DT RTP

8/12/2019 DT RTP

1/79

PAPER 7: DIRECT TAX LAWS

PART III : QUESTIONS AND ANSWERS

QUESTIONS

Basic Concepts

1. Discuss, with the aid of case laws, whether the following subsidy receipts are capital or

revenue in nature -

(a) Power subsidy received by Gangotri Ltd., a cement manufacturing company, from theState Government, year after year, on the basis of actual power consumption;

(b) One-time subsidy, equivalent to 75% of sales tax paid, received by Yamunotri Ltd.

from the State Government under the scheme of industrial promotion for expansion ofits capacities, modernisation and improving its marketing capabilities.

Income from house property

2. Alaknanda HUF claimed, in its return of income, the benefit of self occupation of a houseproperty under section 23(2). The Assessing Officer, however, did not accept the saidclaim and denied the benefit of self occupation of house property to the HUF contending

that such benefit is available only to the owner who can reside in his own residence i.e.,only to an individual assessee, who is a natural person, and not to an imaginary

assessable entity being HUF or a firm, etc. Discuss the correctness of contention of the

Assessing Officer.

Profits and gains of business or profession

3. Jhelum Ltd., a company engaged in the business of manufacture of industrialequipments, furnishes the following particulars pertaining to P.Y. 2013-14. Compute thededuction allowable under section 32 and section 32AC for A.Y.2014-15, whilecomputing its income under the head Profits and gains of business or profession.Also, compute the written down value of plant and machinery as on 1.4.2014.

Particularsin

crores

1. Written down value of plant and machinery (15% block) as on 1.4.2013 30.00

2. Sold plant and machinery on 3.6.2013 (15% block) 5.00

3. Purchase of second hand machinery (15% block) on 8.6.2013 forbusiness purpose (the machinery was put to use immediately)

20.00

4. Purchased new computers (60% block) on 20.10.2013 for office use 0.50

5. Acquired and installed new plant and machinery (15% block) on5.8.2013 (`44 crore) and on 7.12.2013 (`62 crore)

106.00

6. New air conditioners purchased and installed in office premises on23.9.2013

0.20

The Institute of Chartered Accountants of India

8/12/2019 DT RTP

2/79

FINALEXAMINATION:MAY,201468

Profits and gains of business or profession, Capital Gains & Income from other sources

4. Mr. Ravi, a General Manager with Beas Ltd., sold a building to his friend Mr. Satluj, whois engaged in the business of wholesale trade in food grains, for ` 65 lakh on 3.2.2014,

when the stamp duty value was ` 180 lakh. The agreement was, however, entered intoon 28.5.2013 when the stamp duty value was ` 110 lakh. Mr. Ravi had received a down

payment of ` 22 lakh by cheque from Mr. Satluj on the date of agreement. Discuss thetax implications in the hands of Mr. Ravi and Mr. Satluj, assuming that Mr. Ravi had

purchased the building for ` 52 lakh on 4thApril, 2012.

Would your answer be different if Mr. Ravi was a property dealer and he sold the building

in the course of his business?

5. Ms. Godavari purchased a land at a cost of ` 20 lakhs in the financial year 1990-91 andheld the same as her capital asset till 31st March, 2011. She started her real estate

business on 1st April, 2011 and converted the said land into stock-in-trade of her

business on the said date, when the fair market value of the land was` 210 lakhs.

She constructed 8 flats of equal size, quality and dimension. Cost of construction ofeach flat is ` 22 lakhs. Construction was completed in February, 2014. She sold six

flats at ` 55 lakhs per flat in March, 2014. The remaining two flats were held in stock

as on 31st March, 2014.

She invested ` 35 lakhs in bonds issued by National Highways Authority of India on

31stMarch, 2014.

Compute the amount of chargeable capital gain and business income in the hands ofMs. Godavari arising from the above transactions for Assessment Year 2014-15

indicating clearly the reasons for treatment for each item.

Cost Inflation Indices:F.Y.1990-91: 182; F.Y.2011-12: 785; F.Y. 2013-14: 939.

Income from other sources

6. Discuss the tax implications under section 56(2) in respect of each of the following

transactions -

(i) Mr. Anaimudi received a painting by Raja Ravi Varma worth ` 65,000 from his

nephew on his 25th wedding anniversary.

(ii) Dodabettas son transferred shares of Pir Panjal Ltd. to Dodabetta HUF without any

consideration. The fair market value of the shares is `3 lakh.

(iii) Aravalli (P) Ltd. purchased 8,000 equity shares of Satpuras (P) Ltd. at `72 per

share from Ms. Yamuna. The fair market value of the share on the date of

transaction is `90.

(iv) Vindyas (P) Ltd. issued 30,000 equity shares of `10 each at a premium of `5. Thefair market value of each share on the date of issue is `12.


8/12/2019 DT RTP

3/79

PAPER 7 : DIRECT TAX LAWS 69

(v) Mr. Sahyadris land was acquired by the Government in November 2010. Hereceived interest of `3,30,000 on enhanced compensation in April, 2013, out ofwhich `60,000 related to the year 2010-11, `1,30,000 related to the year 2011-12,

`1,40,000 related to the year 2012-13.

Deductions from Gross Total Income

7. Mr. Himalaya, Mr. Karakoram and Mr. Girnar, new retail investors, have made the

following investments in equity shares/units of equity oriented fund of Rajiv Gandhi

Equity Savings Scheme for the P.Y.2013-14:

Particulars

Mr. Himalaya Mr. Karakoram Mr. Girnar

(i) Investment in listed equity shares 15,000 62,000 23,000

(ii) Investment in units of equity-oriented fund

30,000 - 25,000

The following are the particulars of their other investments/payments made during theP.Y.2013-14 -

Particulars `

(1) Deposit in Public Provident Fund (PPF) by Mr. Himalaya 80,000

(2) Life insurance premium paid by Mr. Girnar, the details of which areas follows -

Date ofissue ofpolicy

Person insured Ac tualcapital

sumassured

(`)

Insurancepremium

paid during2013-14

(`)

(i) 14/5/2011 Self 1,00,000 25,000

(ii) 11/6/2012 Spouse 1,25,000 15,000

(iii) 31/7/2013 HandicappedSon (section 80Udisability)

2,00,000 40,000

(3) Payment of medical insurance premium by the followingpersons to insure their health:

Payer Amountin `

Mode of payment

Mr. Himalaya (aged 55 years) 20,000 Account payee cheque

Mr. Karakoram (aged 52 years) 15,000 Cash

Mr. Girnar (aged 48 years) 10,000 Crossed cheque


8/12/2019 DT RTP

4/79


(4) Mr. Karakoram paid interest on loan taken for the purchase of housein which he currently resides. He is claiming benefit of self-occupation under section 23(2) in respect of this house. He does notown any other house.

1,90,000

Repayment of principal amount of loan taken for purchase of the saidhouse

1,50,000

(The housing loan of ` 23 lakhs was sanctioned by HDFC on3.4.2013 and disbursed in full on 10.4.2013, being the date ofpurchase of house property, the cost of which was ` 28 lakhs).

(5) Contribution by Mr. Himalaya by cheque to National Childrens Fundduring the year.

30,000

(6) Mr. Karakoram makes the following donations during the P.Y.2013-14 -

Donation to BJP by crossed cheque 50,000

Donation to Electoral trust by cash 50,000

Compute their total income for A.Y.2014-15, from the above particulars and the details of

their income given below

ParticularsMr. Himalaya Mr. Karakoram Mr. Girnar

(i) Salary (Computed) 9,25,000 10,45,000 11,15,000

(ii) Interest income (on fixeddeposits)

75,000 85,000 95,000

What would be the tax consequence if Mr. Himalaya and Mr. Girnar sold their entire

investment in units of equity oriented fund in May 2014?

Assessm ent of f ir ms

8. M/s. Nilgris & Co., a partnership firm comprising of four working partners, constructed ahospital with 100 beds for patients in Pathamadai, Tirunelveli district, Tamil Nadu. The

hospital has started functioning from 1.4.2009. The total profit as per the Profit & Loss

Account for year ended 31stMarch, 2014 is ` 30 lakhs. The other information are givenbelow:

(i) Depreciation charged to Profit & Loss Account is ` 20 lakhs. Depreciation allowable

under the Income-tax Act, 1961 is ` 30 lakhs.

(ii) Salary to working partners charged to Profit & Loss Account is ` 35 lakhs.

Compute tax payable by M/s. Nilgris & Co. for Assessment Year 2014-15.


8/12/2019 DT RTP

5/79


Assessm ent of co mp anies

9. Chenab Limited, engaged in the business of manufacturing, shows a net profit of ` 200lakhs for the year ended 31stMarch, 2014 after debiting and crediting the following items

to its Statement of Profit & Loss:

(a) Depreciation provided on straight line basis debited to the Statement of Profit &

Loss was ` 20 lakhs.

(b) ` 6 lakhs on salary for its research assistants and ` 4 lakhs spent on purchase ofmaterials for in-house research and development facility approved by the prescribed

authority.

(c) Legal expenses in connection with issue of Bonus Shares ` 2 lakhs, and issue of

Rights shares ` 2 lakhs.

(d) The opening and closing stocks of the company were undervalued by 10%.[Opening stock ` 30 lakhs; Closing Stock ` 40 lakhs].

(e) Secret commission paid to secure business for the company` 8 lakhs.

(f) Payment of ` 15 lakhs to an employee in connection with his voluntary retirement in

accordance with a scheme of voluntary retirement.

(g) The company adopts a policy of providing 5% of the Sundry Debtors in thebeginning of the year as provision for doubtful debts. Sundry Debtors outstanding

as on 01.04.2013 is ` 600 lakhs.

(h) No tax has been deducted from a sum of ` 12 lakhs credited to a contractor, who isa resident firm for some of the works outsourced. However, the contractor has

considered the same in the return of income filed by him on 30thJuly, 2014 and has

paid the taxes due on such income.

(i) Cash donation given to a political party ` 8 lakhs.

Ad dit io nal in for matio n:

(i) Normal depreciation allowable is ` 25 lakhs which includes depreciation on new

plant and machinery costing ` 30 lakhs acquired and installed in January, 2014.

(ii) Addition to fixed assets given in (i) above during the year includes ` 25 lakhs onaccount of machinery acquired for its in-house scientific research and development

facility approved by the prescribed authority.(iii) Bad debts actually written off during the year by adjusting provision for bad debts

account was ` 15 lakhs.

Compute income-tax payable by Chenab Limited for Assessment Year 2014-15 indicatingreasons for treatment of each item. Ignore Minimum Alternate Tax.

10. Hussain Sagar Ltd., an Indian company, receives the following dividend income during

the P.Y. 2013-14 -


8/12/2019 DT RTP

6/79


(1) from shares held in Geneva Inc., a Swiss company, in which it holds 23% ofnominal value of equity share capital ` 72,000;

(2) from shares held in Michigan Inc., a US company, in which it holds 28% of nominal

value of equity share capital ` 2,10,000.

(3) from shares held in Ontario Inc., a Canadian company, in which it holds 53% of the

nominal value of equity share capital - ` 1,92,000

(4) from shares held in Indian subsidiaries, on which dividend distribution tax has been

paid by such subsidiaries ` 58,000.

Hussain Sagar Ltd. has paid remuneration of ` 21,000 for realising dividend, the breakup of which is as follows

(1) ` 7,000 (Geneva Inc.); (2) ` 8,000 (Michigan Inc.); (3) ` 6,000 (Indian subsidiaries)

The business income of Hussin Sagar Ltd. computed under the provisions of the Act is` 53 lakh. Compute the total income and tax liability of Hussain Sagar Ltd., ignoringMAT. Assuming that Hussain Sagar Ltd. has distributed dividend of ` 3,80,000 in March,2014, compute the additional income-tax payable by it under section 115-O.

11. Dal Ltd., a domestic company, purchases its own unlisted shares on 17thAugust, 2013.The consideration for buyback amounted to `18 lakh, which was paid on the same day.Dal Ltd. had received `11 lakh on issue of these shares one year back. Compute theadditional income-tax payable by Dal Ltd. Further, determine the interest, if any, payable ifsuch tax is paid to the credit of the Central Government on 7th November, 2013. Would

there be any tax implication in the hands of the shareholders? Discuss.Assessm ent Procedu re

12. The Finance Act, 2013 has expanded the scope of reasons for directing special audit ofaccounts under section 142(2A)- Elucidate.

13. Titicaca Inc. incorporated in Peru, South America and Pushkar Limited incorporated inIndia are associated enterprises. During the course of assessment, for the A.Y. 2014-15,the Assessing Officer proposes to enhance the income of Pushkar Limited by `70 lakhsdue to variation in determination of the arms length price of its product bought fromTiticaca Inc. and sent a draft assessment order to Pushkar Limited. Pushkar Limited filedhis objection to the Assessing Officer and the Dispute Resolution Panel (DRP) andsought directions. The DRP, however, further enhanced the income by `18 lakhs on the

basis of the materials available on a different issue which was not raised by PushkarLimited. Is the action of the DRP valid? Discuss.

Appeals and Revisi on

14. Discuss, with the aid of recent case laws, whether the Appellate Tribunal has, under section254(2), the power to review or re-appreciate the correctness of its earlier decision. Also,discuss whether the Tribunal has the power to recall an order in entirety, to rectify a mistakeapparent from record.


8/12/2019 DT RTP

7/79


Deducti on, Collection and Recovery of tax

15. Mrs. Narmada, a senior citizen, has invested her savings of `1,20,000 on 29thMarch,2013 in a three-year bank fixed deposit carrying interest@9% p.a, the interest beingpayable annually. Since her income is below taxable limit, she has not obtained aPermanent Accountant Number. The Bank Manager contends that Mrs. Narmada has toproduce her Permanent Account Number, and if she fails to do so, tax would bedeductible at the higher rate prescribed under the Income-tax Act, 1961 i.e., @ 20%,from interest credited to her account for the year ended 31st March, 2014. Is thecontention of the bank manager correct? Discuss.

Penalties

16. Mahanadi Bank, which is a private bank, has not filed its annual information return (AIR)in relation to the specified financial transactions for the financial year 2013-14. A noticewas issued by the prescribed income-tax authority on 1stNovember, 2014 requiring thebank to furnish the return by 30th December, 2014. The bank, however, furnished theAIR only on 20th January, 2015. What would be the quantum of penalty leviable as persection 271FA?

Transfer Pricing

17. Godavari Ltd., an Indian company, exports dry fruits to Karyotis Inc for an amount of ` 51lacs. Karyotis Inc is located in a Notified Jurisdictional Area (NJA).

Godavari Ltd. charges ` 52 lacs and ` 53 lacs for sale of similar goods to Danube Incand Mississippi Inc, respectively, which are not located in a NJA and both of them are not

associated enterprises of Godavari Ltd.

If the permissible variation notified by Central Government for such class of internationaltransactions is 3% of the transaction price, state the tax implications under section 94A inrespect of the above transaction entered into by Godavari Ltd. with Karyotis Inc.

18. Discuss whether transfer pricing provisions under the Income-tax Act, 1961 are attractedin respect of the following transactions

(i) Provision of scientific research services by Nile Inc., a Kenyan company, to its

Indian subsidiary, Brahmaputra Ltd.

(ii) Lease of equipment by Kaveri Ltd., an Indian company, from Thames Inc., a British

company. Thames Inc. is a specified foreign company as defined in section

115BBD in relation to Kaveri Ltd.

(iii) Sale of integrated circuit masks by Indus Ltd. to Amazon Inc., a US company, which

guarantees 25% of the borrowings of Indus Ltd., an Indian company.

(iv) Mr. Krishna, a resident Indian, holds 30% equity share capital in Yamuna Ltd, a

domestic company. Yamuna Ltd. hires vehicles owned by Mr. Krishnas daughter

and pays rent of ` 3 lakh.


8/12/2019 DT RTP

8/79


(v) Ganga Ltd., a domestic company, has two units Chambal & Damodar. The Chambalunit, which commenced business two years back, is engaged in the business ofdeveloping an irrigation project. The Damodar unit is carrying on the business of

trading in water pumps. The Damodar unit transfers water pumps to the value of ` 5

lakh to the Chambal unit for `3 lakh.

Wealth-tax

19. State, with reasons, whether the following constitute assets chargeable to wealth tax on

the valuation date 31.3.2014:

(i) A house property owned by Krishna was transferred without consideration to MissKaveri on 10-4-2013. Subsequently, Miss Kaveri got married to Krishnas son on 21-

3-2014. The value of the house on 31-3-2014 is `59 lacs.(ii) The cash in hand on 31.3.2014 with the cashier of Chambal Pvt. Ltd. was

`1,25,000. The balance as per cash book on that day was `75,000.

(iii) Office building at Kolkata purchased by a builder in the financial year 2010-11 forresale.

(iv) A farm house situated at 28 kilometers from the local limits of Jaipur MunicipalCorporation and also has a guest house at a distance of 50 kilometers from thelocal limits of Bangalore Municipal Corporation.

(v) Lands owned by Tapti Ltd., none of which have been classified as an agriculturalland in the records of the Government:

Land Aeri al di stanc e fro m th e lo callimits of a municipality orcantonment board (with apopulation of not less than10,000)

Population according to thelast preceding census ofwhich the relevant figureshave been published beforethe first day of the previousyear.

I 2 kms 10,200

II 3 kms 88,000

III 4 kms 1,00,000

IV 5 kms 3,00,000

V 7 kms 10,00,000

VI 8 kms 10,05,000VII 9 kms 12,00,000

20. Mr. Gangadharan has a house property in Delhi, which was lying vacant for last 2 years.He constructed the property in 1989 at a cost of ` 42,00,000. He has let out the same at

a monthly rent of ` 35,000 for a period of three years with effect from 1st January, 2014.The quarterly corporation tax is ` 15,000. He took a premium of ` 1,50,000 from the

tenant and also security deposit of ` 2,00,000. The house was constructed on freehold


8/12/2019 DT RTP

9/79


land measuring 6,000 sq. ft. It has two floors each measuring 1,200 sq. ft. Compute thevalue of the house property for wealth tax purpose as at valuation date 31.3.2014.

SUGGESTED ANSWERS/HINTS

1. (a) Power subsi dy received year after year on the basis of actual power

consumption

The Andhra Pradesh High Court, in CIT v. Rassi Cement Ltd. (2013) 351 ITR 169,observed the decision of the Supreme Court in Sahney Steel & Press Works Ltd. v

CIT (1997) 228 ITR 253, where incentives (including power subsidy) granted year

after year were treated as supplementary trade receipts. It was observed that thepower subsidy granted after commencement of production, based on actual power

consumption, has nothing to do with the investment subsidy given for establishment

of industries or expanding industries in the backward areas.

The power subsidy, given as a part of an incentive scheme after commencement ofproduction, is linked to production and therefore, has to be treated as a revenue

receipt, since such assistance is given for the purpose of carrying on of the

business of the assessee.

Accordingly, the High Court held that the power subsidy received by the assesseefrom the State Government on the basis of actual power consumption has to be

treated as a trading receipt and not as a capital receipt.

Applying the rationale of the above ruling to the case on hand, power subsidy

received by Gangotri Ltd. from the State Government, year after year, on the basis

of actual power consumption is a revenue receipt and hence, chargeable to tax.

(b) One-time subsidy [received as a percentage of sales tax paid] for capacityexpansion, modernisation etc.

In CIT v. Rasoi Ltd. (2011) 335 ITR 438 (Cal.),the subsidy received by the companywas a one-time receipt, equivalent to 90% of the amount of sales tax paid. In that

case, the company received subsidy by way of financial assistance, in the period ofcrisis, for promotion of the industries mentioned in the subsidy scheme. The

industries had manufacturing units in West Bengal, which were in need of financial

assistance for expansion of their capacities, modernization and improving theirmarketing capabilities.

The Calcutta High Court, applying the rationale of Supreme Court in CIT v. Ponni

Sugars & Chemicals Ltd. (2008) 306 ITR 392, observed that if the object of thesubsidy is to enable the assessee to run the business more profitably, the receipt

would be a revenue receipt. On the other hand, if the object of the assistance is toenable the assessee to set up a new unit or to expand an existing unit, the receipt

would be a capital receipt. Therefore, the object for which subsidy is given


8/12/2019 DT RTP

10/79


determines the nature of the subsidy and not the form or the mechanism throughwhich the subsidy is given.

In Rasoi Ltd.s case, the subsidy was for expansion of its capacities, modernizationand improvement of its marketing capabilities. Therefore, merely because thesubsidy was equivalent to 90% of the sales tax paid, it cannot be construed that thesame was in the form of refund of sales tax paid. Therefore, the Calcutta High Courtheld that the subsidy received has to be treated as a capital receipt and not as arevenue receipt.

Applying the rationale of the above ruling, the one-time subsidy, equivalent to 75%of sales tax paid, received by Yamunotri from the State Government under thescheme of industrial promotion for expansion of its capacities, modernization and

improving its marketing capabilities, is a capital receipt.

2. The issue to be considered is whether a HUF can claim the annual value of house

property in which its members reside as Nil under section 23(2). This issue came upbefore the Full Bench of the Gujarat High Court in CIT v. Hariprasad Bhojnagarwala

(2012) 342 ITR 69.

The Gujarat High Court observed that a firm, which is a fictional entity, cannot physically

reside in a house property and therefore, a firm cannot claim the benefit of this provision,which is available to an individual owner who can actually occupy the house. However,

the HUF is a group of individuals related to each other i.e., a family comprising of a groupof natural persons. The said family can reside in the house, which belongs to the HUF.

Since a HUF cannot consist of artificial persons, it cannot be said to be a fictional entity.Also, it was observed that since singular includes plural, the word "owner" would include

"owners" and the words "his own" used in section 23(2) would include "their own".Therefore, the Gujarat High Court held that the HUF is entitled to claim benefit of self-

occupation of house property under section 23(2).

Applying the rationale of the above ruling, Alaknanda HUF is entitled to claim the annual

value of the house property in which its members reside as Nil under section 23(2).Therefore, the contention of the Assessing Officer is incorrect.

3. Computation of depreciation allowance under sectio n 32 for the A.Y. 2014-15

ParticularsPlant & Machinery

15% 60%

( in crores)

WDV as on 01.04.2013 30.00 -

Add: Plant and Machinery acquired during the year

-Second hand machinery 20.00

- New plant and machinery 106.00

- Air conditioner installed in office __0.20 126.20


8/12/2019 DT RTP

11/79


Computers acquired during the year _____- 0.50

156.20 0.50

Less:Asset sold during the year _5.00 Nil

Written down value before charging depreciation 151.20 0.50

Less:Depreciation for the P.Y.2013-14 (See Note 1 below) _33.03 0.15

WDV as on 1.4.2014 118.17 0.35

Note 1 : Compu tation of d epreciation fo r th e P.Y.2013-14

Normal depreciation [Under sectio n 32(1)(ii)]

Depreciation@30% on computers put to use for less than

180 days (50% of 60% ` 0.50 crore)

- 0.15

Depreciation on plant and machinery (15% block) 18.03

(` 62 crore 7.5%) + [(` 151.20 crore - ` 62 crore) 15%]

Ad di ti on al depr eciation [Und er secti on 32(1)(i ia)]

- New plant and machinery installed on 5.8.2013(` 44 crore 20%) 8.80

- on 7.12.2013 (` 62 crore 10%) 6.20 15.00 Nil

Total deprec iation 33.03 0.15

Computation of deduction under section 32AC for the A.Y.2014-15

Particulars ( in crore)15% of `

106 crore, being aggregate investment in new plant andmachinery acquired and installed during the P.Y.2013-14

15.90

Note For the A.Y.2014-15, the company would be entitled for investment allowanceunder section 32AC since the investment in new plant and machinery acquired and

installed during the P.Y.2013-14 is ` 106 crores (i.e., more than ` 100 crores). The

deduction for investment allowance under section 32AC would be in addition to thedepreciation allowable under section 32 for that year. However, the investment allowance

would not be reduced to arrive at the written down value of plant and machinery.

It may be noted that investment in second hand plant and machinery and air-conditioners

and computers installed in office would neither be eligible for investment allowance undersection 32AC nor additional depreciation under section 32(1)(iia).

4. (a) Tax impl ications on sale of a build ing representing a capital asset in the

hands of Mr. Ravi, a salaried employ ee

(i) Tax implications in the hands of Mr. Ravi for A.Y.2014-15

The building represents a capital asset in the hands of Mr. Ravi, a salariedemployee. On sale of the building, the provisions of section 50C are attractedand 128 lakh, being the difference between the stamp duty value on the


8/12/2019 DT RTP

12/79


date of regist ration (i.e., 180 lakh) and the purchase price (i.e., 52 lakh)would be chargeable as short-term capital gainsin the hands of Mr. Ravi.

It may be noted that under section 50C, there is no option to adopt the stampduty value on the date of agreement, even if the date of agreement is differentfrom the date of registration and part of the consideration has been received onor before the date of agreement otherwise than by way of cash.

(ii) Tax impli cations in the hands of Mr. Satluj for A.Y.2014-15

The building purchased would be a capital asset in the hands of Mr. Satluj,who is engaged in the business of wholesale trade in food grains. Theprovisions of section 56(2)(vii) would be attracted in the hands of Mr. Satlujwho has received immovable property, being a capital asset, for inadequate

consideration. For the purpose of section 56(2)(vii), Mr.Satluj can take thestamp duty value on the date of agreement instead of the date of registrationsince he has paid part of the consideration by a mode other than cash on thedate of agreement.

Therefore, 45 lakh,being the difference between the stamp duty value ofthe property on the date of agreement (i.e., ` 110 lakh) and the actualconsideration (i.e., ` 65 lakh) would be taxable as per section 56(2)(vii)under the head Income from other sources in the hands of Mr. Satluj.

(b) Tax impl ication s if Mr. Ravi is a propert y dealer

(i) Tax impli cations in the hands of Mr. Ravi for A.Y.2014-15

If Mr. Ravi is a property dealer who has sold the building in the course of hisbusiness, the provisions of section 43CA would be attracted, since thebuilding represents his stock-in-trade and he has transferred the same for aconsideration less than the stamp duty value. For the purpose of section43CA, Mr.Ravi can take the stamp duty value on the date of agreementinstead of the date of registration since he has received part of theconsideration by a mode other than cash on the date of agreement.Therefore, 58 lakh, being the difference between the stamp duty value onthe date of agreement (i.e., ` 110 lakh) and the purchase price (i.e., ` 52lakh), would be chargeable as business incomein the hands of Mr. Ravi.

(ii) Tax implications i n th e hands of Mr. Satluj for A .Y.2014-15

There would be no difference in the taxability in the hands of Mr. Satluj,whether Mr. Ravi is a property dealer or a salaried employee.

Therefore, the provisions of section 56(2)(vii) would be attracted in the handsof Mr. Satluj who has received immovable property, being a capital asset,for inadequate consideration. Consequently, 45 lakh,being the differencebetween the stamp duty value of the property on the date of agreement(i.e., ` 110 lakh) and the actual consideration (i.e., ` 65 lakh) would betaxable as per section 56(2)(vii) under the head Income from othersources in the hands of Mr. Satluj.


8/12/2019 DT RTP

13/79


5. Computation of capital gains and business income of Ms. Godavari for A.Y.2014-15

Particulars

Capital Gains

Fair market value of land on the date of conversion deemed as the fullvalue of consideration for the purposes of section 45(2)

2,10,00,000

Less:Indexed cost of acquisition [`20,00,000 785/182] 86,26,374

1,23,73,626

Proportionate capital gains arising during A.Y.2014-15 [ 1,23,73,626 ] 92,80,220

Less:Exemption under section 54EC 35,00,000

Capital gains chargeable to tax for A.Y.2014-15 57,80,220

Business Income

Sale price of flats [6 `55 lakhs] 3,30,00,000

Less: Cost of flats

Fair market value of land on the date of conversion [`210 lacs ] 1,57,50,000

Cost of construction of flats [6 `22 lakhs] 1,32,00,000

Bus iness income charg eable to tax for A.Y.2014-15 40,50,000

Notes:

(1) The conversion of a capital asset into stock-in-trade is treated as a transfer undersection 2(47). It would be treated as a transfer in the year in which the capital asset

is converted into stock-in-trade.

(2) However, as per section 45(2), the capital gains arising from the transfer by way of

conversion of capital assets into stock-in-trade will be chargeable to tax only in the

year in which the stock-in-trade is sold.

(3) The indexation benefit for computing indexed cost of acquisition would, however, beavailable only up to the year of conversion of capital asset to stock-in-trade and not

up to the year of sale of stock-in-trade.

(4) For the purpose of computing capital gains in such cases, the fair market value of

the capital asset on the date on which it was converted into stock-in-trade shall bedeemed to be the full value of consideration received or accruing as a result of the

transfer of the capital asset.

In this case, since only 75% of the stock-in-trade (6 flats out of 8 flats) is sold in theP.Y.2013-14, only proportionate capital gains (i.e., 75%) would be chargeable in the

A.Y.2014-15.


8/12/2019 DT RTP

14/79


(5) On sale of such stock-in-trade (i.e., flats, in this case), business income would arise.The business income chargeable to tax would be the price at which the flats aresold as reduced by the fair market value on the date of conversion of the capital

asset (i.e., land) into stock-in-trade and the cost of construction of flats.

(6) In case of conversion of capital asset into stock-in-trade and subsequent sale of

stock-in-trade, the period of 6 months, for the purpose of exemption under section54EC, is to be reckoned from the date of sale of stock-in-trade [CBDT Circular

No.791 dated 2.6.2000]. In this case, since the investment in bonds of NHAI hasbeen made within 6 months of sale of flats, the same qualifies for exemption under

section 54EC.

6. Tax impli cations under section 56(2)(i) Since paintings are included in the definition of property, therefore, when

paintings are received without consideration, the same is taxable under section

56(2)(vii), as the aggregate fair market value of paintings exceed `50,000.

Therefore, ` 65,000, being the value of painting gifted by his nephew, would betaxable under section 56(2)(vii) in the hands of Mr. Anaimudi, since nephew is not

included in the definition of relative thereunder.

(ii) Any property received without consideration by a HUF from its relative is not

taxable under section 56(2)(vii).

Since Dodabettas son is a member of Dodabetta HUF, he is a relative of the

HUF. Therefore, if Dodabetta HUF receives any property (shares, in this case)

from its member, i.e., Dodabettas son, without consideration, then, the fair marketvalue of such shares will no tbe chargeable to tax in the hands of the HUF, since

such receipt from a relative is excluded from the scope of section 56(2)(vii).

(iii) The difference between the aggregate fair market value of shares of a closelyheld company and the consideration paid for purchase of such shares is deemedas income in the hands of the purchasing company under section 56(2)(viia), if the

difference exceeds ` 50,000.

Accordingly, in this case, the difference of ` 1,44,000 [i.e.,(`90 `72) 8,000]

is taxable under section 56(2)(viia) in the hands of Aravalli (P) Ltd.

(iv) The provisions of section 56(2)(viib) are attracted in this case since the shares of

a closely held company are issued at a premium (i.e., the issue price of ` 15 pershare exceeds the face value of ` 10 per share) and the issue price exceeds the

fair market value of such shares.

The consideration received by the company in excess of the fair market value of

the shares would be taxable under section 56(2)(viib).

Therefore, ` 90,000 {i.e., (` 15 ` 12) x 30,000 shares} shall be the income

chargeable under section 56(2)(viib) in the hands of Vindyas (P) Ltd.


8/12/2019 DT RTP

15/79


(v) As per section 145A(b), interest received on enhanced compensation shall bedeemed to be the income of the previous year in which it is received, irrespective of

the method of accounting followed by the assessee. Therefore, in this case, intereston enhanced compensation received by Mr. Sahyadri in April, 2013 shall be deemed

to be the income of P.Y.2013-14, i.e., the year of receipt, irrespective of the method of

accounting followed by him. Such interest is taxable under section 56(2)(viii).

(`60,000 + `1,30,000 + `1,40,000) `3,30,000

Less: Deduction under section 57(iv)@50% of `3,30,000 ` 1,65,000

` 1,65,000

7. Computation of total inco me for A.Y.2014-15

Particulars Mr. Himalaya Mr. Karakoram Mr. Girnar

Salary 9,25,000 10,45,000 11,15,000

Income from house property [See Note 4] (1,50,000)

Income from other sources (Interest) 75,000 85,000 95,000

(A) Gross tot al inc ome 10,00,000 9,80,000 12,10,000

Less: Deductions under Chapter VIA

Under section 80C

Deposit in PPF 80,000

LIC premium paid [See Note 1] 62,500

Principal repayment of housing loan(restricted to maximum `1,00,000) [SeeNote 4]

1,00,000

Under section 80CCG

Investment in listed equity shares/ unitsof equity oriented fund of Rajiv GandhiEquity Savings Scheme [See Note 2]

22,500 25,000 Nil

Under section 80D

Medical insurance premium [See Note 3] 15,000 Nil 10,000

Under sectio n 80EE

Interest on housing loan [See Note 4] 40,000

Under section 80G

Contribution to National Childrens Fund[See Note 5]

30,000

Under section 80GGC [See Note 6]

Donation to BJP by crossed cheque 50,000

Cash donation to Electoral Trust Nil

(B) Total deduc tio n und er Chapter VIA 1,47,500 2,15,000 72,500

(C) Total Income (A) (B) 8,52,500 7,65,000 11,37,500


8/12/2019 DT RTP

16/79


Notes:

(1) Deduction u/s 80C in respect of life insurance premium paid by Mr. Girnar

Date ofissue ofpolicy

Personinsured

Actualcapitalsum

assured

Insurancepremium

paid during2013-14

Restrictedto % of

sumassured

Deduction u/s 80C

14/5/2011 Self 1,00,000 25,000 20% 20,000

11/6/2012 Spouse 1,25,000 15,000 10% 12,500

31/7/2013 HandicappedSon (section80U disability) 2,00,000 40,000 15% 30,000

Total 62,500

(2) Deduction under section 80CCG in respect of investment in Rajiv Gandhi Equity

Savings Scheme

Particulars Mr.Himalaya

Mr. Karakoram

(i) Investment in listed equity shares 15,000 62,000

(ii) Investment in units of equity-oriented fund 30,000 _____-

Total investment 45,000 62,000

50% of the above 22,500 31,000

Deduction under section 80CCG (restrictedto a maximum of 25,000)

22,500 25,000

Mr. Girnar is not eligible for deduction under section 80CCG since his gross totalincome exceeds `12 lakh.

(3) Medical Insurance Premium

(i) Medical insurance premium of ` 20,000 paid by account payee cheque by Mr.Himalaya is allowed as a deduction under section 80D, subject to a maximum of` 15,000.

(ii) Medical insurance premium paid by cash is not allowable as deduction. Hence,Mr. Karakoram is not eligible for deduction under section 80D in respect ofmedical insurance premium of` 15,000 paid in cash.

(iii) Mr. Girnar is eligible for deduction of ` 10,000 under section 80D in respect ofmedical insurance premium paid by crossed cheque.


8/12/2019 DT RTP

17/79


(4) Deducti on in respect of interest and principal repayment of hous ing loan

Mr. Karakoram is eligible for a maximum deduction of ` 1,50,000 under section24 in respect of interest on housing loan taken in respect of a self-occupiedproperty, for which he is claiming benefit of Nil annual value. Therefore,` 1,50,000 would represent his loss from house property.

Mr. Karakoram is eligible for deduction of ` 40,000 under section 80EE, inrespect of the balance interest on housing loan (` 1,90,000 ` 1,50,000), sincethe following conditions are satisfied

The loan is sanctioned by HDFC, a financial institution, during the periodbetween 1.4.2013 and 31.3.2014;

i.

The loan amount sanctioned is less than ` 25 lakh;

ii.

The value of the house property is less than ` 40 lakh;

iii. He does not own any other house property.

Further, he is eligible for deduction in respect of principal repayment of housingloan subject to a maximum of `1 lakh under section 80C.

(5) Contribution to National Childrens Fund qualifies for 100% deduction undersection 80G with effect from A.Y.2014-15. Therefore, Mr. Himalaya is entitled to100% deduction of the sum of ` 30,000 contributed by him by way of cheque toNational Childrens Fund.

(6) Mr. Karakoram is eligible for deduction under section 80GGC in respect ofdonation to a political party made otherwise than by way of cash. However, cash

donation to electoral trust would not qualify for deduction under section 80GGCwith effect from A.Y.2014-15.

Note In case Mr. Himalaya sells all the units of equity oriented fund in May 2014, theamount of ` 15,000 (i.e., 50% of ` 30,000), being deduction allowed to him under section

80CCG in A.Y.2014-15, would be subject to tax in the A.Y.2015-16, since the condition of

the minimum lock-in period of three years from the date of acquisition, has been violatedin this case. However, in the case of Mr. Girnar, since deduction under section 80CCGwas not allowed during the A.Y.2014-15 on account of his gross total income exceeding

` 12 lakh, no amount relating to that year can be subject to tax in the A.Y.2015-16, being

the year of violation of condition, even though the units are sold within three years.

8. Computation of tax payable by M/s Nilgris & Co. for the A.Y 2014-15

Particulars

Net Profit as per Profit & Loss Account 30,00,000

Add: Depreciation charged to profit and loss account 20,00,000

Salary to Working partners (considered separately) __35,00,000

85,00,000

Less: Depreciation allowable under the Income-tax Act, 1961 __30,00,000


8/12/2019 DT RTP

18/79

8/12/2019 DT RTP

19/79

8/12/2019 DT RTP

20/79


Less: Deduction for in-house scientific research undersection 35(2AB) [See Note 1]

70,00,000

Bad debts actually written off [See Note 6] 15,00,000

Depreciation as per section 32 [See Note 9] 23,62,500 1,08,62,500

Busin ess Income / Gross Total Income 1,94,48,611

Less: Deducti on u nder Chapter VI-A

Under section 80GGB [See Note 8] Nil

Total Income 1,94,48,611

Tax on total inc ome as computed under t he Income-tax Act , 1961

ParticularsTax@30% on total income of` 1,94,48,611 58,34,583

Add: Surcharge@5% (since total income exceeds ` 1 crore but does notexceed ` 10 crore) 2,91,729

61,26,312

Add: Education cess @ 2% 1,22,526

Secondary and higher education cess@1% 61,263

Tax on tot al income 63,10,101

Notes:

1. Both revenue and capital expenditure (other than expenditure on land and

building) on in-house scientific research approved by the prescribed authority iseligible for weighted deduction@200% under section 35(2AB) in case of, inter alia,a company engaged in manufacture or production of an article or thing.

In this case, the revenue expenditure on scientific research is `10 lakhs (salaryand purchase of materials) and capital expenditure (i.e. machinery) on scientificresearch is ` 25 lakhs. The total expenditure of ` 35 lakhs qualifies for weighteddeduction@200% under section 35(2AB), since the research and developmentfacility is approved by the prescribed authority. Hence, the eligible deductionunder section 35(2AB) is ` 70 lakhs, being 200% of ` 35 lakhs.

2. There is no fresh inflow of funds or increase in capital employed on account ofissue of bonus shares and there is only reallocation of the companys fund.

Consequently, since there is no increase in the capital base of the company, legalexpenses in connection with issue of bonus shares is a revenue expenditure and ishence, allowable as deduction. It was so held by the Supreme Court, in CIT v.General Insurance Corpn. (2006) 286 ITR 232.

However, ` 2 lakhs, being legal expenses in relation to issue of rights shares isdirectly related to expansion of the capital base of the company and is, hence, acapital expenditure. Therefore, the same is not allowable as deduction. It was soheld by the Supreme Court in Brooke Bond India Ltd. v. CIT (1997) 225 ITR 798.


8/12/2019 DT RTP

21/79


3. The under valuation of both opening and closing stocks will have an impact on theprofits for the year. The under-valuation in the amount of opening stock has to bededucted and under-valuation in the amount of closing stock has to be addedback. In this case, since the under-valuation in the amount of closing stockexceeds the under-valuation in the amount of opening stock, the net difference invaluation of stock has, accordingly, been added back.

4. As per Explanationto section 37(1), any expenditure incurred by an assessee forany purpose which is an offence or which is prohibited by law, shall not be deemedto have been incurred for the purpose of business and no deduction or allowanceshall be made in respect of such expenditure. Therefore, payment of secretcommission, if it is established as a payment for any purpose which is an offence

or which is prohibited by law, cannot be allowed as deduction. It was so held bythe Orissa High Court in Tarini Tarpauline Productions v. CIT (2002) 254 ITR 495.

Even in cases where it cannot be so established, it would be disallowed undersection 40(a)(ia) for non-deduction of tax at source under section 194H.

5. As per section 35DDA, where in any previous year, any expenditure is incurred byway of payment of any sum to an employee in connection with voluntaryretirement, one-fifth of the amount so paid shall be deducted in computing profitsand gains of business for that previous year, and the balance shall be deducted inequal installments in the immediately succeeding four previous years. Therefore,out of `15,00,000, an amount of ` 3,00,000 is deductible in assessment year2014-15 and the balance shall be disallowed in this assessment year. Therefore,

`12,00,000 has to be added back.6. The deduction under section 36(1)(viia) for provision for doubtful debts is allowable

only in case of banks and certain financial institutions specified thereunder. It isnot allowable in case of other assessees. Therefore, the sum of `30 lakhs debitedin its profit and loss account towards provision for doubtful debts is not anallowable deduction for Chenab Ltd., since it is a manufacturing company.

However, the amount actually written off as bad debts in the books of account canbe claimed as deduction under section 36(1)(vii) in the case of all assessees.Hence, `15 lakhs, being the bad debts actually written off can be claimed asdeduction under section 36(1)(vii).

7. Disallowance under section 40(a)(ia) would be attracted in the P.Y.2013-14 in

respect of payment to contractor without deduction of tax at source. In case the taxhas been paid by the contractor (being a resident firm), the date on which it hasfurnished its return of income i.e., 31stJuly, 2014, would be deemed as the date ofdeduction and payment of taxes by Chenab Ltd.

Consequently, the payment would be disallowed under section 40(a)(ia) in the year inwhich the said expenditure is incurred. Such expenditure will be allowed as deduction inthe subsequent year in which the return of income is furnished by the resident payee,since tax is deemed to have been deducted and paid by Chenab Ltd. in that year.


8/12/2019 DT RTP

22/79


8. Donation given to political party is not an allowable expenditure while computingbusiness income. The same is also not allowable as deduction under section

80GGB from the gross total income, since it is paid in cash.

9. Depreciation allowable under the Income-tax Act, 1961 has to be calculated after

considering the following -

No deduction under any other provision of the Act shall be allowable in respect ofexpenditure which has been claimed as weighted deduction under section35(2AB). Therefore, depreciation is not allowable in respect of `25 lakhs incurred

on fixed assets, in respect of which weighted deduction@200% under section

35(2AB) has been claimed. Since the figure of `25 lakhs representing normaldepreciation, includes depreciation on such fixed assets, the same has to be

reduced from the said figure. Since the fixed assets were acquired only in January2014, the depreciation would have been restricted to 7.5% (i.e., 50% of the normalrate of 15% applicable to plant and machinery). Therefore, 7.5% of `25 lakhs (cost

of machinery) has to be reduced from the normal depreciation of `25 lakhs.

Further, additional depreciation under section 32 is not allowable in respect of

such machinery, the whole of the actual cost of which has been allowed asdeduction, whether by way of depreciation or otherwise. Accordingly, additional

depreciation is not allowable in respect of new plant and machinery costing `25

lakhs which has been acquired for the purpose of in-house research anddevelopment, and is eligible for deduction under section 35(2AB). Therefore,additional depreciation is allowable only in respect of `5 lakhs (`30 lakhs `25

lakhs), being new machinery acquired other than for the purpose of in-houseresearch and development. The additional depreciation is also restricted to 10%

(i.e. 50% of 20%), since the new machinery is put to use for less than 180 days in

the year.

Normal depreciation 25,00,000

Less: [email protected]% on `25 lakhs, being asset acquired for

scientific research eligible for deduction u/s 35(2AB)

1,87,500

23,12,500

Add: Additional depreciation on new plant and machinery@10% on`5 lakhs

50,000

Depreciation allowable under section 32 23,62,500

10. Computation of total income of Hussain Sagar Ltd. for A.Y. 2014-15

Particulars

Profits and gains of business or profession 53,00,000

Income from other sources (See Note below) 4,67,000

Total income 57,67,000


8/12/2019 DT RTP

23/79


Note Dividend income taxable under Income from other sources

Particulars

From Geneva Inc., a Swiss company, net dividend (i.e., ` 72,000 ` 7,000) is taxable at normal rates

65,000

From Michigan Inc., a US company gross dividend is taxable@15%under section 115BBD [no deduction is allowable in respect of anyexpenditure as per section 115BBD(2)]

2,10,000

From Ontario Inc., a Canadian company gross dividend istaxable@15% under section 115BBD [no deduction is allowable inrespect of any expenditure as per section 115BBD(2)]

1,92,000

From shares in Indian subsidiaries ` 58,000 exempt under section 10(34)since dividend distribution tax has been paid under section 115-O [As persection 14A, no deduction is allowable in respect of expenditure incurred toearn exempt income] Nil

4,67,000

Computation of tax li ability of Hussain Sagar Ltd. for the A.Y.2014-15

Particulars

Tax@15% under section 115BBD on` 4,02,000 (gross dividend) 60,300

Tax@30% on balance income of ` 53,65,000 16,09,500

16,69,800Add:Education cess@2% and Secondary and higher educationcess@1% __50,094

Tax liab ili ty 17,19,894

Computation o f addition al income-tax payable by Hussain Sagar Ltd.under s ection 115-O

Particulars

Amount distributed by way of dividend 3,80,000

Less: Dividend received from Indian subsidiaries, on which

DDT payable under section 115-O has been paid 58,000Dividend received from foreign subsidiary, OntarioInc., on which tax is payable under section 115BBD 1,92,000 2,50,000

1,30,000

Additional income-tax@15% 19,500

Add:Surcharge@10% __1,950


8/12/2019 DT RTP

24/79


21,450

Add:Education cess@2% and Secondary and higher education cess@1% __ 644

Ad di ti on al in co me-tax payable und er secti on 115-O _22,094

11. New Chapter XII-DA, comprising of sections 115QA, 115QB and 115QC, has been

inserted with effect from 1st June, 2013, to levy additional income-tax on buyback of

unlisted shares by domestic companies. As per section 115QA, the distributed incomewould be subject to additional income-tax@20% (plus surcharge@10% and education

cess@2% and secondary and higher education cess@1%) in the hands of the domestic

company. Distributed income is the consideration paid by the company for buyback of itsown unlisted shares which is in excess of the sum received by the company at the time of

issue of such shares.Acco rd in gly, Dal Ltd is l iable to pay 1,58,620 as addi ti on al inc om e-tax, wh ich isthe amoun t calcu lated @22.66% (20% plu s sur charg e@10% plu s cess@3%) on 7

lakh, being its dist ribut ed incom e (i.e., 18 lakh 11 lakh).

The additional income-tax was payable on or before 31stAugust, 2013. However, thesame was paid only on 7thNovember, 2013.

Interest under section 115QB is attracted@1% for every month or part of the month onthe amount of tax not paid or short paid for the period beginning from the dateimmediately after the last date on which such tax was payable and ending with the dateon which the tax is actually paid.

In this case, the period for which interest@1% per month or part of a month is leviable iscalculated as under -

Period

No. of months /part of month

1stSeptember - 30thSeptember (whole of first month) 1

1stOctober 31st October, 2013 (whole of second month) 1

1stNovember 7thNovember, 2013 (part of third month) 1

Total number of months 3

Interest under section 115QB is payable @1% per month for 3 months on theamount of additional tax payable i.e., 1,58,620. Therefore, interest payable under

sect ion 115QB is 4,759.The income arising to the shareholders in respect of such buyback of unlistedshares by Dal Ltd. would b e exempt under sectio n 10(34A) in their hands.

12. Under section 142(2A), if at any stage of the proceeding, the Assessing Officer having

regard to the nature and complexity of the accountsof the assessee and the interests

of the revenue, is of the opinion that it is necessary so to do, he may, with the approval of


8/12/2019 DT RTP

25/79


the Chief Commissioner or Commissioner, direct the assessee to get his accountsaudited by an accountant and to furnish a report of such audit.

Since the courts have made a very narrow interpretation of the expression nature and

complexity of the accounts, section 142(2A) has been amended by the Finance Act,2013, with effect from 1stJune, 2013, to expressly include within its scope, the following

reasons, on the basis of which the Assessing Officer may direct special audit of accounts

of an assessee

(1) volume of the accounts,

(2) doubts about the correctness of the accounts,

(3) multiplicity of transactions in the accounts, and

(4) specialized nature of business activity of the assessee.

Accordingly, section 142(2A) now provides that if at any stage of the proceedings before

him, the Assessing Officer, having regard to the nature and complexity of the accounts,volume of the accounts, doubts about the correctness of the accounts, multiplicity of

transactions in the accounts or specialized nature of business activity of the assessee,and the interests of the revenue, is of the opinion that it is necessary so to do, he may,

with the previous approval of the Chief Commissioner or the Commissioner, direct theassessee to get his accounts audited by an accountant and to furnish a report of such

audit.

13. As per section 144C(8), the Dispute Resolution Panel (DRP) may confirm, reduce or

enhance the variations proposed in the draft order of the Assessing Officer.

The issue under consideration is whether the power of the DRP is restricted only to theissues raised in the draft assessment order or whether it also has the power to enhance

the variation proposed in the order consequent to any new issue which comes to its

notice during the course of proceedings before it, even though such issue was not raisedby the eligible assessee.

In order to clarify the true legislative intent, an Explanationhas been inserted in section

144C(8) retrospectively with effect from 1stApril, 2009 to provide that the power of the

DRP to enhance the variation as mentioned in section 144C(8) shall include and shall bedeemed to have always included the power to consider any matter arising out of theassessment proceedings relating to the draft order. The DRP has this power to consider

any issue irrespective of whether such matter was raised by the eligible assessee or not.

In view of the above provision, the action of DRP in further enhancing the income of

Pushkar Ltd. by `18 lakhs on the basis of materials available on a different issue, which

was not raised by Pushkar Ltd., is valid.

14. Section 254(2) specifically empowers the Appellate Tribunal to amend any order passedby it, either suo motu or on an application made by the assessee or Assessing Officer,


8/12/2019 DT RTP

26/79


with a view to rectifying any mistake apparent from record , at any time within 4 yearsfrom the date of passing the order sought to be amended.

The powers of the Tribunal under section 254(2) relating to rectification of its order are

very limited. Such powers are confined to rectifying any mistake apparent from therecord. The mistake has to be such that for which no elaborate reasons or inquiry is

necessary.Ac co rd ing ly, th e re-appr eciat io n of evidenc e placed befo re the Tribu naldurin g the course of the appeal hearing is not permit ted. It cannot re-adjudicate the

issue afresh under the garb of rectification.This issue came up for considerationbefore the Punjab & Haryana High Court in the case of CIT vs. Vardhman Spinning

(1997) 226 ITR 296, wherein it was observed that the jurisdiction to review or modifyorders passed by the authorities under the Act cannot be inferred on the basis of a

supposed inherent right.

The Delhi High Court, in Lachman Dass Bhatia Hingwala (P) Ltd. v. ACIT (2011) 330 ITR

243 (Delhi)(FB), observed that the justification of an order passed by the Tribunal

recalling its own order is required to be tested on the basis of the law laid down by the

Apex Court inHonda Siel Power Products Ltd. v. CIT(2007) 295 ITR 466,dealing withthe Tribunals power under section 254(2) to recall its order where prejudice has resulted

to a party due to an apparent omission, mistake or error committed by the Tribunal whilepassing the order. Such recalling of order for correcting an apparent mistake committed

by the Tribunal has nothing to do with the doctrine or concept of inherent power ofreview. It is a well settled provision of law that the Tribunal has no inherent power to

review its own judgment or order on merits or reappreciate the correctness of its earlier

decision on merits. However, the power to recall has to be distinguished from the powerto review. While the Tribunal does not have the inherent power to review its orderon merits, it can recall its order for the purpose of correcting a mistake apparent

from the record.

When prejudice results from an order attributable to the Tribunals mistake, error or

omission, then it is the duty of the Tribunal to set it right. The Delhi High Court observedthat the Tribunal, while exercising the power of rectification under section 254(2), canrecall its order in entirety if it is satisfied that prejudice has resulted to the party which is

attributable to the Tribunals mistake, error or omission and the error committed is

apparent.

Thus, while the Tribunal does not have the power to review or reappreciate thecorrectness of its earlier decision on merits under section 254(2), it, however, has the

power to recall an order in entirety to rectify a mistake apparent from record.

15. Section 206AA, with a view to strengthening the PAN mechanism, requires every person

whose receipts are subject to deduction of tax at source, to mandatorily furnish his or herPAN to the deductor, failing which the deductor shall deduct tax at the rate of 20% or the

rate prescribed in the Act or the rate in force, whichever is higher.


8/12/2019 DT RTP

27/79


Tax is deductible@10% under section 194A in case the interest on fixed depositscredited or paid or likely to be credited or paid to an assessee by a bank during anyfinancial year exceeds `10,000. In this case, the interest on fixed deposits is `10,800

(i.e., 9% of `1,20,000) and hence, TDS provisions under section 194A are attracted.

The issue under consideration is whether, in the case of Ms. Narmada, a senior citizen,

who has not obtained a PAN due to the reason that her income is below the taxable limit,the provisions of section 206AA would be attracted for non-furnishing of PAN and

consequently, tax would be deductible@20%

In this context, it may be noted that section 139A requires every person whose total income

exceeds the basic exemption limit to apply for allotment of a PAN. As a logical corollary, aperson whose total income is less than the basic exemption limit is not required to apply for

allotment of a PAN. Therefore, the requirement in section 206AA to deduct tax at a higher

rate for non-furnishing of PAN is contrary to what is contemplated under section 139A.

Therefore, in view of the specific provision contained in section 139A, section 206AAwould not be attracted in respect of non-furnishing of PAN by persons whose total

income is less than the taxable limit. It was so held by the Karnataka High Court in Smt.A. Kowsalya Bai v.UOI (2012) 346 ITR 0156. The banks, therefore, cannot insist such

persons to furnish PAN.

The contention of the bank manager in this case is, therefore, not correct.

16. Section 271FA provides that if a person who is required to furnish an annual information

return, as required under section 285BA(1), fails to furnish such return within the time

prescribed under section 285BA(2) [i.e., 31stAugust immediately following the financial yearin which the transaction is registered or recorded], the prescribed income-tax authority [i.e.,Director of Income-tax (Central Information Branch)] may direct that such person shall pay, by

way of penalty, a sum of `100 for every day during which such failure continues.

Further, where such person fails to furnish the annual information return within the period

specified in the notice issued under section 285BA(5), he shall pay, by way of penalty, a sumof ` 500 for every day during which the failure continues, beginning from the day immediately

following the day on which the time specified in such notice for furnishing the return expires.

The penal provisions under section 271FA w.e.f. 1stApril, 2014 , in a case where noticeunder section 285BA(5) has been served, but the Annual Information Return (AIR) has

not been furnished within the time specified therein, are summarized below -Non-

complianceof section

Penalty u ndersection 271FA

Period

285BA(1) ` 100 per day ofcontinuing default

From 1st September immediately following thefinancial year in which the transaction is registeredor recorded till the date of expiry of the timespecified in the notice under section 285BA(5).


8/12/2019 DT RTP

28/79



From the date immediately following the date onwhich the time specified in notice under section285BA(5) for furnishing the AIR expires.

The penalty leviable under section 271FA in the case of Mahanadi Bank is calculated as

under -

(1) (2) (3) (4)

Non-complianceof section

Penalty un dersection 271FA

Period Quantum of penalty undersection 271FA

(2) (3) ()


1.9.2014 to30.12.2014 121 days `100 12,100


31.12.2014 to20.1.2015 21 days ` 500 10,500

22,600

17. As per section 94A, in case an assessee enters into any transaction where one of theparties thereto is located in the Notified Jurisdictional Area (NJA) then the parties to the

transaction shall be treated as associated enterprises and the transaction shall bedeemed to be an international transaction. The transfer pricing provisions would,

therefore, be attracted in such a case. However, the benefit of permissible variation

between the transfer price and the arms length price, as notified by the Central

Government, shall not be available in such a case.Since Karyotis Inc. is located in a NJA, the transaction of export of dry fruits by the Indian

company, Godavari Ltd., would be deemed to be an international transaction and

Karyotis Inc. and Godavari Ltd. would be deemed to be associated enterprises.Therefore, the provisions of transfer pricing would be attracted in this case.

The prices of ` 52 lakhs and ` 53 lakhs charged for sale of similar goods to Danube Inc.

and Mississippi Inc., respectively, being independent entities located in a non-NJA

country, can be taken into consideration for determining the arms length price (ALP)under Comparable Uncontrolled Price (CUP) Method.

Since more than one price is determined by the CUP Method, the ALP would be the

arithmetical mean of such prices.Therefore, ALP = `52,50,000 i.e., [(`52,00,000 + `53,00,000)/2]

Transfer Price = `51,00,000

Since the ALP is more than the transfer price, the ALP of ` 52,50,000 would be

considered for computing the income from the international transaction betweenGodavari Ltd. and Karyotis Inc. The benefit of permissible variation @ 3% of transfer


8/12/2019 DT RTP

29/79

8/12/2019 DT RTP

30/79


the Chambal Unit at a price lower than the fair market value, it is an inter-Unittransfer of goods between eligible business and other business, where theconsideration for transfer does not correspond with the market value of goods.

Therefore, this transaction would fall within the meaning of specified domestic

transaction to attract transfer pricing provisions, if the aggregate value oftransactions specified in section 92BA during the year exceed ` 5 crore.

19. (i) The house property owned by Mr. Krishna was transferred, without consideration,

on 10.4.2013 to Ms. Kaveri, who subsequently got married to Mr. Krishnas son on

21.3.2014. The asset in question was transferred to Ms. Kaveri prior to her marriagewith the son of the transferor and therefore, she cannot be treated as the sons wifeon the date when it was transferred. Therefore, the property so transferred to her by

Mr. Krishna cannot be included in the net wealth of Mr. Krishna by invokingprovisions of section 4(1)(a). It shall be included in the net wealth of Ms. Kaveri,

who can opt to claim exemption under section 5(vi) in respect of the same.

(ii) The cash recorded in the books of account of a company on the valuation date does

not constitute an asset under section 2(ea). However, cash held in excess of whathas been recorded in the books shall be treated as an asset. Accordingly, the cash

in hand of ` 50,000 (` 1,25,000 ` 75,000) shall be treated as an asset on the

valuation date 31.3.2014.

(iii) Though building or land appurtenant thereto is an asset under section 2(ea), anyhouse for residential or commercial purposes which forms part of stock-in-

trade is specifically excluded from the scope of building. Hence, office building

purchased for resale by a builder is not an asset under section 2(ea).

(iv) A farm house situated within 25 kms from the local limits of a municipal corporationis chargeable to wealth-tax. In this case, the farm house is situated beyond 25 kms

from the local limits of Jaipur Municipal Corporation and therefore, it is notchargeable to wealth-tax, provided it does not fall within 25 kms from the local limits

of any other municipality, or a cantonment board.

A guest house, regardless of the distance, is always chargeable to wealth-tax.Hence, the guest house is liable to wealth-tax.

(v) The definition of urban land under section 2(ea) includes the following -

(a) Land situated in any area which is comprised within the jurisdiction of amunicipality or a cantonment board and which has a population of not lessthan 10,000.

(b) Land situated in any area, within the distance, measured aerially, in relation tothe range of population according to the last preceding census as shownhereunder


8/12/2019 DT RTP

31/79


Shortest aerial distancefrom the local limits of amunicipality orcantonment boardreferred to in item (a)

Population according to the lastpreceding census of which therelevant figures have beenpublished before the first day of theprevious year.

(1) 2 kilometers > 10,0001,00,000

(2) 6 kilometers > 1,00,00010,00,000

(3) 8 kilometers > 10,00,000

Accordingly, based on the above definition, the categorization of the lands givenbelow as urban land has to be determined as under -

I 2 kms 10,200 Yes, it is an urban land since population > 10,000.

II 3 kms 88,000 No, it is not an urban land, since population isnot > 1,00,000.

III 4 kms 1,00,000 No, it is not an urban land, since population isnot > 1,00,000.

IV 5 kms 3,00,000 Yes, it is an urban land since population >1,00,000.

V 7 kms 10,00,000 No, it is not an urban land, since population is not> 10,00,000.

VI 8 kms 10,05,000 Yes, it is an urban land since population

>10,00,000.

VII 9 kms 12,00,000 No, it is not an urban land, since distance > 8 kms.

Therefore, the lands I, IV and VI fall within the definition of urban land undersection 2(ea) and are hence, assets chargeable to wealth-tax.

20. Computation o f value of the house property as on valuation date 31.03.2014

Particulars

Computation o f Actual Rent & Annual Rent

Actual Rent ( 35,000 x 3) 1,05,000

Add:Adjustment for premium received from tenant(`1,50,000/3) x 3/12

12,500

15% p.a. of Security Deposit i.e. 15% x ` 2,00,000 x3/12

7,500

Ac tu al Rent fo r 3 mon ths 1,25,000

An nu al Rent (

1,25,000 x 12/3) 5,00,000


8/12/2019 DT RTP

32/79


Computation of Net Maintainable Rent (NMR)

Gross Maintainable Rent, being the annual rent 5,00,000

Less:Corporation Tax (`15,000 x 4) 60,000

15% of Gross Maintainable Rent 75,000 1,35,000

Net Maintain able Rent (NMR) 3,65,000

Capitalised value of NMR

Capitalised value (`3,65,000 x 12.5) 45,62,500

Cost of acquisition 42,00,000

Capitalised value is the higher of the above 45,62,500

Add:Premium

(i) Aggregate Area 6,000 Sq.Ft.

(ii) Specified Area (60%) 3,600 Sq.Ft.

(iii) Built up area 1,200 Sq.Ft.

(iv) Unbuilt Area 4,800 Sq.Ft.

(v) Excess of unbuilt area over specified area 1,200 Sq.Ft.

% of excess area on aggregate area

(1,200/6,000) 100 20%

(vi) Premium to be added when (v) is 20%

(40% of capitalized value i.e., 40% of

`45,62,500)

18,25,000

Value of house property for wealth-tax purpo se 63,87,500


8/12/2019 DT RTP

33/79

ANNEXURE


8/12/2019 DT RTP

34/79

Part I : Statutory Update Direct Tax Laws

Significant Notifications and Circularsissued between 1stMay, 2013 and 31stOctober, 2013

I NOTIFICATIONS

1. Notif icat ion No. 39/2013 dated 31.05.2013

Time and mode of, payment of tax deducted at source under section 194-IA to thecredit of Central Government, furnishing challan-cum-statement and TDS

Certificate [Rules 30, 31A & 31]

New section 194-IA has been inserted by Finance Act, 2013, requiring every transfereeresponsible for paying any sum as consideration for transfer of immovable property (land,other than agricultural land, or building or part of building) to deduct tax, at the rate 1% ofsuch sum, at the time of credit of such sum to the account of the resident transferor or at

the time of payment of such sum to a resident transferor, whichever is earlier.

Accordingly, the time and mode of, payment of tax deducted at source under section

194-IA, furnishing Challan-cum-statement and TDS Certificate have been provided, by

amending Rules 30, 31A & 31, respectively -

(i) Such sum deducted under section 194-IA shall be paid to the credit of the CentralGovernment within a period of seven days from the end of the month in which the

deduction is made and shall be accompanied by a challan-cum-statement in FormNo.26QB [Rule 30].

(ii) The amount so deducted has to be deposited to the credit of the CentralGovernment by electronic remittance within the above mentioned time limit, into

RBI, SBI or any authorized bank [Rule 30].

(iii)

Every person responsible for deduction of tax under section 194-IA shall alsofurnish to the DGIT (Systems) or any person authorized by him, a challan-cum-

statement in Form No.26QB electronically within seven days from the end of the

month in which the deduction is made [Rule 31A].

(iv)

Every person responsible for deduction of tax under section 194-IA shall furnish theTDS certificate in Form No.16B to the payee within 15 days from the due date for

furnishing the challan-cum-statement in Form No.26QB under Rule 31A, aftergenerating and downloading the same from the web portal specified by the DGIT(Systems) or the person authorized by him [Rule 31].

2. Notif icat ion No. 40/2013 dated 6.06.2013

Notificatio n of Cost Inflatio n Index f or F.Y.2013-14

Clause (v) of Explanation to section 48 defines Cost Inflation Index, in relation to a

previous year, to mean such Index as the Central Government may, by notification in the


8/12/2019 DT RTP

35/79

A-2 FINAL EXAMINATION: MAY, 2014

Official Gazette, specify in this behalf, having regard to 75% of average rise in theConsumer Price Index for urban non-manual employees.

Accordingly, the Central Government has, in exercise of the powers conferred by clause

(v) of Explanationto section 48, specified the Cost Inflation Index for the financial year

2013-14 as 939.

S. No. Financ ialYear

Cost InflationIndex

S. No. Financ ialYear

Cost InflationIndex

1. 1981-82 100 18. 1998-99 351

2. 1982-83 109 19. 1999-2000 389

3. 1983-84 116 20. 2000-01 406

4. 1984-85 125 21. 2001-02 426

5. 1985-86 133 22. 2002-03 447

6. 1986-87 140 23. 2003-04 463

7. 1987-88 150 24. 2004-05 480

8. 1988-89 161 25. 2005-06 497

9. 1989-90 172 26. 2006-07 519

10. 1990-91 182 27. 2007-08 551

11. 1991-92 199 28. 2008-09 582

12. 1992-93 223 29. 2009-10 632

13. 1993-94 244 30. 2010-11 711

14. 1994-95 259 31. 2011-12 785

15. 1995-96 281 32. 2012-13 852

16. 1996-97 305 33. 2013-14 939

17. 1997-98 331

3. Noti fication No. 41/2013 dated 10.06.2013

Transfer Pricing Rules made applicable to Specified Domestic Transactions as well

With effect from A.Y 2013-14, the transfer pricing provisions have been extended to Specified

Domestic Transactions. Accordingly, the transfer pricing rules prescribed for internationaltransactions have been suitably amended to make the same applicable for specified domestic

transactions, as well.Rule

No.Particulars Amendment

10A Meaning ofexpressions used incomputation ofArms length price

Definition of associated enterprise and enterprise included

Associated Enterprise shall -

(i) have the same meaning as assigned to it in section92A; and


8/12/2019 DT RTP

36/79

ANNEXURE TO RTP PAPER 7: DIRECT TAX LAWS A-3

(ii) in relation to a specified domestic transactionentered into by an assessee, include --

(A) the persons referred to in section 40A(2)(b)in respect of a transaction referred to insection 40A(2)(a);

(B) other units or undertakings or businesses ofsuch assessee in respect of a transactionreferred to in section 80A or section 80-IA(8);

(C) any other person referred to in section 80-IA(10) in respect of a transaction referred totherein;

(D) other units, undertakings, enterprises orbusiness of such assessee, or other personreferred to in section 80-IA(10) or in respect ofa transaction referred to in section 10AA or thetransactions referred to in Chapter VI-A towhich the provisions of section 80-IA(8) orsection 80-IA(10) are applicable;

Enterprise shall have the same meaning as assignedto it in clause (iii) of section 92F and shall, for thepurposes of a specified domestic transaction, include aunit, or an enterprise, or an undertaking or a business ofa person who undertakes such transaction.

10AB Other methods ofdetermination ofALP

This Rule provides that for the purpose of section92C(1)(f), the other method for determination of the armslength price in relation to an international transactionshall be any method which takes into account the pricewhich has been charged or paid or would have beencharged or paid, for the same or similar uncontrolledtransaction, with or between non-associated enterprises,under similar circumstances, considering all the relevantfacts.

This Rule has now been made applicable to specifieddomestic transactions as well.

10B Determination ofALP under section92C

The methods for determination of arms length pricespecified in this Rule for the purpose of section 92C(2) inrelation to an international transaction shall also be madeapplicable in respect of specified domestic transactions.

10C Most appropriatemethod

Sub-rule (1) provides that, for the purposes of section92C(1), the most appropriate method shall be the methodwhich is best suited to the facts and circumstances of


8/12/2019 DT RTP

37/79


each particular international transaction, and whichprovides the most reliable measure of an arms lengthprice in relation to an international transaction.

Sub-rule (2) specifies the factors to be taken into accountin selecting the most appropriate method.

This Rule is now made applicable in respect of aspecified domestic transaction as well.

10D Information anddocuments to bekept and maintainedunder section 92D

Sub-rule (1) requires every person who has entered intoan international transaction to maintain the requisiteinformation and documents as detailed thereunder. Asper sub-rule (2), maintenance of information and

documents shall not apply where the aggregate value ofinternational transactions does not exceed 1 crorerupees. However, sub-rule (1) shall be applicable forevery specified domestic transaction irrespective of itsvalue.

10E Report from anaccountant to befurnished undersection 92E

This rule provides for submission of audit report from achartered accountant by every person who has enteredinto an international transaction. This provision wouldnow apply to a person entered into a specified domestictransaction as well.

4. Noti fication No.57 / 2013 dated 01.08.2013

Documents and information, to be furnished by the assessee for claiming treaty

benefits, prescribed

For claiming treaty benefits, sections 90(4) and 90A(4) provide that a certificate issued by theGovernment of a foreign country would constitute proof of tax residency, without any further

conditions regarding furnishing of prescribed particulars therein.

Further, sections 90(5) and 90A(5) require an assesseetoprovide such other documents

and information, as may be prescribed, for claiming the treaty benefits, in addition to such

certificate issued by the foreign Government.

Accordingly, the assessee shall provide the following information in Form No. 10F:

(i)

Status (individual, company, firm etc.) of the assessee;(ii)

Nationality (in case of an individual) or country or specified territory of incorporation or

registration (in case of others);

(iii)

Assessee's tax identification number in the country or specified territory of residence

and in case there is no such number, then, a unique number on the basis of which theperson is identified by the Government of the country or the specified territory of which

the assessee claims to be a resident;

(iv) Period for which the residential status, as mentioned in the certificate referred to in

section 90(4) or section 90A(4), is applicable; and


8/12/2019 DT RTP

38/79

ANNEXURE TO RTP PAPER 7: DIRECT TAX LAWS A-5

(v)

Address of the assessee in the country or specified territory outside India, during theperiod for which the certificate, as mentioned in (iv) above, is applicable.

However, the assessee may not be required to provide the information or any part thereof, if

the information or the part thereof, as the case may be, is already contained in the TRC

referred to in section 90(4) or section 90A(4).

The assessee shall keep and maintain such documents as are necessary to substantiate theinformation provided. An income-tax authority may require the assessee to provide the said

documents in relation to a claim by the said assessee of any relief under an agreement

referred to in section 90(1) or section 90A(1), as the case may be.

5. Noti fication No. 64/2013, dated 19.08.2013

Notification of foreign company fo r claiming exemption under section 10(48)

Income received by a foreign company in India in Indian currency from sale of crude oil, any

other goods or rendering of services, as may be notified by the Central Government in thisbehalf, to any person in India is exempt under section 10(48). For this purpose, the foreign

company, as well as the arrangement or agreement, should be notified by the CentralGovernment having regard to the national interest. The foreign company should not be

engaged in any other activity in India, except receipt of income under such arrangement or

agreement.

Accordingly, vide this notification, the Central Government, having regard to the nationalinterest, has notified for the purposes of the said clause, the National Iranian Oil Company, as

the foreign company and the Memorandum of Understanding entered between theGovernment of India in the Ministry of Petroleum and Natural Gas and the Central Bank of

Iran on the 20th January, 2013, as the agreement subject to the condition that the saidforeign company shall not engage in any activity in India , other than the receipt of income

under the agreement aforesaid.

The Notification is deemed to be effective from 20thJanuary, 2013.

6. Noti fication No. 67/2013 dated 02.09.2013

Furnishing of information by the person responsible for making any paymentchargeable to tax to a non-corp orate non-resident or to a foreign comp any

The CBDT has, vide this notification, inserted new Rule 37BB relating to furnishing of

information by the person responsible for making any payment, including any interest orsalary or any other sum chargeable to tax, to a non-corporate non-resident or to a foreign

company.

Sub-rule (1) requires such person to furnish the following:

(i)

the information in Part A of Form No.15CA, if the amount of payment does notexceed ` 50,000 and the aggregate of such payments made during the financial

year does not exceed ` 2,50,000;


8/12/2019 DT RTP

39/79


(ii)

the information in Part B of Form No.15CA for payments other than the paymentsreferred in clause (i), after obtaining-

(a)

a certificate in Form No.15CB from an accountant as defined in the

Explanation below section 288(2); or

(b) a certificate from the Assessing Officer under section 197; or

(c) an order from the Assessing Officer under section 195(2) or section 195(3).

Sub-rule (2) requires the information in Form No. 15CA to be furnished by the personelectronically to the website designated by the Income-tax Department and the

submission of the signed printout of the said form to the authorised dealer under section

10(1) of the Foreign Exchange Management Act, 1999, prior to remitting the payment.

Sub-rule (3) provides that an income-tax authority may require the authorised dealer to

furnish the signed printout for the purposes of any proceedings under the Act.

Further, in respect of the payments of the nature described in the Specified list given inthe said Notification (like Indian investment abroad in equity, debt securities, subsidiaries

and associates, branches and wholly-owned subsidiaries, real estate, remittance towardsbusiness travel, personal gifts and donations, donations to charitable and religious

institutions abroad etc.) no information is required to be furnished under sub-rule (1).

7. Notif icati on No. 73/2013, dated 18.09.2013

Notification of Safe Harbour Rules

Section 92CB(1) provides that the determination of arms length price under section 92Cor section 92CA shall be subject to safe harbour rules. Safe harbour means

circumstances in which the income tax authorities shall accept the transfer price declared

by the assessee.

Section 92CB(2) empowers the CBDT to prescribe such safe harbour rules orcircumstances under which the transfer price declared by the assessee shall be accepted

by the Income-tax Authorities.

Accordingly, in exercise of the powers conferred by section 92CB read with section 295of the Incometax Act, 1961, the CBDT has, vide this notification, prescribed safe harbour

rules. These rules are explained hereunder:

1. Safe Harbour [Rule 10TD read wit h Rule 10TA, Rule 10TB and Rul e 10TC]

Where an eligible assessee has entered into an el

Date post:	03-Jun-2018
Category:	Documents
Upload:	sathish61288yahoo
View:	213 times
Download:	0 times