55,20,147.
During scrutiny, inter alia it was found by the AO that the
assesse had claimed Rs. 14,26,260 as bad debts written
off consisting of twenty items. Insofar as bad debts are
concerned, the AO, called for details and Explanations.
After conducting enquiry. the AO came to the conclusion
that eleven items of bad debts. in a sum of Rs. 11,85.086
could not be written off as bad debts and that the
explanation of the assesse that it had issued computer
_generated reminders to the customers (sundry debtors) in
a standard Proforma was not convincing. Please advise
the assesse, in the light of provisions of Sec. 36(1) (vii) of
the Act.
d. Pursuant to a foreign collaboration agreement, the foreign
collaborator paid Rs. 54 Lac in DM towards share
application money for 54,000 shares. The amount so
received was deposited in Frankfurt Branch of the State
Bank of India. The assesse had also paid advance to the
foreign collaborator against supply of plant and machinery.
However, the project was subsequently abandoned and
the assesse was required to refund the share application
money received. By then, on account of appreciation in
value of foreign currency, the balance in the SBI's account
in terms of rupees had appreciated by more than Rs. 1
Crore. After obtaining RBI's permission, the assesse
repaid to its erstwhile foreign collaborator share application
money by adjusting advance paid for plant and machinery
and the balanced sum out of the balance with RBI. The
Dispute was regarding the taxability of Rs. 1 Crore which
arose on account of appreciation in value of foreign
currency. The assesse contended before AO that, such
amount was liable to be treated as Capital receipt not
liable to tax while the AO, would like to be taxed as
Revenue Receipt. Please advise the assesse.
e. During the A.Y. 1997 - 98 the assesse received Rs. 50
Lakhs from Ranbaxy as non-competition fee. The said
amount was paid by Ranbaxy under an agreement dated
31st March, 1997. The assesse was a part of the Guffic
group. The assesse had agreed to transfer its trade marks
to Ranbaxy and in consideration of such transfer the
assesse agreed that it shall not carry on directly or
indirectly the business hitherto carried on by it on the
terms and conditions appearing in the agreement. The
assesse was carrying on the business of manufacturing,
selling and distribution of pharmaceutical and medical
preparations including products mentioned in the list in
'.'schedule A to the agreement. The agreement defined the
period i.e. a period of 20 years commencing from the date
of the agreement. The agreement defined the territory as
territory of India and rest of the world. In short, the
. agreement contained p'rohibitory I restrictive covenant in
consideration of w, hich' a non competition fee of Rs. 50
lacks was received' by the assesse from Ranbaxy. The
agreement further showed that .the payment made to the
assesse was in consideration of the restrictive covenant
undertaken by the assesse for a loss of source of income.
Please advise the assesse, whether, the said
consideration received towards non - competition would
be treated as Capital Receipt or Revenue Receipt? Will it
make difference if the said consideration was received by
the assessee, after 1st April, 2003. ?
SANJEEV KUMAR
15 May 2013 at 16:54
Dear All,
I have submitted Quaterly TDS return for first Quarter for FY 2012-13 through our hired advocate.
But now i came to know that he had filed said return online, but forget to submit signed Form 27 A to tin centre. Now i have handed over Second copy of Form 27 A available with me to him today on 15.05.2013. Kindly let me know whether there will be any penalty on me. If there at what rate, what measure to avoid it.
Kindly advice me.
modi kamal
15 May 2013 at 13:31
Can an HUF firm give School Fees on behalf of it's co percener & avail rebate under 80C? Co Percener is a minor.
ashok thakker
14 May 2013 at 10:56
Sir,
We have been receiving a part of electric charges from our clients as reimbursement against debit notes raised.
Now, this year one of the clients insist on deduction of TDS on this amount,whereas all past years they never deducted.
Pl advise if it is deductible receipt.
regards,
ashok thakker
Subroto
13 May 2013 at 06:32
Experts,
Our society is running two schools. One is affiliated to CBSE and the other is affiliated to Haryana Board and is a Govt. Aided Privately Managed School.
The society is registered under the Haryana Registration & Regulation of Societies Act, 2012 and According to the Act the sources of income of the Society is clearly defined as membership fee, annual subscription, donations, rent from property/assets, interest, gifts, grants, consultation fees etc.
The Society is required to submit its Audited Balance sheet/annual accounts for the last three years to the District Registrar of Firms & Societies.
My query is do we have to submit the audited balance sheets/annual accounts of the both the Schools or just the audited balance sheet concerned with the membership fee, annual subscription, loans, rent from property/assets, interest, grants, gifts, donations, consultation fees etc. received and expended by the Society AND what are the proper books of accounts which are required by Income Tax laws.
Mukesh Khandelwal
12 May 2013 at 19:44
Dear Sir, One of my client have income from authorized service station of two whiles. My client paid service tax liabilities on these receipts. My client has a further income by commission on insurance service from united India limited. Is this commission also having a tax liabilities, thus my client had not claimed and paid any service tax on this commission? What is the legal provision? Service tax audit cell issue an notice regarding service tax on this commission after audit. Plz advice me.
With regards
Mukesh khandelwal
9828242065
asgari
12 May 2013 at 08:59
Sir,
There is lof of confusion on TDS on MACT Interest. It is clear that it is taxable.
But the problem is for Insurance Companies....
Some company prepare cheque for amount of TDS deducted and give these cheques to MACT COURT along with award amount cheque.......
Some deposit TDS amount with INCOME TAX
Who is right....
In first case the claimant get both amount instantly from MACT i.e. award amount+Interest and TDS amount
In another case the claimant get only Award amount + Interest anf for TDS amount he is given FORM16A and he has to file return with Income Tax to get it refund.....
Is there any judgement in this regard ... if any please provide....
I am aware of some judgement in which judge writes in judgement that TDS amount deducted should be deposited with court... In some judgement judge instruct not to deduct TDS....
please guide us in this matter......
ravi
10 May 2013 at 12:30
Interest on Cash credit account will be covered under section 43 B or not ? Why ?
My query arised because if bank charges interest on Cash credit then my loan amount increases and my balancing drawing pewer reduces and reduction in balancing drawing power does not mean repayment of interest.
Bhaskar Dey
10 May 2013 at 08:23
I have a residential house the construction of which was completed in 1991. I also purchased a residential flat in 2007. We don’t have son. Our daughters are already married and staying in their own houses quite far from this place. It will not be possible for them to come and stay in these properties. Nor it will be possible for them to maintain each property from such a distance. So we have decided to sale both the properties and buy a three roomed flat which will be quite sufficient for us (Husband and Wife) for the rest of our lives. I have calculated that the sale proceeds of each property individually will be less than the cost of the new flat. But the sale proceeds for the two properties combined will be little more than the cost of the new property.
My question is that, to get benefit of Section 54/54F of LTCG, can I club the sale proceeds of two old properties and invest in a single new property within the time frame? Is it allowable under this section? Or I have to purchase one new property each from sale proceeds of each property to get the benefit. I do not want to do that. I want to purchase only one property. I’ll request honourable experts to kindly answer my queries. Many Thanks in advance.
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Income tax
Kindly help to answer the questions as my colleague's exam in coming Monday 20.5.13.Tks
1.. Discuss critically the provision relating to income which shall be deemed
to accrue or arise in India' particularly with reference to "business
connection in India" citing recent decisions of the courts in India .