NDV Associates

NDV Associates Auditing, Accounting, Taxation and Consultancy Services

20/05/2012

Block of assets mechanism does not require sorting of assets division-wise or unit-wise, even if accounts are maintained that way

20/05/2012

SC: Benami transactions also cover a transaction where part of the consideration is paid by some other person

20/05/2012

Notional interest on loan given to non-resident AE taxable under transfer pricing provisions

29/02/2012

CA. Durgesh Kabra has been elected as the chairman of WIRC of ICAI

28/02/2012

No TDS under section 194H required on payment of brokerage paid to an agency for facilitating derivatives trade

28/02/2012

Deletion of penalty under section 271(1)(c) by Commissioner (Appeals) without recorded any finding as to whether or not assessee discharged onus in terms of Explanation 1 to section 271(1)(c) was not justified

28/02/2012

6 months time-limit for investment in bonds under section 54EC of the Income-tax Act, 1961 to be reckoned from date of receipt of part payments, not from date of transfer under section 53A of the Transfer of Property Act

• Where property is sold by assessee under a transaction ('deemed transfer') covered by section 53A of Transfer of Property Act, possession handed over to buyer on ex*****on of agreement against part payment and balance payment received after 6 months on registration of property, period of six months for making deposit under section 54EC of the Act should be reckoned from dates of actual receipt of consideration; if period is reckoned from date of agreement and receipt of part payment at first instance, then it would lead to an impossible situation by asking assessee to invest money in specified asset before actual receipt of same; this is based on High Court decisions in the context of sections 54E, 54B, 54EA and 54EB which are similarly worded as section 54EC

27/02/2012

Where assessee-firm had received an advance from a company and it was assessee's partners who were shareholders in said company and not assessee-firm, such an advance could not be taxed as deemed dividend in hands of assessee-firm

22/02/2012

Reliance on CA's opinion which dealt with accounting for expense (not its deductibility under the Act) will not save assessee from penalty under section 271(1)(c)

• The expert opinion furnished by CA was that there should be no problem with assessee in claiming expenditure as revenue in financial statements; the opinion was not in respect of claim under Income-tax Act; therefore, it can be said that the explanation tendered by assessee (against imposition of penalty) is not bona fide.

20/02/2012

For purpose of granting registration under section 12AA, a single non-operative clause of commercial nature could not obliterate whole range of charitable activities undertaken by assessee-society

18/02/2012

Important:

Where assessee-company was assessed under section 143(3), section 147 (first proviso) cannot be invoked merely by reason of a retrospective amendment to section 115JB

• Where assessee-company had disclosed fact of debit to P&L account towards provision for diminution in value of unquoted investments by an entry on expenditure side 'diminution in value of investments Rs. 15,33,22,500/-' and also by way of a Note appended to balance sheet which clearly explained said entry made in P&L account (and thus it was not a case where entry was imbedded in account books and required some more diligence than a cursory look at accounts to find it out) and Assessing Officer examined and enquired into said diminution in value in original assessment proceedings, it could not be said that assessee had failed to disclose fully and truly all material facts and first proviso to section 147 could not be invoked by reason of a retrospective amendment to section 115JB

• Where, however, return was not 'assessed' but only 'processed' under section 143(1)(a), the first proviso to section 147 is not applicable and assessment can be reopened after expiry of 4 years from the end of relevant assessment year if AO has 'reason to believe' that a particular item which had to be added to 'book profit' under section 115JB by virtue of a retrospective amendment but had not been so added and income has escaped assessment

18/02/2012

No disallowance of interest under section 36(1)(iii) is warranted in a case where assessee has sufficient interest-free funds in form of capital and reserves against interest-free advances made

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Thane
401105

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08652344502

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