PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 1

E-NEWs Letter November

2015

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 2

Chairman Speech

Greeting from Pimpri Chinchwad Branch of WIRC

of ICAI!!!

I am sure that the Diwali Celebration would had set you all a lot of

enjoy & bliss. It is the festival of great joy and enthusiasm. The

spiritual significance of this festival indicates the victory of light over

darkness. It is the mark to us to begin with a new flinch to the

business of the New Year.

The Students of ICAI has the tough role as they are in examination at

the time of Diwali fest. I personally think that if we have to achieve

something we should be focus about it and there is striking line Haile

Gebrselassie Once you have commitment, you need the discipline and

hard work to get you there. Pimpri Chinchwad Branch Managing

Committee Members wishes you all the best of luck who are

struggling, working very hard for your future.

Branch witnessed very well programmed for the members & our

students. We are conducting Certificate Course on Indirect Taxes from

21st Nov’2015 to 16 Jan’2016 I here request members to take the benefit

for future perspective. There are various seminars Workshop for

members & Students in the month of Nov & Dec’2015.

I have these words of famous Shri Buddha “We are shaped by our

thoughts, we become what we think. When the mind is pure, joy

follows like a shadow that never leaves”.

CA.Prasadh Saraaf

Chairman

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 3

Table of Contents

Sr No

Particulars Page No

1 Chairman Communiqué 2

2 Index 3 3 Office Bearers 2015-16 4 4 Updates/notifications/Circulars/Legal

Decision

5-11

5 Forth Coming Events 12

6 Event 13-15 7 ITT/OP/GMCS – I&II/CPT Mock Test 16

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 4

MANAGING COMMITTEE MEMBERS

( Year 2015-16 )

CA.Prasadh Saraaf

Chairman

CA.Suhas Gardi

Vice Chairman

CA.Maheshwar Marathe

Secretary & Treasurer

CA.Baban Dangale

Immediate Past Chairman

CA.Manojkumar Agarwal

Past Chairman

CA.Kishor Gujar

Managing Committee

Member

CA.Santosh Sancheti

Managing Committee Member

CA.Pankaj Patni

Managing Committee Member

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 5

Nov 2015 CBDT Invites Suggestions From Public On Issues In ICDS

Requiring Guidance And Clarification

The CBDT has issued a press release dated 26.11.2015 pointing out that after

notification of ICDS, it has been brought to the notice of the CBDT by the

stakeholders that certain provisions of ICDS may need further clarification/

guidance for proper implementation. These implementation issues raised by the

stakeholders have been referred to an expert committee comprising of

departmental officers and professionals and the committee is currently examining

these issues. The CBDT has stated that in order to issue a comprehensive

guidance/clarification on this matter, the stake holders and general public are

requested to bring out issues/points which in their opinion would require further

clarification/guidance for proper implementation of the provisions of the ICDS.

These issues/points may be submitted by 15th December, 2015 at the email

address (dirtpl3@nic.in) or by post at the stated address

Dept Complies With High Court Directives & Sets Out Detailed

Procedure For Filing Appeals and Effective Representation In the

Delhi High Court

In National Petroleum Construction Company Vs. DIT in ITA Nos.

143, 144, 533/2013 and 795/2014, the Delhi High Court in its order dt.

13.08.2015, dt. 20.08.2015 and 28.09.2015 directed the Income Tax

Department to formulate and implement a standard operating

procedure on the following three issues:

(i) Issue No.1:- A mechanism should be put in place for immediate

and seamless transfer of cases from one standing counsel to another

so that unnecessary adjournments are not sought by the counsels on

the ground of lack of formal order of allocation, want of instructions or

papers. The lTD to ensure that in none of the matters there is a

situation where (a) there is no one appearing for the lTD (b) even if

they are, they have neither instructions nor papers. It will be

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 6

responsibility of the lTD to ensure that the standing counsel who have

been assigned the cases have the complete records. It should not be

an excuse for Standing Counsel of the lTD to take adjournment on the

ground that they have no instructions or that they do not have the

case papers.

CBDT Warns Top-Brass Of Adverse Action If They Don’t Pass S.

12AA Orders Within Time Limit

The CBDT has issued Instruction No. 16 of 2015 dated 06.11.2015 in which it

has taken a stern view of the fact that the time limit of six months specified in s.

12AA(2) of the Income-tax Act 1961 for passing an order granting or refusing

registration under s. 12AA are not being adhered to by the Commissioners of

Income Tax (Exemptions). The CBDT has directed the Chief Commissioners to

monitor that the Commissioners are adhering to the time limit and to take suitable

administrative action in the case of laxity

Important Notification/Circulars

Imp Notification By Central Government Of ‘Tolerance Range’ For

Transfer Pricing Cases For AY 2015-16

The Ministry of Finance has issued a Notification dated 29.10.2015 in which it is

stated that where the variation between the arm’s length price determined under

section 92C and the price at which the international transaction or specified

domestic transaction has actually been undertaken does not exceed one percent

of the latter in respect of wholesale trading and three percent of the latter in all

other cases, the price at which the international transaction or specified domestic

transaction has actually been undertaken shall be deemed to be the arm’s length

price for Assessment Year 2015-2016

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 7

CIT vs. Five Vision Promoters Pvt. Ltd

(Delhi High Court) COURT: Delhi High Court

SECTION(S): 68

DATE: November 27, 2015 (Date of pronouncement)

DATE: November 29, 2015 (Date of publication)

AY: 2007-08, 2008-09

S. 68 (share capital): (i) It is a fallacy to assume that a company which has not commenced business

has unaccounted money, (ii) Fact that investors have a common address is not relevant, (iii) Fact

that shares were subsequently sold at reduced rate is not relevant

There is a basic fallacy in the submission of the Revenue about the precise role of the

Assessee, Five Vision. The broad sweeping allegation made is that “the Assessee being a

developer is charging on money which is taken in cash”. This, however, does not apply to

the Assessee which appears to be involved in the construction of a shopping mall. In fact

for the AYs in question, the Assessee had not commenced any business. The construction

of the mall was not yet complete during the AYs in question. The profit and loss account

of the Assessee for all the three AYs, which has been placed on record, shows that only

revenue received was interest on the deposits with the bank. Assessee is, therefore, right

in the contention that the basic presumption of the Revenue as far as the Assessee is

concerned has no legs to stand. Correspondingly, the further allegation that such ‘on

money’ was routed back to the mainstream in the form of capital has also to fail

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 8

Shamsher Singh Verma vs. State of Haryana

(Supreme Court)

COURT: Supreme Court

SECTION(S): S 3 of Indian Evidence Act

DATE: November 24, 2015 (Date of pronouncement)

DATE: November 29, 2015 (Date of publication)

AY: -

S. 3 of Indian Evidence Act: A "Compact Disc" (CD) is a "document" and is admissible as evidence

In view of the definition of ‘document’ in Evidence Act, and the law laid down by this

Court, as discussed above, we hold that the compact disc is also a document. It is not

necessary for the court to obtain admission or denial on a document under sub-section (1)

to Section 294 CrPC personally from the accused or complainant or the witness. The

endorsement of admission or denial made by the counsel for defence, on the document

filed by the prosecution or on the application/report with which same is filed, is sufficient

compliance of Section 294 CrPC

Hero Cycles (P) Ltd vs. CIT (Supreme

Court) COURT: Supreme Court

SECTION(S): 36(1)(iii)

DATE: November 5, 2015 (Date of pronouncement)

DATE: November 26, 2015 (Date of publication)

AY: 1988-89

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 9

S. 36(1)(iii): Law on when interest expenditure on loans diverted to sister concerns and directors can

be allowed as business expenditure explained

Once it is established that there is nexus between the expenditure and the purpose of

business (which need not necessarily be the business of the assessee itself), the Revenue

cannot justifiably claim to put itself in the arm-chair of the businessman or in the position

of the Board of Directors and assume the role to decide how much is reasonable

expenditure having regard to the circumstances of the case. It further held that no

businessman can be compelled to maximize his profit and that the income tax authorities

must put themselves in the shoes of the assessee and see how a prudent businessman

would act. The authorities must not look at the matter from their own view point but that

of a prudent businessman

DCIT vs. Zuari Estate Development &

Investment Co Ltd (Supreme Court) COURT: Supreme Court

SECTION(S): 143(1), 147, 148

DATE: April 17, 2015 (Date of pronouncement)

DATE: November 26, 2015 (Date of publication)

AY: 1991-92

S. 143(1)/ 147: As a s. 143(1) intimation is not an assessment, there is no question of "change of

opinion" by the AO

Can it be said that any “assessment” is done by them? The reply is an emphatic “no”. The

intimation under Section 143(1)(a) was deemed to be a notice of demand under Section

156, for the apparent purpose of making machinery provisions relating to recovery of tax

applicable. By such application only recovery indicated to be payable in the intimation

became permissible. And nothing more can be inferred from the deeming provision.

Therefore, there being no assessment under Section 143(1)(a), the question of change of

opinion, as contended, does not arise

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 10

Spentex Industries Ltd vs. CCE (Supreme

Court) COURT: Supreme Court

SECTION(S): 119

DATE: October 6, 2015 (Date of pronouncement)

DATE: November 23, 2015 (Date of publication)

AY: -

CBDT & Govt are bound by their own interpretation of a statutory provision. Principle of

"contemporanea expositio" explained. The word "or" can be interpreted as "and" if the former

leads to unintelligible and absurd results

It is to be borne in mind that it is the Central Government which has framed the Rules as

well as issued the notifications. If the Central Government itself is of the opinion that the

rebate is to be allowed on both the forms of excise duties the government is bound

thereby and the rule in-question has to interpreted in accord with this understanding of the

rule maker itself. Law in this respect is well settled and, therefore, it is not necessary to

burden this judgment by quoting from various decisions

State Bank of Patiala vs. CIT (Supreme

Court) COURT: Supreme Court

SECTION(S): 2(7) of the Interest-tax Act

DATE: November 18, 2015 (Date of pronouncement)

DATE: November 20, 2015 (Date of publication)

S. 2(7) Interest-tax Act: Right to charge overdue interest on discounted Bills of Exchange is not

“interest” as it does not arise on account of delay in repayment of any loan or advance. The right

arises on account of default in the payment of amounts due under a discounted bill of exchange

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 11

Section 2(7) itself makes a distinction between loans and advances made in India and

discount on bills of exchange drawn or made in India. It is obvious that if discounted bills

of exchange were also to be treated as loans and advances made in India there would be

no need to extend the definition of “interest” to include discount on bills of exchange.

Indeed, this matter is no longer res integra. The Karnataka High Court’s view is directly

contrary to the view of this Court in CIT v. Sahara India Savings & Investment Corpn.

Ltd., (2009) 17 SCC 43, and, therefore, cannot be countenanced. “Loans and advances”

has been held to be different from “discounts” and the legislature has kept in mind the

difference between the two. It is clear therefore that the right to charge for overdue

interest by the assessee banks did not arise on account of any delay in repayment of any

loan or advance made by the said banks. That right arose on account of default in the

payment of amounts due under a discounted bill of exchange.

Andaman Timber Industries vs. CCE

(Supreme Court) COURT: Supreme Court

DATE: September 2, 2015 (Date of pronouncement)

DATE: November 16, 2015 (Date of publication)

Failure to give the assessee the right to cross-examine witnesses whose statements are relied up

results in breach of principles of natural justice. It is a serious flaw which renders the order a nullity

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 12

Forth Coming Events...

SR NO

DATE SEMINAR DETAILS Speakers

1 29.11.2015 HOW to face Cpt Examination CA.Mahesh Khandekar

2 19.12.2015

Half day Seminar on “Precaution & Compliances under MVAT Law” 1. Issues in MVAT Audit. 2.MVAT AUDIT Procedural Changes

Adv.Mahesh Bhagwat

3 26.12.2015 6 CPE SEMINAR ON “INTERNAL FINANCIAL CONTROLS Under COMPANY’S ACT & Subsidy Schemes ,Professional Ethics, Code of Conduct & Peer Review” 1. “Internal Financial Controls Under Company’S Act. 2. Subsidy Schemes for Manufacturing & IT Units by government of Maharashtra. 3.Professional Ethics, Code of Conduct & Peer Review

1. CA Aditya Kulkarni

2. CA. Amey Shah 3. CA..Chandrashekhar

Vaze

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 13

Events..

Certificate Course on Indirect Taxes from 21st Nov’15-16 Jan’16

Program:-Lighting of Lamp at Investor Awareness programme Held on 21

st Nov’15.

L to R:- CA.Kishor Gujar Professional Devlopment Committee of ICAI,CA.R P.Chanchalani

Speaker,CA.Prasadh Saraaf Chairman of Pimpri Chinchwad Branch,CA.Baban Dangale Immediate

Past Chairman.

CPT MOCK TEST of November batch 29.11.2015

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 14

How To Face CPT Exam

Speaker CA. Mahesh Khandekar

Felicitating CPT Faculty for conducting CPT Crash Course

CA.Ayush Sancheti &

CA.Atishay Jain guiding students of CPT Crash Course

Branch Head Ms.Pratima Bhise felicitating CA. Ayushi Sancheti

Faculty of CPT Crash Course

Branch Head Ms.Pratima Bhise felicitating CA. Ayushi Sancheti

Faculty of CPT Crash Course

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 15

Diwali Dhanteras Pooja at Branch on 7.11.2015

CA.Prasadh Saraaf doing Diwali Puja at Dhanteras

On the eve Building was decorated with Lightening & Lighting lamp.

Diwali Melawa Eve celebration with Lightening lamp

diyas & Rangoli Design on 7.11.2015.

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 16

PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 17

DETAILS OF ITT BATCHES CONDUCTED DURING THE YEAR 2015

SR NO Month START DATE END DATE BATCH NO. NO OF STUDENTS

14 Nov'15 18.11.2015 16.12.2015 1115122 25

15 Nov'15 18.11.2015 16.12.2015 1115123 23

16 Nov'15 30.11.2015 29.12.2015 1115126 19

DETAILS OF ORIENTATION BATCHES CONDUCTED DURING THE YEAR 2015

SR. NO.

Month START DATE END DATE BATCH NO NO OF STUDENTS

13 Nov-15 17.11.2015 27.11.2015 62 28

14 Nov-15 27.11.2015 2.12.2015 63 23

DETAILS OF GMCS I BATCHES CONDUCTED DURING THE YEAR 2015

SR. NO.

Month START DATE END DATE BATCH NO NO OF STUDENTS

13 Nov-15 17.11.2015 27.11.2015 62 28

14 Nov-15 27.11.2015 2.12.2015 63 23

Pimpri Chinchwad Branch of WIRC of ICAI

Mock Test Series

CPT Mock Test Sr.No Detail Date of CPT Mock Test No. of

Students Venue

9 CPT 29.11.2015 36 ICAI Bhawan Pimpri Chinchwad Branch of WIRC of ICAI